BAKU, Azerbaijan, December 17. Uzbekistan and Iran are consistently enhancing their economic cooperation, with a primary focus on expanding trade and investment flows. However, the further evolution of their bilateral relations necessitates a shift from mere trade growth to the establishment of more sustainable and strategic partnership models. In this regard, the forthcoming Uzbek–Iranian Business Forum and a series of B2B meetings are seen as pivotal mechanisms for deepening business ties and launching collaborative ventures.
Over the past five years, trade turnover between Uzbekistan and Iran has risen from approximately $250 million to around $500 million. Concurrently, investment activities have surged: in 2025, approximately 250 Iranian companies have either initiated or expanded their operations in Uzbekistan, underscoring the growing interest of Iranian businesses in the Uzbek market. In this context, both sides have set a target of boosting mutual trade to $2 billion annually.
"Iran and Uzbekistan are working towards an annual trade turnover of $2 billion," declared the Ambassador of Uzbekistan to Iran, Fariddin Nasriev. Speaking at a meeting with Iranian business representatives and members of the local chambers of commerce and industry in Markazi Province, he emphasized that the implementation of this goal is a priority for the presidents of both nations.
Achieving this ambitious target, however, requires a fundamental shift in the nature of their cooperation. The continued expansion of economic ties will depend not only on increased investment engagement and enhanced logistics frameworks but also on the successful transition to joint projects and the localization of production processes.
One of the factors that improved trade conditions was the Free Trade Agreement between Iran and the Eurasian Economic Union, which entered into force on May 15, 2025. The document provides Iran with preferential access to approximately 90% of the commodity nomenclature of the EAEU countries and reduces the average level of import duties from 20% to 4.5%. For Uzbekistan, this expands trade opportunities with Iran within the Eurasian space and reduces price barriers for exporters.
In parallel, a bilateral preferential regime is also in effect, within the framework of which ten types of Iranian and ten types of Uzbek products are supplied without customs duties and taxes. The expansion of this list reduces costs for business; however, its effect remains limited without the deepening of production and investment cooperation.
The transport component remains an important element of cooperation. The abolition of the $400 fee for each entry of trucks allowed for a noticeable reduction in the cost of transportation and simplified logistics between the two countries. At the same time, the further development of transport routes remains one of the key conditions for increasing trade and transit volumes.
For Uzbekistan, which is landlocked, the Iranian direction is of a strategic nature. It is through Iran that the country gains access to port infrastructure and foreign markets. In this context, the "North–South" international transport corridor is viewed as an important element of the long-term logistics strategy and diversification of foreign trade routes.
The use of Iranian ports, including Bandar Abbas, allows for the formation of multimodal routes with subsequent delivery of goods by rail to Uzbekistan. This increases the stability of foreign trade supplies and reduces dependence on a limited number of transport routes.
Simultaneously, financial transactions continue to represent a significant constraint. Iran's exclusion from the SWIFT system compels both parties to rely on barter trade mechanisms. While such arrangements facilitate the maintenance of current trade volumes, they inherently impose limits on growth and hinder the execution of investment projects that require stable and transparent financial systems.
In this context, the role of investment cooperation becomes particularly crucial. The increasing presence of Iranian-owned companies in Uzbekistan is viewed as a critical factor in strengthening economic ties and transitioning to a more sustainable partnership model, one that is less reliant on restrictions related to financial settlements.
This economic collaboration is further supported by a robust political dialogue. In May, the Intergovernmental Commission convened for a regular meeting in Tehran, culminating in the adoption of a comprehensive roadmap for cooperation covering the period from 2025 to 2027. This strategic document is designed to address and remove practical barriers in trade, investment, transport, and agriculture, ultimately fostering a more conducive environment for business growth.
In this logic, the Uzbek–Iranian Business Forum and B2B meetings acquire important significance. The participation of more than 70 Iranian companies from the fields of agriculture, construction, the food industry, logistics, and trade indicates the interest of the parties in transitioning from a general agenda to specific contracts and investment projects.
In general, Uzbek-Iranian cooperation is entering a stage of choosing a further trajectory. If interaction remains predominantly within the framework of the trade-barter model, growth rates will remain moderate. With the transition to investment projects and the development of logistics infrastructure, the target of $2 billion in trade turnover may become achievable in the medium term.