BAKU, Azerbaijan, September 1. Uzbekistan is seeking to leverage its position within the Shanghai Cooperation Organization (SCO) to strengthen trade and investment ties, enhance transport connectivity, and expand cooperation in emerging areas such as digital technologies and artificial intelligence. With SCO member states already accounting for a substantial share of Uzbekistan’s investment and international freight flows, the organization has assumed increasing importance in the country’s efforts to deepen regional economic integration and diversify access to foreign markets.
President Shavkat Mirziyoyev arrived in Bishkek to participate in the SCO Council of Heads of State meeting and the SCO Plus format on August 31–September 1. The summit is expected to adopt the Bishkek Declaration marking the SCO’s 25th anniversary, alongside documents addressing economic cooperation, transport, artificial intelligence, environmental protection, and other areas.
For Tashkent, the timing is particularly relevant as several of its priorities within the organization are moving toward more concrete forms of cooperation. Uzbekistan has advanced initiatives related to transport corridors, investment mechanisms, industrial cooperation, critical minerals, energy, and digitalization, reflecting its efforts to utilize the SCO as a platform for addressing practical constraints on economic expansion. The key question for Uzbekistan, therefore, is how effectively the organization can facilitate connectivity, capital flows, and technological cooperation that directly support the country’s development objectives.
Uzbekistan is becoming increasingly integrated with SCO economies
The scale of Uzbekistan's economic ties with SCO members provides a strong economic rationale for deeper cooperation within the organization. According to Uzbekistan's Ministry of Foreign Affairs, investment from SCO countries reached $17.5 billion in 2025, with China accounting for about $13 billion, Russia $2.6 billion, Kazakhstan $870 million, Iran $265 million, India $247 million, Kyrgyzstan $197 million and Tajikistan $196 million. China therefore represented roughly 74% of investment from SCO members, while Russia accounted for almost 15%, highlighting both the depth of Uzbekistan's economic links with the two largest SCO economies and the concentration of capital flows within the group. This concentration creates an incentive for Tashkent to broaden the investment base by making it easier for companies and financial institutions from other SCO countries to participate in Uzbek projects.
Uzbekistan has increasingly promoted mechanisms aimed at achieving this, including an SCO investment forum, an electronic business portal and networks of venture companies and funds. The SCO Investment and Business Forum held in Bishkek on June 24-25 brought these priorities together, with discussions covering investment, trade, industrial and technological cooperation, artificial intelligence, e-commerce and industrialization. The emerging approach is therefore centered on creating channels through which existing economic ties can generate a wider range of investment and business connections, rather than relying predominantly on bilateral capital flows from the largest SCO economies.
Transport remains the most important economic priority
For Uzbekistan, transport connectivity has a particularly strategic importance because the country is landlocked and depends on transit through neighboring states to access major external markets. The importance of SCO countries to Uzbekistan's logistics network is already substantial. According to Uzbekistan's Center for Transport and Logistics Development Studies, international freight transportation between Uzbekistan and SCO member states increased by 40%, or 9 million tons, over five years, reaching 33.5 million tons in 2025.
SCO countries account for around 80% of Uzbekistan's international freight transportation, with the largest volumes involving Russia, Kazakhstan, China and Kyrgyzstan. Uzbekistan's Ministry of Transport estimates that freight transportation with SCO members could reach 47 million tons by 2030. This implies an additional increase of about 13.5 million tons, or 40%, from the 2025 level by the end of the decade.
The figures demonstrate why transport cooperation has become one of the central elements of Uzbekistan's SCO agenda. One of the most important projects is the China-Kyrgyzstan-Uzbekistan railway, which could strengthen Uzbekistan's connection with China and create an additional east-west route through Central Asia. At the same time, Tashkent has promoted transport links southward through Afghanistan toward Pakistan and the ports of the Indian Ocean. The development of these east-west and north-south corridors could expand Uzbekistan's access to external markets, reduce transport costs and strengthen the country's position as a regional logistics hub.
For Tashkent, however, the benefits of greater connectivity extend beyond transit revenues. More efficient transport links can improve the competitiveness of Uzbek exports and make the country more attractive to manufacturers seeking access to multiple markets. The SCO could support this process by improving coordination between national transport systems, including through harmonized customs procedures, digital documentation, border-crossing processes and transportation standards. Such coordination could help reduce bottlenecks along cross-border routes and increase the economic value of infrastructure projects already being developed across the region.
Tashkent wants to move from trade toward industrial cooperation
Uzbekistan's economic objectives within the SCO increasingly extend beyond increasing the volume of trade. Tashkent has been advocating the development of reliable production and logistics chains, mutual investment and deeper industrial cooperation. At the 2025 SCO summit in Tianjin, Mirziyoyev proposed several mechanisms, including a Regional SCO Center for Critical Materials, an SCO Energy Consortium, a network of venture companies and funds, and an electronic portal for business contacts and investment promotion.
The critical-materials initiative is particularly relevant to Uzbekistan's industrial strategy. The proposed center would facilitate cooperation in modern technologies for the extraction and deep processing of mineral resources. For Uzbekistan, greater participation in regional processing chains could help shift the country's role from a supplier of raw materials toward a producer of higher-value products. This distinction is important for the country's long-term growth. Investment in mining alone can increase export revenues, but investment in processing, metallurgy, chemicals, and related manufacturing can generate wider industrial effects, including technology transfer, skilled employment, and the development of domestic suppliers.
Cooperation with SCO members could therefore support Uzbekistan's efforts to integrate its mineral resources into broader regional value chains. The same principle applies to industrial localization. Uzbekistan can use its expanding domestic market, relatively large labor force and improving industrial base to attract production projects aimed at serving not only the Uzbek market but also neighboring Central Asian and other SCO markets.
Finance could provide another layer of support
The proposed SCO Development Bank is another initiative with potential relevance for Uzbekistan. SCO Deputy Secretary-General Sohail Khan said in May that consultations on establishing the bank had begun, describing it as a potential institution for financing joint projects and strengthening the organization's financial architecture. The issue was also discussed at the July meeting of SCO foreign ministers in Cholpon-Ata, where member states noted progress in consultations on the proposed institution, particularly in connection with investment, infrastructure and transport-logistics projects.
For Uzbekistan, an SCO financial institution could provide an additional source of long-term financing for infrastructure and industrial projects involving several member states. The potential value is particularly significant given the scale of infrastructure investment required to expand transport networks, electricity generation, industrial capacity and digital infrastructure. At the same time, the Development Bank would complement rather than replace existing financial institutions.
Uzbekistan already works with the World Bank, Asian Development Bank, Asian Infrastructure Investment Bank, European Bank for Reconstruction and Development, Islamic Development Bank and other international institutions. The country's 2025 presidential address specifically highlighted continued cooperation with these institutions on infrastructure modernization, sustainable energy and transport. The proposed SCO mechanism could therefore be most useful for projects with a clear regional component, particularly those requiring coordination and financing across multiple SCO countries.
The same applies to discussions on increasing the use of national currencies in mutual settlements. Wider use of local currencies could eventually reduce transaction costs and dependence on third-country currencies, although the effectiveness of such arrangements will depend on the development of financial markets, currency convertibility and settlement infrastructure.
Energy cooperation could support Uzbekistan's growing electricity needs
Energy represents another area where SCO cooperation could have a direct economic relevance for Uzbekistan. The country is facing rising electricity demand while simultaneously expanding generation capacity, renewable energy and transmission infrastructure. Against this backdrop, discussions within the SCO on energy security, efficiency, infrastructure protection, renewables and the proposed SCO Energy Consortium are aligned with Uzbekistan's own investment priorities. A regional mechanism could facilitate cross-border investment, technology transfers and greater coordination in electricity generation and transmission, particularly as Central Asian countries seek to develop complementary energy resources.
The economic implications extend beyond energy security. For Uzbekistan, a more coordinated regional energy system could support industrial expansion by improving the availability and reliability of electricity for manufacturing, data centers and other energy-intensive activities. This could become increasingly important as the country seeks to attract investment into higher-value industries and digital infrastructure. In this context, energy cooperation within the SCO could serve not only as a mechanism for coordinating energy projects, but also as part of the infrastructure base supporting Uzbekistan's broader industrial and technological development.
Digital cooperation is becoming a new dimension of Uzbekistan-SCO ties
The recent engagement between Uzbekistan and the SCO Business Council indicates that technology is becoming a more substantive component of Tashkent's economic agenda within the organization. At an August 11 meeting, IT Park Uzbekistan and the SCO Business Council discussed investment in Uzbek IT startups, digital infrastructure, data centers and R&D, including projects involving electronic mapping, government platforms, and transport and healthcare information systems. The sides also considered integrated projects combining computing capacity, energy supply and operational infrastructure. For Uzbekistan, such cooperation could help address one of the key requirements of its digitalization strategy: moving from the expansion of basic digital services toward the development and export of technology-intensive products.
Access to SCO markets and investors could give Uzbek technology companies additional opportunities to scale beyond the domestic market, while investment in data centers and R&D could strengthen the infrastructure needed to support AI and other advanced technologies. This direction is consistent with Mirziyoyev's earlier proposal to establish a New SCO Economic Dialogue focused on digitalization, artificial intelligence, robotics, biotechnology and other emerging sectors. The growing focus on these areas suggests that Uzbekistan is seeking to use the SCO not only to facilitate traditional trade and infrastructure cooperation, but also to connect its technology sector with a broader pool of capital, markets and expertise.
Uzbekistan's SCO strategy complements its multi-vector economic policy
Uzbekistan's expanding role within the SCO is taking place alongside an active effort to diversify its external economic partnerships. Tashkent continues to deepen relations with China and Russia while expanding economic ties with India, the European Union, Türkiye, the Gulf states, South Korea, Japan and other markets. The latest example is India, with the two countries agreeing on August 31 to raise bilateral trade to $5 billion by 2030 and expand cooperation in energy, critical minerals, pharmaceuticals, electronics, machinery and agriculture. Bilateral trade reached $598.1 million in the first half of 2026, while Indian investment and loans for fixed-capital projects in Uzbekistan amounted to $225.9 million. The agreements also cover areas such as healthcare, education, tourism and environmental protection, demonstrating that Tashkent's diversification strategy extends well beyond traditional goods trade.
This approach gives the SCO a specific place within Uzbekistan's broader economic architecture. The organization brings together several of the country's major economic partners, including China, Russia, India and Iran, while providing access to additional markets in Central and South Asia. At the same time, Uzbekistan is developing economic and transport links outside the SCO, including connections through the Caspian Sea and the Middle Corridor, as well as routes toward Afghanistan, Pakistan and the Persian Gulf. The SCO can therefore complement Uzbekistan's multi-vector strategy by providing a multilateral framework for coordinating selected cross-border projects, while Tashkent retains the flexibility to pursue bilateral partnerships and alternative trade routes with countries outside the organization.
What Uzbekistan brings to the SCO
The relationship is also important from the perspective of what Uzbekistan contributes to the organization. With its large domestic market, expanding industrial base, growing technology sector and central position within Central Asia, Uzbekistan represents a significant potential market for SCO companies and investors.
Its geographic position also gives it a role in several potential transport corridors connecting China with Central Asia and, further south and west, with the Caspian Sea, South Asia and the Middle East.
Uzbekistan's economic development therefore gives it an interest in strengthening regional connectivity, while its market and industrial potential give other SCO members an incentive to support such initiatives.
This creates a degree of mutual interest around infrastructure and trade that can exist even where member states have different geopolitical priorities.
Bishkek could advance Uzbekistan's economic agenda within the SCO
The Bishkek summit comes at a point when several of the initiatives promoted by Uzbekistan are moving through different stages of discussion. The summit agenda is expected to include documents on the economy, transport, artificial intelligence, environmental protection and other areas.
For Uzbekistan, several developments will be particularly relevant.
The first is the future of the SCO Development Bank and broader financial mechanisms for regional projects.
The second is the development of transport cooperation, including measures to improve customs procedures, digital logistics and the interoperability of transport systems.
The third is the proposed Energy Consortium and cooperation on renewable energy and regional energy infrastructure.
The fourth is industrial cooperation, particularly critical minerals, processing and localization.
The fifth is digitalization, including artificial intelligence, data infrastructure, R&D and technology investment.
The outcome of these initiatives will determine the practical scope of Uzbekistan's economic engagement with the organization in the coming years.
Outlook: Uzbekistan is seeking practical value from the SCO
Uzbekistan's approach to the SCO increasingly reflects the country's broader economic priorities. The objective is to improve connectivity, attract investment, integrate domestic companies into regional and global value chains, expand exports, and gain access to new technologies.
The organization can support these goals through several complementary mechanisms: transport coordination can reduce logistical barriers; financial institutions can provide additional capital; industrial cooperation can facilitate localization and deeper processing; energy cooperation can strengthen infrastructure; and digital initiatives can help Uzbek technology companies reach larger markets.
The scale of existing economic interaction suggests that the potential is significant. SCO member states already provided $17.5 billion in investment to Uzbekistan in 2025, while freight transportation with SCO countries reached 33.5 million tons and accounted for roughly 80% of Uzbekistan's international freight traffic. At the same time, the most important opportunities for Uzbekistan are likely to come from greater coordination of existing economic activity rather than the creation of entirely new economic relationships.
The country already has strong bilateral ties with China, Russia and other SCO members. The added value of the organization can therefore come from connecting these relationships through common transport standards, investment mechanisms, production networks and digital infrastructure. In this context, Uzbekistan is positioning the SCO as an additional layer of its economic strategy — one that can help connect its bilateral partnerships and regional initiatives into a broader framework. For Tashkent, the long-term value of the SCO will ultimately be measured by its contribution to lower transport costs, greater investment, stronger industrial capacity, expanded exports, and access to technology. The current trajectory suggests that Uzbekistan will continue pushing the organization toward precisely these practical economic objectives.
