BAKU, Azerbaijan, September 1. Uzbekistan and Iran are deepening economic ties through expanding bilateral trade, a pipeline of joint investment projects and growing business-to-business cooperation, while Iran's role as a transit corridor gives the relationship broader significance for Uzbekistan's international trade.
According to data in Uzbekistan's Fiscal Strategy 2027–2029, Uzbekistan's trade turnover with Iran reached approximately $578 million in 2025. Uzbekistan exported $156.5 million worth of goods and services to Iran, while imports from Iran amounted to $421.5 million, leaving Uzbekistan with a trade deficit of about $265 million.
The bilateral relationship has gained further momentum in 2026. Trade between Uzbekistan and Iran reached $305 million in January-June 2026, up 37.5% from the same period of 2025, according to Uzbekistan's Ministry of Investment, Industry and Trade.
Trend's calculations show that the first-half 2026 figure already represents about 53% of the total bilateral trade recorded in 2025. If trade were to continue at the same average monthly pace during the second half of the year, annual turnover could reach roughly $610 million, although this is a simple extrapolation rather than an official forecast.
Investment cooperation is also becoming a more prominent part of the relationship. Uzbekistan and Iran are currently promoting 29 joint projects, with the two sides seeking to expand investment and industrial cooperation across areas of mutual interest.
The focus on business-level cooperation was further demonstrated by a memorandum signed in August between the Jizzakh regional Chamber of Commerce and Industry and Iran's Arak Chamber of Commerce, Industries, Mines and Agriculture. The agreement provides for business delegation exchanges, direct contacts between entrepreneurs, joint investment projects and participation in trade exhibitions and business events in both countries.
The two countries are also preparing for the 17th meeting of the Uzbekistan-Iran Joint Intergovernmental Commission and the Uzbekistan-Iran Business Forum, scheduled for November 26-27 in Tashkent. The events are expected to focus on expanding bilateral trade, advancing investment projects and identifying new areas for business cooperation.
However, Iran's importance to Uzbekistan extends considerably beyond direct bilateral trade. In 2025, about $1.4 billion of Uzbek exports were transported through Iranian territory, equivalent to roughly 10% of Uzbekistan's non-gold exports. At the same time, around $3.9 billion of imports were transited through Iran, accounting for approximately 9% of Uzbekistan's total imports.
Trend's calculations show that the value of Uzbek exports transiting Iran was nearly nine times larger than Uzbekistan's direct exports to Iran in 2025. Similarly, imports transiting through Iran were more than nine times larger than direct imports from Iran. This demonstrates that Iran's economic significance for Uzbekistan is driven not only by bilateral commerce but also by its role as a logistics and connectivity gateway.
In Trend's assessment, this dual role makes Iran particularly important to Uzbekistan's efforts to diversify trade routes and strengthen connections with markets beyond Central Asia. The scale of transit flows suggests that improvements in logistics infrastructure and the reliability of transport corridors through Iran could have a considerably larger impact on Uzbekistan's trade than growth in bilateral commerce alone.
At the same time, the structure of bilateral trade presents an opportunity for Uzbekistan to increase exports to the Iranian market. Uzbekistan's $265 million trade deficit with Iran in 2025 shows that bilateral trade remains heavily weighted toward imports. Expanding Uzbek exports while developing joint production projects could help address this imbalance. The emerging regional business partnerships could support that objective. Cooperation between Jizzakh and Arak, alongside the 29 joint projects being promoted at the national level, creates channels for companies to move from conventional trade toward joint manufacturing, investment and technology cooperation.
Trend's analysis shows that the rapid growth in 2026 trade, combined with the investment pipeline and upcoming business forum, suggests that Uzbekistan-Iran economic relations are entering a more practical phase. Rather than relying solely on government-to-government agreements, the two countries are increasingly seeking to connect companies directly and develop projects with longer-term commercial value.
Overall, Uzbekistan-Iran economic ties are becoming broader than their bilateral trade figures indicate. With trade rising 37.5% in the first half of 2026, 29 joint projects in the pipeline and billions of dollars in annual trade moving through Iranian territory, Iran is emerging simultaneously as a market, investment partner and critical transit route for Uzbekistan.
