Photo: Artur Widak / NurPhoto / NurPhoto via AFP
Shavkat Alimbekov Senior Research Fellow International Institute for Central Asia
08/10/2025 08:00
Under such conditions, regional organizations are gaining ever greater importance. They are becoming not only political platforms but also significant economic pillars capable of ensuring sustainable development amid global instability.
A vivid example of such an evolving organization is the Organization of Turkic States (OTS). Initially focused on cultural and humanitarian cooperation, it is now rapidly transforming into a full-fledged economic community.
This transformation is clearly reflected in the OTS macroeconomic indicators. The combined GDP of the member states reached $2.1 trillion in 2024, while intra-organization trade grew from $30.9 billion in 2022 to $45 billion in 2024 — a 45% increase in just two years, significantly exceeding the global average and demonstrating deepening economic integration.
A particularly notable contribution to this growth comes from Central Asia. While Türkiye remains the largest economy within the OTS, it is Central Asia — and especially Uzbekistan — that demonstrates the most dynamic development. In 2024, Uzbekistan’s economy recorded stable growth of 6%.
Moreover, in the first quarter of this year, the country’s GDP grew by 6.8% compared to the same period of the previous year. The main contributors to this growth were key sectors: services increased by 7%, construction by 10.7%, and industry by 6.5%.
These figures underscore Uzbekistan’s growing role as a driver of economic growth within the OTS and confirm its readiness not only to showcase its own achievements but also to shape the strategic agenda of the entire Turkic world, offering initiatives capable of defining a long-term development trajectory for the whole organization.
At the Informal OTS Summit held on May 21, 2025, in Budapest, President Shavkat Mirziyoyev proposed the creation of a Unified Investment Portal — a digital platform designed to consolidate information on priority sectors, investment projects, and available opportunities. Such a system will ensure transparent and predictable conditions for both domestic and international investors, thereby enhancing the overall investment attractiveness of the region.
Expanding on the theme of investment integration, the President further proposed the establishment of a joint venture capital company aimed at supporting startups and high-tech projects. This initiative is particularly relevant for the Central Asian countries, where access to long-term capital remains limited.
Venture mechanisms not only allow for risk-sharing but also stimulate innovation — a crucial condition for transitioning to the economy of the future.
The region’s growing appeal to investors is also supported by numbers: Foreign Direct Investment (FDI) in OTS countries reached $50 billion in 2023, which is 66% higher than in 2017. At the same time, the number of joint ventures nearly doubled — from 53,000 to 92,000, reflecting increased trust and deeper economic cooperation among the member states.
These positive trends are particularly visible in Uzbekistan: since the beginning of 2024, over 500 new enterprises with OTS member-state capital have been established, bringing their total number to 4,000, or 28.8% of all foreign-invested enterprises in the country.
A logical continuation of the investment agenda is industrial cooperation. Uzbekistan has proposed developing a Program of Industrial Cooperation aimed at creating major production capacities in the chemical, energy, mining, textile, pharmaceutical, leather and footwear, food, and construction industries. This will facilitate the creation of cross-border production chains, optimizing costs and accelerating project implementation.
According to UN data, cooperative models can reduce production preparation time by 14–20 months and cut costs by up to 70% compared to autonomous implementation. This brings not only economic benefits but also strong social effects — new jobs are created, and the region’s export potential grows.
One of the most promising sectors is pharmaceuticals, where joint ventures could not only meet domestic demand but also access foreign markets, including the Middle East and Africa.
The development of industrial cooperation among OTS countries has been identified as a key priority in the Turkic World Vision 2040. An important instrument for this is the Turkic Chamber of Commerce and Industry, which effectively facilitates stronger cooperation among entrepreneurs.
However, without the development of modern infrastructure, sustainable industrial and trade interaction is impossible. Therefore, the creation of efficient East–West and North–South transport corridors is becoming a strategic priority for the OTS. At the same time, it is important to accelerate the introduction of simplified customs procedures to remove excessive administrative barriers.
In this context, President Mirziyoyev proposed holding the International Forum on Multimodal Transport and Logistics of Turkic States in Tashkent in November 2025, which will serve as an important platform for developing coordinated approaches and strengthening sectoral partnerships.
The forum is especially timely, given that freight transport among OTS countries currently faces a number of serious challenges — from overloaded routes to a shortage of modern logistics hubs and service infrastructure.
According to Western expert estimates, reducing customs clearance time by just one day can increase trade turnover by 3–5%. Thus, investment in infrastructure is not merely support for trade — it is the key to accelerating the growth of the entire regional economy.
Among the key initiatives announced by the President of Uzbekistan, particular attention should be given to the Practical Program for Trade Expansion. Its implementation could significantly boost economic activity within the OTS, creating additional incentives for expanding trade among member states.
A crucial element of this program’s success is the development of modern digital tools that simplify and accelerate foreign economic operations.
In this regard, a central role is played by the “Turk-Trade” online platform — a unified digital ecosystem for trade participants within the OTS. Its goal is to bring together producers, investors, and buyers in one space, where they can conclude deals in real time, track logistics, and exchange information.
This system is particularly important for small and medium-sized enterprises (SMEs) — the backbone of the Turkic economies. Through digital solutions, SMEs gain access to new markets with minimal costs, enhancing competitiveness and stimulating entrepreneurship.
Overall, the initiatives put forward by the President of Uzbekistan can be seen as a starting point for a large-scale institutional transformation of the Organization. The country assumes the role not just of an active participant but of a driver of systemic change, shaping a new architecture of regional cooperation.
The key elements of this new agenda are a digital economy, joint production, logistics modernization, and investment cooperation. Together, they form a solid foundation for the sustainable, competitive, and mutually beneficial growth of the Turkic world.
The importance and relevance of these initiatives will be reaffirmed at the upcoming OTS Summit, to be held in Baku in early October 2025. The heads of state will discuss the priority directions of regional cooperation, and for Uzbekistan, this will serve as an important opportunity to advance its key initiatives in digital economy, joint production, and investment cooperation.