Key Developments in Uzbekistan’s Business Landscape: March 2025

Uzbekistan has seen several significant developments in its business and economic landscape in March 2025. These changes are poised to impact various sectors, from real estate and transportation to digital transformation and international trade. Here are some of the most notable updates:

1. Honeywell Expands in Uzbekistan:
   Honeywell has launched a new subsidiary, Honeywell Industrial Automation LLC, in Uzbekistan to support the country’s industrial digital transformation. The company plans to establish a Global Engineering Center in Tashkent, focusing on automation, future aviation development, and energy transition. This move aims to enhance local engineering capabilities and create professional growth opportunities for Uzbek engineers. Honeywell has been active in Uzbekistan since 1998, completing over 100 technology projects across various sectors.
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2. Kyivstar Acquires Uklon Taxi Service:
   Ukrainian mobile operator Kyivstar is acquiring a 97% stake in the taxi service Uklon for $155.2 million USD. This acquisition is part of Veon Group’s strategy to expand Uklon’s operations to Kazakhstan, Pakistan, and Bangladesh. Uklon, which launched in Uzbekistan in June 2023, aims to capture 10% of the Uzbekistani taxi market and plans to operate in all cities with over 100,000 people.
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3. Tashkent Airport Opens New Cargo Terminal:
   Tashkent International Airport has opened a new cargo terminal with a capacity of 120,000 tonnes of cargo per year. The terminal, covering 5.2 hectares, includes 8,500 square meters of warehouse space and specialized areas for plants, animals, valuables, food, and medicine. This development is expected to significantly enhance the airport’s cargo handling capabilities.
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4. Uzbekistan’s Real Estate Market Shows Instability:
   The real estate market in Uzbekistan experienced instability in February 2025, with a 12% decrease in transactions compared to January 2025. However, there was a 1% year-on-year increase. Secondary housing prices fell by 0.6% nationwide but increased by 1% year-on-year. The largest decreases in transactions were observed in the Surxondaryo, Namangan, and Jizzakh regions.
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5. Uzbekistan and Turkey Strengthen Economic Cooperation:
   Uzbekistan and Turkey are enhancing their economic cooperation, particularly in the construction materials sector. A meeting between the Turkish Construction Materials Manufacturers Association (IMSAD), O’zsanoatqurilishbank, and O’zsanoatqurilishmateriallari resulted in a nine-point cooperation plan. This plan includes commercializing research, improving raw material quality, and attracting foreign investment.
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6. Temu Blocked in Uzbekistan:
   The Chinese e-commerce platform Temu has been blocked in Uzbekistan due to its failure to comply with tax requirements. Despite registering a legal entity in Uzbekistan on March 18, 2025, Temu faced issues related to back taxes and integration with tax authorities. The block is expected to impact Temu’s operations and its aggressive marketing strategy in the region.
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These developments highlight Uzbekistan’s dynamic business environment and its efforts to attract foreign investment, enhance infrastructure, and support digital transformation. As the country continues to evolve, these changes are likely to have a significant impact on its economic growth and development.