Economics of cooperation: how Uzbekistan and Kazakhstan are creating a common growth space

Current relations between Uzbekistan and Kazakhstan demonstrate an example of sustainable and dynamic cooperation, where political dialogue is organically complemented by specific projects in trade, investment and industry. Today, this partnership goes far beyond the bilateral agenda, becoming a key link in the formation of a common economic space in Central Asia.

Economic dynamics: growth and diversification of trade

According to the results of January - September 2025, trade turnover between Uzbekistan and Kazakhstan reached 3.5 billion dollars, which means an increase of 15.5 percent compared to the same period last year. Exports amounted to $1.06 billion, which is 6 percent more than in 2024, and imports amounted to $2.42 billion, which shows an increase of 20.3 percent.

This positive trend reflects not only a quantitative increase in volumes, but also a gradual diversification of the trade structure, when the share of products with high added value in the export basket is growing.

Among the key export directions are products of mechanical engineering, the agricultural sector and construction materials. The Uzbek side is actively increasing the supply of automotive components, vegetables, fruits, mineral waters, textiles and cement. In 2024 alone, the volume of exports to Kazakhstan increased by 2.4 percent, and the range expanded by 86 new product items - from electricity and butter to copper and cocoa products

Investments and joint ventures: an increase in the number of participants and new directions

As of August 2025, 1,157 enterprises with the participation of Kazakh capital were registered in Uzbekistan, of which 281 are joint ventures and 876 are completely foreign. Their main areas of activity are trade, construction, information technology, insurance and financial services

In Kazakhstan, in turn, there are 5,400 legal entities with Uzbek capital - an indicator that emphasizes the mutual interest of business in both countries.

Regional cooperation centers and clusters

Regional cooperation centers in In Uzbekistan, such as Namangan and Syrdarya regions, are already working on creating agro-industrial and industrial clusters. An agro-industrial cluster has been established in Namangan, aimed at developing exports and introducing precision farming technologies. In the Syrdarya region, the construction of an industrial cluster with an area of ​​70 hectares has begun, including factories for the production of polyethylene pipes, building materials and an agricultural complex.

Similar projects are being implemented in Karakalpakstan, Tashkent and Samarkand regions, where logistics hubs and processing enterprises are being formed. In Kazakhstan, the Turkestan, Kyzylorda and Zhetysu regions are actively participating in such initiatives, where joint processing of agricultural raw materials and production of food products with high added value are being developed.

Such regional partnerships contribute to deepening economic integration, the development of joint logistics and the formation of sustainable production chains between neighboring regions of the two countries.

Forums and dialogue: a mechanism of trust and concrete solutions

The Intergovernmental Commission on Cooperation between the Republic of Uzbekistan and the Republic of Kazakhstan, co-chaired by the Prime Minister of the Republic of Uzbekistan Abdulla Aripov and the Prime Minister of the Republic of Kazakhstan Olzhas Bektenov, plays a key role in deepening the strategic partnership between the two countries.

In October 2025, the 22nd meeting of the Commission was held in the city of Khiva, during which issues of expanding trade, economic and investment interaction, industrial cooperation, development of transport and transit connections, cooperation in the agricultural sector and energy, as well as in the field of ecology and rational use of water resources were discussed in detail. Special attention was paid to issues of interregional and cross-border cooperation, as well as joint initiatives in the field of tourism and sports.

Earlier, the IV Forum of Interregional Cooperation was held in Samarkand, as a result of which a Roadmap was signed, developed by the Minister of Investment, Industry and Trade of the Republic of Uzbekistan Laziz Kudratov and the Minister of Trade and Integration of the Republic of Kazakhstan Arman Shakkaliev, providing for the implementation of projects and contracts worth $7.1 billion. In addition, 32 agreements were signed between the regions of the two countries and a package of trade contracts worth $700 million.

These documents form a long-term basis for the creation of joint industrial zones, transport and logistics centers and energy initiatives.

C5+1 format: cooperation on a regional scale

The meeting of heads of state in the C5+1 format, held on November 5-6, 2025 in Washington, became an important stage in strengthening the strategic partnership between Uzbekistan and Kazakhstan in the context of regional cooperation.

The partnership between the two countries is strengthening through the prism of collective goals - the development of sustainable infrastructure, energy interconnectivity, the introduction of digital and green technologies, as well as the creation of favorable conditions for the free movement of goods, capital and investment.

Joint initiatives of Uzbekistan and Kazakhstan go beyond their own borders: for example, among the regional projects, the construction of the Trans-Afghan Railway is considered, which could turn Central Asia into a key link of Eurasian logistics. This project, with the support of international partners, is part of the strategy to connect Central and South Asia through Afghanistan.

New logic of partnership: industry, energy and sustainable development

Kazakhstan remains for Uzbekistan the largest partner in the CIS and the second largest foreign trade turnover after Russia. Cooperation is developing in the logic of “new industrialization”: from joint production of auto parts and electrical equipment to interaction in the field of renewable energy, construction of solar and wind power plants, exchange of experience in the field of “green” finance and decarbonization.

Particular attention is paid to transport integration - the development of international corridors "Trans-Caspian", "North-South" and new routes through China, Iran and Turkey, which creates a solid basis for diversifying export flows and strengthening the region’s role in the global economy.

Conclusion: a common future for Central Asia

Cooperation between Uzbekistan and Kazakhstan is not just a pragmatic calculation or exchange of trade flows. This is the foundation of a new model of regional sustainability based on trust, economic interdependence and shared responsibility for the development of Central Asia.

Through joint projects, integration of energy and transport networks, support for entrepreneurship and technological interaction, the two countries are forming a modern space of cooperation that becomes an example for the entire region.