The American publication Stock Investor highlights the attractiveness of the IT market in Uzbekistan for foreign investors

The American publication Stock Investor published an article on the rapid development of the IT sector in Central Asia, specifically in Uzbekistan.

In the article “Three Ways to Invest in Central Asia’s IT Boom”, acknowledged the rapid development of the IT sector in Central Asia, particularly in Uzbekistan.

The article underscores that Uzbekistan, among the five Central Asian republics, is drawing investor attention with its ambition to become a global player in the field of information technology. The swift economic growth in the region, especially in Kazakhstan and Uzbekistan, presents investment prospects in the IT sector. According to World Bank projections, the regional GDP may strengthen by 4.8% by the end of 2023, maintaining an average of 4.7% in the next couple of years.

The piece notes that Uzbekistan provides tax benefits for businesses, fostering a favorable climate for economic development. Additionally, the region aims to establish itself as a digital market, focusing on six key sectors: healthcare, education, agriculture, finance, commerce, and tourism.

The article outlines three ways of investment for US citizens in IT sector of Central Asia against the backdrop of rapid advancement of digital technologies.

The first way is to invest in shares of EPAM Systems Inc., a resident of IT Park which is establishing a growing presence in the Central Asian market.

EPAM Systems Inc., a global digital transformation company offering software development and engineering services. Founded in 1993, it operates in over 50 countries worldwide, focusing on innovative software solutions. The company’s market capitalization stands at $15.875 billion, as of December 2023.

The second way is to invest in TBC Bank Group shares. The market capitalization of the company is $1.548 billion. Collaborating with the EBRD and IFIs, TBC Bank attracted $28.1 million to expand its presence in the banking market of Uzbekistan and contribute to the country’s digitalization.

TBC Bank has allocated substantial funds to the IT sector of Uzbekistan, acquiring a 51% stake in Payme for $5.5 million. These efforts reflect the bank’s strategic expansion in the region.

The third way to invest in the region is by opening a brokerage account, allowing investors to buy shares on the local Uzbek stock exchange, with the main platform being the Uzbek Commodity Exchange (UzEx) in Tashkent.

American investors can utilize the AFC Uzbekistan Fund, which is oriented towards high returns from stock growth, with a focus on private companies and state privatization.

As noted in the publication, Uzbekistan is in the early days of a 10- or 20-year boom cycle, emerging as a central hub for digitization and technology, facilitated by factors such as exponential demographic growth, the focus on English education, the accessibility of IT education, and a surging IT outsourcing sector.

The country actively attracts foreign investments, establishes partnership relations, and provides opportunities on both local and international stock exchanges.