BAKU, Azerbaijan, July 31. On July 27-28,
Ashgabat hosted the Turkmen-Uzbek Business Forum, bringing together
government officials and business representatives from both
countries. Rather than focusing primarily on increasing bilateral
trade, the discussions centered on industrial cooperation, joint
manufacturing projects, the construction sector, supplies of
construction materials, and expanding the participation of Uzbek
companies in major projects in Turkmenistan. Following the forum,
the sides agreed to intensify contacts between enterprises, promote
joint investment projects, and broaden cooperation in industry and
construction.
Particular attention was drawn to the tone of the Uzbek side's
statements. Uzbekistan's Ambassador to Turkmenistan, Ravshanbek
Alimov, said Tashkent is interested in expanding industrial
cooperation with Ashgabat, while representatives of Uzbek
businesses expressed their readiness to participate in construction
projects in Turkmenistan, supply construction materials and
industrial products, and establish joint manufacturing facilities.
Nearly all of the initiatives discussed were linked to
manufacturing, construction and industry, making this forum
noticeably different from traditional business events, which have
largely focused on trade.
To understand why industrial cooperation and construction
dominated the agenda in Ashgabat, it is necessary to look at
developments within Uzbekistan's own economy. In recent years,
Tashkent has been steadily reshaping its growth model, placing
emphasis not only on expanding production volumes but also on
increasing the output of higher value-added goods and strengthening
the export capacity of its industrial sector. Export-oriented
manufacturing is now viewed by the authorities as one of the key
drivers of the country's future economic growth.
This strategy is largely driven by the need to maintain strong
economic momentum. In 2025, Uzbekistan's industrial output grew by
6.8%, exports increased by 24%, and total foreign trade exceeded
$81 billion. At the same time, the government continues to
encourage the establishment of new manufacturing facilities, deeper
processing of raw materials, and the expansion of domestic
producers into foreign markets. These priorities are consistently
reflected both in the country's industrial development programs and
in support measures for export-oriented enterprises.
The construction materials industry illustrates this trend
particularly well. The sector has become one of the fastest-growing
branches of Uzbekistan's industry. In 2025, exports of construction
materials reached $1.2 billion, increasing by more than 40%
compared to the previous year, while the government simultaneously
launched hundreds of new investment projects aimed at further
expanding production capacity. In other words, the objective is no
longer limited to satisfying domestic demand but increasingly
focuses on building a production base designed to serve external
markets.
While domestic priorities are encouraging Uzbekistan to
accelerate industrial production, the external environment makes
this strategy particularly timely. Several neighboring markets are
simultaneously entering a stage in which demand for construction
materials, industrial equipment and engineering products could
increase substantially. This largely explains why Tashkent has been
actively promoting industrial cooperation with neighboring
countries in recent months.
Afghanistan remains the most obvious destination. Despite
continuing political and social instability, the country has
gradually moved toward implementing major infrastructure projects
in recent years, including the construction of the
Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline section
and the development of the Lapis Lazuli international transport
corridor. At the same time, Uzbekistan continues to promote the
Trans-Afghan Railway, expand trade with Kabul, and view the Afghan
market as one of the key export destinations for its industrial
sector. The structure of Uzbek exports is already evolving, with
metal structures, pipes, aluminum products, construction equipment
and other industrial goods playing an increasingly important role
alongside food products.
Iran presents another noteworthy case. Despite continuing
uncertainty, the country is likely to face significant demand for
the restoration and modernization of parts of its infrastructure
once the ongoing military conflict involving the United States and
Israel comes to an end. Even though Iran possesses a substantial
domestic industrial base, reconstruction processes of this scale
are traditionally accompanied by increased imports of certain
categories of construction materials and engineering solutions. For
Uzbekistan, this represents a potential expansion of demand for
exactly the types of products whose production it is now actively
increasing. Significantly, Tashkent has also continued to simplify
transport links with Iran, gradually removing selected transit
barriers and strengthening trade ties.
Against this backdrop, Turkmenistan occupies a special place. If
Afghanistan is viewed by Uzbekistan as a market where demand for
industrial products may increase as major infrastructure projects
progress, and Iran as a potential destination where reconstruction
efforts could generate substantial demand for construction
materials and engineering solutions after the current military
crisis subsides, Turkmenistan is already developing according to a
different logic. As Trend noted in its earlier analytical article,
"Inside Turkmenistan’s investment cycle: How Turkish
contractors anchor a new phase of economic expansion", the
country has effectively entered a new investment cycle, triggered
by the launch of the fourth phase of development at its giant
Galkynysh gas field.
However, the key significance lies not in the gas project itself
but in its multiplier effect. Such large-scale investment
inevitably stimulates the construction of new facilities, the
expansion of transport and energy infrastructure, increased
government spending and higher investment activity, creating
sustained demand for construction materials, industrial products
and contractor services over the coming years. This likely explains
the growing interest of Uzbek manufacturers in industrial
cooperation with Turkmenistan. The objective is no longer simply to
access a neighboring market, but to become part of an economic
cycle capable of generating long-term demand for jointly produced
goods.
For this reason, the business forum in Ashgabat goes beyond the
scope of a routine business gathering. It suggests that Uzbekistan
increasingly views Turkmenistan not merely as a neighboring market,
but as one of the key partners for expanding its own industrial
capacity and reaching new export destinations. If this approach
continues to develop in practice, bilateral cooperation is likely
to rely less on one-off trade transactions and increasingly on
joint investment projects, industrial cooperation and the
development of export-oriented manufacturing. In this sense, the
forum in Ashgabat can be viewed as one of the first signs of the
emergence of a new model of Turkmen-Uzbek economic partnership.
