Uzbekistan and Kuwait: Time to move forward together

In recent years, Uzbekistan has been actively developing multifaceted relations with countries around the world, emphasizing trade and economic growth, investment cooperation, industrial cooperation, and transport and logistics connectivity.

Uzbekistan’s efforts have been met with positive feedback and support from the global community, across all continents, primarily due to the consistent implementation of strategic objectives to improve the investment climate, create favorable conditions and protect investors’ rights, the country’s enormous potential, and its open economy.

The shared cultural, historical, and religious values, customs, and traditions are also of considerable importance, acting as a natural catalyst that accelerates cooperation between states. One such friendly country is Kuwait, a reliable friend and partner of Uzbekistan in the Middle East.

Kuwait was one of the first countries to recognize the independence of the Republic of Uzbekistan on December 30, 1991. Since then, a period of establishing friendly relations between the two countries has begun, based on a shared desire for peace, economic development, and the prosperity of both peoples.

The legal framework for cooperation between the two countries includes Intergovernmental Agreements on the Promotion and Mutual Protection of Investments, on Cooperation in the Fields of Culture and Art, on Trade, Economic, Scientific and Technical Cooperation, on the Avoidance of Double Taxation, and on Cooperation between the State Customs Committees of Uzbekistan and Kuwait.

The Chambers of Commerce and Industry of the two states work together on the basis of a Memorandum of Understanding, and the Diplomatic Academy of Kuwait and the University of World Economy and Diplomacy of Uzbekistan work together on the basis of a Partnership Memorandum.

Diplomatic relations between the two countries were established in July 1994. In 2001, the Embassy of the State of Kuwait was opened in Tashkent, and in November 2004, the Embassy of Republic of Uzbekistan was opened in Kuwait. To date, there have been two high-level visits – in 2004 to Kuwait and in 2008 to Uzbekistan.

In addition, a delegation headed by Sheikh Ahmed Nasser al-Muhammad al-Sabah, Minister of Foreign Affairs and Minister of State for Cabinet Affairs, participated in the international conference “Central and South Asia: Regional Connectivity. Challenges and Opportunities,” which took place in Tashkent in July 2023. During the delegation’s visit, Sheikh Ahmad Nasser al-Muhammad al-Sabah, was received by the President of Uzbekistan, Sh.M. Mirziyoyev.

Strong inter-parliamentary ties have been established – deputies of the National Assembly of Kuwait have visited Uzbekistan five times from 2002 to 2019. The National Assembly of Kuwait has a Kuwait-Uzbekistan Inter-Parliamentary Friendship Group. In 2017, the Legislative Chamber of the Oliy Majlis established the Uzbekistan-Kuwait Inter-Parliamentary Cooperation Group.

A joint intergovernmental commission on trade, economic, scientific, and technical cooperation is in operation. At the IGC meeting last November in Tashkent, measures were agreed to expand the range of goods traded, sign a Preferential Trade Agreement, expand cooperation in e-commerce, remove barriers, and hold “Made in Uzbekistan” and “Made in Kuwait” exhibitions on a mutual basis. A Program of Industrial Cooperation and an Agreement on Bilateral Investment Treaties are being developed.

Both countries understand the importance of strengthening trade and are consistently moving in this direction. The main items of trade turnover, which has grown almost 7 times since 2020, are services, mineral fuels, food products, and chemical products. Nevertheless, and this is recognized at the highest level, there is still enormous untapped potential for increasing interaction in this area.

A similar situation is observed in the field of investment cooperation. There are 7 enterprises operating in Uzbekistan with the participation of Kuwaiti capital.

Kuwait fully supports Uzbekistan’s reforms, and with the financial and advisory support of the Kuwait Fund for Arab Economic Development (KFAED), major social projects in healthcare, education, and various infrastructure sectors are being implemented in Uzbekistan.

In total, 10 credit agreements have been signed with KFAED for a total of $213.2 million and 4 technical assistance agreements for $2.5 million. Currently, the issue of financing the project “Development of preschool education in Uzbekistan based on public-private partnership” is being worked out jointly with KFAED.

Expert opinion is unanimous – despite the distance, the countries have significant potential for increasing trade and investment partnership, and industrial cooperation. Analysis shows the effectiveness of using mutual trade opportunities to organize trade supplies, joint ventures, and access to large regional markets.

Business is coming into play – a meeting of leading entrepreneurs from Uzbekistan and Kuwait is expected in the very near future, which means that new trade contracts and investment projects will not be long in coming.