In recent years, Uzbekistan has significantly enhanced its global relations. It focuses on economic growth, trade, investment cooperation, industrial collaboration, and improved transport and logistics connectivity. These efforts have garnered positive responses from nations worldwide. They are driven by the country’s strategic goals to improve the investment climate, protect investors’ rights, and leverage its open economy and vast potential.
A crucial factor driving this international cooperation is the shared cultural, historical, and religious values that foster strong partnerships between countries. Kuwait, a reliable ally in the Middle East, has been a steadfast partner to Uzbekistan since the latter’s independence. Kuwait was one of the first countries to recognize Uzbekistan’s sovereignty on December 30, 1991. Diplomatic relations were officially established in July 1994.
The legal foundation for this partnership includes several key agreements between the two countries. These agreements include trade, scientific and technical cooperation, mutual protection of investments, and the avoidance of double taxation. Additionally, collaborations between the Chambers of Commerce and Industry of both nations further strengthen ties. Partnerships between educational institutions like Kuwait’s Diplomatic Academy and Uzbekistan’s University of World Economy and Diplomacy also play a crucial role.
Over the years, high-level visits have fostered closer relations. Notably, in 2023, a delegation led by Sheikh Ahmed Nasser al-Muhammad al-Sabah, Kuwait’s Foreign Minister, participated in the international conference “Central and South Asia: Regional Connectivity. Challenges and Opportunities” in Tashkent. He was received by the President of Uzbekistan, Sh.M. Mirziyoyev. Furthermore, parliamentary ties have been reinforced with frequent visits by Kuwaiti deputies to Uzbekistan and the establishment of inter-parliamentary friendship groups in both countries.
The joint Intergovernmental Commission on Trade, Economic, Scientific, and Technical Cooperation has made notable strides. In its latest meeting, agreements were made to expand trade, introduce a Preferential Trade Agreement, and boost e-commerce cooperation. Additionally, they agreed to hold exhibitions showcasing products from both nations. As a result, trade between Uzbekistan and Kuwait has grown significantly, nearly sevenfold since 2020. Key trade items include mineral fuels, food products, and chemicals.
Despite these advancements, both countries acknowledge the vast untapped potential in trade and investment. Uzbekistan is home to seven enterprises with Kuwaiti investment, and Kuwait continues to support Uzbekistan’s development projects through the Kuwait Fund for Arab Economic Development (KFAED). With 10 credit agreements valued at $213.2 million and 4 technical assistance agreements totaling $2.5 million, KFAED plays a critical role in funding infrastructure, education, healthcare, and social projects in Uzbekistan. Currently, discussions are underway with KFAED to finance a project on preschool education development in Uzbekistan.
Experts agree that despite the geographic distance, both countries have significant opportunities to expand their trade and investment partnerships. They also see potential for industrial cooperation. A forthcoming meeting between leading business figures from Uzbekistan and Kuwait is expected to open the door to new contracts and investment projects. This will further cement their growing economic and diplomatic ties.
