Government to fund 200 startup projects in high-potential sectors

As it was previously reported, on March 19, Shavkat Mirziyoyev signed a decree to increase the role of small and medium-sized businesses in the economy. Among other things, the document outlines measures to support startups in promising industries.

The Ministry of Economic Development and Poverty Reduction, the Innovation Development Agency, the UzVC venture fund, the Business Development Bank, and the Entrepreneurship Development Company have been tasked with jointly ensuring the implementation of at least 200 startup projects by the end of 2026, in cooperation with venture funds.

Priority will be given to initiatives in the following areas:

•  The applied use of AI, blockchain, big data, and digital technologies in the economy;
•  Green technologies, energy conservation, and renewable resources;
•  Medical services based on innovations and smart solutions;
•  Heating and cooling of residential, social, and governmental buildings using alternative energy sources;
•  Water conservation, smart technologies in water management, and the recycling of household wastewater;
•  Increasing agricultural productivity, reducing soil salinization (desalination), improving land reclamation, and addressing irrigation challenges;
•  Growing drought-resistant plants for areas with water supply challenges.

The president has set the task of organizing the implementation of new products and services created by startups within the public procurement system. This requires the rapid integration of these products and services into technical regulations and standards.

A startup project coordination center will be established at UzVC by the end of June. Additionally, the national venture fund will be allowed to make direct investments to develop the startup ecosystem and support startups.

The Central Bank has been instructed, together with commercial banks, to allocate $50 million to startups through the United Ventures and SQB Ventures funds by the end of 2026. The Ministry of Economic Development and Poverty Reduction and state-owned banks must attract another $50 million from abroad for these purposes by April.