Iran & Uzbekistan are Driving South-South Investment
People walk past shops in the Grand Bazaar in Tehran on March 3, 2025. Iran's parliament sacked the country's finance minister on March 2 after impeaching him over soaring inflation and a plunging currency, state television reported.
As the global economic order continues to shift toward multipolarity, strategic cooperation among emerging markets is taking center stage. Within this context, the growing economic engagement between Iran and Uzbekistan, now both BRICS+ members involved in the BRICS+ cooperation frameworks, demonstrates the increasing importance of South-South collaboration.
A Bold Economic Turn
At the Iran-Uzbekistan Business Forum held in Tehran on 11 May 2025, Uzbek Prime Minister Abdulla Aripov announced a sweeping incentive: full exemption from taxes and customs duties for Iranian investors operating in Uzbekistan. This signals a strong commitment by Tashkent to attract Iranian capital and expertise. The two countries already boast over 210 joint enterprises in sectors like construction, petrochemicals, textiles, and agriculture—double what they had five years ago. Aripov emphasized Uzbekistan's goal to grow its GDP to $160 billion and cited the $70 billion in foreign investment it attracted in 2023 as a sign of the country's potential.
Despite a stable $500 million annual trade volume, both sides view this as far below potential. Iran's Chamber of Commerce is pushing to double trade to $1 billion immediately and $2 billion long-term. Plans include removing visa requirements for Iranian businesspeople, preferential trade agreements, and leveraging Iran's key transit position through the International North–South Transit Corridor (INSTC).
Building the Foundation for Long-Term Trade
To remove trade and customs bottlenecks, Iran has proposed joint roadmaps and infrastructure upgrades. Uzbekistan has launched a Trade House in Tehran and is backing an Iranian sales office in Tashkent. Iran also suggested a bilateral investment fund via its National Development Fund to finance joint ventures, particularly in energy, petrochemicals, and technology.
In 2023, Iran exported $368 million worth of goods to Uzbekistan, compared to imports of just $81 million. Iran sees strong export potential in construction materials, food-processing equipment, and pharmaceuticals. As the Middle East's top steel producer and tenth globally, Iran also offers mining and metallurgical expertise that aligns well with Uzbekistan's development goals.
A Comprehensive Strategic Alliance
The partnership is expanding beyond trade. Joint tourism, healthcare, and cultural projects are on the table, supported by Iran's robust medical and pharmaceutical sectors. Hassanzadeh emphasized Iran's healthcare strengths and called for reciprocal visa waivers to boost people-to-people ties.
Culturally, Iran and Uzbekistan share deep Persianate and Islamic heritage. This opens up opportunities for cultural diplomacy, joint exhibitions, academic exchange, and tourism. In the BRICS context, their collaboration sets a strong example of South-South cooperation. With Iran as a member and Uzbekistan a partner, both countries stand to benefit from BRICS-led infrastructure projects and trade corridors, while reducing reliance on Western-dominated systems.
Written By:
*Dr Iqbal Survé
Past chairman of the BRICS Business Council and co-chairman of the BRICS Media Forum and the BRNN
*Chloe Maluleke
Associate at BRICS+ Consulting Group
Russian & Middle Eastern Specialist
**The Views expressed do not necessarily reflect the views of Independent Media or IOL.
** MORE ARTICLES ON OUR WEBSITE https://bricscg.com/
** Follow @brics_daily on Twitter for daily BRICS+ updates
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