For software and SaaS (Software as a Service) entrepreneurs, finding the right country to start or expand a business can make or break the venture. Factors like tax policies, operating costs, talent availability, and market accessibility play a pivotal role. Uzbekistan, a rising star in Central Asia, offers unique advantages for tech-focused businesses. Here’s why starting your software or SaaS company in Uzbekistan might be the smartest move you can make.
Strategic Location and Connectivity
Uzbekistan’s location at the heart of Central Asia provides an excellent time zone overlap with major global markets. Positioned at GMT+5, the country ensures manageable working hours for teams collaborating with partners or clients in Europe, the Middle East, and Asia.
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Global Accessibility: With over 76 cities offering direct flights to Tashkent and visa-free access for citizens of 90+ countries, Uzbekistan is one of the most accessible locations in the region.
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Trade and Connectivity Growth: Foreign trade turnover has surged, reaching $62.6 billion in 2023—more than double its 2017 levels. This rapid growth reflects an increasingly open and dynamic economy.
Favorable Business Environment
Uzbekistan is positioning itself as a tech-friendly country with government-backed initiatives and financial incentives for IT and SaaS companies. The country offers competitive tax rates and policies designed to support foreign entrepreneurs:
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Zero Risk Programs: Companies can access free office spaces for up to a year, partial HR services coverage, and reimbursements for employee training of up to $5,000.
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Ease of Operations: Foreign employees do not require work permits, and salaries and dividends can be paid in foreign currencies—features that simplify cross-border operations for startups.
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Corporate Tax Breaks: Uzbekistan’s corporate tax rates, land taxes, and personal income taxes are among the most competitive globally, especially when compared to countries like India or the Philippines.
Cost-Effective Operations
Launching and maintaining a business in Uzbekistan is incredibly cost-efficient:
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Affordable Salaries: Annual salaries for software developers range from $7,200 for junior roles to $60,000 for senior positions—significantly lower than global averages while maintaining high-quality output.
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Low Overheads: Office rental rates are impressively low, starting at $5 per square meter in regional areas. This affordability extends to other operational expenses like IT infrastructure and employee benefits.
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Tax Incentives: Businesses operating within Uzbekistan’s IT Park benefit from significant tax exemptions, reducing costs further and enhancing profitability.
Abundant Skilled Talent
With a population of over 37 million, Uzbekistan boasts a young and dynamic workforce, with 65% of its population under 35 years old. The country produces thousands of graduates annually who are ready to contribute to the tech sector:
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Tech-Savvy Workforce: Over 25,000 graduates emerge from IT-focused universities each year, ready to join industries like software development, customer support, and data analysis.
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Multilingual Abilities: English proficiency is high, with over 5 million speakers, and additional languages like Russian, Turkish, and Arabic are widely spoken, enabling seamless global communication.
For SaaS companies needing customer support or development teams, this pool of talent is an invaluable resource.
Government Support for IT Businesses
The Uzbek government actively fosters a business-friendly environment for IT and SaaS companies. Its flagship initiative, IT Park Uzbekistan, is central to these efforts, offering a comprehensive suite of services for foreign companies:
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Plug-and-Play Infrastructure: Companies can fully launch operations within 6–8 weeks, with support for everything from company registration to IT visas and accommodation.
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Streamlined Administrative Support: The government provides assistance in talent acquisition, local management, HR services, and legal compliance—reducing the administrative burden for startups.
Safety and Stability
Entrepreneurs value political stability and safety when choosing where to base their businesses. Uzbekistan ranks as the safest country in Central Asia according to the Global Peace Index, and its stable political climate ensures long-term predictability.
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Global Rankings: Uzbekistan is ranked highly in political stability and affordability by reputable indices like The Global Economy and the Economist Intelligence Unit.
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Low Risk: Entrepreneurs can focus on growing their businesses without worrying about economic or political disruptions.
Strong Market Potential
Uzbekistan is not just a low-cost operating base but also a growing consumer market. With increasing internet penetration and tech adoption, SaaS and software companies have an opportunity to capture a local audience while scaling globally.
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Export Opportunities: Over 529 IT companies are already exporting services to regions like Europe, North America, and MENA (Middle East and North Africa).
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IT Industry Growth: With 32,000 employees in the IT sector and government programs expanding tech education, the local industry is poised for sustained growth.
Cultural and Historical Appeal
Uzbekistan offers more than just business advantages. Its rich cultural heritage and hospitality make it an attractive destination for foreign entrepreneurs and employees.
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Diverse Environment: With over 100 nationalities represented and a top-25 ranking in welcoming countries, Uzbekistan is an inclusive and supportive place to live and work.
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Lifestyle Affordability: The cost of living is low, and quality of life is high, making it easier for companies to attract international talent.