Deputy minister: Azerbaijan, Uzbekistan negotiating creation of joint IT hub - INTERVIEW

Azerbaijan and Uzbekistan are actively developing cooperation in various directions. One of these areas is digital technologies and information and communication solutions. The partnership covers a wide range of areas - from the implementation of biometric systems and joint IT projects to the development of startup ecosystems and digital infrastructure.

First Deputy Minister of Digital Technologies of the Republic of Uzbekistan Oleg Pekos spoke to Report about the current state of bilateral relations in the digital sphere, ongoing projects, and prospects for joint development of new technologies.

- What are the key areas of cooperation between Azerbaijan and Uzbekistan in the field of information and communication technologies?

- Azerbaijan and Uzbekistan have great potential for practical cooperation in the field of digital technologies, and already now we can identify specific areas where this dialogue could turn into concrete actions. One of the priority projects could be the implementation of MyID Palm technology - a biometric system based on palm veins, which is already used in Uzbekistan for contactless identification and payment. This solution is especially relevant for points of mass interaction with the population. For example, in public transport, medicine, and education. In addition, it is proposed to launch a joint pilot project in Baku with subsequent scaling. Uzbekistan is ready to provide technology and developed approaches, while Azerbaijan will need to integrate it with its own digital identification and signature platform SIMA. An important step will be joint work on technical compatibility, including issues of data storage and protection. Such a project can serve as the basis for broader digital cooperation, including the exchange of technological solutions.

- In what aspects of digital transformation can Uzbekistan use Azerbaijan's experience and which Azerbaijani initiatives are most interesting to Uzbekistan?

- As part of deepening bilateral cooperation in supporting startups and digital innovations, IT Park Uzbekistan and Sabah.Hub (Azerbaijan) are actively negotiating the creation of a joint IT hub, which will become a platform for supporting joint startups and innovative projects, conducting training and acceleration programs with the participation of experts from both countries, and organizing joint hackathons, startup weekends and demo days aimed at identifying promising projects and promoting them to international markets. IT Park Ventures, the venture division of IT Park Uzbekistan, is open to dialogue with Azerbaijani venture funds and institutional investors on co-financing startups participating in joint acceleration programs, creating joint investment instruments such as a co-investment fund focused on projects with export potential, and participating in international investment rounds where startups from Azerbaijan and Uzbekistan can attract investor syndicates from both countries and third markets.

- Is there a plan to create a unified digital platform for exchanging information, research, and technological developments between the two countries?

- Certainly, the idea of creating a unified digital platform for exchanging information, research, and technological developments between Azerbaijan and Uzbekistan looks extremely relevant and promising to us. In recent years, Uzbekistan has made a rapid transition to digital public administration. Digitalization has covered key areas of public life, and today most government services are provided to citizens in electronic format. At the same time, the level of their use by the population is constantly growing, which indicates trust in new digital tools and their effectiveness. We have extensive experience in implementing comprehensive digital solutions, including the development of digital infrastructure, implementation of electronic services, ensuring cybersecurity, and developing an open data ecosystem. All this creates a solid foundation for dialogue and practical interaction with the Azerbaijani side. We are open to comprehensive cooperation - both at the expert level and at the institutional level. Exchange of experience, joint scientific and technological projects, pilot initiatives, educational programs - all this can become the basis for sustainable and mutually beneficial partnership. Among the priority sectors, we see digital governance, intelligent transport and urban systems, cybersecurity, as well as the application of artificial intelligence and big data analytics in social and economic processes. We are confident that joint efforts will bring our countries to a new level of technological interaction and digital integration.

- What are the prospects for implementing advanced technologies such as artificial intelligence (AI), Internet of Things (IoT), and blockchain within the framework of bilateral cooperation, and in which areas can these technologies be applied most effectively?

- Azerbaijan and Uzbekistan pursue similar goals in the field of economic digitalization, modernization of public services, and technological development. In this context, cooperation between the two countries can be particularly promising in the following areas: Artificial intelligence - in areas such as healthcare, education, and public administration. The countries can implement joint research projects, exchange experts in machine learning and big data analysis. It is also possible to develop and support startups and IT products based on AI, with further entry into international markets. Internet of Things (IoT) can be applied in agriculture, transport, logistics, and energy. Here, cooperation may include the development and implementation of joint projects in agriculture and industry, as well as exchange of experience in creating smart infrastructure, including "smart city" projects and digitalization of housing and communal services.

- What challenges do Azerbaijan and Uzbekistan most often face in combating fake IMEI codes? Are the parties considering the possibility of creating a unified IMEI code database?

- Fake IMEI codes can visually and structurally match the originals, making them technically difficult to detect by standard methods. This makes it particularly difficult to determine the legitimacy of devices in the absence of a reliable database and verification systems. Since the problem of fake IMEI codes is transnational in nature, the lack of coordination between countries (including data exchange, compatible standards, and legal mechanisms) significantly complicates the fight against counterfeits and their distribution through gray channels. Devices with falsified codes are often cheaper and freely available on illegal markets. This creates an incentive for consumers to purchase such devices, especially in countries with lower income levels, and hinders the formation of a healthy digital market. To effectively combat fake IMEI codes, it is necessary to improve technologies and increase interaction between mobile operators, manufacturers, and governments. There are plans to strengthen coordination between mobile operators (for local filtering and monitoring); manufacturers (for device certification); government agencies (for legal and technical support). Azerbaijan and Uzbekistan plan to create a joint database that will allow tracking and blocking stolen or counterfeit devices. It will also allow sharing information about devices involved in crimes or fraud and help return lost phones to their owners through embassies.

- How is the fintech startup ecosystem developing in Uzbekistan? What startup support mechanisms are most effective in the country?

- Uzbekistan is creating favorable conditions for attracting foreign venture investments through the formation of a sustainable startup ecosystem and expansion of the venture capital market. Currently, the country's startup ecosystem includes more than 500 startups, and over 100 events have been organized to support them. As part of further startup development, a Digital Startup Program is being launched, aimed at comprehensive support for projects in the field of digital technologies. One of the key elements of the program is compensation for expenses related to participation in international acceleration programs. Compensation also extends to training in entrepreneurial skills, business, and corporate governance. In addition, startup studios will be created under the program to help compensate for the costs of attracting mentors and coaches for participants in incubation and acceleration programs. An important part of the support is the activity of the Venture Fund, which provides startups with venture investments and loans without collateral. These government support measures are aimed at significantly increasing the volume of venture investments, which will reach $1 billion by 2030, which, in turn, will contribute to the development of Uzbekistan's innovation ecosystem, its economic growth, and strengthening its position in the global technology startup market.

- Is it possible to create a common digital market between Azerbaijan and Uzbekistan?

- Today, among IT Park residents, there are 6 companies with Azerbaijani capital (such as PUSH30, SOFTGILE, FINANCIAL CHAIN CORPORATION). These enterprises employ 115 people, and by the end of 2024, the volume of services provided by these enterprises amounted to 51.3 billion sums. Creating a common digital market between Azerbaijan and Uzbekistan has high potential. Combining efforts in the field of information technology will simplify cross-border digital trade, ensure the free movement of IT services and personnel, and create favorable conditions for scaling startups and implementing innovative solutions. To implement such an initiative, specific steps are needed: signing a bilateral agreement on digital cooperation, creating a working group to coordinate technical and regulatory aspects, launching pilot digital projects (such as joint marketplaces, an electronic document management platform, educational portals), as well as developing digital infrastructure.