Support for Small and Medium-Sized Enterprises through the Opportunities of SCO Financial Institutions

In recent years, Uzbekistan has been consistently advancing integration processes within its foreign economic policy. Within this context, the Shanghai Cooperation Organization (SCO) has emerged as a strategic priority, serving not only as a platform for political dialogue but also as an important arena for cooperation in finance and investment.

In 2024, trade turnover with SCO member states reached USD 31 billion, marking a 9.5 percent growth. China, Russia, and Kazakhstan remain the leading partners, while trade with India, Pakistan, Iran, and Belarus also demonstrates steady growth. These figures clearly indicate that new markets are opening up for small and medium-sized enterprises (SMEs), and the geography of cooperation is steadily expanding.

However, one of the key drivers for the development of foreign trade is the effective utilization of financial institutions’ capacities. At present, negotiations are underway within the SCO framework regarding the operation of several financial structures. Notably, initiatives have been put forward to establish the SCO Development Bank and the SCO Investment Fund, while cooperation platforms among national banks and joint financial mechanisms are being gradually developed. These processes aim to create favorable conditions for SMEs.

The SCO Development Bank project is expected not only to finance major regional infrastructure initiatives but also to provide SMEs with access to long-term and preferential loans. In addition, the concept of the SCO Investment Fund is oriented toward supporting joint projects in the fields of industry, agriculture, transport, and logistics.

For Uzbekistan, these opportunities are particularly relevant. In recent years, SMEs have become the backbone of the national economy. In 2023, 589 enterprises operating within free economic zones produced goods worth USD 3.3 billion, nearly 20 percent of which were exported. To further increase these indicators, effective cooperation with SCO financial institutions is of paramount importance.

The Chamber of Commerce and Industry of Uzbekistan acts as a bridging link in these processes. The Chamber is implementing a range of initiatives aimed at ensuring direct dialogue between entrepreneurs and international financial institutions, facilitating access to financial resources, and enhancing participation in transnational projects. Furthermore, it is actively engaged in the development of unified industrial standards, product certification systems, and digital trade platforms within the SCO space.

Financial cooperation also opens new opportunities in the field of the “green economy.” Promoting environmental sustainability, improving energy efficiency, and expanding the use of renewable sources have become key priorities today. SCO “green finance” programs provide entrepreneurs with opportunities to attract investment in eco-technologies, resource-saving production, and innovation.

Looking ahead, the SCO envisions the establishment of joint investment funds, new mechanisms to support business, and unified financial and information platforms for entrepreneurs. These measures will open wider avenues for transnational cooperation and ensure active participation of SMEs in large-scale regional initiatives such as the “Digital Silk Road.”

Therefore, the financial institutions of SCO member states represent a major strategic resource for Uzbekistan’s entrepreneurs. By fully leveraging these opportunities, it will be possible not only to expand trade turnover but also to create new jobs, establish high-tech industries, and contribute to the sustainable development of the national economy. The current USD 31 billion trade volume is only the beginning; in the near future, further expansion of these figures will rely on the broader utilization of financial institutions’ potential.