Modern Uzbekistan is a leading industrial country in Central Asia, ensuring stability and promoting economic development of the whole region.
In spite of difficulties, related to the world financial - economic crisis, the volume of Uzbekistan’s GDP has grown by 8% 2013; industrial output grew by 6.3%; agriculture by 6.6%; services by 16.1%. Development of new foreign markets in 2013 provided an increase in exports to 15.4%. Share of medium and small enterprise sector in the GDP reached 54%.
Measures for improving the investment environment, which are taken in the country, have significantly increased the volume of foreign direct investments, attracted to the economy. If the share of foreign direct investments in gross investments in the first years of independence amounted to nearly zero, whereas in 2013 it was 85%.
Over the years of reform, total investments to the economy of Uzbekistan has exceeded 100 billion US dollars, 35 billion of which are foreign direct investments.
Nowadays, more than 4200 enterprises with foreign investments, including world famous TNCs operate on the Uzbek market. They are General Motors, MAN, Mercedes-Benz, Isuzu Motors, CNPC, Petronas, LG, Gazprom, Lukoil, Nestle, Coca-Cola, British-American Tobacco, Carlsberg and many others.
Uzbekistan is among the top ten countries in gold reserves, natural gas, uranium, silver, copper, molybdenum and other rare metals and is a net exporter of these natural materials. In Uzbekistan more than 100 types of mineral resources, more than 2800 deposits and prospective shows of minerals are exposed.
The total energy reserves of Uzbekistan are sufficient for the coverage of the needs of the economy at least for 100 years. Generated electricity capacities fully cover domestic needs, but also allow export of electricity to other countries.
The country’s electricity cost is 4,5 times below the average cost paid by industrial consumers in developed countries.
Foreign companies, investing in Uzbekistan, get an opportunity to enter the largest and most dynamically growing markets among CIS countries, Asia and Europe. Agreements on Most favored nations treatment with 45 countries, including USA, Japan, China, Korea, EU countries, and Free trade area between CIS countries, significantly enhance the competitiveness of goods, produced in Uzbekistan on external markets.
Due to intellectual capacity, Uzbekistan is one country in Central Asia manufacturing a wide range of modern sedans and trucks, high quality agricultural machinery, chemical goods, textile, food products and building materials.
Uzbekistan boasts almost 100% literacy. Significant human and intellectual potential, corresponding to modern international standards of education are serious factors for the successful development of the country. In Uzbekistan more than 300 thousands students study in hundreds universities and colleges for 850 professions. There are affiliates of leading European, Asian and Russian universities that operate in Uzbekistan. For example, Westminster International University, Singapore Institute of management development, Italian Torino polytechnic institute, Moscow state university and others.
Basic guaranties and rights of foreign investors are provided by the current legislation The Law “On Guarantees and Measures of Foreign Investors’ Rights Protection” provides inviolability and protection of foreign investor property rights. Foreign investors are given the following guarantees:
FIEZ "Navoi" has significant prospects in terms of attracting foreign direct investment due to its advantageous geographical location, existing developed industrial and transportation infrastructure. In a radius of 2000 km from FIEZ "Navoi" there are the capital of 10 States with a population of more than 100 million people. This opens up an opportunity for immediate transportation of industrial goods produced there to the end consumers in Asia and Europe.
Business enterprises registered in the FIEZ «Navoi» are exempted from paying land tax, property tax, profit tax, social infrastructure development tax, unified tax payment (for small businesses), compulsory contributions to the Republican Road Fund and Republican School Fund depending on the volume of deposited foreign direct investments:
Customs duties for raw materials and components, being imported for production of goods to be sold in the domestic market of Uzbekistan, are levied at the rate of 50 percent of the exercised rate with delay of payment period up to 180 days if the legislation does not establish more favorable treatment.
Special Industrial Zone “Angren”
The Angren SIZ will be operating for 30 years with the option for further extension. Throughout the duration of the zone, it will provide special tax regime and customs facilities.
In particular, the businesses located in Angren SIZ will be exempt from income tax, property tax for legal entities, the tax on improvement and development of social infrastructure, the single tax for small businesses, as well as mandatory contributions to the Republican Road Fund. In addition, they will be exempt from customs duties on equipment, components and materials, not produced in the country, imported to the territory of Angren SIZ as part of the investment projects.
Note that the abovementioned exemptions are granted for a period of 3 to 7 years depending on the amount investments made. In particular, 3-year exemptions are granted for the equivalent of $300,000 to $3 million, 5 years for over $3 million to $10 million, 7 years for more than $10 million.
The main tasks and activities of Angren SIZ include creating an attractive environment for investment, especially direct one, for the establishment and effective operation of modern high-tech industries, production of domestically and globally competitive products with high added value.
In addition, the SIZ will ensure comprehensive and efficient use of production and resource potential of the region included in the Special Industrial Zone, creation of new industries with more advanced processing of mineral resources.
Another area of activity is deepening of localization of high-tech products based on local raw materials by establishing close cooperative relations and development of industrial cooperation between enterprises in the Special Industrial Zone and in the country in whole.
Particular emphasis will be given to the advanced development and effective use of transport, engineering, communications and social infrastructure, further development and widespread use of Angren Logistics Center, roads and container freight transport system.