The «Action Strategy for five priority areas of the Republic of Uzbekistan 2017 – 2021»
approved by President Sh.M. Mirziyoev provides inter alia for development and liberalization
of the economy aimed at further strengthening of macroeconomic stability, maintaining high
economic growth rates and increasing competitive advantage of the country. The Strategy
identifies numerous objectives including modernizing and intensively developing agriculture,
continuing with institutional and structural reforms to reduce the state's presence in the
economy, further strengthening of protection of rights and the strategic role of private property,
encouraging development of small business and private entrepreneurship, integrated and
balanced socio-economic development of provinces, districts and cities, active attraction of
foreign investments to various sectors of the economy and provinces by improving investment
climate of the country.
Table of Content
UZBEKISTAN TODAY..........................................................................................................................4
I. STATE COMMITTEE OF THE REPUBLIC OF UZBEKISTAN FOR INVESTMENTS....................................6
II. WHY INVEST IN UZBEKISTAN.......................................................................................................8
• MACROECONOMY STABILITY ....................................................................................................8
• MARKET ACCESS ......................................................................................................................8
• REVIEWS OF INTERNATIONAL AND FINANCIAL INSTITUTIONS...................................................9
• GDP .......................................................................................................................................10
• INDUSTRY DIVERSIFICATION ..................................................................................................10
III. UZBEKISTAN MAIN FACTS ........................................................................................................12
IV. LABOUR MARKET .....................................................................................................................13
V. TRADE AND INVESTMENT .........................................................................................................14
• EXPORT ..................................................................................................................................14
• FINANCIAL SECTOR..................................................................................................................16
• FOREIGN DIRECT INVESTMENTS .............................................................................................16
• COMPANIES WITH FDI IN UZBEKISTAN ...................................................................................17
VI. CONTRIBUTION OF SME SECTOR .............................................................................................17
VII.TAXATION AND LICENSING .....................................................................................................18
VIII. TRANSPORTATION AND COMUNICATION...............................................................................19
IX. SPECIAL ECONOMIC ZONES .....................................................................................................22
X. INVESTMENT OPPORTUNITIES BY INDUSTRY SECTOR ...............................................................26
• PHARMACEUTICALS ...............................................................................................................26
• TEXTILE ..................................................................................................................................27
• TOURISM ................................................................................................................................29
• CHEMICAL INDUSTRY .............................................................................................................31
• FOOD AND FOOD PROCESSING...............................................................................................33
• CONSTRUCTION MATERIALS...................................................................................................35
WHY UZBEKISTAN
UZBEKISTAN TODAY
ONGOING ECONOMIC REFORMS
Implementation of extensive measures for fundamental change of mechanisms and forms
of workflow of governmental , supervisory bodies, banking and financial institutions, state
authorities at the local level within the framework of the "Action Strategy 2017-2021"
approved by the Presidential Decree ensured a sustainable economic growth at nearly 8%.
The economic reforms carried out by the leadership of the Republic of Uzbekistan imply
further strengthening of macroeconomic stability and maintaining high rates of economic
growth, increasing competitiveness of the national economy, modernizing and diversifying
its priority sectors, intensifying agricultural development, reducing the state's presence in the
economy, further strengthening protection of private property, development of small business
and private entrepreneurship.
The main factors of economic growth in Uzbekistan are the following:
- high investment activity in the economic sectors and within the country’s territories resulted
from the implementation of extensive measures to ensure outperforming rates of economic
lending, credit support for business activity of the rural population in the organization of
their own business, and the implementation of high-tech projects for production of highly
competitive goods based on deep processing of raw materials and semi-finished products,
which contributed to the growth of investments by 8.3% and construction works by 8.7%;
- creation of more favorable economic conditions for business entities, stimulation of their
export activities, orientation of the implemented measures to address urgent problems of
the regions with the expansion of their industrial potential, ensuring financial stability of
industrial sectors, primarily those of chemical, electric power, oil and gas industries, which
allowed for increase in production of industrial goods by 7.6%;
- accelerated development of the service sector primarily due to the advancing development
of modern services based on information and communication technologies, which ensured
growth of services by 11.6% and increase in the share of services in the structure of GDP to
55.8%.
In the period of volatile global market situation against the backdrop of the ongoing global
financial and economic crisis, budgetary measures taken by the state continue to ensure a
balanced state budget at all levels while preserving the social orientation of expenditures,
improving intergovernmental fiscal relations aimed at strengthening the revenue side of local
budgets. In particular, for the first half of 2017, the revenues of the state budget grew by
17.6% compared to the same period last year. Adopted in August 2017 the Law "On the
Commissioner under the President of the Republic of Uzbekistan for the protection of rights and
legitimate interests of business entities" serves as a practical implementation of a consistent
policy pursued by the head of state aimed at strengthening guarantees for protection of rights
and interests of business entities. The law vests the Commissioner (the business ombudsman)
with full powers to fulfill his direct responsibilities, to monitor observance of rights and
legitimate interests of entrepreneurs. Thus, the Commissioner examines complaints against
4
UZBEKISTAN TODAY
decisions of the state authorities and actions of the government officials, protects rights and
legitimate interests of not only domestic business entities, but also the rights and legitimate
interests of foreign companies operating in the Republic of Uzbekistan.
Enhancement of conditions and opportunities for business activity created in the framework of
ongoing reforms requires in turn ensuring adequate volume and quality of energy. Therefore
active measures were taken to expand the use of renewable energy sources, reduce energy
intensity of production, and ensure targeted practical application of domestic scientific and
technical developments and studies of approved international energy-saving technologies,
implementing priority areas in this field. In pursuing these aims in May 2017 the President
of the Republic of Uzbekistan adopted a Resolution "On the program of measures for further
development of renewable energy, enhancement of energy efficiency in the economic and
social sectors for 2017-2021".
As part of the implementation of measures to further improve monetary policy through the
application of tools in accordance with international best practices, as well as the incremental
introduction of modern market mechanisms for currency regulation, in September 2017 the
President of the Republic of Uzbekistan has issued a Decree "On the priority measures for
liberalization of the currency exchange policy». This document contributed to a radical reform
of the current system of currency regulation, further liberalization of monetary policy, creation
of equal conditions for foreign economic activity for all business entities.
Practical implementation of the relevant provisions of the Decree fosters equal competitive
conditions in the foreign exchange market for all economic entities, enhancing the stimulating
role of the monetary policy in the development of exports in all sectors of economy,
strengthening regional and international economic cooperation. Thus, this Decree not only
introduces new principles of market formation of the national currency rates, but also provides
for a set of measures aimed at further ensuring of social protection of the population.
5
WHY UZBEKISTAN
THE STATE COMMITTEE
OF THE REPUBLIC OF UZBEKISTAN
FOR INVESTMENTS
In March 2017 President Sh.M. Mirziyoev signed a Decree «On the formation of the State committee
of the Republic of Uzbekistan for investments». The State committee for investments is an authorized
state body responsible for coordinating formation and implementation of a unified state investment
policy and attracting foreign investments. The State committee for investments is formed to fully
develop investment potential of the Republic of Uzbekistan, further improve investment climate,
create the most favorable conditions for attracting foreign investment, expand cooperation with
international financial institutions, leading foreign companies and banking structures, and increase
efficiency of foreign investment utilization.
MISSION STATEMENT
Our goal is to promote, enhance and facilitate investment activities in Uzbekistan. We work to
develop strategic bilateral partnerships through presenting new investment opportunities to foreign
investors.
OBJECTIVES OF THE STATE COMMITTEE
FOR INVESTMENTS
As a single point of contact for current and potential foreign investors in Uzbekistan the State
committee for investments has the following main objectives and areas of activities:
-coordination of work on formation and implementation of a unified state investment policy;
-attraction of foreign investments;
-fostering investments into different sectors of economy and provinces;
6
THE STATE COMMITTEE OF THE REPUBLIC OF UZBEKISTAN FOR INVESTMENTS
-further enhancement of investment climate of the country;
-support in development to companies with foreign direct investments;
-participation in monitoring of annual state investment programs and regional investment programs;
-organization of investment forums, conferences and seminars in Uzbekistan as well as abroad;
-participation in tendering procedures related to import contracts under investment projects;
-reviewing of import contracts: pricing of equipment, technology purchase contracts and cost
parameters of turnkey projects;
-coordination of activities of research and design institutes and preparation of feasibility studies of
investment projects with foreign investments;
-development and implementation of roadmaps on further enhancement of legal base regulating
attraction of foreign investments and ensuring the most favorable conditions for investment activities
in Uzbekistan;
LEGAL FRAMEWORK
Decisions of the State committee of the Republic of Uzbekistan for investments adopted within its
powers and having a regulatory and legal nature are binding for execution by state and economic
management bodies, state authorities and local administrations, economic entities regardless of
ownership and state departmental subordination. The State committee investments is part of the
Complex of the Cabinet of Ministers on economic development, structural reforms, investments,
reform of the banking and financial systems, coordination of activities of free economic and small
industrial zones headed by Deputy Prime Minister J. Kuchkarov.
7
WHY UZBEKISTAN
WHY INVEST IN UZBEKISTAN
MACROECONOMIC STABILITY
A distinctive feature of Uzbekistan is political and macroeconomic stability. For the 26 years
since the country gained independance Uzbekistan has not been affected by serious financial
crisis or political unrest. Democratic elections of December 2016 is another indicator of
stability and adherence to democratic values and principles of the country's leadership.
Uzbekistan has recorded a trade surplus of US$ 455 million in 2016. Balance of trade of the
country averaged US$ 808.26 million starting from 2006 through 2016. Another indicator
of stable economic growth is low external debt, which does not exceed 18.5% of GDP. Since
2014 the state internal debt equaled to zero, indicating healthy monetary and fiscal system.
Uzbekistan has recorded a triple budget surplus for 10 consecutive years and surplus of
balance of payment for over 14 years. The country’s foreign exchange reserves cover 24
months of import.
Budget Balance
(in % to GDP)
• Triple surplus:
• Surplus of the state budget since 2005
• Balance of payments surplus since 2003
• External trade surplus since 2000
• Prudent monetary policy ensured inflation
rate at 7%
• The total external debt does not exceed
18,5%
• Internal public debt fell from 18% in 2000
to 0% in 2014
Foreign exchange reserves continue to grow and today covers 24 months of import, whereas
the level recommended by the IMF is at least 3 months
MARKET ACCESS
With over 32 million inhabitants a nearly half of the total population of Central Asia Uzbekistan
has the largest consumer market in the region. Advantageous geographical location and
proximity to the largest markets of Russia, Kazakhstan and China make Uzbekistan an attractive
destination for foreign investors. In addition the country has a Free Trade Agreement with
CIS countries that provides duty-free access of Uzbek products to regional markets with more
than 300 million consumers.
8
WHY INVEST IN UZBEKISTAN
REVIEWS OF INTERNATIONAL
AND FINANCIAL INSTITUTIONS
In the World Bank’s "Doing Business" report published in October 2017 Uzbekistan has
achieved 13-point growth within a year-period ranking 74th. In general since 2012 Uzbekistan
has improved by more than 90 points its position within a simplification of business ranking.
According to the rating Uzbekistan is among the top ten countries to achieve the best results
in improving business environment throughout 2017. The most notable improvements were
made in areas such as business registration, obtaining a loan, resolving insolvency.
A number of foreign research organizations gave high appraisal to Uzbekistan for high economic
growth rates (the International Economic Forum), stability and reliability (Moody's), as well as
law enforcement and security (the World Justice Project and the Gallup Organization).
ENFORCING
CONTRACTS
60
39
PURCHASING
POWER PARITY
76
73
96
11
STARTING
A BUSINESS
RESOLVING
INSOLVENCY
117
87
159
55
Doing Business Report - Uzbekistan
made significant progress in the last 2
years:
• Facilitating trade – import & export
operations
• Business-friendly environment
• Reduction of regulatory complexity
• Protecting investors
GETTING
CREDIT
2012
2017
Uzbekistan is in Top 5
Fastest Growing Economies in the World
Uzbekistan's banking system outlook remains stable
Top 3 in the world for law enforcement & security
9
WHY UZBEKISTAN
GDP
Following large-scale in depth renewal and reforms Uzbekistan has achieved stability and
sustainable growth as well as macroeconomic balance. Despite the ongoing global financial
and economic crisis, GDP growth rate from 2000 through 2016 has averaged 8,1%. According
to the World Bank's Global Economic Prospects Uzbekistan is the 5th fastest growing economy
in the world with annual GDP growth rate in 2017 at 7.8%. In addition to that Uzbekistan has
set a target to increase its GDP at least two-fold by 2030. Due to drastic structural reforms
the country intends to achieve accelerated growth of industry by bringing its share in GDP to
40% against 33.5% recorded in 2015.
GDP Growth Rate
(in % to previous year)
INDUSTRY DIVERSIFICATION
Economy of Uzbekistan is one of the most diversified in Central Asia. The country produces
a wide range of modern cars, trucks, high-quality agricultural machinery, mineral fertilizers,
textile products and other.
According to the «Action Strategy 2017-2021» approved by President Sh.Mirziyoev, one
of the five priority areas for development of the Republic of Uzbekistan is the increase in
competitiveness of the national economy through the extension of structural transformations,
modernizing and diversifying its leading sectors:
- ensuring the balance and stability of the national economy, increasing the share of industry,
services, small businesses and private entrepreneurship within its structure;
- implementation of active investment policy aimed at modernization, technical and
technological renovation of production, implementation of industrial, transport,
communication and social infrastructure projects;
- further modernization and diversification of the industry by transferring it to a qualitatively
new level aimed at outstripping the development of high-technology manufacturing
industries, primarily for the production of finished products with high added value based on
deep processing of local raw materials;
- creation of an effective competitive environment for the economy and gradual reduction of
monopoly in the markets of goods and services;
- mastering the release of fundamentally new types of products and technologies, ensuring
on this basis the competitiveness of domestic goods in foreign and domestic markets;
- the continuation of the policy of stimulating the localization of production and import
substitution, primarily of consumer goods and components, the expansion of interindustry
industrial cooperation;
10
WHY INVEST IN UZBEKISTAN
- reduction of energy intensity and resource intensity of the economy, widespread introduction
of energy-saving technologies into production, expansion of the use of renewable energy
sources, increase of labor productivity in the sectors of the economy;
- creation of new and increasing efficiency of existing free economic zones, technoparks,
small industrial zones;
- accelerated development of the service sector, increasing the role and share of services in
the formation of the gross domestic product, radically changing the structure of the services
provided, primarily through modern high-tech services;
- accelerated development of the tourism industry, enhancing its role and contribution to the
economy, diversifying and improving the quality of tourism services, expanding the tourist
infrastructure;
- liberalization and simplification of export activities, diversification of the structure and
geography of exports, expansion and mobilization of export potential of the economy and
territories;
- further development of road and transport infrastructure, implementation of information
and communication technologies in the economy, social sphere, management systems.
Uzbekistan has recently embarked on a new phase of reforms with a «Program of further
reforms, structural transformation and diversification of the economy in the years 20152019» based on the seven key areas:
- Drastic reduction in the public sector of economy, further expanding the share and the value
of private property, a large-scale transfer of state property into private hands;
- program for improving business environment, providing greater freedom for entrepreneurship,
providing priority to development and strengthening of the legal protection of private
property;
- fundamental reforms of the corporate management system, introduction of modern and
approved in advanced economies methods of increasing efficiency of joint-stock companies;
- large-scale program of structural transformation of the economy, modernization and
diversification of industrial production;
- deepening of localization of production of finished goods, components and materials, thus
reducing economic dependence on imports;
- program for further development and modernization of engineering communication and
road-transport infrastructure;
- reduction of energy intensity, introduction of energy-saving technologies in all sectors of
economy and social sphere.
11
WHY UZBEKISTAN
UZBEKISTAN MAIN FACTS
With large gas and oil reserves, Uzbekistan is self-sufficient in energy. The country also
possesses large mineral reserve base and is among the world's top 10 gold producers and
the 5th largest cotton exporters
Fact sheet
TOTAL AREA
448 978 км2
Land 426 978 км2
Water426 978 км2
GOLD
URANIUM
COPPER
RARE METALS
SILVER
ZINC
OTHERS
POPULATION
TIME
GMT+5
LIFE
EXPECTANCY
Women
75.8
years
NATURAL RESOURCES
32
POPULATION
DENSITY
inhabitants per km2
LANGUAGES
Men
73.5
years
925 km
from north to south
1400 km
from west to east
75,8
million
Official:
Uzbek
DISTANCES
Mostly used:
Russian
English
RELIGIOUS
COMMUNITIES
Muslims 91%
Christians 7%
Others 2%
ANDIJAN, POPULATION 380 000
NAMANGAN, POPULATION 475 000
TASHKENT, POPULATION 2 500 000
BUKHARA, POPULATION 480 000
12
SAMARKAND, POPULATION 492 000
UZBEKISTAN MAIN FACTS
LABOUR MARKET
Uzbekistan has the largest labour force in the region – potentially about 18.5 million, or
57% of the country’s total population. Nearly 63% of the population is under age 30. About
50% of the locally employed population works in the non-agricultural private sector, where
the share of informal economy is quite considerable. At 97% literacy is nearly universal
and foreign firms report that younger people in Uzbekistan are very flexible in adapting to
changing international business practices.
There are around 70 higher educational entities in the country – State Universities in
each regional center are among them. In addition, several international universities are
represented in Uzbekistan including Westminster International University, branches of
Moscow State University, Russian University of Oil and Gas, Management Development
Institute of Singapore, Turin Polytechnic University and INHA University of Korea. Webster
University shall open a branch in Uzbekistan in the following year, wich will be the first
branch of American university in Central Asia. Uzbekistan possesses a number of young
professionals who received various educational degrees at universities worldwide through
the state-funded educational program “Iste’dod Foundation”.
President Sh.M.Mirziyoev has been actively engaged in the reform of higher education since
inauguration. The first Presidential Decree in this field of September 2016 concerned youth
policy. Further, in April 20 2017 the President took additional measures signing a longterm program of higher education reform. According to the program Uzbekistan intends to
increase the number of students by 18% unti 2021 and introduce new spheres of education
in accordance with the needs of the economy and development of the country. In 2017-2021
years the country will spend UZS 1.7 trillion (US$ 458.7 million) on realization of the program.
In addition, following the decision of the President authorities intend to attract foreign
academic personnel, which until now has been present in Uzbekistan in a very small numbers.
It is expected to attract no less than 350 teachers from Europe, Japan, South Korea and other
countries are on an annual basis.
13
WHY UZBEKISTAN
TRADE AND INVESTMENT
In the months of 2017 Uzbekistan has significantly increased trade and economic relations
with the country's main strategic partners. During the first official visit of President Sh. M.
Mirziyoev to Kazakhstan 75 trade contracts totaling US$ 1 billion have been signed. Total
trade turnover with the second major trading partner Russia has been increased by staggering
260% and is number is expected to reach US$ 5 billion by the end of the year. Overall,
during the state visit of the President of Uzbekistan to the Russian Federation in April 2017
more than 50 documents were signed for a total amount of US$ 16 billion. In May this year
Uzbekistan signed more than 100 contracts with China totaling US$ 23 billion.
During the visit of the country’s leadership to the United States of America within the
framework of the 72nd session of the UN General Assembly agreements totaling US$ 2.6
billion were signed. In addition to that, various documents have been signed with Turkish
company for the implementation of more than 30 joint projects worth a total of US$ 3.5
billion.
All of the abovementioned facts indicate an unprecedented expansion of trade and investment
activities embarked on by the government of Uzbekistan and this trend is projected to extend
even further.
One of the clear indicators that Uzbekistan’s new policies and reforms are having an impact
is the renewal of relations with the European Bank for Reconstruction and Development. As
stated by the head of Foreign Ministry of the Republic of Uzbekistan A.Kamilov - "Cooperation
with the European Bank for Reconstruction and Development is intensifying, joint projects
worth about US$US 1.5 billion are in development". These projects shall be implemented in
transport and communal infrastructure, banking and small business sectors. During a visit of
the delegation from EBRD headed by the bank's President Suma Chakrabarty in March 2016
special attention was paid to a preparation of a joint program of cooperation for the future,
as well as joint activities for full support and assistance to projects of small businesses.
The president of EBRD stated that by the summer of 2018 the bank would prepare a new
program of cooperation with the Republic of Uzbekistan.
EXPORT
An important factor in the development and liberalization of the economy is foreign economic activity of the country and applicable legislation regulating this process. Thus in September
2017 the Presidential Resolution "On measures to further organize foreign economic activity
of the Republic of Uzbekistan" was adopted.
This document was adopted with a view to further stimulate production of import-substituting and export-oriented finished goods, increasing their competitive advantage, creating
favorable conditions for providing domestic producers with imported raw and consumable
materials, as well as meeting consumer demand of the population.
The Resolution has established a zero rate customs duty for 42 types of commodities which
implies full exemption of these goods from customs duties (except for customs clearance
fees) when importing into Uzbekistan. Similarly according to the Resolution 8 types of commodities are exempt from excise tax.
Reduction of overall customs payments for raw and consumable materials imported for production of finished goods is a significant incentive for domestic producers serving as a reduc14
UZBEKISTAN MAIN FACTS
tion in production cost and thus increasing goods’ competitive advantage.
In the first years immediately after Uzbekistan gained Independence over 70% of the country’s exports were raw materials. Today as a result of numerous reforms aimed at increasing
export potential and its diversification, Uzbekistan has transformed into a country exporting
finished and value added goods with 76% of export comprised by finished and semi-finished
products. Throughout the last two decades export from Uzbekistan has increased by more
than 30 times. Export of cars increased by 12 times, yarn by 4.4 times and complex fertilizers
by 11.3 times.
In order to support exporting enterprises and increase export volumes the state provided
for a number of tax benefits. In particular, exporting enterprises are exempt from excise tax,
value added tax rate is 0, and they are subject to a reduced tax rates on profit, property and
single tax. In addition, much of the customs duties and fees have been abolished or significantly reduced.
Export Growth
2016
(in billion USD)
FINISHED PRODUCTS
2000
Raw Materials
15
WHY UZBEKISTAN
FINANCIAL SECTOR
The Development of business and ensuring its stable growth largely depends on its financing.
In this regard, in order to further strengthen financial support for private entrepreneurship,
especially micro-firms and small enterprises, create favorable conditions and expand
opportunities for accelerated development, the State Fund for Supporting Business
Development was established.
It should be noted that over the past period the banking system of the republic was aimed at
ensuring stability of the level of capitalization and deposit base of banks, strengthening their
financial stability and reliability, further expanding lending to prospective investment projects,
as well as small businesses and private entrepreneurship. Stably growing incomes of the
population in conjunction with the measures taken to improve the methods and mechanism
of servicing depositors, as well as the availability of a 100 percent guarantee from the state
on deposits, have ensured the expansion of the deposit base of banks.
The main directions of development of insurance, leasing and other types of financial services
are the implementation of their new types and quality improvement, development of the stock
market as an alternative source of attracting capital and placing free resources of enterprises,
financial institutions and the population. Currently, more than 86 organizations providing
leasing services operate in the Republic of Uzbekistan, including 24 commercial banks. The
total portfolio of leasing operations in the first half of 2017 amounted to UZS 2.5 trillion. The
lessors concluded 4674 leasing transactions for a total amount of over UZS 710 billion.
Special attention is paid to further development of international economic cooperation,
including by expanding ties with the leading international and foreign financial institutions,
continuing to pursue a balanced policy of foreign borrowing, and effectively using foreign
investments and credits.
FOREIGN DIRECT INVESTMENT
According to Investment program endorsed by President Sh.M. Mirziyoyev Uzbekistan by
the end of 2017 is planning to utilize foreign investments under 199 projects totaling US$
4,5 billion. 2016 year-end results indicate that volume of foreign investments and credits in
Uzbekistan economy has increased by 11,3% and exceeded US$ 3,7 billion. Consequently
an increase in this figure for 2017 should reach 21,6%. Within the framework of the 2016
Investment Program 368 new investment projects were launched, for which contracts for
construction and reconstruction were concluded. Also, production of 37 new types of localized
products was mastered. Projects on the development of engineering, communication and
road transport infrastructure were actively implemented.
Foreign Investments Growth in Uzbekistan
in million USD
Soft loans
FDI
4042
1339
16
UZBEKISTAN MAIN FACTS
Companies with FDI in Uzbekistan
Currently over 5,000 enterprises with foreign capital are operating in Uzbekistan. Favorable
investment climate and various government incentives have allowed them to build a strong
competitive advantage in the global marke.
CONTRIBUTION OF PRIVATE SECTOR
Alongside industrialization policies the government of Uzbekistan actively supports
development of private sector. In 2016 over 31,8 thousand new small business firms were
created – an increase by 18,1% when compared to data of 2015. According to estimates
of 2016 the share of small and medium enterprises (SMEs) sector in the country’s GDP has
amounted to 56,9% compared to only 31% in 2000. Today SMEs account for 38,9% in
industry, while in retail and services their share is 87,1% and 50,8% respectively. The share
of SME sector in construction is 70,3%, and amounts to 30% of the country’s export. In
addition to that the sector provides employment at 77% of all jobs.
Throughout 2016 SMEs have drawn and utilized UZS 19,96 trillion in investments which
comprises 40,3% from the total volume of foreign investments into Uzbekistan – an increase
by 22,9% when compared to 2015 figures.
17
WHY UZBEKISTAN
Development of Small Business
& Private Entrepreneurship
GDP
MANUFACTURE
CONSTRUCTION
EMPLOYMENT
EXPORT
TAXATION AND LICENSING
Uzbekistan adopt a continental legal system in which Oliy Majlis (Parliament of Uzbekistan)
is the sole authority for establishing laws. The Foreign Investment Law provides protection
against adverse changes in investment, tax and customs law for the first 10 years after the
investment. If tax law is adversely changed during that period, investors and investment
targets are entitled to apply the more favorable tax conditions, including VAT, for 10 years
from the registration date and if the total investment amount is more than US$ 5 million.
Overall tax burden in the country has decreased three-fold for the past two decades. Base
corporate tax rate in Uzbekistan is 7,5%. The gross revenue of micro-firms and small businesses
is subject to unified taxation rate of 5%, replacing profit tax, VAT (voluntary), property tax,
land tax, social infrastructure development tax and others. VAT rate in Uzbekistan is 20%.
The frequency of statistical, tax and financial reporting to the state authorities have been cut
in half over the past years. In order to provide better opportunities for businesses about 160
licensing procedures and 19 licensing activities have been eliminated in recent years.
Export Growth
(in billion USD)
• Export volume for the period 1990-2014 has increased more than 30 times
• Share of finished products in export increased
from 30% to 76%
• Over the past 10 years export of high value-added
products sharply increased, including:
• automobiles – 12 times,
• textile – 4.4 times,
• chemical products – 11.3 times.
18
TRANSPORTATION AND COMMUNICATION
TRANSPORTATION AND
COMMUNICATION
AIR
National Air Company Uzbekistan Airways is the flag carrier airline of Uzbekistan headquartered
in Tashkent. From its hub in Tashkent International Airport the airline now serves direct flights
to a number of international destinations in Asia, Europe and North America including major
finance capitals. In total 11 airports in Uzbekistan have international status. The country’s air
liners regularly land and take off in more than 50 cities in Europe and Asia, carry out charter
flights from Alaska to New Zealand.
Representative offices of leading foreign airlines including Aeroflot (Russia), Turkish Airlines (Turkey),
Korean Air (Korea), Asiana Airlines (Korea), China Southern Airlines and others are also registered
in Uzbekistan and operate flights to various international destinations. In recent years the fleet of
aircrafts which consists of modern aircrafts of the world's leading manufacturers Boeing and Airbus
has been substantially modernized. In 2016, the fleet of the National Air Company was replenished
with two modern Boeing aircrafts - Dreamliners.
In addition the newest complex of maintenance service of aircrafts of foreign manufacture has been
established, several aiports reconstructed. Navigation system which is recognized as one of the leading air traffic control system in the CIS has also been modernized throughout Uzbekistan.
Of the 12 airports in Uzbekistan 6 have the international status: Tashkent, Samarkand, Bukhara, Urgench, Termez and Navoi aiports.
MOSCOW
4,15 HOURS,
7 DAYS A WEEK
BEIJING
5,20 HOURS,
2 DAYS A WEEK
ISTANBUL
5,25 HOURS
4 DAYS A WEEK
SINGAPORE
10,05 HOURS,
1 DAY A WEEK
DUBAI
3,35 HOURS,
3 DAYS A WEEK
LONDON
7,40 HOURS,
2 DAYS A WEEK
PARIS
7,10 HOURS,
2 DAYS A WEEK
NEW YORK
16,50 HOURS,
2 DAYS A WEEK
SEOUL
6,20 HOURS,
3 DAYS A WEEK
19
WHY UZBEKISTAN
RAIL
In recent years Uzbekistan has laid a new railway network with a total length of over 1,200
km, modernized and reconstructed over 3,800 km of roads, electrified almost 1,100 km of
railways. As a result, the total length of railways covering all regions of the country amounted
to 6,500 km. The next great achievement is the commissioning in June 2016 of the electrified
Angren-Pap line, which became the shortest railway line between Uzbekistan and China
and today represents a symbol of strategic partnership between the two countries. Over
one thousand specialists of Chinese company «China Railway Tunnel Group» and over three
thousand railway men and over three hundred electricians from Uzbekistan participated in
its construction.
Also, with the participation of Uzbek specialists, the project of construction of a railway line on the
route Hairaton (Uzbekistan) - Mazari-Sharif (Afghanistan), has been realized. Works are underway to
create a completely new - Trans-Afghan transport corridor "Mazari-Sharif-Shibergan-Mayman-Herat"
with access to the Iranian ports of Bandar Abbas and Chakhbahar, as well as to the Pakistani port
of Gwadar. Another important international project aimed at further development of regional cooperation in the field of transport is the new 826km Baku-Tbilisi-Kars railway route, which unites the
railways of Azerbaijan, Georgia and Turkey. The project is an integral part of the transport corridor
connecting the railways of China, Uzbekistan and Southern Caucasus with Europe through Turkey.
The new road will also provide access to the Mediterranean Sea (via the Turkish port of Mersin). The
implementation of the new project within the framework of the Agreement on the Establishment of
the International Transport and Transit Corridor of Uzbekistan-Turkmenistan-Iran-Oman will form the
shortest and safest route that stretches from the eastern and southern ports of China to the Persian
Gulf, the Caspian and Black Sea territory of the Central Asian states, as well as create conditions for
the formation of a new and effective interregional transport communication system.
Overall, implementation of these transit-communication projects will strengthen Uzbekistan's position in Central Asia, increase its role as a key transport and transit hub in the region and allow for
the country to become the most important link in the formation of new cargo flows in the region.
20
TRANSPORTATION AND COMMUNICATION
AUTO
An important resource in development of international communications is the motorways.
Only last year almost 256 km of roads were reconstructed, 94,4 km of highways of
international and state importances were overhauled. At present, the total length of the
network of highways in the Republic exceeds 183,000 km. Of these, more than 42,600 km
are motor roads of international, republican and local significance, including Uzbekistan
national highway, the length of which is about 3,000 km.
A practical step towards the formation of an effective infrastructure was the creation of special
economic zones in Uzbekistan regions. An international intermodal logistics center located
in the FEZ Navoi, formed on the basis of Navoi airport, is one of the largest and most hightech air cargo complexes in the region. Today it connects Uzbekistan with the main logistics
centers of Eurasia - Frankfurt, Milan, Brussels, Vienna, Oslo, Basel, Zaragoza, Dubai, Delhi,
Tehran, Inchon, Tianjin, Hanoi and Shanghai.
DIGITAL INFRASTRUCTURE
To date, the length of fiber-optic lines in the country is 17,900 km, which significantly
increased the quality of providing broadband Internet access services. Over the past three
years, following the project of expansion of broadband fiber-optic communication lines, the
number of broadband telecommunications networks has increased by 40%, the number of
subscribers has increased by more than 50%. Thus, it is now possible to provide population
with video telephony, Internet television, high-speed Internet services, HD high-definition
television broadcasting, and expand the range of modern telecommunication services.
Modernization of the backbone data transmission network ensured the speed of information
transfer to urban areas of 40 Gbit/s, and to provinces - of 10 Gbit/s.
A DWDM communication network has been launched, capable of transmitting up to 100 Gbps/s.
It should be noted that this network, which ensures the growth of conductivity of backbone
networks and the introduction of high-speed Internet services, is the first telecommunications
system in Central Asia that has such a high speed. The mobile communication network is
dynamically expanding - the number of mobile communication subscribers has increased
7-fold over the past 10 years. A total of 16,500 base stations are now operating in the
country. In the meantime communication operators are setting up a fourth generation mobile
communication network, which will further expand the range of telecommunications services,
improving access to high-speed Internet.
21
WHY UZBEKISTAN
FREE ECONOMIC ZONES
Currently in Uzbekistan there are 14 free economic zones (FEZ). In addition to earlier existing
FEZ Navoi, FEZ Angren and FEZ Jizzakh, in January 2017 President Sh. M. Mirziyoev signed a
Decree «On the establishment of free economic zones» which sets forward formation of the
new four free economic zones - FEZ Urgut, FEZ Gijduvan, FEZ Kokand and FEZ Khazarasp.
The Decree also stipulates establishment of seven new pharmaceutical industrial zones
Boysun-Pharm in Surkhandarya region, Bustonlik-Pharm in Tashkent region, Zaamin-Pharm in
Jizzakh, Syrdarya-Pharm in Syrdarya region, Nukus-Pharm in the Republic of Karakalpakstan,
Kosonsky-Pharm and Parkent-Pharm in Tashkent region.
22
FREE ECONOMIC ZONES
The Decree stipulates the following objectives of FEZ:
-attraction of direct investments of foreign and domestic investors to create modern production
facilities for producing highly demanded or import substituting products with high added
value;
-creation of new modern productions in the sphere of deep processing, storage and
packaging of fruit and vegetable and agricultural products, textile, carpet, shoe and leather
goods, environmentally safe chemical, pharmaceutical, food, electrical engineering, machine
building and automotive, building materials and other industries.
In October of last year the government has unified tax and customs regimes for all participants
of FEZ granting them a privileged status for a period of 3 to 10 years, depending on the
volume of investments made.
Therefore, they are exempt from payment of:
-land tax, profit tax, property tax of legal entities, tax on improvement and development
of social infrastructure, single tax payment for microforms and small enterprises, as well as
mandatory contributions to the Republican Road Fund and the Extra-budgetary Fund for
reconstruction, overhaul and equipping of public schools, professional colleges, academic
lyceums and medical institutions under the Ministry of Finance;
-customs duties (except for customs clearance fees) on equipment, raw materials, supplies
and component parts imported for own production needs, as well as construction materials
not produced in the country and imported within the framework of projects, according to the
lists approved by the Cabinet of Ministers.
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23
WHY UZBEKISTAN
Cumulated amount of investments attracted to FEZ Navoi is US$ 124.2 million within 24
projects successfully implemented jointly with South Korea, Great Britain, Italy, China, United
Arab Emirates, Singapore and Russia. Of the total amount invested US$ 34.2 million are
foreign direct investments. More than 100 types of goods are produced and exported within
FEZ Navoi. Currently there are 12 participants operating in FEZ Angren producing sugar,
copper pipes, energy saving lamps for streets and buildings, coal briquettes and construction
materials. Administrative council of FEZ Angren has projected to implement another 23
projects for a total amount of US$ 458 million. By now in FEZ Jizzakh around 13 projects for
US$ 51 million were implemented, more than half of which are foreign investments. Another
11 projects shall be realized with the attraction of foreign investments of US$ 156 million.
Air hub of FEZ Navoi, located between Bukhara and Samarkand cities has a convenient access
to markets of Turkmenistan, Afghanistan, Middle East and Europe. Logistics centers of FEZ
Angren and FEZ Djizzak have strategic location as transport hubs with a convenient access to
markets of Kazakhstan, Russia and China.
FEZ
At present 62 projects with a total cost of nearly US$486 million including that of US$270.9
million foreign direct investments were put into operation in the territories of free economic
zones of the Republic of Uzbekistan. As a result of commissioning new production facilities
more than 4,600 jobs were created. In the 9 months of 2017 enterprises - participants of
the free economic zones produced goods in the total amount equaled to UZS 1.5 trillion and
exported goods worth about US$ 50 million.
The following projects have been implemented:
24
FREE ECONOMIC ZONES
FEZ "Navoi" - 23 projects for a total of US$129.2 million, including US$40.1 million of foreign
direct investments;
FEZ "Angren" - 17 projects for a total of US$225.3 million including US$ 158 million of foreign direct investments;
FEZ "Jizzakh" - 22 projects for a total of US$131.5 million including US$72.8 million of foreign direct investments;
FEZ "Urgut" - 47 projects with a total cost of US$161.3 million including US$6.2 million of
foreign direct investments;
FEZ "Gijduvan"- 19 projects for the total amount of US$64.4 million;
FEZ "Kokand" - 11 projects with a total cost of US$65.0 million;
FEZ "Khazarasp" - 13 projects for a total of US$36.8 million including US$ 1.8 million of foreign investment;
In addition, 40 new attractive investment projects totaling about US$271 million of which
foreign direct investment equals nearly US$81 million are currently under development.
Within the framework of these projects, an additional creation of nearly 4.5 thousand jobs is
envisaged.
83
25
WHY UZBEKISTAN
INVESTMENT OPPORTUNITIES
BY INDUSTRY SECTORS
PHARMACEUTICAL
INDUSTRY
As part of the program of measures for further development of pharmaceutical industry
of the Republic of Uzbekistan for 2016-2020 tax incentives for drug manufacturers came
into force. Starting from September 2016 and through 01 January 2021 pharmaceutical
companies are exempt from income and property tax, a single tax payment for micro-firms
and small businesses, as well as compulsory contributions to the Republican Road Fund. In
addition, these enterprises are exempt from customs duties (except for customs clearance
fees) for technological equipment, materials, component parts, and spare parts not produced
in Uzbekistan, imported as part of investment projects, as well as imported substances and
auxiliary materials, not produced in the Republic of Uzbekistan and used in the manufacture
of medicines and medical products.
PROJECTS TO INVEST
ESTIMATED COST
IN US$ MILLIONS
REALIZATION PERIOD
Expansion of production of
medicines for children (syrups)
1,0
2016-2017
Organization of production of
disposable medical instruments
1,5
2016-2017
Organization of production of
disposable infusion systems for
intravenous infusion of infusion
solutions.
In estimation
2016-2017
Organization of production of
single-use syringes
In estimation
2016-2017
PROJECT NAME
26
INVESTMENT OPPORTUNITIES BY INDUSTRY SECTORS
TEXTILE
INDUSTRY
In order to ensure further structural transformations in the economy, modernization,
diversification and dynamic development of textile and apparel-knitting industry, expansion
of the volume and assortment of production of export-oriented finished products that are
in high demand on foreign markets through deep processing of cotton fiber and silk raw
materials and wider attraction of foreign investments the following incentives were decreed:
Starting 01 January 2017 obligatory sale to authorized banks of the part of proceeds in
foreign currency received from the export of non-food consumer goods of the textile and
apparel-knitted industry to be canceled;
Until 01 January 2020 the following items are exempt from customs duties (with the exception
of customs clearance fees):
- Technological equipment, components and spare parts not produced in the republic,
imported as part of the implementation of investment projects, according to the lists approved
by the Cabinet of Ministers of the Republic of Uzbekistan;
In addition to that enterprises specializing in the production of non-food consumer goods
of textile and apparel-knitted industry are provided with tax and customs privileges and
preferences active through 01 January 2020 in the form of:
- Exemption from income tax and property tax, a single tax payment for micro-firms and
small enterprises, payment of mandatory contributions to the Republican Road Fund;
39
39
27
WHY UZBEKISTAN
- Exemption from payment of customs payments (except for customs clearance fees) for
imported equipment, component parts not produced in the Republic of raw materials and
materials, including on the basis of commission contracts used for the production of nonfood consumer goods, according to the lists approved by the Cabinet of Ministers of the
Republic of Uzbekistan;
- A delay in the payment of customs duties (except for customs clearance fees) for up to 60
days from the date of acceptance of the customs declaration for the import of raw materials,
materials and accessories required for the own production of non-food consumer goods
approved by the Cabinet of Ministers of the Republic of Uzbekistan.
PROJECTS TO INVEST
PROJECT NAME
Creation of a textile complex on the
basis of an unfinished construction
site in the Jondorsk district of the
Bukhara region
The creation in Tashkent, Namangan
and Samarkand regions of textile production of a full cycle with the release
of finished products and semi-finished
products, and in demand on world
markets
Organization of a textile complex on
the basis of the Denovsky cotton plant
(cotton yarn, sewing and knitwear)
Creation of a textile complex on the
basis of an unfinished construction
site in the Romitan district of the
Bukhara region
Organization of textile complex in
Jizzakh region
Creation of a textile complex on the
basis of an unfinished construction
site in the Jondorsk district of the
Bukhara region
28
ESTIMATED COST
IN US$ MILLIONS
65,5
REALIZATION PERIOD
In estimation
To be confirmed
22,1
2018-2019
6,5
2018-2019
22,1
2018-2019
65,5
2018-2019
2018-2019
INVESTMENT OPPORTUNITIES BY INDUSTRY SECTORS
TOURISM
The Decree signed by President Sh.M. Mirziyoev in December 2016 «On measures to ensure
accelerated development of tourism industry of the Republic of Uzbekistan» provides for
unprecedented measures for drastic reforms of the tourism industry that signify transition
to a qualitatively new level of state policy in this area which identifies the following main
objectives and priorities:
- Formation of favorable conditions for activities of the subjects of the tourism industry,
removal of all barriers that impede tourism development, simplification of visa and registration
procedures, passport and customs control;
- Implementation of a set of measures to ensure the safety of life and health of tourists and
excursionists in the organization of tourist services;
- Accelerated development of new potential types of tourism - pilgrimage, ecological,
cognitive, ethnographic, gastronomic, sports, health-improving, rural, industrial, business,
children, youth and family tourism;
- Expansion of cooperation with international and national organizations in the sphere of
tourism, large foreign brands and companies, introduction of advanced world standards for
the provision of tourist services;
- Accelerated development of modern tourist infrastructure facilities in the regions of the
republic, first of all, hotel, transport and logistics, engineering and communications, and
broad attraction of foreign investments for these purposes;
- Development of competitive tourist products, the creation of new tourist routes in the
regions, their promotion in the world tourist markets;
- Radical improvement of the system of qualitative training of qualified personnel for the
tourism industry.
29
WHY UZBEKISTAN
Another important feature of the decree is measures to stimulate entrepreneurial activities in
the sphere of tourism, the development of tourism infrastructure, the provision of additional
benefits and preferences to tourism organizations. In particular:
- tour operators are exempt from forced sale of foreign currency proceeds from the provision
of tourist services;
- hotels carry out mandatory sales of only 25% of proceeds in foreign currency in accordance
with the established procedure;
- payment for hotel services by foreign citizens is carried out in freely convertible currency,
except for cases when payment for them is made by state and budgetary organizations of
the republic;
- legal entities booking hotels and motels of at least four stars are exempted within five years
from the payment of corporate income tax, land tax and property tax, as well as a single tax
payment;
- When new tourism vehicles are acquired by the subjects of tourist activity with the capacity
of more than nine people, the collection to the Republican Road Fund is reduced from 20%
to 3% of the cost of vehicles.
PROJECTS TO INVEST
PROJECT NAME
Reconstruction of hotel complex Samarkand in Samarkand city
Reconstruction of hotel complex Afrosiyob Palace with 278 rooms
Construction of a water-amusement
complex with hotel and guest villas in
Samarkand region with150 rooms
Reconstruction of hotel complex
Bukhara in Samarkand city with 222
rooms
Reconstruction of hotel complex Zarafshon in Bukhara city with 237 rooms
Reconstruction of hotel complex Varakhsha in Bukhara city with 230 rooms
Construction of a new year-round
sports and entertainment complex in
the mountains of Chimgan in Tashkent
region
30
ESTIMATED COST
IN US$ MILLION
REALISATION PERIOD
20
2018-2019
In estimation
2018-2019
In estimation
2018-2019
20
2018-2019
In estimation
2018-2019
16
2018-2019
In estimation
2018-2019
INVESTMENT OPPORTUNITIES BY INDUSTRY SECTORS
CHEMICAL
INDUSTRY
The country's leadership approved the Chemical Industry Development Program until 2020 to
implement structural changes in the economy, modernize and diversify the chemical industry,
provide deeper processing of rich mineral resources, expand the volume and range of finished
export-oriented chemical products and attract foreign investment for this purpose, according
to which it is expected to implement 23 projects for a total of US$ 2.65 billion.
As a result, productions of 15 new products will be organized - PVC, tires, conveyor belts,
agricultural machinery, carbon black, potassium sulfate, synthetic detergents, potassium
hydroxide and others. This will ensure the diversification of products. In particular, the share
of non-fertilizer products by 2019 will increase from 25% to 37 % compared to 2014, and
from 2021 will exceed 50% of total production output.
PROJECTS TO INVEST
PROJECT NAME
Organization of sulfuric acid and
phosphoric acid (EPA) in Navoi
Organization of production of adhesives and other adhesives at JSC
«Ferganaazot»
Organization of carbon black production
Organization of colloidal production
of sulfur
Creation of a joint venture for production of textile products for medical purposes on the basis of JSC
«Jizzahplastmassa»
ESTIMATED COST IN US$
MILLION
REALISATION PERIOD
250,0
2016-2019
4,5
2017-2018
10,0
2017-2018
2,0
2017-2019
10,00
2016-2017
31
WHY UZBEKISTAN
PROJECT NAME
Construction of a new sulfuric acid
production in the region Tashkent
(Almalyk)
The construction of complex fertilizer
production JSC «Samarkandkimyo
Organization of complex fertilizer
production by JSC «Samarkandkimyo»
(II-stage)
Organization of production of various
types of dyes, pigments and inks JV
«Electrokhimzavod»
Organization of production of
film-forming bases nitrocellulose lacquers, paints, enamels in the region
of Navoi (new company)
Organization of production of methylcellulose and methyl chloride by JSC
«Navoiazot»
Expansion of NPK fertilizer production
on the basis of JSC «Samarkandkimyo» (II-stage)
Expansion of NPK fertilizer production
on the basis of JSC «Samarkandkimyo» (III-stage)
Construction of the second stage of
production of sulfuric acid and phosphoric acid (EPA) in Navoi (II-stage)
Expansion of fertilizer production NPK
JSC «Samarkandkimyo» (IV-stage)
Creation of a joint venture for production of JSC based on «Navoiazot»
melamine
Organization of production of phenol-formaldehyde resins on the basis
of JSC “Navoiazot”
Organization of production of potassium hydroxide (caustic potash) in
the UP «Dehkanabad potash fertilizer
plant»
Organization of the manufacture of
composite materials products
Organization of production of paints
and varnishes (including enamels and
lacquers) based on acrylic and vinyl
polymers for the automotive industry
on JSC «Navoiazot»
Solvents of production organization
for paints (butyl acetate, acetone,
ethyl acetate, ethanol, etc.)
Organization of non-woven fabric
production for medical and hygiene
products
32
ESTIMATED COST IN US$
MILLION
REALISATION PERIOD
105,0
2016-2018
330,0
2016-2019
330,0
2027-2029
30,0
2025-2030
30,0
2018-2020
10,0
2017-2019
25,0
2017 -2018
25,0
2023-2025
250,0
2026-2029
25,0
2027-2029
100,0
determining
6,0
determining
25,0
2019-2020
15,0
2017-2018
10,0
2018-2020
6,0
2018-2020
10,0
2019-2020
INVESTMENT OPPORTUNITIES BY INDUSTRY SECTORS
FOOD AND FOOD PROCESSING
Large-scale economic measures implemented throughout the years of independence with an
aim to develop the industry made it possible to establish production of almost all types of food
products in our country.
Increase in the volume of production of food products contributes to consistent development
of the food processing industry. Currently the industry employs nearly 10,000 enterprises that
produce more than 3,000 types of food products.
A holding company «O’zbekoziqovqatholding» was established in 2016 to create more
opportunities for expanding production and processing of fruits and vegetables, meat, dairy
and other food products, attracting direct investments into the industry.
The company has about 300 enterprises engaged in the processing of fruits and vegetables,
meat and milk, the production of confectionery and other products, including more than 20
joint ventures with the participation of the capital from the United States, England, Switzerland,
Belgium, Austria, Turkey, South Korea, Russia and a number of other countries.
The program for the development of the food industry for 2016-2020 implies implementation
of 180 projects totaling about US$600 million, production of semi-finished and finished
products for the food industry by 2020 should increase by 1.5 to 3 times. In addition the
program envisages creation of 14 trade and logistics centers in the regions specializing in
storage, processing and export of fruit and vegetable products.
33
WHY UZBEKISTAN
PROJECTS TO INVEST
ESTIMATED COST
IN US$ MILLION
REALISATION PERIOD
2.90
2019-2020
2.98
2018-2019
20
2018-2019
Organization of baby food production
10
2017-2019
Organization of fruit processing at
«Inter Silk Pro» LLC in Denau district
2.5
2018
2.5
2018
1.5
2018
1.6
2018
4.0
2017-2018
3
2017-2019
PROJECT NAME
Expansion of production of fruit and
vegetable processing at «Agro Vostok»
LLC in Shahrisabz district
Modernization of jam and fruit and
vegetable production at LLC «Syrdaryo
Nosis Nemati» in Syrdarya region
Organization of production of chocolate confectionery products in the
territory of FEZ «Angren»
Organization of drying and packaging of agricultural products at LLC
«Golden Fruit Green Fresh» in Gulistan
district
Creation of refrigerated storage chambers of fruit and vegetable products
on the «Boghizar Varganza» in the
Kitab District
Organization of refrigeration facilities
for storing agricultural products at LLC
Agricultural Company «Natural Juice»
in Yangiyul District
The organization of processing of
grapes on Open Company «Bogishamol Baraka Servis» in Djizak
Organization of ketchup production
34
INVESTMENT OPPORTUNITIES BY INDUSTRY SECTORS
53
CONSTRUCTION MATERIALS
Construction materials is one of the key industries of the economy of Uzbekistan. The
industry is represented by the joint stock company «O’zqurilishmateriallari» which unites
large enterprises.
Today, more than 4000 enterprises producing construction materials successfully operate
in Uzbekistan. As a result of modernization of existing facilities, commissioning of new
enterprises, production of modern and competitive types of building materials, the number
of exported products from 2007 through 2017 has increased from 12 to 48 types. Overall
export of construction materials for the first half of 2017 totaled nearly US$46.9 million, twice
the figures for the previous year. To date, export geography for this type of products includes
countries such as Turkmenistan, Kazakhstan, Kyrgyzstan, Russia, Afghanistan, the United
Arab Emirates, Iran and other countries.
One of the primary tasks of the industry is to increase production of competitive exportoriented products produced from local raw materials. Thus, in recent years the industry has
mastered the production of more than 30 types of building materials. Among the largest
projects within the industry are the launch of production of ceramic tiles using 3D method
with a total value of US$5.3 million and annual capacity of 3.5 million square meters at the
JV "Modern Ceramics Fergana" (Fergana region) and cement production with a total cost
of US$3 million and annual capacity of 50 thousand tons at the enterprise "Everest metal
favorite" (Andijan region).
Along with this, the republic has introduced facilities for the production of glazed and largesized tiles with ceramic coating, heat insulation materials, modern sanitary ware and many
other new types of construction materials. For this purpose nearly US$ 40.1 million has been
utilized in Uzbekistan for the first half of 2017. Priority direction for construction materials
industry development is supply of domestic market with high-quality and modern building
materials produced on the basis of local raw materials as well as increase in the export
volumes.
35
WHY UZBEKISTAN
PROJECTS TO INVEST
ESTIMATED COST
IN US$ MILLION
REALISATION PERIOD
20
2018-2019
100
2018-2020
20
2018-2019
20
2018-2019
Production of dry mixtures based on
cement and gypsum in Navoi region
2
2018-2019
Production of dry mixtures based on
cement and gypsum In Tashkent region
2
2018-2019
Manufacture of electrodes in Navoi region
2
2018-2019
Production of linoleum in Tashkent region
5
2018-2019
PROJECT NAME
Manufacture of plumbing in Tashkent
region
Manufacture of architectural and construction glass in Bukhara region
Production of porcelain ceramic products in Fergana region
Production of heat-insulating materials
and reinforcement from basalt in Navoi
region
Production of roofing materials in Tashkent region
5
2018-2019
Manufacture of foam plastic or building sealants in Tashkent region
3
2018-2019
Production of aerated concrete and gas
block, polystyrene concrete in Tashkent
region
10
2018-2019
36