.
Ministry for Foreign Economic Relations, Investments and Trade of the Republic of Uzbekistan
INVESTMENT ENVIROMENT IN UZBEKISTAN AND PROSPECTS FOR COOPERATION
FACTORS OF SUCCESS IN UZBEKISTAN
1. Political and macroeconomic stability
2. Rich raw materials base
3. Energy self-sufficiency
4. Advantageous geographical location
5. Diversified industrial base
6. Scientific and intellectual capacity of the country
7. Legal base and system of investment incentives for foreign investors
The leading industrial economy in Central Asia
MAIN MACROECONOMIC PARAMETERS
GDP growth (% to previous year)
0 20 40 60 80 100
1995
2000
2005
2010
Structure of GDP production (%)
2003 2004 2005 2006 2007 2008 2009 2010102%
104%
106%
108%
110%
112%
114%
0%
5%
10%
15%
20%
25%
30%
106.2%
109.4%
107.2%
110.8%
112.1%112.7%
109.0%
108.3%
15.2%
17.5%
21.2%21.8%
24.0%
22.3%23.0%
24.0%
industrial production share of the industry in GDP
INDUSTRY GROWTH RATE IN UZBEKISTANGrowth rate of industrial output and
share of the industry in GDP
ACTIVE FOREIGN TRADE POLICY
- Export promotion and development of infrastructure
- Expansion of export loaning, insurance perfection, quality control system and certification of products
- Creation of logistic centers for the effective transportation of export cargoes
- Unification of customs procedures
Foreign Trade in 2010:
Turnover growth – 103,0%
Export growth – 110,8%
Trade balance – 4,3 bln. USD
Export growth (in mln. USD)
MAIN MACROECONOMIC PARAMETERS
Effective moderately rigid monetary and fiscal policy has allowed to support inflation rate at rather low level
Public external debt of the country does not exceed 10% of GDP
2001 2002 2003 2004 2005 2006 2007 2008 2009 20100
5
10
15
20
25
3025.25
21.6
3.8 3.7
7.8 6.8 6.8 7.8 7.4 7.3
Inflation rate
2. ACCESS TO RICH RAW MATERIALS
Uzbekistan possesses unique mineral resources:
Solid raw materials, including ferrous and non-ferrous
Over 2800 of deposits and 100 kinds of mineral resources
3. ENERGY SELF-SUFFICIENCY
Oil and gas
Hydro energy
Heat energy
Electric energy
Energy resources are sufficient to cover
demand of the economy at least for
100 years
COST OF DOING BUSINESS IN UZBEKISTAN
Gas - $50 per 1000 m3
Electricity - $0.35 per kWT/h
Water - $0.18 per tn
Labor - $350-500
Average prices for:
ALTERNATIVE ENERGY SOURCES
Alternative energy sources in Uzbekistan:
51 bln. ton of oil equivalent
solar energy wind energy biofuel solid waste recycling combustible shale
4. CENTRAL GEOGRAPHICAL LOCATION CLOSE TO THE LARGEST MARKETS
East AsiaLondon
Paris
Berlin
Moscow
Beijing
Tokyo
Seoul
Singapore
Jakarta
ManilaBangkokPhnom Penh
Muscat
Cairo
Abu Dhabi
Doha
JerusalemBaghdad
Riyadh
Amman
Tehran
Europe
South-East and South Asia
Ankara
Shanghai
Minsk
Kiev
CIS
Middle East & Africa
Central Asia
Astana
Ashgabat
Kabul
Bishkek
CA & Afghanistan: 90 mln. people
CIS: 300 mln. people
Brussels
Most Favorable Nation Treatment
with 45 countries, including EU countries, Japan, China, India,Republic of Korea, US, and others
5. LEADING INDUSTRIAL BASE IN THE REGION
Agricultural machinery
Automobile Electrical engineering
Oil, gas & petrochemical
Mining & metallurgy
ChemicalPharmaceuticals
TextilesBuilding materials Food processing
Electronics
6. WELL EDUCATED HUMAN RESOURCES AND HUGE INTELLECTUAL POTENTIAL
• 65 universities and institutions
• affiliates of key foreign universities:
• Moscow State University
• Westminster International University
• Singapore Institute of Management Development
• Turin Polytechnic Institute
• 850 directions
• 300 thousand students
• Oil&Gas Institute named after Gubkin
7. DEVELOPED LEGAL BASE & BROAD SYSTEM OF PREFERENCES AND BENEFITS FOR FOREIGN INVESTORS
Law of the Republic of Uzbekistan on “Guarantees and measures designed to protect rights granted to foreign investors”
Stable legislation during 10 years
Foreign investments and otherforeign assets are not subject to
nationalization
Free transfer of money resources in a foreign currency into Uzbekistan
and from it without any restrictions
FOREIGN INVESTMENTS IN UZBEKISTANIn 2010:
Attracted 3,77 bln. USD of total foreign investments including foreign direct investments 2,76 mln. USD
Growth rate – 10,6%
Share of FDI (%) Foreign investments (bln. USD)
Under Investment Program for 2010 more than 200 projects of large-scaled enterprises has
been set in operation
ENTERPRISES WITH FOREIGN INVESTMENTS
CNPC
4200 enterprises
INVESTMENT COOPERATION BETWEEN UZBEKISTAN AND INDIA
Total investments– 93,15 mln. USD
Trade turnover – 150,7 mln. USD
Export – 27,2 mln. USD
Import – 123,5 mln.USD
To 2010
Export Import
NEW PROSPECTS FOR COOPERATION
1. MINI-TECHNOLOGIES & EQUIPMENT FOR SMEs
2. Electronics (Consumer electronics, IT products and etc.)
3. Textile Sector (Silk, ready made garments and etc.)
5. Household chemicals
9. Tourism (Construction and management of hotels and etc.)
8. Free Industrial Economic Zone “Navoi”
4. Building materials
6. Pharmaceutics
7. Food industry
MINI-TECHNOLOGIES & EQUIPMENT FOR SMES
Production of equipment for agriculture and food processing, packaging
3-year market capacity is estimated at 3-5 bln. USD
Industrial enterprises are stable consumers of new
equipment and spare parts
ELECTRONICS
• Refrigerators and air conditioners – 1 mln. units
• Washing machines and vacuum cleaners – 600 thsd. units
• Microwaves – 300 thsd. units
• Lamps – 500 mln. units
Central Asia demand in:
TEXTILE SECTOR
Textile companies in Uzbekistan:
- Cotton fiber production – 1,2 mln. tons- Domestic processing only 30% of cotton fiber- Yarn production - more than 360 ths. tons- 50% discount from world cotton price - Only CIS textile market is 6,0 bln. USD- FTA within CIS countries
BUILDING MATERIALS
Sanitary ware
Glazed tile
Stone tileAshlar
Parquet
ceramic tiles - 10 mln. sq. m
sanitary ware - more than 160 thsd. units
Annual domestic needs in
HOUSEHOLD CHEMICALS
Production of demanded chemical products in Central Asia
Annual regional demand for soap – 130 thsd. tons,detergents – 300 thsd. tons
PHARMACEUTICALS
Domestic demand for pharmaceuticals:
• injections – 300 mln. ampoules
• infusions – 50 mln. flasks
• biopharmaceuticals – 500 thsd. packs• anticeptics – 100 thsd. flasks
• antibiotics – 50 mln. flasks
• uncture – 1 bln. packs
• suture – 500 thsd. r.m.
• syringes – 200 mln. units
FOOD PROCESSING
Annual production potential of fruits and vegetables is 10 mln. tn
Proposals for cooperation:
Storage, freezing, processing, production and packaging of agriculture products, beverages and confectionery.
FIEZ “NAVOI”: CONCEPT OF CREATION
FIEZ “Navoi” was created by the Decree of the President of the Republic of Uzbekistan on December 2, 2008.
Established near Navoi city administrative centre of Navoi region
The concept is based on the synergy of its 4 blocks or hubs:
- industrial - logistic - innovation - touristic, cultural & recreational
FIEZ: INCENTIVES AND PREFERENCES
The FIEZ residents are exempted from:
• Land tax• Property tax
• Profit (income) tax• Unified tax (for SMEs)
• Obligatory payments to the Republican Road Fund• Republican Fund of Elementary and Secondary Education
Registered enterprises for the whole period of FIEZ functioning to produce export goods are exempted from customs duties for imported:
• equipment • raw materials • production components
FIEZ “NAVOI”: CURRENT PROJECTS
Set in operation
1. Polyethylene pipes
2. Polypropylene pipes
3. Automobile wires (Korea)
4. Automobile OEM components (India)
5. Set-top box digital receivers (Singapore)
6. Fruit and vegetable production packaging (UAE)
7. Cosmetic output (Korea)
Under construction
4. Automotive fuel equipment (Korea)
5. Gas metering equipment (Korea)
6. Pharmaceutical and medical goods (Korea)
7. Hygienic production (PRC)
8. LED lams (Singapore)
1. Automobile alternators (Korea)
2. LCD monitors (Korea)
3. Energy saving lamps (Korea)
Under preparation
1. Silicon polycrystals (Korea)
2. Silicon policrystals (Korea)
3. Production of medicaments (Poland)
4. Production of medicaments (Singapore)
5. Gas metering equipment (USA)
TOURISM
• Construction of new world-class hotels
• Construction of motels and camping’s recreation units along automobile roads
• Establishment of joint travel agencies
• Management of existing hotels in Samarqand, Urgench, Tashkent
• Tourists exchange
Largest tourist potential among the countries of Central Asia
Medical and health tourism
Ecological and sports tourism
Proposals for cooperation
.
THANK YOU!www.investuzbekistan.uz
www.fiez.uzwww.exporter.uz