SPECIAL INDUSTRIAL ZONES: NEW OPPORTUNITIES FOR FOREIGN INVESTORS

Ministry for Foreign Economic Relations, Investments and Trade of the Republic of Uzbekistan

Political & macroeconomic stability

Rich raw material base

Energy advantageous

Advantageous geographical location

Diversified industrial base

Well educated human resources

Sound legal base

Factors of success in Uzbekistan

Foreign investment in Uzbekistan

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

82%72%

56% 27% 24% 21% 24% 15% 16% 12%18% 28% 44% 73% 76%

79%

76%

85%84%

88%

Credits under the Government garantyForeign direct investment and credits

3284,6

3829,5

2941,7

1882,0

1285,9

895,7748,0754,6

602,1447,8

Territory - 564 ha

Distance between Navoi andTashkent – 490 kmSamarkand – 153 kmBukhara – 110 km

Establishment of Free Industrial Economic Zone in Navoi region (Degree of the President of the Republic of Uzbekistan December 2, 2008 No.UP-4059)

Free Industrial Economic Zone “Navoi“

Measures of organization of activity of FIEZ “Navoi” (Resolution of the Cabinet of Ministries dated January 27, 2009 No.21)

Regulations on simplified regime of entry, departure stay and hiring of foreign citizens and stateless persons on the territory of FIEZ “Navoi” (Resolution of the Cabinet of Ministries dated April 9, 2009 No.104)

Regulations on Administrative Council and on the order of selection of investors for allocation of FIEZ “Navoi” (Resolution of the Cabinet of Ministers dated April 9, 2009 №105)

Regulations on the special customs regime in the area of FIEZ “Navoi” (Resolution of the Cabinet of Ministries dated April 23, 2009 №120)

Regulations on the special currency regime in the area of FIEZ “Navoi” (under the consideration)

FIEZ “Navoi“: regulatory and legal documents

Pharmaceutical industry & Medical products

Precision machinery & OEM parts for automobiles

Electronic & electrical products

Food processing and packaging

Plastic goods and polymers

FIEZ “Navoi”: Profile

In partnership with air cargo transportation leader Korean Air Navoi airport has been modernized to create international multimodal logistics center.

1st stage – Cargo processing ability – 300 tons/day2nd stage – Cargo processing ability –1000 tons/day1 399 cargo flights (2011)Seoul, Milan, Brussels, Shanghai, Saragossa, Vena, Deli, Mumbai, Istanbul, Doha, Dubai, Hanoi, Moscow

Navoi Logistics Center

Navoi FIEZ residents are exempted from

Land tax - app.1500 USD for 1 ha

Property tax - 3.5%

Profit (income) tax - 9%

Unified tax (for SMEs) – 5%

Social infrastructure development tax – 8%

Obligatory payments to the Republican Road Fund (1-2.5%) and Republican Fund of Elementary and Secondary Education (0.5%)

Tax preferences

Period of privileges and incentives:

7 yearsif amount of direct investments is from 3 mln to 10 mln Euro

10 years and 50% reduction of profit tax for the following 5 years

if amount of direct investments is from 10 mln to 30 mln Euro

15 years and 50% reduction of profit tax for the following 10 years

if amount of direct investments is more than 30 mln. Euro

Tax preferences

For the whole period of functioning enterprises are exempted from customs duties for imported:

Equipment

Raw materials

Production components

100%

50%

for goods aimed to exports

for goods aimed to domestic market with delay of payment period up to 180 days

Customs exemptions

Administrative building

Financial center

3 storesConference room for 300 people4600 square meters of office area4 meeting rooms10 rooms for rent 50 square meters each

3 stores4000 square meters of office areaBranch of the National Bank of UzbekistanBranch of the Korea Development Bank

Infrastructure development

Logistics center

Customs office

Infrastructure development

Implemented projects

“Telecom Inovations” JVFull capacity - 50 th. set-top box and 40 th. DSLAM/ADSL. Putting into operation - August, 2010Foreign partners –“Servetechno Pte Ltd”(Singapore), “ZTE”(PRC)

“CFM ProEnergies” JVFull capacity - 50 th. units. LED lamps Putting into operation - August, 2011Foreign partner – “CFM Holding” (Singapore)

Electronic & electrical products

“UzKor Lighting” JVFull capacity – 10,0 mln. units. energy efficient lamps. Putting into operation – August, 2011Foreign partner - “Shinghwa Lighting” (Korea)

Implemented projects

“UzЕгаеCable” JVFull capacity - 130,0 th. km. automobile wires. Putting into operation – August, 2010.Foreign partners - “Erae Сs Limited” (Korea)

“UzЕгаеAlternator” JV Full capacity - 360 th. units compressors and generators. Putting into operation – August, 2010Foreign partner- “Erae Сs Limited” (Korea)

Precision machinery & OEM parts for automobiles

“UzMinda” JV»Full capacity – 250 th. units automobile components Putting into operation – September, 2010Foreign partner - “Minda Group” (India)

Implemented projects

“Hansang Pharm” JVFull capacity - 10,7 mln. package of drugs. Putting into operation - August, 2011Foreign partner – “Trust Investment & Trading Co Ltd” (Korea)

“Navoiy Hunan Pulp” JV Full capacity - 400 mln. units. diapers and hygienic products. Putting into operation – August, 2011Foreign partner – “Hunan Aloft” (PRC)

Pharmaceutical industry & Medical products

“Navoiy Beauty Cosmetics” JVFull capacity - 2,6 mln. units cosmeticsPutting into operation – August, 2010Foreign partner - “Hunan Aloft” (PRC)

Implemented projects

“Polietilen Quvurlari” DCFull capacity - 8 600 ton polyethylene pipes. Putting into operation – August, 2010

Plastic goods and polymers

“Polipropilen Quvurlari» DC Full capacity - 2300 ton polypropylene pipes. Putting into operation – August, 2010

Food processing and packaging

“AgroFresh” JVFull capacity –storage of 3 000 ton fruit and vegetable. Putting into operation – August, 2010Foreign partner - “Kefayat General Trading Co. LLC” (UAE)

Projects under construction

Automobile gas cylinder Gas metering equipment

Optic fiber cables Cross-linked polymer cable

Perspective investment project

Over 70 new perspective investment project in electronics, OEM parts, plastic products, pharmaceuticals, food processing and packaging

A land plot is transferred to Korean Air for construction of residential and hotel developments of international level.

120 hectares land 1.2 km from Navoi FIEZ

Development of social infrastructure

March 19, 2012 held the opening ceremony of the Han Jin Navoi complex

Distance between large cities:

Tashkent – 80 km

Ferghana – 240 km

Samarkand – 220 km

“Angren“ Special Industrial Zone

Pedagogical institute

1200 graduating students

9 colleges, including 5 in industry

3 131 graduating, including 1 537 in industry

Establishment of “Angren“ Special Economic Zone (Degree of the President of the Republic of Uzbekistan April 10, 2012 No.UP-4434)

“Angren“ SIZ

Angren - 209 ha (I stage)

Ahangaran - 178 ha (II stage)

Pharmaceutical industry & Medical products

Construction materials

Food processing and packaging

Chemical and petrochemical products

“Angren” SIZ: Profile

Leather products

and other industries

Mineral resources of Tashkent region

Over 30 deposits of mineral resources, including :

Copper

Silver

Lithium

Coal

Kaolin

Building stones

Energy potential of Tashkent region

Electricity:

2 power stations (Novo-Angren, Angren)

21 high-voltage substations

Substations power - 313.2 MW

Gas supply:

The region is provided with natural gas through Akhangaran-1 pipeline

Creating a competitive advantage for the country in the international logistics market

30 ga total area 300 vehicles4.0 mln. tones cargo operation (2011)

Angren Logistics Center

Angren SIZ residents are exempted from

Property tax - 3.5%

Profit (income) tax - 9%

Unified tax (for SMEs) – 5%

Social infrastructure development tax – 8%

Obligatory payments to the Republican Road Fund (1-2.5%)

Tax preferences and incentives

Period of privileges and incentives:

3 yearsif amount of direct investments is from 0.3 mln to 3 mln USD

5 yearsif amount of direct investments is from 3 mln to 10 mln USD

7 yearsif amount of direct investments is more than 10 mln. USD

Tax preferences

Customs duties for imported equipment, raw materials, production components, not produced in Uzbekistan, by the degree of the Cabinet Ministers

Current projects

Synthetic motor oil Automobile tires

Ceramic tile Cement

Silicon

Thank you for your attention.

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