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WHY INVEST IN UZBEKISTAN?
Investment Promotion Agency under the Ministry of Investments and Foreign Trade of the Republic of Uzbekistan
UzIPA
Area448,978 sq.km.
populationXX
Uzbekistan has the largest and fastest-growing market in Central Asia
KEY
DA
TA
Population33,4M
GDP$ 48.72B (2018)
TashkentCapital
Samarkand519K
2.4 M
Andijan416K
Namangan493K
Bukhara274.4K
Nukus303.6K
Uzbekistan map
Languages
Uzbek (official language),
Russian (often used)
Urbanization rate~51%
Currency
Sum (1 USD = 8’460 UZS)
Political systemPresidential Multi-Party
Democratic Republic
Young, large & educated labour force is a major factor for growth
Age structure of the population Employment by sector as of 2018
6%
4.60%
4.80%
4.80%
8.50%
8.90%
10.50%
11.60%
13.40%
26.90%
Other
Healthcare
State management
Logistics
Education
Construction
Trade
Small trade & services
Industrial production
AgricultureUnder 15
years old
26%
From 15 to 65
years old
69%
Above 65 years old
5%
Qualified workforce of 18.8 million people
Largest workforce
in the region
Literacy rate
is 97%
60 higher educational
institutions and their
30 branches
Labor force in million ppl Literacy rates
2.4
2.6
3.9
4.9
9.2
18.8
Turkmenistan
Kyrgyzstan
Tajikistan
Azerbaijan
Kazakhstan
Uzbekistan
86
95
97
97
98
World average
Upper middle
income countries average
Uzbekistan
Singapore
Spain
Installed Capacity: 1,951 MW
Potential Output: 27.4B KWh
HY
DR
OP
OW
ER
Installed Capacity: 4 MW
Potential Output: 525B KWhSO
LA
R
Installed Capacity: 0.85 MW
Potential Output: 1K KWhWIN
D
Uzbekistan has abundant and diverse natural resources
Gold
Natural Gas
Copper
Uranium
Reserves Production
10th 10th
24th 13th
10th 20th
16th 7thD
IVER
SIF
ICA
TIO
N O
F E
NER
GY
SO
UR
CES
184K km
Strategic location in the middle of Central Asia and heart of the Silk Road
Uzbekistan has a strategic position in the
Central Asia region. It has also probably the
most developed transport infrastructure in
Central Asia.
total length of well-
developed system of railways
5800km
will be connected through China, Kyrgyzstan
and Uzbekistan transit cooperation
East
Asia
Southern
Europe +
total length of roads in Uzbekistan
950km
Through optimized transit procedures
China - Kyrgyzstan – Uzbekistan
road corridor
8day > 2day300$cost reduce per
ton of cargo
Legal and institutional reforms implemented since 2016
State governance
Rule of law and
legal reforms
Liberalization
of the economy
Social sphere
Security, religious tolerance and
interethnic harmony, foreign policy
STRATEGY FOR DEVELOPMENT
State-owned
enterprise reform
One defining characteristic has
been the initiation of wide-
reaching reforms.
Since 2016
2017 - 2021
▪ Modernization of the economy
▪ technological development
▪ attracting FDI
▪ improvements in investment climate
▪ protection of private property
▪ optimization of taxation system
▪ infrastructure investments
Improvements in Taxation Policy
State and
local taxes 2017 2018 2019
Corporate
income tax
7.5%+8%(payment for social
infrastructure)
General rate 14%; commercial banks 22%
General rate 12%; commercial banks 20%
Single tax payment
(SMEs)5% 5% 4%
Personal
income tax From 0% to 23% From 0% to 22.5% Single flat rate 12%
VAT (standard rate) 20% 20% 20%
Corporate
property tax 5.0% 5.0% 2.0%
Social payments to
pension funds8% 8% Abolished
Corporate payments to
other funds1.6%+1.4%+0.5% single rate 3.2% Abolished
Single social
payment
25%
(15% for SME)
25%
(15% for SME)12%
Tax simplification
Reduction of the tax
burden
Increasing local
budgets revenues
Further reforms
KEY
TA
X R
EFO
RM
S W
ILL T
AK
E E
FFEC
T I
N 2
02
0
Tax relief under direct investments
Investment amount Relief period
300K – 3M 3 years
3M – 10M 5 years
Over 10M 7 yearsEN
TER
PR
ISES
WIT
H F
DI of foreign investments in the
company allow it to be
Enterprises with foreign
investment 15%
NOT LESS
THEN
tax reliefSTILL
GET ALL
by newly created enterprises with
foreign investments, even when tax
legislation changes*
*Depending on conditions of the investment amount
TWO YEARSCUSTOMS DUTY EXEMPTIONof own use property import for enterprises
with at least 33% foreign investments
World Bank: Doing Business ranking change
157 Comoros
158 Suriname
159 Mauritania
160 Afghanistan
161 Cameroon
162 Togo
164 Iraq
165 Lao PDR
166 Uzbekistan
71 Ukraine
72 Greece
73 Indonesia
74 Mongolia
75 Jamaica
76 Uzbekistan
77 India
78 Oman
79 Panama
2012 2019
World Bank Doing Business ranking: 90 points improvement in the past few years
TOP10One of the
global improvers is Uzbekistan
by The World Bank
SIGNIFICANT
in Starting a Business, Getting
Electricity, Getting a Credit, Paying
Taxes and Registering Property
Since 2012
REFORMS
DEVELOPMENT
aimed at opening and liberalizing the
economy and improving investment
climate
2017-2021
STRATEGYFREE
Providing Tax, customs and
other preferences
21
ZONESECONOMIC
AgencyUzbekistan's
RatingRating countries
BB-
stableBrazil, Dominican,
Georgia
B1
stableArmenia, Costa Rica,
Montenegro
BB-
stableBrazil, Dominican,
Georgia
5
pointsAzerbaijan, Brazil,
Kazakhstan, Turkey
Credit rating agencies’ assessment for Uzbekistan and Uzbekistan's first Eurobonds
UZBEKISTAN IN INTERNATIONAL DEBT MARKETS
Uzbekistan sold
$1 billion
Eurobonds
in first entry into
international debt
markets
The deal pricedwith a yield
4.75 percent
on five-year paper
5.375 percent
on 10-year notes
Investorsbid for more than
$5.5 billion
of the bonds
Companies with FDI in Uzbekistan
The World Bank is ready to
significantly increase its presence
in Uzbekistan and to support the
reforms in the countryKristalina Georgieva
World Bank CEO
ADB, in accordance with the
government's strategy, is planning
to provide USD 2.6 billion in
sovereign loans in 2017–2019, to
increase non-sovereign
transactions through equity
investments and private loans.Takehiko Nakao
The President of ADB
We are in a great hurry, we are
striving to expand and deepen our
presence in Uzbekistan as soon as
possible.Philip Bennet
Former First Vice-President of EBRD
The Action Strategy, developed by
the initiative of the President
Shavkat Mirziyoyev, is a very
serious and bright program, it
reflects ideas of the United Nations
and reforms aimed at ensuring
human rights.Zaid Raad Al-Hussein,
UN high commissioner for human rights
The international community acknowledges the recent significant progress in Uzbekistan
get all advantages of
frontier market
opportunities
in the Central Asia
region, reaching
almost 19M people
conditions improving
day by day through
conduction wide-
reaching reforms
and logistic
environment
provides access 4B+
market
Investment Promotion Agency under the Ministry of Investments and Foreign Trade of the Republic of UzbekistanUzIPA
So why invest in Uzbekistan?
Boomingmarket
Biggestmanpower
Centrallocation
High returns