NEW AGE OF INVESTING IN UZBEKISTAN
NEW AGE OF INVESTING IN UZBEKISTAN
Modern Uzbekistan is a leading industrial country in Central Asia, ensuring stability and promoting economic development of the whole region and is in the top ten countries terms of gold reserves, natural gas, uranium, silver, copper, molybdenum and other rare metals, being a net exporter of these natural materials. More than 100 types of mineral resources, more than 2800 deposits and prospective shows of minerals are exposed in Uzbekistan. The total energy reserves of Uzbekistan are sufficient for the coverage of the needs of the economy for at least 100 years. Generated electricity capacities fully cover domestic needs, but also allow export of electricity to other countries.
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. The share of foreign direct investments in gross investments in the first years of independence amounted to nearly zero, whereas in 2014 it reached 85%.
Uzbekistan had the highest GDP growth rate among the CIS countries in 2015. More than half of the GDP (56.7%) was generated by micro-firms and private enterprise entities.
Notwithstanding the grave repercussions of the still ongoing global financial and economic downturn, the annual growth of the gross domestic product (GDP) has exceeded 8 percent in 2008-2013. Very few countries around the world have been able to boast similar economic growth rates.
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.
Nowadays, Uzbekistan has established seven Free Industrial Economic Zones in the Navoi region, Angren city, Jizzax region, Khazarasp (Khorezm region), Urgut (Samarqand region) and Kokan (Ferghana region) with additional guarantees and protective measures (incentives and preferences). For example, the term of functioning of FEZ «Urgut», FEZ «Gijduvan», SEZ «Kokand» and SEZ «Khazarasp» is 30 years with possibility of its subsequent extension.
During the period of operation in the SEZ «Urgut», FEZ «Gijduvan», SEZ «Kokand» and SEZ «Khazarasp» the investors will have special tax, customs and foreign exchange regimes.
The participants of free economic zones are released from payment of land tax, profit tax, tax on property of legal entities, tax for accomplishment and development of social infrastructure, single tax payment for microfirms and small enterprises, and other obligatory deductions, as well as customs payments (except fees for customs clearance) for equipment, raw materials and component parts imported for own production needs, customs payments (except fees for customs clearance) for construction materials not produced in the Republic and imported into the framework of the projects on the lists approved by the Cabinet of Ministers of the Republic of Uzbekistan for a period of 3 to 10 years depending on the amount of the investment being made, including the equivalent of:
- from 300 thousand USD to 3 million USD — for a term of 3 years;
- from 3 million USD to 5 million USD — for a period of 5 years;
- from 5 million USD to 10 million USD — for a period of 7 years;
- from 10 million USD and above for a period of 10 years, using within the next 5 years rates of profit tax and uniform tax payment in the amount of 50 percent below current rates.
Investing in Uzbekistan is undoubtedly good chance to run business with high profit. To begin with your business, we offer our law firm cooperation. “Gulyamov, Sadikov and Partners” is the unique law firm combining the western style legal service of the highest quality with deep and detailed knowledge of the legislation and legal practice of the Republic of Uzbekistan.