Modern Uzbekistan is a leading industrial country in Central Asia, ensuring stability and promoting
economic development of the whole region.
In spite of difficulties, related to the world financial - economic crisis, the volume of Uzbekistan’s
GDP has grown by 8% 2014; industrial output grew by 6.3%; agriculture by 6.6%; services by 16.1%.
Development of new foreign markets in 2014 provided an increase in exports to 15.4%. Share of
medium and small enterprise sector in the GDP reached 54%.
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. If the share of foreign
direct investments in gross investments in the first years of independence amounted to nearly zero,
whereas in 2014 it was 85%.
Over the years of reform, total investments to the economy of Uzbekistan has exceeded 100 billion US
dollars, 35 billion of which are foreign direct investments.
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.
Uzbekistan is among the top ten countries in gold reserves, natural gas, uranium, silver, copper,
molybdenum and other rare metals and is a net exporter of these natural materials.
In Uzbekistan more than 100 types of mineral resources, more than 2800 deposits and prospective
shows of minerals are exposed.
The total energy reserves of Uzbekistan are sufficient for the coverage of the needs of the economy at
least for 100 years. Generated electricity capacities fully cover domestic needs, but also allow export of
electricity to other countries.
The country’s electricity cost is 4,5 times below the average cost paid by industrial consumers in
Foreign companies, investing in Uzbekistan, get an opportunity to enter the largest and most
dynamically growing markets among CIS countries, Asia and Europe. Agreements on Most favored
nations treatment with 45 countries, including USA, Japan, China, Korea, EU countries, and Free trade
area between CIS countries, significantly enhance the competitiveness of goods, produced in Uzbekistan
on external markets.
Due to intellectual capacity, Uzbekistan is one country in Central Asia manufacturing a wide range of
modern sedans and trucks, high quality agricultural machinery, chemical goods, textile, food products
and building materials.
Uzbekistan boasts almost 100% literacy. Significant human and intellectual potential, corresponding to
modern international standards of education are serious factors for the successful development of the
country. In Uzbekistan more than 300 thousands students study in hundreds universities and colleges
for 850 professions. There are affiliates of leading European, Asian and Russian universities that operate
in Uzbekistan. For example, Westminster International University, Singapore Institute of management
development, Italian Torino polytechnic institute, Moscow state university and others.
Basic guaranties and rights of foreign investors are provided by the current legislation
The Law “On Guarantees and Measures of Foreign Investors’ Rights Protection” provides inviolability
and protection of foreign investor property rights.
Foreign investors are given the following guarantees:
- Stable legislation during 10 years,
- Foreign investments and other foreign assets are not subject to nationalization,
- Foreign investors’ incomes derived in Uzbekistan can be re-invested into Uzbekistan or used in any
other way at the discretion of a foreign investor,
- Insurance protection and guarantees against political and other risks.
Incentives and Preferences
- Taxable profit of legal entities decreases on the amount of funds allocated for the expansion of main
production and modernization.
- For exporters, If the share of export goods and services is:
- from 15% to 30% in the total sale – the fixed income tax rate is decreased by 30%;
- from 30% and over in the total sale – the fixed income tax rate is decreased by 50%.
- Items that are exempted from VAT:
- from property sale, if property is sold within the framework of state property privatization;
- turnover from the sale of goods, bought by legal entities on loans, extended by international and
foreign governmental financial institutions;
- turnover from the sale of property, transferred as an investment liability;
- imported technological equipment, property and raw materials to be used in the production process.
- When calculating tax on property of legal entities, taxable base decreases on the amount of:
Legal entities exempted from property tax:
Besides, for exporters, if the share of export of goods, services is:
- equipment, financed by loan, for 5 years from the moment of its installation;
- property, received in leasing, for the period when leasing contract is in force;
- newly installed technological equipment – for 5 year period.
- from 15% to 30% in the total sale – the fixed property tax rate is decreased by 30%;
- from 30% and over in the total sale – the fixed property tax rate is decreased by 50%.
Items exempted from customs duties:
- newly established enterprises – within 2 year period from the moment of state registration.
Along with customs and tax incentives, fixed for all Uzbekistan enterprises, there are a number
of benefits granted to the enterprises, located in the regions of the country (except those located in
Tashkent region and Tashkent city). These enterprises are exempted from profit tax levied on legal
entities, property tax on legal entities, tax on modern services, utilities and development of social
infrastructure, unified tax payment, obligatory deductions into the Republican Road Fund.
- property, goods, services, technological equipment for establishing a production in Uzbekistan.
These tax incentives are applied if investments are made into the following sectors of economy;
The mentioned above incentives are granted if the volume of FDI is as follows:
- production of radio-electronic industry and production components for computers;
- light industry;
- textile industry;
- construction materials industry;
- industrial production of poultry and eggs;
- food industry;
- dairy industry;
- chemical and pharmaceutical industry;
Within investment projects worth more than US$50 million and with a share of foreign investors no
less than 50%, the construction of the necessary external engineering and communication networks will
be carried out at the expense of budget funds and other domestic sources of financing.
Free industrial economic zone “Navoi”
- from USD 300,000 up to USD 3 mln. – for three year period;
- over USD 3 mln. up to 10 USD 10 mln. – for five years period;
- over USD 10 mln. – for seven years period.
FIEZ "Navoi" has significant prospects in terms of attracting foreign direct investment due to its
advantageous geographical location, existing developed industrial and transportation infrastructure.
In a radius of 2000 km from FIEZ "Navoi" there are the capital of 10 States with a population of more
than 100 million people. This opens up an opportunity for immediate transportation of industrial goods
produced there to the end consumers in Asia and Europe.
Business enterprises registered in the FIEZ «Navoi» are exempted from paying land tax, property tax,
profit tax, social infrastructure development tax, unified tax payment (for small businesses), compulsory
contributions to the Republican Road Fund and Republican School Fund depending on the volume of
deposited foreign direct investments:
- from 3 to 10 million Euro - for 7 years;
- from 10 to 30 million Euro - for 10 years. For the following 5 years rates for profit tax and unified tax
payment are fixed at the level of 50 percent lower than current rates;
- more than 30 million Euros - for 15 years. For the following 10 years rates for profit tax and unified tax
payment are fixed at the level of 50 percent lower than current rates.
Business enterprises registered in FIEZ«Navoi» are exempted from paying customs duties (excluding
charges for customs clearance) for equipment, raw materials and components imported for production
of export goods for the entire period of operation of FIEZ«Navoi».
Customs duties for raw materials and components, being imported for production of goods to be sold in
the domestic market of Uzbekistan, are levied at the rate of 50 percent of the exercised rate with delay
of payment period up to 180 days if the legislation does not establish more favorable treatment.
Special Industrial Zone “Angren”
The Angren SIZ will be operating for 30 years with the option for further extension. Throughout the
duration of the zone, it will provide special tax regime and customs facilities.
In particular, the businesses located in Angren SIZ will be exempt from income tax, property tax for
legal entities, the tax on improvement and development of social infrastructure, the single tax for small
businesses, as well as mandatory contributions to the Republican Road Fund. In addition, they will be
exempt from customs duties on equipment, components and materials, not produced in the country,
imported to the territory of Angren SIZ as part of the investment projects.
Note that the abovementioned exemptions are granted for a period of 3 to 7 years depending on the
amount investments made. In particular, 3-year exemptions are granted for the equivalent of $300,000
to $3 million, 5 years for over $3 million to $10 million, 7 years for more than $10 million.
The main tasks and activities of Angren SIZ include creating an attractive environment for investment,
especially direct one, for the establishment and effective operation of modern high-tech industries,
production of domestically and globally competitive products with high added value.
In addition, the SIZ will ensure comprehensive and efficient use of production and resource potential
of the region included in the Special Industrial Zone, creation of new industries with more advanced
processing of mineral resources.
Another area of activity is deepening of localization of high-tech products based on local raw materials
by establishing close cooperative relations and development of industrial cooperation between
enterprises in the Special Industrial Zone and in the country in whole.
Particular emphasis will be given to the advanced development and effective use of transport,
engineering, communications and social infrastructure, further development and widespread use of
Angren Logistics Center, roads and container freight transport system.