Uzbekistan’s Thriving Economy: A Comprehensive Guide to Investments, Reforms, and Prosperity

Uzbekistan recognizes private property as a significant factor in driving economic development and prosperity. The updated Constitution reaffirms this commitment, including guarantees for entrepreneurs and the protection of private property.

1. Constitutional Guarantees and Economic Growth: Article 65 of the Constitution enshrines that private property is inviolable, and owners can only be deprived by law through a court decision. Foreign direct investment has led to projects such as a 1,500 MW power plant and a gas chemical complex. Investments worth 37.0 trillion soums were disbursed in 2022, a 1.2 percentage point increase compared to 2021.

2. Entrepreneurship and Business Development: Entrepreneurial support has risen to state policy level, leading to significant growth in new enterprises. In 2022, 90,565 new businesses were created, and enterprises reached 592 thousand, an almost 2-fold increase since 2019. The Republic’s GDP at current prices in 2022 exceeded $80 billion, a 5.7% increase from 2021.

3. Legal Framework and Economic Space: The updated Constitution, aligned with World Trade Organization standards, guarantees economic unity and free movement of goods, services, labor, and financial resources. Monopolistic activities are also regulated and restricted.

4. Enhancements in Customs and Foreign Exchange: Decrees have been adopted to ensure free movement of financial resources, simplify customs clearance processes, and create 21 free economic zones. Tax and customs benefits are granted to stimulate foreign and local investment.

5. Employment and Income Growth: Efforts to form a modern labor resource balance have been implemented. In 2022, the total per capita income was 17.8 million soums, with a growth rate of 119.8%. There are also subsidies and tax benefits for home-based workers and the development of new job opportunities.

6. Business Support and Regional Development: 185 types of licensing and permit procedures for entrepreneurs have been reduced or simplified. A Decree dividing the territories into five categories provides tax incentives and subsidies depending on the region’s category.

7. Conclusion: The various legal, investment, and economic reforms in Uzbekistan are designed to foster a favorable climate for business, promote fair competition, and ensure sustainable growth. These measures affirm Uzbekistan’s commitment to improving citizens’ welfare, offering an environment where entrepreneurs thrive, and significantly contributing to the nation’s continued economic development.

By Erkin Gadoev, Chairman of the Committee on Budget and Economic Reforms of the Senate of the Oliy Majlis of the Republic of Uzbekistan

Published On: July 12, 2023Views: 84