Investments in Uzbekistan
Investments in Uzbekistan
Economics of Uzbekistan is very attractive for foreign investments by virtue of relatively low costs on the agents of production (electric power, natural gas, labor power) with its considerable domestic market (more than 26.3 million people of the residential population) and duty-free importation on the markets of the countries being members of the Commonwealth of Independent States. Equity contribution into the core capital in gross domestic product grew up to by 17 % in 2014 and the major part of deposits was made by non-state actors that include public limited companies.
A combined targeted program of a big investment project on creation of new ones and of modernization and reconstruction of existing industries in 2015 at the cost of $6.1 bln includes investments in new construction sites – 69.6 % of the total volume of resources; in enlargement, reconstruction and modernization – 22.8 %; in other lines of business – 7.5%.
Industrial production in the Republic is represented by oil and gas industry, chemicals sector, machine engineering, processing of vegetables and fruits, textile industry, food industry, building materials production.
Oil and gas industry provides 93% of the Uzbek energy demand with primary fuel resources. This sector involves also the foreign companies which act as users of subsurface resources and finished product suppliers. The oversea corporations attracted for conduct of petrol exploration and prospecting works are excused from all types of taxes and customs payments while importing the recourses, equipment and services for prospecting.
In the consumer goods manufacturing a textile business development in Uzbekistan became one of the priority guidelines. The factories of the sector manufacture and push export of such production as cotton yarn, cotton untreated fabrics, jersey clot, sewn and knitted wares. This economic sector has a stable raw materials base, because more than one million tons of cotton fiber is produced in Uzbekistan per annum, 25% of which is being processed at this moment. In order to encourage investments in Uzbekistan in the consumer goods manufacturing the legislation of Uzbekistan provides a wide range of exemptions and concessions including exempt from deduction into the budget of all taxes and fees (except for goods and services tax), customs payments (except for customs registration fee) for technical and supplementary equipment, process parts and duplicates taken for own needs.
Uzbekistan has formed a list from 530 big capital spending projects in the amount of $40 bln within the agreed period of 2015-2019. Thus, the industrial-production growth is assumed to become bigger by half within a period not exceeding five years.