Business opportunities in Uzbekistan

Business opportunities in Uzbekistan

 

Uzbekistan, officially called as The Republic of Uzbekistan, today is a democratic, constitutional, presidential republic with the largest population among the countries of Central Asia. As a country, which priorities are establishing a free democratic society and developing a market economy, with economic policies designed to attract manufacturing and service companies from around the world, Uzbekistan today offers a big amount of business opportunities.

 

Doing business in Uzbekistan

 

The Republic of Uzbekistan is a leading industrial country in Central Asia. The distinctive features of the country are highly developed automobile, airplane and machine building, metallurgy, natural gas and oil processing, chemical, textiles, food processing and other industries.   
 

Mining and minerals is a significant part of the national economy. Uzbekistan is a major producer of gold with the largest open-pit gold mine in the world and has substantial deposits of such strategic minerals as copper, tungsten, lead, zinc, and uranium, as well as natural gas and oil. 

Uzbekistan is a largest agricultural producer of the region. It is a recognized leading producer and exporter of raw cotton, cotton yarn and textiles. The country also produces and exports significant quantities of silk, fruits and vegetables. 

The country has a highly developed, modern, transport infrastructure, consisting of 6,5 thousands km of railways, over 43,5 thousands km of highways and developed air communication network which connects the most remote regions of the country to major centers, providing access to international transport systems and basic natural mineral and raw materials resources in the country. 

Uzbekistan's foreign trade policy is based on import substitution. Besides the country’s traditional trade partners from CIS countries, which in total provide over 40% of its exports and imports, non-CIS partners from China, Iran, South Korea, Turkey and EU have been increasing their presence in recent years. 

 

Business development in Uzbekistan

 

Uzbekistan's foreign trade policy is based on import substitution. Besides the country’s traditional trade partners from CIS countries, which in total provide over 40% of its exports and imports, non-CIS partners from China, Iran, South Korea, Turkey and EU have been increasing their presence in recent years. 

Apart from this, the Republic of Uzbekistan is a member of the IMF, World Bank, Asian Development Bank, and European Bank for Reconstruction and Development. It has observer status at the World Trade Organization, is a member of the World Intellectual Property Organization, and is a signatory to the Convention on Settlement of Investment Disputes Between States and Nationals of Other States, the Paris Convention for the Protection of Industrial Property, the Madrid Agreement on Trademarks Protection, and the Patent Cooperation Treaty.

 

Investments in Uzbekistan

 

According to the World Bank project “Doing business - 2014”, rating of Uzbekistan on “starting business” indicator has improved to 69 positions among 189 states of the World, due to easing the business registration procedure for entrepreneurship activities.

 

The following rights are guaranteed under Uzbekistani law to foreign investors:

-To decide on the amount, kinds and channels of investments;

-To conclude agreements to carry-out investment activity;

-To own, use and dispose of investments and the results of investment activity;

-To patent inventions, models and industrial samples belonging to the foreign investor;

-To repatriate profits from Uzbekistan or to reinvest them into Uzbek entities;

-To obtain financial resources in the form of credits and loans;

-To convert local currency into foreign currency;

-To possess and use land on terms provided by the legislation;

-To receive compensation for investments/other assets in case of expropriation by the state;

-To receive compensation for losses incurred due to the illegal activity or decisions of the state.

 

International business cooperation in Uzbekistan

 

The Republic of Uzbekistan was recognized by more than 150 countries.  With more than 100 of them, diplomatic relations have been established.

In 2013, the Republic of Uzbekistan has become the only country in Central Asia, which entered the top-20 countries of the world with the best perspectives for business, according to the research of the “Maplecroft” British consulting company.

Uzbekistan had been ranked 11-th among 26 the most rapid developing countries of the world the research of HSBC bank “The World in 2050”.

According to the research of the World Travel Tourism Council, in 2013, Uzbekistan was among the 5 countries with the most rapidly growing tourism sector.

To date, trade and economic relations were established with more than 140 countries. Almost 4000 joint ventures operate in Uzbekistan nowadats and the total volume of exported goods has increased 1,5 times. Nearly half of the Republic’s population is concentrated in Tashkent and the Ferghana Valley, two regions where consumer product manufacturers should consider as entry points to Uzbekistan’s markets. Residents of Tashkent have the greatest purchasing power in the country. Other large cities include Samarkand and Bukhara, which benefit from oil and gas industry and tourism, and Navoi, which is home to Uzbekistan's gold mining enterprise.

A local representative office must be accredited with the Ministry of Foreign Economic Relations, Investment and Trade (MFERIT) of Uzbekistan. Accreditation lasts from one to three years, after which it is usually extended annually and it takes ten working days to process.