FINANCIAL SECTOR OF UZBEKISTAN CENTRAL BANK OF UZBEKISTAN 29 commercial banks PRIVATE by 22617fV8

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									Investment Environment of the Republic
of Uzbekistan. Prospective directions of
 foreign investments attraction into the
         economy of Uzbekistan.
                Bakhtier M. Irmatov
          Director of Uzinfoinvest Agency
                    MODERN
                   UZBEKISTAN
   The leading
industrial country
      in CA.

 “Open doors” Policy
 Favorable investment climate
 System of privileges and incentives
More than USD 25 bln of foreign investments have been attracted so far.
                                                                          [2]
                       GDP
                       (Growth, %)

10,0
 9,0
                                           9,5      8,1
 8,0
 7,0                 7,7             7,3
 6,0                        7,0
 5,0
 4,0          4,4
       4,2
 3,0
 2,0
 1,0
 0,0
       2002   2003   2004   2005   2006    2007   1 quart
                                                   2008     [3]
        EXPORT TREND
                           (mln USD)
9000
                                                       8991,5
8000

7000                                          6384,5

6000                                   5400
                                4853
5000
                         3725
4000
       3170,4   2988,4
3000

2000

1000

   0
       2001     2002     2003   2004   2005   2006     2007     [4]
            TRADE TURNOVER
                              (mln USD)
   In 2007:                                      In 1st quart.2008:

   Turnover growth by 27.4 %               Export growth by 56.1 %
   Export growth by 40.7 %                 Import growth by 9.8 %
   Import growth by 9.5 %
                                           Positive balance USD 778.2 mln
   Positive balance USD 3.7 bln
                                                                    14227,1
                            16000
                            14000                        10786
                            12000
The share of the products   10000   4456,4      6212,1
with high added value has    8000
increased from 22% in        6000
1991 up to 60% in 2006       4000
in total export.             2000
                                0
                                    1992       2000      2006       2007
                                                                              [5]
             INFLATION RATE
                                     (%)


30
      26,6
                      Effective moderately rigid
                      monetary and fiscal policy
25
              21,6    has allowed to support
                      inflation rate at rather low
20                    level.

15

10                                 7,8
                                           6,8   6,8
                      3,8   3,7
 5                                                      2,4

 0
     2001    2002    2003   2004   2005   2006   2007 1 quart
                                                                [6]
                                                       2008
FINANCIAL SECTOR OF
    UZBEKISTAN



             CENTRAL BANK
               OF UZBEKISTAN


           29 commercial banks

   STATE     JOINT-     PRIVATE    BANKS
             STOCK       BANKS     WITH
   BANKS                          FOREIGN
             BANKS                CAPITAL
     3
                           9         5
              12
                                            [7]
UZBEK TAX SYSTEM
 40%   38%
             36%
                   35%
 35%                     33%
                               31%     Income Tax Rate
 30%

 25%                                 24%
                                           20%
 20%                                             18%
                                                       15%
 15%                                                         12%
                                                                   10%
 10%

  5%

  0%
       1996 1997 1998 1999 2000 2002 2003 2004 2005 2006 2007

Unified tax for micro-firms and small enterprises from the
volumes of sale of goods (works, services) – 13%, including
mandatory payments to the state, target and off-budget funds.
                                                                         [8]
                 FOREIGN INVESTMENTS
                    IN UZBEKISTAN
           FDI     Foreign investments under Government Guarantee
100%

90%                                                      23,7%   21,2%
                                                 26,9%
80%

70%                                      55,8%                              FDI inflow
60%                      84,5%
                                 72,3%                                   for the last 7
       89,8%     88,3%
50%                                                                      yrs increased
40%                                                      76,3%   78,8%
                                                                         by 10 times
                                                 73,1%
30%                                                                      making 3.5
20%                                      44,2%                           bln USD.
                                 27,7%
10%                      15,5%
       10,2%     11,7%
 0%
        2000      2001    2002    2003    2004    2005    2006    2007


        More than 3500 enterprises with foreign investments, including
       world-famous TNCs, operate in the Uzbek market.
                                                                                          [9]
                   INVESTMENT
                   LEGISLATION
  The following laws form the basis of investment environment in Uzbekistan:


    On Foreign Investments,

    On Investment Activities,

    On Guarantees and Measures of Protection
of Rights of Foreign Investors,

   On Protection of Rights of Investors on
Securities’ Market
                                                                               [10]
    GUARANTEES & RIGHTS
    OF FOREIGN INVESTORS

Stable legislature during 10 yrs,

Foreign investments and other
foreign assets are not subject to
nationalization,

Free transfer of money resources in a
foreign currency into Uzbekistan and
from it without any restrictions,
                                        [11]
   GUARANTEES & RIGHTS
   OF FOREIGN INVESTORS
Foreign investors’ incomes derived in
Uzbekistan can be re-invested in the
territory of the Republic of
Uzbekistan or used in any other way
at the discretion of a foreign investor,




                                           [12]
   GUARANTEES & RIGHTS
   OF FOREIGN INVESTORS

Return of foreign investments due to
the discontinuance of an investment
activity,


Insurance protection and guarantees
against political and other risks.

                                       [13]
       INCENTIVES FOR
     FOREIGN INVESTORS
Unprecedented tax incentives, in
particular, interest rate reduction and
full exemption from tax for 7 yrs
depending on the volume of
investments,

Exemption from VAT payment and
custom charges for imported
equipments,
                                          [14]
       INCENTIVES FOR
     FOREIGN INVESTORS


Exemption from land tax payment for
a specified time,

More incentives available for export-
oriented enterprises.


                                        [15]
           INCENTIVES FOR
         FOREIGN INVESTORS
   On March 14, 2007 a special Decree was signed by the
President in order to stimulate upgrading and re-equipment.


  Tax base reduction for the sum equivalent to
the expenditures spent for upgrading and re-
equipment for 3 years,

  Tax exemption from the property tax to re-
equipments for 5 years.


                                                              [16]
UZBEKISTAN – REPUBLIC OF KOREA




       313 enterprises with Korean
      capital and 66 representatives
      of Korean companies operate
               in Uzbekistan
                                       [17]
       UZBEKISTAN – REPUBLIC OF KOREA


Trade turnover between    Export to the Republic of
 two countries in 2007   Korea made USD 69.8 mln,
 made USD 583.9 mln       import – USD 514.1 mln.




                                                      [18]
       INVESTMENT
      OPPORTUNITIES


Favorable investment environment

     Comprehensive facilities




                                   [19]
            OIL & GAS INDUSTRY
 Uzbek share in Central Asia:
 • 40% - natural gas
 • 55% - coal
 • Coal reserves – 2 bln tons
                                       Gas

                                • Explored reserves – more than 2 trln m3

                                • Extraction – about 65 bln m3

                                • Uzbek gas transportation system - 9 main
                                gas pipes with 12 thousand km length

Sector Investment Capacity USD 5 bln                                        [20]
                 MINING &
                QUARRYING




Explored Reserves   USD 3.3 trln   [21]
       CHEMICAL INDUSTRY
Sector Investment Capacity USD 800 mln




                                         [22]
PHARMACEUTICAL
   INDUSTRY
          50 enterprises
          produce more than
          500 types of
          medical products




                              [23]
            ELECTRICAL
       ENGINEERING INDUSTRY
Sector Investment Capacity   USD 120 mln




                                           [24]
         TEXTILE INDUSTRY
Sector Investment Capacity USD 700 mln
                            Textile enterprises of
                            Uzbekistan:
                          • process about 30% of produced
                          cotton-fiber

                          • produce about 190,000 tons of
                          cotton yarn

                          • produce 305 mln. m of cotton
                          fabrics and 2.5 mln.sq.m of carpets

                          • volume of planned trade with
                          textile goods comprises over USD 1
                          bln
                                                                [25]
         FRUITS-AND-VEGETABLES
          PROCESSING INDUSTRY
Sector Investment Capacity       300 mln USD
Uzbekistan possesses a significant
potential for development of
processing of agricultural products.
UZBEKISTAN:
• one of the largest producers of
raisin and dried fruits in the world

• one of the top-five producers of
tomato-paste in the world

• capable to cultivate more than 10
mln tn of fruit-and-vegetables p.a.
                                               [26]
            FOOD, FAT & OIL
              INDUSTRY
Sector Investment Capacity   USD 200 mln




                                           [27]
            CONSTRUCTION
          MATERIALS INDUSTRY
Sector Investment Capacity   USD 430 mln




                                           [28]
           PRIVATIZATION
The program of privatization for
2007-2010 has started

Shares of 1432 state enterprises
are offered for sale to private
sector, including 994 enterprises
to be fully transformed to the
private ownership

75 state enterprises are offered
on zero value with investment
obligations
                                    [29]
investuzbekistan.org
            English & Russian versions available




www.uzinfoinvest.uz           www.investuzbekistan.uz   [30]
                 WHY
      TO INVEST IN UZBEKISTAN?
Political Stability
Fast Growing Economy and Infrastructure
Favorable Tax Policy
Convenient Geographic Location
Rich Source Of Mineral-raw Materials
Well Trained Labor Force
The Best Place To Live
                                          [31]
 UZBEKISTAN
   IS OPEN FOR YOU!
www.investuzbekistan.org
THANK YOU!

								
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