The Investor Uzbekistan 2023 I Economy I Analysis
“THE GOVERNMENT'S COMMITMENT TO PROMOTING INVESTMENT AND THE AVAILABILITY OF PRIVATE SECTOR SUPPORT AND ASSOCIATIONS MAKE UZBEKISTAN AN ATTRACTIVE INVESTMENT DESTINATION FOR BOTH LOCAL AND FOREIGN INVESTORS.”
As President Mirziyoyev recently stated, "It was on the territory of ancient Maverannahr, where modern Uzbekistan is located, that the mutual enrichment of civilizations and cultures took place, formed in China, India, Iran, Byzantium, and Egypt. As a result, our country, with more than 3,000 years of history of statehood, has long been one of the world’s highly developed centers of trade, economy, science, culture, and art."
The Uzbekistan government actively promotes the country as a favorable investment destination and offers support to investors through inter-governmental coordination and partnerships with various stakeholders. The Ministry of Investment, Industry, and Trade (MIIT) is the state body responsible for regulating investment and trade across the nation, while the Investment Promotion Agency of Uzbekistan (UzIPA) serves as the first contact point and provides foreign investors with comprehensive support. Ministries in Uzbekistan also aid investors with sector-specific projects and public-private partnerships (PPPs) by acting as public-sector partners.
Today, the MIIT is further developed with the establishment of the "one window" principle aimed at facilitating the investment process for investors, providing comprehensive assistance and covering all regions and industries. As a result, the annual volume of foreign investments in the country has increased 3.5 times, and over the past 5 years, their total volume has reached U$31 billion. The implementation of 59 thousand investment projects due to this made a worthy contribution to the creation of more than 2.5 million new jobs. As a result of resource development over the past 5 years, the volume of industrial production has increased 1.4 times, and exports have increased by 1.5 times. Under the leadership of President Mirziyoyev, the country aims to increase industry by 1.5 times more and bring exports up to U$30 billion. It will require U$120 billion of investment, including U$70 billion of foreign investment. This will ensure stable economic growth in the next five years.
In addition to government bodies, the Chamber of Commerce and Industry (CCI) represents the Uzbek private sector in investment and trade and advocates for its members' legitimate rights and interests. The country also has over 60 industry associations available to assist their members through all stages of establishing and running a business. Uzbekistan offers a range of resources and support systems to help investors navigate the investment process and establish successful businesses.
The government's commitment to promoting investment and the availability of private sector support and associations make Uzbekistan an attractive investment destination for both local and foreign investors. One of the most important efforts being implemented by the Government to improve the image of Uzbekistan internationally is the fight against corruption. This has become the most important priority, and a dedicated agency has been created to ensure greater transparency. Another important point for investors is the identification of the education sector as a major priority for the Government's investments.
Over the past 5 years, more than 21 thousand new preschool educational institutions have been created in the country, and the coverage of children with preschool education has increased from 27 to 67 percent. In addition, about 200 new schools have been built, over 3,000 operating schools have been reconstructed and fully equipped. In a short period, 82 new universities and institutes were created, including 23 foreign universities, as a result, their total number reached 159. The enrollment rate of school graduates in higher education increased from 9 to 28 percent.
Uzbekistan aims to become the leading country in the region by establishing a tax policy that benefits the country and encourages entrepreneurship. In recent years, the government has reduced the total number of taxes from 13 to 9. It has also halved the rates of property tax, personal income tax, and social tax. Additionally, around 6,000 import duty rates have been reduced, while over the past 5 years, approximately 200 licenses and permits have been canceled or simplified. The administration is continuously striving to implement measures that further decrease the tax burden on business entities and improve tax administration.