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February 24, 2014


February 24, 2014


The Plan of socioeconomic development of Uzbekistan in 2014 distributed as official document of the United Nations. 2

economy.. 3

Total portfolio of leasing operations in Uzbekistan exceeds 1.5 trillion soums. 3

Navoi Free Industrial Economic Zone.. 4

Privileges and Preferences for foreign direct investments in Navoi FIEZ.. 4




Press-service of MFA of the Republic of Uzbekistan


The Plan of socioeconomic development of Uzbekistan in 2014 distributed as official document of the United Nations

On February 18, 2014 information on the outcomes of socioeconomic development of Uzbekistan in 2013 and priorities of economic program for 2014 in New York, at the headquarters of the United Nations was distributed as official document of the 68th session of the UN General Assembly. The information was translated into all six official UN languages – Arabic, Chinese, English, French Russian and Spanish.

Representatives of the international community could learn the basic aspects of the address, delivered by President Islam Karimov at the meeting of the Cabinet of Ministers January 17, 2014.

The document highlights that despite slowdown in growth rates of the world economy and increased risks to its development, Uzbekistan ensured a sustainable economic growth, macroeconomic stability and economic modernization in 2013 as a result of its consistent implementation of reforms and development strategy aimed at creating a modern, competitive and diversified market economy.

The 2013 results include growth figures of 8 per cent for gross domestic product (GDP), 8.8 per cent for manufacturing, 6.8 per cent for agriculture, 16.6 percent for construction, 13.5 per cent for services and 14.8 per cent for retail trade. Implementation of the State budget yielded a surplus equivalent to 0.3 per cent of GDP. Inflation stood at 6.8 per cent and did not exceed projections. As a result of an active investment policy aimed at accelerating the development and technological upgrading of industry and of social, road transport and communications infrastructure, fixed investment grew by 11.3 per cent. Foreign investment exceeded US$ 3 billion, more than 72 per cent of which consisted of foreign direct investment. Under the country’s investment programme, 150 projects totalling some US$ 2.7 billion were carried out in the production sectors. Notwithstanding the volatility of the current global market, measures to promote the activities of domestic producers and exporters and to realize their competitive advantages led to a 10.9 per cent increase in exports and a significantly positive external trade balance.

The country’s banking system is operating sustainably, as its capital adequacy remains three times the international minimum standard and its liquidity is 2.2 times the highest standards. Over the past year, the total capital of commercial banks has grown by 25 per cent. Domestic sources account for about 80 per cent of the banks’ total loan portfolio.

The measures taken to support, modernize and intensify agricultural production have brought about qualitative changes in the agricultural sector. Despite adverse weather conditions and a water shortage, the past year witnessed high yields of all major crops: 3.36 million tons of cotton, 7.8 million tons of grain and 8.4 million tons of vegetables.

The continued implementation of systemic measures to further improve the business environment have spurred the development of small businesses. More than 26,000 new small businesses have been created, and this sector’s share of gross domestic product has risen steadily.

As a result of the steps taken under the annual programme to increase employment, some 970,000 people gained employment in 2013; more than 60.3 percent of these jobs are in rural areas.

The country’s continued economic vibrancy has translated into steady improvements in the population’s standard of living and quality of life. In 2013, public sector wages, pensions, scholarships and social benefits grew by 20.8 percent, and the real income of the population rose by 16 per cent.

In his report, the President focused in particular on the detailed analysis of outstanding issues and on programme activities for meeting the critical priorities and challenges of the country’s socioeconomic development in 2014.

The heads of ministries, departments, business associations and local executive authorities were tasked with taking the necessary measures to achieve in 2014 sustained high levels of economic development, growth and streamlining of investment, the introduction of essential modern high-tech facilities and capacities in industry, and the creation of a fully competitive environment in the country, as integration into world markets is a key factor for the technical and technological updating and modernization of production. Specific actions were identified for enhancing the business environment, fully supporting and further encouraging small business, developing the social sector, creating new jobs, building housing and upgrading human settlements, and further reforming and improving education and health care.

Particular attention was paid to the implementation of the programme measures identified in connection with the proclamation of 2014 as the Year of the Healthy Child, including measures for mother and child protection, higher-quality primary education, greater involvement of young people in physical education and sports, and an expanded role for civil society organizations in the upbringing of children.

The discussion of the issues raised at this meeting resulted in the adoption of a government decision identifying practical measures for addressing the chief priorities of the country’s socioeconomic development agenda for 2014.




Total portfolio of leasing operations in Uzbekistan exceeds 1.5 trillion soums

The general meeting of Uzbek Lessors Association was held in Tashkent, which summarized the activities of Uzbek lessors in 2013, identified priority areas for the development of the leasing market for 2014.

The event was attended by representatives of the Legislative Chamber, Ministry of Finance and employees leasing companies and banks.

During the meeting, Director-General of Uzbek Lessors Association Zafar Mustafayev spoke about current trends in the development of the Uzbek leasing market, noting the consistent growth of rendered leasing services.

Thus, in 2013 the lessors of Uzbekistan concluded 6692 lease deals worth over $805.2 billion soums (Currency rates of CB from 24.02.2014  1$=2222.73 soums), an increase by over 36% compared with the last year.

The total portfolio of leasing operations in 2013 amounted to 1.511 trillion soums.

Among leading objects transferred to leasing is agricultural equipment, whose share in the total leasing transactions in 2013 was 37.5%, purchase of vehicles – 24.8%, manufacturing equipment – 21.4%, real estate and property – 16.3%.

It was noted that at present leasing is an effective mechanism of investing in production facilities modernization, development of private enterprise and creation of competitive production. The country has a favorable market infrastructure, legal framework – for both lessors and lessees.

As a result of this work, the share of leasing in the country’s GDP in 2013 reached 0.7%, the share of leasing in investment in fixed assets – 2.8%, the share of the leasing portfolio in GDP – 1.3%.

In 2013, there were 99 lessors operating in the Uzbek market, including 24 banks and 75 leasing companies.

During the period the major leasing actors were UzSelhozMashLizing (271.5 billion soums), UAavtoSanoatLizing (65.9 billion soums), UzMelioMashLizing (38.5 billion soums), JSC Uzbek Leasing International (36.2 billion soums) and Artum Leasing Group (20.9 billion soums).

Among banks the major lessors were Asaka bank (65.0 billion soums), Ipoteka Bank (32.3 billion soums), Qishloq Qurilish Bank (20.3 billion soums), MikrokreditBank (16.2 billion soums) and UzPromStroyBank (15.9 billion soums).

In the new leasing transactions in 2013, among the regions Tashkent city has the largest share – 22.4%, followed by Tashkent and Samarkand regions – 10.1% and 9.7%, respectively.

In 2013 in the structure of leasing transactions among technological equipment, construction machinery and construction materials manufacture account for the major share – 35.4%, followed by reclamation equipment – 22.9% and light industry with 12.8%. Strong demand for medical and printing equipment confirms the significant potential of the Uzbekistan leasing market.

According to the Director-General of the Lessors Association last year was also marked by a series of bright events impacting on the further development of the market, including the holding in April 2013 of the V Tashkent International leasing forum within Tashkent International Investment and Finance Forum, organized by SAIPRO Information-rating agency, active involvement in the enactment of the Law “On Pledge registry”, the organization of training courses and seminars for leasing companies.

As was noted at the event, the further development of the Uzbek leasing market is related to several factors, among which is the favorable legal environment and favorable investment opportunities in leasing companies.

The most promising projects to which Zafar Mustafayev urged the lessors to pay special attention to is the construction of Ustyurt Gas Chemical Complex, the electrified Angren-Pap railway, regional roads with the assistance of ADB, as well as automobile gas filling compressor stations and automobile gas stations, modern rural housing and the textile industry.

As part of the general meeting of Uzbek Lessors Association representatives of a number of companies made presentations, in particular, Dilshod Sultanov, Director of the Department of Financial Analysis and Rating of SAIPRO Information- rating agency, who spoke about the upcoming VII Tashkent International Investment Financial Forum in April this year.

– Tashkent International Investment Financial Forum is a major platform for interactive communication between representatives of investment and finances sectors for both foreign and domestic participants. The uniqueness of this Forum is that it includes international conferences and discussions, as well as speeches, presentations in such areas as investments, insurance, banking and loan activities, leasing. Potential participants of the Forum are representatives of ministries and agencies, international organizations, banks, insurance and reinsurance companies, leasing companies, microcredit organizations , depositories, asset management companies, universities  and international rating organizations, international audit firms, large enterprises with foreign investment and others – he said.

In the end of the event the participants noted that among the priority plans of Uzbek Lessors Association for 2014 – the III Tashkent International Conference on banks, leasing and portfolio investment (May 19-23, 2014), participation in international conferences in Europe and the CIS (World Leasing Convention, etc.), attracting by domestic lessors of additional financial resources, obtaining ratings, organization of training courses for actors of the leasing market, as well as the active work with the mass media (both in domestic and foreign markets).




Navoi Free Industrial Economic Zone

Privileges and Preferences for foreign direct investments in Navoi FIEZ

It is necesssary to note that residents of FIEZ «Navoi» are exempted from land tax, property tax, profit tax of legal entities, social infrastructure development tax, unified tax payment for micro firms and small enterprises, compulsory contributions to the Republican Road Fund and off-budget Republican School Fund. (More detailed information

The privileges are available depending on the volume of foreign direct investments:

– from 3 to 10 million Euro – for 7 years;

– from 10 to 30 million Euro – for 10 years. For the following 5 years rates of profit tax of legal entities and unified tax payment for micro firms and small enterprises are fixed at the level of 50 percent of current rates;

– more than 30 million Euros – for 15 years. For the following 10 years rates of profit tax of legal entities and unified tax payment for micro firms and small enterprises are fixed at the level of 50 percent of current rates.

For this purpose investments of legal entities and natural persons made without guarantee of the Republic of Uzbekistan are considered as “foreign investments”.

In case of increase by a FIEZ «Navoi» resident of the volume of direct investments to the level coming under the privileges, the privileges are applied from the month when the right to application of the privileges on the volume of investments has appeared, and are valid during the remaining period till the end of the term of validity of the privileges.

In case of increase of the volume of direct investments to the level coming under the term, exceeding the term granted earlier, the privileges are applied from the month when the right to application of the privileges on the preceding volume of investments has appeared, that is the term of privileges is prolonged taking into account the term of validity of the previously valid privileges.