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May 26, 2016


investments. 1

More foreign investors mean a higher rate of economic growth. 1


By the end of 2020, Uzbekistan has planned to carry out 180 investment projects totaling $596 million and focusing on the development of the feedstock capacity, intensification of deep processing of fruits and vegetables, meat and dairy products, and scale-up of production and exports of food products. 2

Tourism… 3

Festival Silk and Spices to be held in Uzbekistan. 3





More foreign investors mean a higher rate of economic growth

Issues surrounding the attraction of foreign investments and their efficient use by commercial banks were discussed at a press conference organized by the Central Bank of the Republic of Uzbekistan in conjunction with the Ipak Yuli Joint-Stock Investment Commercial Bank.

As the event’s organizers pointed out, luring overseas investments is a pivotal aspect in the development of the national economy. Its successful realization is greatly helped by a very propitious and attractive investment environment created in the country.

The advantages available in Uzbekistan, such as the social and economic stability, the supremacy of law, a considerable capacity of the home market, tremendous reserves of natural resources, high intellectual potential, a stable financial-banking system, developed infrastructure, diversified potentialities, a flexible tax policy, participation of foreign investors in the processes of re-establishment of state ownership rights and privatization, additional privileges and preferences granted to joint venture enterprises and other measures represent a set of main criteria, which are taken into consideration without fail by foreign investors when making critical business decisions in Uzbekistan’s favour.

In particular, it was emphasized at the press conference that domestic banks are very active in expanding partner relations in an effort to attract and implement grants and credits extended on preferential terms by international financial institutions and foreign governments. As well as that, the Uzbek banks have been busy tackling the tasks set to the nation’s banking system by the Republic’s leaders, including the reformation of the indigenous financial-banking system and the achievement of its greater stability; the achievement by local banks of higher international rankings, the provision of financial support to the real sector of the national economy and projects implemented in the sector of small business and private entrepreneurship. Over the past five years the money resources to the tune of US $805.7 million earmarked by some leading international financial institutions, such as the World Bank, the Asian Development Bank, the Development Bank of China and the Eximbank of the Republic of Korea, have been used to fund projects in the sector of small business and private entrepreneurship, to continue structural changes, modernization and technical and technological renovation of the leading industries in the Uzbek economy.

Last year, domestic small businesses have managed to implement US $177.4 million worth of direct credit lines that exceeded a projected indicator.

The presence of foreign capital in the national economy has a positive effect on stability of the Republic’s banking-financial system. These days, 5 banks, with a share participation of overseas investors in their charter capital, are operating in Uzbekistan. In addition to strengthening competition in the financial sector, they have also contributed appreciably to both the application of up-to-date banking technologies in the services sector and the improvement of the quality of banking services. What’s more, these banks facilitate the solidification of confidence in domestic banking institutions, the attraction of currency savings to bank deposits, the expansion of the scope of services offered to customers and the population alike and the improvement of their quality. Another valuable advantage is an increase in the volume of foreign direct investments ploughed to the Uzbek economy.

At the present time, the priority directions of reforms include the attachment of greater importance to private property, a gradual reduction of state assets in the economy and the application of modern methods of corporate management by ensuring the participation of foreign investors in the charter capital of joint-stock companies and their systems of management.

At this stage it is worth mentioning the Presidential Resolution, “On additional measures to attract foreign investors to joint-stock companies”, which stipulates a greater role to be played by foreign investors in the charter capital of banks as well as in the development of the banking system on the basis of international criteria.

In keeping with this important document, foreign investments should represent no less than 15 per cent of a joint-stock commercial bank’s charter capital. This creates a solid foundation on which to broaden the range of services and to improve their quality, to ensure the application of international experience and standards, to increase the presence of indigenous financial-banking institutions in the overseas markets and to reinforce their investment potentialities.

In experts’ words, for the time being, much effort is under way in Uzbekistan to streamline the performance of commercial banks and surveillance in the national banking sector on the basis of international standards and norms as well as by ensuring a higher level of transparency in their operations. The appreciation by the world’s leading rating agencies of indigenous banks has also a crucial role to play in the expansion of cooperation with international financial institutions, especially in boosting their investment activity.

Those taking part in the press conference were informed that today, a number of domestic banks are already offering share holdings to foreign investors through the sale of state shares in their charter capital or the issuance of additional shares.

The volumes of foreign capital directed to the country’s economy are on a stable upward trend. According to the press service of the Republic’s State Statistics Committee, in the period January – March 2016 as many as 109 enterprises with a share of foreign capital have been registered in Uzbekistan, with the city of Tashkent accounting for 78 joint ventures, Tashkent province – 9, Samarkand and Syrdarya provinces – 4 enterprises each.

These enterprises were created with the help of foreign investments from the following countries: China, the Republic of Korea, Great Britain, India etc.

By the type of economic activity, these joint ventures are divided into industrial enterprises (51), trade enterprises (19), services (7), construction enterprises (6) and enterprises specializing in farming, timber and fish-breeding industries (3).

As of April 1st 2016, the total number of joint venture enterprises in Uzbekistan set up with foreign capital participation comes to 4,900.

(Source: «Business» newspaper)


By the end of 2020, Uzbekistan has planned to carry out 180 investment projects totaling $596 million and focusing on the development of the feedstock capacity, intensification of deep processing of fruits and vegetables, meat and dairy products, and scale-up of production and exports of food products

In the conditions of toughening competition in the global market, Uzbekistan regards the introduction of advanced technologies in the industry as a priority, because the production of products in line with customer requirements is impossible without efficient and cost-effective equipment.

Therefore, the enterprises under the O’zbekozikovkatholding have been actively working on a phased replacement of worn-out equipment. This, in turn, enhances productivity, allows reducing raw and auxiliary materials costs, saves energy and other natural resources, which ultimately helps to reduce production costs.

It is noteworthy that 74 projects will be implemented through foreign direct investment and loans of international financial institutions, totaling more than $163 million. As commented by O’zbekoziqovqatholding, 108 investment projects on the development of food industry, totaling over $428.7 million, have already been launched.

To date, the initiators of 22 projects have already started construction works on industrial facilities, 17 projects are currently in process of search and selection of the equipment they need, and conclusion of delivery contracts. Local municipalities have taken resolutions on allocation of land for new facilities in 12 cases, and 21 projects are completing the development of design and estimate documentation.

The establishment of trade and logistics centers specializing in storage, processing and export of fruits and vegetables in the regions is another focus of the investment policy of the company. The related works have already been launched in 10 regions and in Karakalpakstan. Municipalities have already allocated land, and project initiators are currently developing the design and estimate documentation, project funding and selection of technological equipment.

They have concluded 176 long-term and short-term contracts with foreign partners and enterprises for the delivery of more than 1.27 million tons of domestically grown fruits and vegetables. The total value of the contracts that have been signed by the foreign trade company Uzagroeksport, which specializes in exporting fresh and processed fruit and vegetable products, has exceeded $1.37 billion.

In pursuance of the obligations in the domestic and foreign markets, the government, in turn, has concluded contracts on purchasing from farmers 1.56 million tons of fruit, vegetables, potatoes, melons and grapes, 906,000 tons of which fall to O’zbekozikovkatholding, and 495,000 tons – for Uzagroeksport.

In the next few years, Uzbekistan intends to upscale exports of fresh and processed fruit and vegetable products by more than 2.7 times, including canned food, concentrates and juices – by 2.5 times. These targets will be achieved through a complete restructure of the foreign supplies system.


O’zbekoziqovqatholding Company was founded in February 2016 on the platform of the Food Industry Association. Its major objectives and missions come to marketing research of domestic and foreign markets, elaboration of development programs for the industry, organization of modern technological cycle of enhanced processing of raw materials for the production of marketable food products with high added value.

(Source: «Uzbekistan Today» newspaper)


Festival Silk and Spices to be held in Uzbekistan

Festival Silk and Spices, which traditionally takes place in Bukhara, will be held from 26 and 28 May2016. The festival will be held for the 15th time this year.

The festival is organized in Bukhara to preserve and promote national culture heritage of the people of Uzbekistan.

The festival will present miniatures and ceramics, masters of coining and needlework, production of silk fabrics, carpets and jewelry.

The event will include various events such as rams fighting, cock fighting, walking on a tightrope, and others. It will also include Palov Sayli (Pilaf Festival).

The programme of the festival also includes fashion shows of young Uzbek designers, who will present dresses, produced with use of national fabrics. The folk groups will present their


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