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August 7, 2015


uzbek_digestBUSINESS CLIMATE.. 2

Integrated Approach. 2


Crisis is No Obstacle for Banks. 3

sport.. 4

Rules That Hail From Uzbekistan. 4


Integrated Approach

Navoi Free Industrial and Economic Zone, Angren and Jizzakh Special Industrial Zones operate in Uzbekistan as initiated by the resolutions of the President of Uzbekistan.

The industrial zones were established as a favorable ground for channeling foreign and domestic investments and construction of advanced high-tech industrial manufactures that would ensure production of competitive products with high added value, integrated and effective use of production and resource capacity of the territories.

Seven projects on the manufacture of demanded products like industrial silicon, granulated sugar, drywall, plumbing articles and products worth more than $130 million, were completed in the three established industrial zones in 2014 alone. The implementation of 29 investment projects worth over $345 million is underway.

Free industrial zones have contributed to the effectiveness of the ongoing strategic policy measures on enhancing the competitiveness and sustainable economic growth, industrial diversification, modernization, technical and technological extension of production. Over the years of independence, the national model of economic reforms has allowed achieving a high level of social and economic development, despite the impact of the global financial and economic crisis, which has extremely negatively impacted on the global economy, especially the developed economies.

At the moment, the three industrial zones are seen as mega investment projects for the development of the Uzbek industry, since they trigger the pulse of the economic growth through the expansion and channeling of direct foreign investments in the leading economy and industry sectors.

The creation of small industrial zones (SIZ) appears an important tool for industrial policy in the small business sector, because they empower small businesses to implement their investment and productive capacity in case if they do not have the opportunity of financial and economic activity for the privileged engagement in the projects that are implemented in big industrial zones.

The establishment of SIZ in Uzbekistan was introduced into integrated programs of strategic economic development in July 2014. A presidential decree approved the list of lands allocated for the establishment of small industrial zones, to be in the follow up offered to business entities for the establishment of new industries. The list includes 57 facilities in different regions with total area of 305.7 hectares.

In the same month, the government approved the list of idle areas and excessive production facilities to be transferred to local authorities for the subsequent establishment of small industrial zones. The list includes 32 objects with a total area of 23,210 square meters in buildings and structures.

New areas will be mainly located in the territories of small and medium-sized towns in order to address the employment problems that are very relevant for the local authorities. Besides, the development of SIZ contributes to filling the domestic market, especially the markets of small and medium-sized towns, with local goods. In addition, the budget of local municipalities will be enriched by additional taxes of newly established enterprises and by rent from the previously unused land and facilities.

Experts emphasize that the successful implementation of all the opportunities provided by the law for the development of small industrial zones would require a system-based, focused and painstaking work of state authorities, local executives and small businesses themselves. The further development of small industrial zones promises to be an important factor for the development of the regional economy, industry, services, export-oriented and import-substituting industries.

(Source: «Uzbekistan Today» newspaper)


Crisis is No Obstacle for Banks

Problems of the global financial system and increasingly unpredictable future of the world economy pose new challenges to the domestic banking system. As an active player in many international markets of finished products and raw materials, Uzbekistan cannot stand aside from ongoing processes, so it undertakes a range of effective measures to strengthen the institutional foundations of the national economy and the banking and financial systems.

Much has been done in the country in recent years to further enhance the liquidity and stability of the financial and banking systems. The level of capital adequacy ratio of 24.3% in Uzbekistan exceeds thrice the generally accepted international standards of the Basel Committee. A deposit guarantee system has been operating in the country since 2002, and in 2009 Uzbekistan introduced a full state guarantee of deposits of the population in commercial banks, regardless of the amount. As a result of abovementioned and other measures, Uzbek banks are able to safely overcome the negative impact of external factors, and increase lending to the real sector, large-scale investment projects and small businesses.

As of July 1, 2015 the total capital of Uzbek banks has exceeded 7.2 trillion soums. (currency rates of CB RU from 07.08.2015   1$= 2580.19 soums) Total assets of banks in the first half of the year have increased by 27.6% and amounted to more than 59.5 trillion soums. The level of current liquidity has been exceeding 64% for several years, which is two times higher than the minimum standards in the world practice. The total volume of loans to the real sector has increased by 30.5% since the beginning of 2015 and exceeded 37.5 trillion soums. The figures were presented during the last expanded meeting of the Central Bank in Tashkent.

A stable growth of volumes of loaning to various economy sectors ranks among the main achievements of domestic bankers. For instance, the volume of loans for investment purposes has increased 1.2 times YOY and amounted to five trillion soums. Representatives of small and private businesses need such a financial support in particular, because they often have problems in the future development of their business or upgrade of production due to the lack of funds available. Therefore, as part of the measures aimed at the development of small business, creation of favorable business environment and extension of the freedom of entrepreneurship, the amount of loans to small economy entities has increased by 1.3 times YOY and exceeded 6.4 trillion soums, including 1.4 trillion soums of micro-credits.

Banks have been attaching importance to the broad involvement of graduates of vocational colleges in entrepreneurship, and funding their business projects. In the first half of 2015, they allocated 133.2 billion soums of loans (1.7 times growth) for these purposes.

A stable state of domestic banks, the growing confidence in them, as well as the growth of real incomes of the population have become a strong foundation for channeling free funds of the population and economic entities to deposits. The total volume of deposits increased by 30.2% and reached 31.5 trillion soums.

A big part has been assigned to the further development of cashless payments, as demonstrated by rapid growth of issued plastic cards in circulation. Today, more than 14.5 million plastic cards have been actively used throughout the country, and the number of installed terminals has reached 166,100.

(Source: «Uzbekistan Today» newspaper)


Rules That Hail From Uzbekistan

Since gaining independence, Uzbekistan began to popularize Uzbek sports. They have quickly spread throughout the world.

Perhaps the most famous is the national sport Kurash, a type of wrestling central to Uzbek tradition. Various international Kurash competitions are attended by wrestlers from various countries. These competitions are held in different parts of the world. One of the most prestigious Kurash competitions in the world is held in Thessaloniki, Greece. The tournament was held for the tenth time and athletes from 15 countries took part in it.

There are 4 types of Kurash which are being developed internationally. The latest Kurash style to be officially accepted was Beach Kurash. Although major competitions have been held in different countries, we can assure you that this type of Kurash has originated in Surhandarya and Kashkadarya where wrestlers fought on natural surfaces like grass and sand.

Kurash is aiming to become part of the Olympic program. One of the biggest steps in this direction was the inclusion of the sport in the 4th Asian Games, which were organized by the Asian Olympic Committee last year. Our athletes won 2 gold medals and were first in the team rankings of the tournament.

Other popular sports include ‘Turon’ and ‘Uzbek Jang Sanati’ (Uzbek Martial Art ). These are comparatively young sport disciplines as they have been developed in the 1990’s. But according to the specialists, who have been involved in the creation of rules and techniques, both of these sports have ancient roots and were used by the army of our great ancestor Amir Temur.

At first they were presented within the framework of different international martial art festivals. But today both of these styles are pursuing the idea to organize and host their own championships and events. The first step of the creators was the launch of the Federation of ‘Turon’ and Uzbek Jang Sanati, which also aims to popularize these styles internationally.

Until recently, most of the athletes from other countries, who were engaged in ‘Turon’ or any other style of Uzbek Jang Sanati, had a background in another type of martial arts. However, today we are forming schools with sole style practitioners of Kurash, Turon and Uzbek Jang Sanati.

However, Uzbek sports are not only rich in martial arts traditions, for centuries our horsemanship was also developed. Nowadays we are popularizing ‘Ulok-Kupkari’. Interestingly the country had two different names for this sport. In the Fergana valley for centuries this sport was called ‘Ulok’ and in the Southern parts of the country this sport was more known as ‘Kupkari’. To increase the number of participants and practitioners and to generally popularize this sport the local Federation decided to combine the names of both styles. This idea worked brilliantly and now this is the most popular equestrian sport in the country.

After the creation of the republican federation, another centuries-old Uzbek sport is becoming highly popular. ‘Langa’ is a sport where the athlete has to juggle a special sack made out of wool and lead for as much as possible without dropping it and by only using his feet.

Opening international federations of Uzbek sports in other countries and creating international partnerships has become an efficient way of popularizing Uzbek sports all across the world.

(Source: «Uzbekistan Today» newspaper)

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