Business Opportunities for

Belgian Companies in Uzbekistan

Flanders Investment and Trade, Brussels, 15 June 2015

Sound Legal Base

Main Laws regulating investment activity in

Uzbekistan

on Foreign Investments

on Guarantees and Measures to Protect the Rights of

Foreign Investors

on Investment Activity

on Free Economic Zones

GDP Growth Rate (in % to previous year)

7 7.3

9.59

8.18.5 8.3 8.2 8 8.1

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Economy Diversification

GDP Structure in 2000

(in %)

Agriculture 30,1

Industry 14,2

Services 37

GDP Structure in 2014

(in %)

Agriculture 17

Industry 25Services

54,5

Fiscal Policy

Budget balance

(in % to GDP)

0.8

-0.4-0.4

0.1

0.5

1.11

0.20.3

0.4 0.40.3

0.2

Inflation rate

(in % to previous year)21.6

3.8 3.7

7.8 6.8 6.8 7.8 7.4 7.3 7.6 7 6.8 6.1

Foreign External Debt – 15% of the GPD

Internal Debt – 0%

Foreign Investments Growth in Uzbekistan

272 459 446 386.4 464751 893.3 980.4

1014

1423

2496 2682.4

3770.62967.5 2872.4

3526.7

2007 2008 2009 2010 2011 2012 2013 2014

FDI

Soft loans

in million USD

Contribution of SME to Economy(in % to GDP)

56

7

47

25

43

20

25

24

Uzbekistan

Ukraine

Tajikistan

Russia

Kyrgyz

Kazakhstan

Belarus

Azerbaijan

Reduction of Statistical, Tax, Financial

Reporting and Licensing Procedures

45

4137.7

30.2

23.221.9

20

1993 1996 2000 2005 2008 2011 2014

Tax burden has decreased for more than 3 times

during the years of independence

Single tax payment for small enterprises in

industrial sector is 5%

160 licensing procedures and 19 licensing

activities have been cancelled in recent years

Frequency of statistical, tax and financial

reporting to Governmental authorities have

been cut in half over the past years

Dynamics of tax burden in % to GDP

Reviews by International Institutions

Doing Business Report - Uzbekistan grew up by 30 positions in the last 2 years:

Facilitating trade – import & export operations

Business-friendly environment

Reduction of regulatory complexity

Protecting investors

Rankings of Uzbekistan in Doing Business Report

60

72 96117

159

43

66

6072

99

enforcing contracts purchasing power parity starting a business resolving insolvency getting credit

2014 2014 2014 2014 20142012 2012 2012 2012 2012

Fast Growing Economies – 20th place

Reviews by International Institutions

Uzbekistan's banking system outlook remains stable

Top 5 in the world for law enforcement & security

Rich Raw Materials Base

Uzbekistan possesses unique resources:

Raw materials (ferrous & non-ferrous)

Over 1644 deposits and

100 types of mineral resources

Average prices for:

Electricity – 0.06 USD per kWt/h

Coal – 42.5 USD per MT

Gas – 0.06 USD per m3

Diversified Industry

Automotive Oil & Gas Chemical Mining & Metallurgy

Agricultural Machinery Electrical Engineering Pharmaceutical Industry

Food Processing Textile Construction Materials

Education

66 universities and scientific institutions

850 professions

300 000 students

Branches of leading foreign universities:

Westminster International University

Polytechnic University of Turin

Singapore Institute of Management Development

South Korean Inha University

Market Access

Central Asia & Afghanistan: 95 million people

CIS: 300 million people

Uzbekistan: Transport Corridors

Foreign Enterprises in Uzbekistan

Special Economic Zones of Uzbekistan

FIEZ NAVOI

SIZ DJIZAK

SIZ ANGREN

FIEZ NAVOI SIZ ANGREN

SIZ DJIZAK

FIEZ NAVOI: Tax Preferences

FIEZ «Navoi» residents are exempted from all types of taxes if FDI

amount is :

3 to 10 million Euros – holiday period is 7 years

10 to 30 million Euros - holiday period is 10 years and 50%

reduction of profit tax for the following 5 years

more than 30 million Euros - holiday period is 15 years and 50%

reduction of profit tax for the following 10 years

FIEZ NAVOI

Established in 2008

Territory 564 ha

19 operating projects:

Automobile components;

Automobile wires;

Gas cylinders;

LED lams;

High-voltage cables;

Heating boilers;

Cosmetic products;

Polyethylene pipes and etc.

NAVOI International Airport

11 flights per week:

Delhi, Mumbai, Bangkok,

Frankfurt, Istanbul, Dubai,

Doha, Dhaka, Hanoi,

Moscow, Milan, Brussels,

Zaragoza, Inchon, Tjanszin.

SIZ ANGREN & DJIZAK:

Tax Preferences SIZ DJIZAK residents are exempted from all types of taxes, except land

tax:

Period of privileges and incentives, if amount of investments is:

0.3 to 3 million USD - 3 years;

3 to 10 million USD - 5 years;

more than 10 million USD - 7 years.

SIZ ANGREN & DJIZAK

Established in 2011

Territory – 4 500 ha

Implemented projects – 9:

sugar plant

cooper pipes

LED lamps

plasterboards & etc

Projects on the stage of construction – 13

basic oil, automobile tires

ceramic & granite tiles

leather goods & etc.

Established in 2013

Territory – 524 ha

Implemented projects – 8:

mobile phones

ceramic tiles

sanitary ware

leather goods & etc

Projects on the stage of construction – 12

ceramic tiles, IP phones,

brake pads, fittings

household appliances

State Program for Development of the

Agricultural Sector in 2015-2019The program includes about 391 new agricultural projects with capacity

of production of more than 2 thousand of modern cooling houses with

capacity of storage of 1,3 million tons of fruits and vegetables

State Program on Industry Development

The program includes about 876 new projects at the amount of

41 billion USD

Chemical Industry

Ammonia and urea

Synthetic washing detergents

Cosmetics

Plastic accessories for light industry

Household water filters

Toys for children

Automobile Industry

Shock absorbers

Braking pads

Safety belts

Spark plugs

Oil filters

Components of automotive power-train

Mechanical Engineering

Industrial deep-well pumps

LPG equipment for liquefied natural gas

Textile (knitting) machinery

Over-lock machines

Electric tools (drills, grinders, screwdrivers)

Heating systems

Electrical Engineering

Refrigerators

Washing & dishwashing machines

Microwaves

LED lighting devices

Small household appliances

Construction & Building Materials

Glass-crystallite

Sanitary ceramics

Natural stone (marble)

Wood-polymer composite products

Thermal insulating materials

Locks (door, wall)

Glass products (glasses, wine glasses)

Pharmaceuticals & Medical Equipment

Medicaments for cardiovascular diseases

Disposable tests

Anabolic medicines

Finished medicaments

Various diseases vaccines

Medical gloves

Medical equipment

Food Industry

Confectionary

Fast foods by using freeze-dried pieces of fruit and vegetables

Ketchup

Fast freeze food

Deep processing of fruit and vegetables

Dry concentrated broths

Packaging containers

Oil & Gas Industry

Polymers

Polyethylene foam

Conduction of exploration works

Development of petroliferous shale deposits