INVESTMENT ENVIRONMENT OF UZBEKISTAN AND PROSPECTS OF ECONOMIC COOPERATION WITH

THE CHINESE PEOPLE’S REPUBLIC, AND INVESTMENT PROSPECTS OF CHINESE

COMPANIES COOLABORATION IN PROJECTS IMPLEMENTATION WITHIN FIEZ “NAVOI”

The Uzbekistan – Chinese Business ForumSeptember 7, 2009

Tashkent, Uzbekistan

Bakhtier M. IRMATOVDirector of “Uzinfoinvest” Agency under the

Ministry for Foreign Economic Relations, Investment and Trade

[2]

The leading industrial countryin CA

FACTORS OF SUCCESS IN UZBEKISTANFACTORS OF SUCCESS IN UZBEKISTAN

Rich raw materials base

Advantageous geographical location

Transport-logistic system integrated into air and land communications of international importance

Diversified industrial base

Scientific and intellectual capacity of the country

[3]

ACCESS TO RICH RAW MATERIALS BASE ACCESS TO RICH RAW MATERIALS BASE

Uzbekistan possesses unique resources:

solid raw materials, including metallic and non-metallic

hydrocarbons

[4]

ENERGY SELF-SUFFICIENCYENERGY SELF-SUFFICIENCY

Oil and gasOil and gas

Hydro Hydro energyenergy

Heat energyHeat energy

Electric Electric energyenergy

Energy resources Energy resources are sufficient to are sufficient to cover demand of cover demand of the economy at the economy at least for least for 100100 years years

[5]

ALTERNATIVE ENERGY SOURCESALTERNATIVE ENERGY SOURCES

Alternative energy Alternative energy sources in sources in Uzbekistan:Uzbekistan: solar energysolar energy wind energywind energy biofuelbiofuel solid waste solid waste

recyclingrecycling combustible shalecombustible shale

[6]

East AsiaLondon

Paris

Berlin

Moscow

Beijing

Tokyo

Seoul

Singapore

Jakarta

ManilaBangkokPhnom Penh

Muscat

Cairo

Abu Dhabi

Doha

JerusalemBaghdad

Riyadh

Amman

Tehran

Europe

South-East and South Asia

Ankara

Shanghai

BENEFICIAL GEOGRAPHICAL LOCATION BENEFICIAL GEOGRAPHICAL LOCATION TO THE LARGEST MARKETS TO THE LARGEST MARKETS

Minsk

Kiev

CIS

Middle East & Africa

Central Asia

Astana

Ashgabat

Kabul

Bishkek

CA & Afghanistan: 90 mln. peopleCA & Afghanistan: 90 mln. peopleCIS: 300 mln. people CIS: 300 mln. people

Brussels

[7]

CIS FREE TRADE AREACIS FREE TRADE AREA

300 mln. consumers

MFN Treatment

with 44 countries, including Republic of Korea, EU countries, China, US, Japan

BENEFICIAL TRADE CONDITIONS BENEFICIAL TRADE CONDITIONS

12 countries

[8]

WELL EDUCATED HUMAN RESOURCES AND HUGE WELL EDUCATED HUMAN RESOURCES AND HUGE INTELLECTUAL POTENTIALINTELLECTUAL POTENTIAL

• 65 universities and institutions

• affiliates of key foreign universities:

• Moscow State University

• Westminster International University

• Singapore Institute of Management Development

• Turin Polytechnic Institute

• and others

[9]

MACROECONOMIC INDICATORSMACROECONOMIC INDICATORS

GDP growth (%)GDP growth (%)GDP growth (%)GDP growth (%) Industrial production growth (%)Industrial production growth (%)Industrial production growth (%)Industrial production growth (%)

[10]

Effective moderately rigid Effective moderately rigid monetary and fiscal policy monetary and fiscal policy has allowed to support has allowed to support inflation rate at rather low inflation rate at rather low levellevel

Effective moderately rigid Effective moderately rigid monetary and fiscal policy monetary and fiscal policy has allowed to support has allowed to support inflation rate at rather low inflation rate at rather low levellevel

INFLATION RATEINFLATION RATE(%)

[11]

FOREIGN RESERVES OF UZBEKISTANFOREIGN RESERVES OF UZBEKISTAN

By the end of 2008 By the end of 2008 foreign reserves could foreign reserves could ensure imports in ensure imports in 22 22 monthsmonths

By the end of 2008 By the end of 2008 foreign reserves could foreign reserves could ensure imports in ensure imports in 22 22 monthsmonths

External debt of the External debt of the country is country is 13.3%13.3% of GDP of GDPExternal debt of the External debt of the country is country is 13.3%13.3% of GDP of GDP

[12]

FOREIGN INVESTMENTS INFOREIGN INVESTMENTS IN UZBEKISTANUZBEKISTAN

Attracted Attracted 1.7 1.7 bln USD bln USD of of foreign foreign investmentinvestment

Attracted Attracted 1.7 1.7 bln USD bln USD of of foreign foreign investmentinvestment

In 2008:

423423 large- large-scale enterprises scale enterprises were set in were set in operationoperation

423423 large- large-scale enterprises scale enterprises were set in were set in operationoperation

Growth rate of Growth rate of total investment total investment – – 132.7%,132.7%, incl. incl. FDI – FDI – 2.4 times 2.4 times

Growth rate of Growth rate of total investment total investment – – 132.7%,132.7%, incl. incl. FDI – FDI – 2.4 times 2.4 times

In 1H 2009:

[13]

PROJECTS IMPLEMENTED IN UZBEKISTANPROJECTS IMPLEMENTED IN UZBEKISTAN

Production of liquid synthetic fuels from natural gas, coal, oil shale

Modernization of existing TPP with ABB, Alstom, Siemens with the installation of modern steam power generation technologies

Production of poly-, single crystals of silicon

Production of chemical fertilizers

Manufacture of automobile engines and diesel engines for agricultural machinery

Manufacture of large-capacity buses and heavy trucks

[14]

GasGas

• Explored reserves – more than 2 trln m3

• Explored reserves – more than 2 trln m3

• Extraction – about 65 bln m3• Extraction – about 65 bln m3

Uzbek share in Uzbek share in Central AsiaCentral Asia:: • 40%40% - - natural gasnatural gas• 55%55% - - coalcoal• coal reservescoal reserves – – 22 bn tonsbn tons

Uzbek share in Uzbek share in Central AsiaCentral Asia:: • 40%40% - - natural gasnatural gas• 55%55% - - coalcoal• coal reservescoal reserves – – 22 bn tonsbn tons

• Uzbek gas transportation system - 9 main gas pipes with 12 thousand km length

• Uzbek gas transportation system - 9 main gas pipes with 12 thousand km length

Sector Investment Sector Investment CapacityCapacity

USD USD 55 bln bln

OIL & GAS INDUSTRYOIL & GAS INDUSTRY

[15]Explored ReservesExplored Reserves USD USD 3.53.5 trln trln

MINING & QUARRYINGMINING & QUARRYING

[16]

ELECTRICAL ENGINEERING ELECTRICAL ENGINEERING

Central Asia demand in:

• Refrigerators and air conditioners – 1 mln. units

• Washing machines and vacuum cleaners – 600 thsd. units

• Microwaves – 300 thsd. units

• Lamps – 500 mln. units

USD USD 115050 mlnmlnSector Investment Capacity:Sector Investment Capacity:

[17]

CHEMICAL INDUSTRYCHEMICAL INDUSTRY

USD USD 22 blnblnSector Investment CapacitySector Investment Capacity::

Annual regional demand for soap – 130 thsd. tons,detergents – 300 thsd. tons

[18]

Domestic demand for pharmaceuticals:

• injections – 300 mln. ampoules

• infusions – 50 mln. flasks

• biopharmaceuticals – 500 thsd. packs

• anticeptics – 100 thsd. flasks

• uncture – 1 bln. packs

• antibiotics – 50 mln. flasks

• suture – 500 thsd. r.m.

• syringes – 200 mln. units

PHARMACEUTICAL INDUSTRYPHARMACEUTICAL INDUSTRY

[19]

CONSTRUCTION MATERIALS CONSTRUCTION MATERIALS

Glazed tile

Stone tile Ashlar

Parquet

ceramic tiles - 10 mln. sq. m

sanitary ware - more than 160 thsd. units

Annual domestic needs in

USD USD 700700 mln mlnSector Investment Capacity:Sector Investment Capacity:

Marble

[20]

USD USD 300300 mlnmlnSector Investment Capacity:Sector Investment Capacity:

FRUITS-AND-VEGETABLES FRUITS-AND-VEGETABLES PROCESSINGPROCESSING

• one of the largestone of the largest producersproducers of raisin and dried fruitsof raisin and dried fruits

• one of the largestone of the largest producersproducers of raisin and dried fruitsof raisin and dried fruits

• one of the top-five producersone of the top-five producers of tomato-paste in the worldof tomato-paste in the world

• one of the top-five producersone of the top-five producers of tomato-paste in the worldof tomato-paste in the world

• cultivate cultivate 10 10 mln tons of fruit-mln tons of fruit-and-vegetablesand-vegetables p.a. p.a.

• cultivate cultivate 10 10 mln tons of fruit-mln tons of fruit-and-vegetablesand-vegetables p.a. p.a.

[21]

Total domestic demand for textiles:

TEXTILE INDUSTRY TEXTILE INDUSTRY

• Finished fabrics – 900 mln. sq. m

• Footwear – 170 mln. pairs

• Garments – 275 mln. units

USD USD 770000 mlnmlnSector Investment Capacity:Sector Investment Capacity:

[22]

Prospective directions for joint Prospective directions for joint cooperation:cooperation:

Prospective directions for joint Prospective directions for joint cooperation:cooperation:

• modeling and manufacture of modeling and manufacture of men’s, women’s and children’s men’s, women’s and children’s shoesshoes

• modeling and manufacture of modeling and manufacture of men’s, women’s and children’s men’s, women’s and children’s shoesshoes

• production of leather for furniture production of leather for furniture and clothesand clothes

• production of leather for furniture production of leather for furniture and clothesand clothes

• manufacture of leather accessoriesmanufacture of leather accessories• manufacture of leather accessoriesmanufacture of leather accessories

• manufacture of bottom parts of manufacture of bottom parts of shoes, insoles, etc.shoes, insoles, etc.

• manufacture of bottom parts of manufacture of bottom parts of shoes, insoles, etc.shoes, insoles, etc.

LEATHER-SHOE INDUSTRYLEATHER-SHOE INDUSTRY

[23]

TOURISM CAPACITYTOURISM CAPACITY

Largest tourist potential Largest tourist potential among the countries of among the countries of

Central AsiaCentral Asia

Ecological and Ecological and sports tourismsports tourismEcological and Ecological and sports tourismsports tourism

Medical and Medical and health tourismhealth tourismMedical and Medical and

health tourismhealth tourism

[24]

INVESTMENT PROPOSALS IN INVESTMENT PROPOSALS IN TOURISMTOURISM

• Construction of new world-class hotels

• Construction of motels and camping’s recreation units along automobile roads

• Establishment of joint travel agencies

• Management of existing hotels in Samarqand, Urgench, Tashkent • Tourists exchange

THANK YOUTHANK YOU!!