Uzbekistan’s road map for future investors

The elevated transparency and daring reforms of the final 5 years have seen Uzbekistan’s economic system develop at a velocity few predicted. However can President Shavkat Mirzyoyev obtain his dream to create the Commonwealth of Unbiased States’ second highest economic system after Russia?

Solely after important funding, each at dwelling and internationally. At an open dialogue occasion held in Tashkent on August 22, Mirziyoyev made clear his dedication to allay any considerations for potential traders, to tame inflation and to push the nation’s sovereign ranking greater.

The occasion was attended by heads of ministries and departments accountable for the economic system, commerce, building and funding, in addition to enterprise executives.

Making a fertile enterprise atmosphere

Within the 12 months since President Mirziyoyev declared that August 20 would develop into a nationwide ‘Day of Entrepreneurs’ as a part of an ongoing drive to draw overseas funding, the nation has seen a file quantity of latest companies opening – greater than 55,000. Some 26,000 of those enterprises have revenues of over US$1 million.

© Silk Road Samarkand
President Holds An Open Dialogue with Entrepreneurs: Proclaims New Initiatives, Advantages and Preferences (22-08-2022)© Silk Highway Samarkand

“We're getting into a vital and decisive stage on the trail of constructing a New Uzbekistan,” President Mirziyoyev instructed these current on the occasion. “Your selfless work, modern pondering and method are extra essential right this moment than ever, and I imagine that you'll set an instance for the representatives of all spheres.”

The concept of the open dialogue is to deal with present and potential entrepreneurs’ considerations, in 9 thematic classes.

The variety of appeals from enterprise homeowners has virtually halved (8,500 in 2022, down from 15,000 in 2021), and it's clear many points have already been resolved within the authorities’s drive to streamline forms, simplify laws and shield companies over the past yr.

Other ways by which assist could be given to native companies and overseas traders have been mentioned. A key session lined property, possession and the division of buildings, since most of the points raised by entrepreneurs associated to this.

Islam Zhasimov, first deputy chairman of Uzbekistan’s Chamber of Commerce and Business, had reassuring phrases for these current. “Our most essential activity is to extend the liberty of entrepreneurship in Uzbekistan,” he stated. “It is a crucial indicator that determines the attractiveness of entrepreneurial exercise. And the way free do our entrepreneurs really feel, free to get a mortgage, to get land, to purchase a constructing, to export, to guard their property and pursuits?”

Among the many initiatives launched on the occasion have been a decrease flat price of tax for small companies, with additional tax incentives throughout the first 12 months. Round 370,000 entrepreneurs would stand to profit from this at current.

Financing for small companies has additionally been introduced, and ensures from the nation’s Entrepreneurship Fund are to be doubled. This can allow at the very least 15,000 entrepreneurs to safe loans.

A drop in VAT (to 12 per cent) will take impact on January 1 2023, and will additional cut back the tax burden for companies.

Potential overseas traders have been notably focused in recent times, and treaties to keep away from double taxation have been organized with 54 nations. Thus far greater than 12,000 companies have been arrange utilizing overseas capital.

Uzbekistan is a member of the Free Commerce Space of CIS nations, and in tandem with its widescale financial reforms, it's at present negotiating its accession into the World Commerce Group.

A thriving economic system in opposition to the percentages

Regardless of the pandemic and up to date international financial crises, Uzbekistan has exceeded monetary predictions. In 2022, in keeping with the World Financial institution’s report in June, the nation’s GDP per capita rose to US$2,100, an increase of 4.3 per cent. The World Financial institution famous that GDP development in 2023 might be 5.3 per cent.

Forecasters predict that GDP will attain US$4,000 by 2030, permitting Uzbekistan to affix the ranks of “states with an upper-middle earnings”.

The nation’s financial development is unfold throughout varied sectors. Its pure assets embody pure fuel, oil, gold, silver, uranium, coal and copper. It is without doubt one of the world’s main producers of cotton and silk, a apply that dates again to the 4th century.

Gentle winters and 320 days of sunshine present a strong bedrock for agriculture, and Uzbekistan has intensive orchards and vineyards. Different industries embody building, textiles, leather-based processing, fertiliser manufacturing, prescription drugs and the auto business.

Tourism, too, is on the rise. There are virtually 7,500 historic cities in Uzbekistan, and the cities of Bukhara, Samarkand, Khiva and Shakhrisabz have been included within the UNESCO World Heritage listing, as has the Tian Shan ‘Heavenly Mountain’ vary.

Opening up Uzbekistan’s borders is a part of the federal government’s push to develop into a world participant, and might solely enhance confidence in these trying to spend money on a fast-growing economic system.

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