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SPECIAL INDUSTRIAL ZONES: NEW OPPORTUNITIES FOR FOREIGN INVESTORS

Ministry for Foreign Economic Relations, Investments and Trade of the Republic of Uzbekistan. SPECIAL INDUSTRIAL ZONES: NEW OPPORTUNITIES FOR FOREIGN INVESTORS. Factors of success in Uzbekistan. Foreign investment in Uzbekistan. Free Industrial Economic Zone “ Navoi “.

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SPECIAL INDUSTRIAL ZONES: NEW OPPORTUNITIES FOR FOREIGN INVESTORS

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  1. Ministry for Foreign Economic Relations, Investments and Trade of the Republic of Uzbekistan SPECIAL INDUSTRIAL ZONES: NEW OPPORTUNITIES FOR FOREIGN INVESTORS

  2. Factors of success in Uzbekistan

  3. Foreign investment in Uzbekistan

  4. Free Industrial Economic Zone “Navoi“ Establishment of Free Industrial Economic Zone in Navoi region (Degree of the President of the Republic of Uzbekistan December 2, 2008 No.UP-4059) Territory - 564 ha Distance between Navoi and Tashkent – 490 km Samarkand – 153 km Bukhara – 110 km

  5. FIEZ “Navoi“: regulatory and legal documents • Measures of organization of activity of FIEZ “Navoi” (Resolution of the Cabinet of Ministries dated January 27, 2009 No.21) • Regulations on simplified regime of entry, departure stay and hiring of foreign citizens and stateless persons on the territory of FIEZ “Navoi” (Resolution of the Cabinet of Ministries dated April 9, 2009 No.104) • Regulations on Administrative Council and on the order of selection of investors for allocation of FIEZ “Navoi” (Resolution of the Cabinet of Ministers dated April 9, 2009 №105) • Regulations on the special customs regime in the area of FIEZ “Navoi” (Resolution of the Cabinet of Ministries dated April 23, 2009 №120) • Regulations on the special currency regime in the area of FIEZ “Navoi” (under the consideration)

  6. FIEZ “Navoi”: Profile Electronic & electrical products Precision machinery & OEM parts for automobiles Pharmaceutical industry & Medical products Plastic goods and polymers Food processing and packaging

  7. Navoi Logistics Center In partnership with air cargo transportation leader Korean Air Navoi airport has been modernized to create international multimodal logistics center. 1st stage –Cargo processing ability – 300 tons/day 2nd stage –Cargo processing ability –1000 tons/day 1 399 cargo flights (2011) Seoul, Milan, Brussels, Shanghai, Saragossa, Vena, Deli, Mumbai, Istanbul, Doha, Dubai, Hanoi, Moscow

  8. Tax preferences Navoi FIEZ residents are exempted from • Land tax - app.1500 USD for 1 ha • Property tax - 3.5% • Profit (income) tax - 9% • Unified tax (for SMEs) – 5% • Social infrastructure development tax – 8% • Obligatory payments to the Republican Road Fund (1-2.5%) and Republican Fund of Elementary and Secondary Education (0.5%)

  9. Tax preferences Period of privileges and incentives: • 7 years • if amount of direct investments is from 3 mln to 10 mln Euro • 10 yearsand 50% reduction of profit tax for the following 5 years • if amount of direct investments is from 10 mln to 30 mln Euro • 15 yearsand 50% reduction of profit tax for the following 10 years • if amount of direct investments is more than 30 mln. Euro

  10. Customs exemptions For the whole period of functioning enterprises are exempted from customs duties for imported: • Equipment • Raw materials • Production components 100% for goods aimed to exports 50% for goods aimed to domestic market with delay of payment periodup to 180 days

  11. Infrastructure development Administrative building • 3 stores • Conference room for 300 people • 4600 square meters of office area • 4 meeting rooms • 10 rooms for rent 50 square meters each Financial center • 3 stores • 4000 square meters of office area • Branch of the National Bank of Uzbekistan • Branch of the Korea Development Bank

  12. Infrastructure development Logistics center Customs office

  13. Implemented projects Electronic & electrical products “Telecom Inovations” JV Full capacity - 50 th.set-top boxand 40 th.DSLAM/ADSL. Putting into operation - August, 2010 Foreign partners –“ServetechnoPte Ltd”(Singapore), “ZTE”(PRC) “CFM ProEnergies” JV Full capacity - 50 th. units. LED lamps Putting into operation - August, 2011 Foreign partner –“CFM Holding” (Singapore) “UzKorLighting” JV Full capacity – 10,0 mln. units. energy efficient lamps. Putting into operation – August, 2011 Foreign partner - “Shinghwa Lighting” (Korea)

  14. Implemented projects Precision machinery & OEM parts for automobiles “UzЕгаеCable” JV Full capacity - 130,0 th. km. automobile wires. Putting into operation – August, 2010. Foreign partners - “Erae Сs Limited” (Korea) “UzЕгаеAlternator” JV Full capacity - 360 th. units compressors and generators. Putting into operation – August, 2010 Foreign partner- “Erae Сs Limited” (Korea) “UzMinda” JV» Full capacity –250 th. unitsautomobile components Putting into operation – September, 2010 Foreign partner - “Minda Group” (India)

  15. Implemented projects Pharmaceutical industry & Medical products “HansangPharm” JV Full capacity - 10,7 mln. package of drugs. Putting into operation - August, 2011 Foreign partner –“Trust Investment & Trading Co Ltd” (Korea) “NavoiyHunanPulp” JV Full capacity - 400 mln.units. diapers and hygienic products. Putting into operation – August, 2011 Foreign partner – “Hunan Aloft” (PRC) “Navoiy Beauty Cosmetics” JV Full capacity - 2,6 mln. units cosmetics Putting into operation – August, 2010 Foreign partner - “Hunan Aloft” (PRC)

  16. Implemented projects Plastic goods and polymers “PolipropilenQuvurlari» DC Full capacity -2300 ton polypropylene pipes. Putting into operation – August, 2010 “PolietilenQuvurlari” DC Full capacity - 8 600 ton polyethylene pipes. Putting into operation – August, 2010 Food processing and packaging “AgroFresh” JV Full capacity –storage of 3 000 ton fruit and vegetable. Putting into operation – August, 2010 Foreign partner - “Kefayat General Trading Co. LLC” (UAE)

  17. Projects under construction Automobile gas cylinder Gas metering equipment Optic fiber cables Cross-linked polymer cable

  18. Perspective investment project Over 70 new perspective investment project in electronics, OEM parts, plastic products, pharmaceuticals, food processing and packaging

  19. Development of social infrastructure A land plot is transferred to Korean Air for construction of residential and hotel developments of international level. 120 hectares land 1.2 km from Navoi FIEZ March 19, 2012 held the opening ceremony of the Han Jin Navoi complex

  20. “Angren“ Special Industrial Zone • Distance between large cities: • Tashkent – 80 km • Ferghana – 240 km • Samarkand – 220 km • Pedagogical institute • 1200 graduating students • 9 colleges, including 5 in industry • 3 131 graduating, including 1 537 in industry

  21. “Angren“ SIZ • Establishment of “Angren“ Special Economic Zone (Degree of the President of the Republic of Uzbekistan April 10, 2012 No.UP-4434) Angren - 209 ha (I stage) Ahangaran - 178 ha (II stage)

  22. “Angren” SIZ: Profile Chemical and petrochemical products Construction materials Pharmaceutical industry & Medical products Leather products Food processing and packaging and other industries

  23. Mineral resources of Tashkent region • Over 30deposits of mineral resources, including : • Copper • Silver • Lithium • Coal • Kaolin • Building stones

  24. Energy potential of Tashkent region • Electricity: • 2 power stations (Novo-Angren, Angren) • 21 high-voltage substations • Substations power - 313.2 MW • Gas supply: • The region is provided with natural gas through Akhangaran-1 pipeline

  25. Angren Logistics Center Creating a competitive advantage for the country in the international logistics market 30ga total area 300 vehicles 4.0mln. tones cargo operation (2011)

  26. Tax preferences and incentives Angren SIZ residents are exempted from • Property tax - 3.5% • Profit (income) tax - 9% • Unified tax (for SMEs) – 5% • Social infrastructure development tax – 8% • Obligatory payments to the Republican Road Fund (1-2.5%)

  27. Tax preferences Period of privileges and incentives: • 3 years • if amount of direct investments is from 0.3 mln to 3 mln USD • 5 years • if amount of direct investments is from 3 mln to 10 mln USD • 7 years • if amount of direct investments is more than 10 mln. USD Customs duties for imported equipment, raw materials, production components, not produced in Uzbekistan, by the degree of the Cabinet Ministers

  28. Current projects Synthetic motor oil Automobile tires Silicon Ceramic tile Cement

  29. www.mfer.uz www.uzinfoinvest.uz www.uzbekembassy.org Thank you for your attention.

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