Business FacilitationThe GOU has declared that business facilitation and improvement of the business environment are among its top policy priorities. Uzbekistan s working-age population grew by about 200. 000 people in 2019. Therefore the GOU prioritizes private businesses and joint ventures with the potential to create additional jobs and help the government address unemployment concerns. The introduction of one-window and on-line registration practices and electronic reporting systems simplified and streamlined business registration procedures. The GOU has created three special economic zones (Navoi Jizzakh and Angren) to attract more FDI.
According to the law local companies with at least 15 percent foreign ownership can qualify as having foreign capital. The minimum fixed charter funding requirement for such companies is 400 million soum ($42, 000 as of March 2020). Some restrictions apply foreign investment in media enterprises is limited to 30 percent in finance foreign investors may operate only as joint venture partners with Uzbekistani firms and banks with foreign participation face minimum fixed charter funding requirements (100 billion soum for commercial and private banks and ranging from 7.
The government also uses licensing as a tool to control enterprises in several important sectors such as energy telecommunications wholesale trading and tourism. There are no legislative restrictions that specifically disadvantage U. investors. Other Investment Policy Reviews The Organization for Economic Cooperation and Development (OECD)the World Trade Organization (WTO)and the United Nations Conference on Trade and Development (UNCTAD) have not conducted investment policy reviews of Uzbekistan in the past three years.
Furthermore private businesses have expressed concerns about local government development policies failing to adhere to recently adopted legislation on the protection of private property. Small businesses have reported expropriation of their property in favor of well-connected companies or development projects supported by regional or municipal authorities. Enforcement of legislation on protection of intellectual property rights also remains insufficient.
Foreign ownership and control for airlines railways power generation long-distance telecommunication networks and other sectors deemed related to national security requires special GOU permission, but so far foreigners have not been welcomed in these sectors. By law foreign nationals cannot obtain a license or tax permit for individual entrepreneurship in Uzbekistan. In practice therefore they cannot be self-employed and must be employed by a legally recognized entity.
Policies Towards Foreign Direct Investment The Government of Uzbekistan the government or the GOU has declared attracting foreign direct investments (FDI) one of its core policy priorities acknowledging that greater private sector involvement is critical for economic growth and addressing social challenges caused by relatively high unemployment and poverty rates. In 2019 the GOU launched a policy to improve the business environment through simplification of registration procedures for new businesses combatting corruption and increasing transparency. To attract more foreign investors the government simplified entry visa procedures and extended residence permits for foreigners. The new Tax Code which became effective on January 1 2020 lowered corporate and individual income taxes by almost 50% and considerably simplified taxation procedures for private entrepreneurs.
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600 companies with foreign capital were operating in Uzbekistan as of February 1 2020 approximately 3. 000 of them were created in 2019. FDIs and private investments are critical for sustaining Uzbekistan s economic development however the government continues to channel investments into export-oriented and import substituting industries. According to Uzbekistan s official statistics the total volume of capital investments exceeded $21 5 billion in 2019.
During the reporting period, policy priorities were focused on improving Uzbekistan s investment attractiveness including through adoption of a new currency regulation law to guarantee freedom of current cross-border and capital movement transactions a new law on investment activities to guarantee foreign investors rights and a new tax code featuring lower and more equitable tax rates and simplified reporting requirements. The policy of liberalization reforms initiated by the government in 2016 is paying off: the total volume of foreign direct investment (FDI) attracted to Uzbekistan has grown from about $1 6 billion in 2018 to $4 2 billion in 2019. Uzbekistan was named as one of the top 20 global improvers in the World Bank s 2020 Doing Business report and the 2019 Country of the Year award winner by The Economist magazine Over 10.
In 2017 President Mirziyoyev ended the monopoly of state-owned enterprise Uzpaxtasanoat to buy and sell raw cotton. In January 2018 the GOU launched pilot projects for a new integrated value chain system in the industry to allow private investors to independently manage cotton cultivation harvesting processing and exports. In 2020 the GOU committed to eliminate the monopoly of state-owned carrier Uzbekistan Air in the air cargo airport service and domestic air transportation market. The state still reserves the exclusive right to export some commodities such as nonferrous metals and minerals. In theory private enterprises may freely establish acquire and dispose of equity interests in private businesses but in practice this is difficult to do because Uzbekistans securities markets are still underdeveloped. Private capital is not allowed in some industries and enterprises. The Law on Denationalization and Privatization adopted in 1991 last amended in 2019 lists state assets that cannot be sold off or otherwise privatized including land with mineral and water resources the air basin atmospheric resources in the airspace over Uzbekistan flora and fauna cultural heritage sites and assets state budget funds foreign capital and gold reserves state trust funds the Central Bank enterprises that facilitate monetary circulation military and security-related assets and enterprises, firearm and ammunition producers nuclear research and development enterprises some specialized producers of drugs and toxic chemicals emergency response entities civil protection and mobilization facilities public roads and cemeteries.
Uzbekistan vs Iran live Stream International Friendly 2020 FreeMatch InfoStart date:Oct 8 2020 at 7:00 pm 2020Location: LIVE FREEWith over 34 million citizens the largest population in Central Asia rich reserves of natural resources and relatively well-developed infrastructure Uzbekistan has the potential to become one of the strongest economies in the post-Soviet area. Uzbekistan has demonstrated stable economic development in recent years reporting 5. 6% GDP growth in 2019. The countr s leadership continues to implement large-scale economic reform policies targeted at boosting growth through modernization of state-owned monopolies and creating a supportive climate for private and foreign direct investment.