Over the past years Uzbekistan has attracted more than $150 billion in foreign investment, of which $123 billion has been secured in the last five years alone, President of Uzbekistan Shavkat Mirziyoyev said in his address at the Fifth Tashkent International Investment Forum.
We are implementing systemic measures to improve fundamentally the investment climate in New Uzbekistan, he said. Last year, our GDP growth reached 7.7 percent, and $43 billion foreign investments were attracted into the economy. The volume of international reserves exceeded $70 billion.
Mirziyoyev outlined several priority areas that will serve to expand Uzbekistan’s multifaceted cooperation:
The first priority is the further strengthening of the system of legal guarantees for investors.
Ensuring investors’ rights through strong institutions and recognized international mechanisms is very important.
In this regard, since March we have started the work on establishing the Tashkent International Financial Centre.
The legal foundations of the Centre will be firmly enshrined in a dedicated Constitutional Law. A highly attractive tax system will be introduced for the participants of this Centre. Corporate income tax, value-added tax, property tax, and customs duties will be set at zero percent. The unconditional guarantees for the free movement of capital and the ability to conduct transactions in any currency will be provided.
A modern system for financial technologies, digital assets, and green finance will be created.
An independent financial regulator authorized to adopt normative documents will also be established within the Centre’s territory. These benefits will be established for the initial period of 50 years.
The Centre will function under a special legal regime based on the principles and norms of the English common law. In addition, an independent Tashkent International Commercial Court will be established. It will be staffed by highly respected foreign judges and international experts.
The second priority is the development of the capital market and paving the way for alternative financial instruments.
Uzbekistan is rapidly developing next-generation financial technologies and capital markets.
Over the past period, we have placed bonds worth more than 16 billion US dollars in international markets. Furthermore, we have introduced corporate Eurobonds denominated in the national currency.
For the first time, we have listed 30 percent of the shares of the National Investment Fund, which manages assets in 13 strategic enterprises, on the Tashkent and London Stock Exchanges. Notably, this became the largest IPO on the London Stock Exchange in the last five years. We are also preparing a number of other major companies for IPOs.
To strengthen the legal framework for such reforms, the laws on the Capital Market and Alternative Investment Funds will be adopted.
We will also create broad opportunities for the operation of international clearing companies in Uzbekistan. In addition, to diversify investment flows, we will launch a program to issue sovereign Islamic bonds – sukuk.
This will provide a powerful impetus for attracting at least $10 billion of additional capital into our enterprises in the future.
Also, as part of the privatization program this year, assets worth 6 billion US dollars will be put up for auction, including real estate properties, state shares in enterprises, land plots.
The third priority is attracting investments to expand high value-added chains.
We have launched major programs for transition to a new technological level in all industrial sectors and to create added value.
Over the next five years, we will increase the volume of high-tech production in the industrial sector by 2,5 times.
For example, our cooperation in the development of the advanced chemical industry will allow to utilize $20 billion investment potential, create 15 000 high-income jobs in the regions and produce 130 types of new products. I am confident, it will bring mutual benefits to both us and you, the investors.
Uzbekistan is rich in natural resources, including gold, copper, uranium, tungsten, natural gas, and other rare minerals. The total value of our subsoil wealth, strategic raw materials, is estimated at $3 trillion.
In order to provide opportunities in this sector to foreign investors we will create an open digital database of geological data and increase by four times the number of deposits put up for auction. To implement projects from “mining to finished products,” we will extensively attract foreign investment into the “Metals of the Future” technoparks, which are being established in Tashkent and Samarkand regions.
We also propose the joint implementation of investment projects worth $30 billion in such “driver” industries, such as mechanical engineering and robotics, light industry and construction materials, electrical engineering and pharmaceuticals.
The fourth priority is the further deepening of our partnership in the fields of green energy and artificial intelligence.
We pay tremendous attention to green energy. In the coming years, we plan to increase its share in total electricity generation to 54 percent.
Alongside solar and wind power plants, we are putting forward proposals to investors regarding the development of energy storage systems, the modernization of grids, the creation of data centres powered by green energy.
The development of the artificial intelligence sector is a crucial imperative of our time. Foreign experts forecast that over the next five years, at least $10 billion in added value will be created in this new field in Uzbekistan.
To widely implement artificial intelligence across all spheres, we have adopted a National Strategy based on the most advanced practices. Within its framework, the “Five Million Leaders” program has been launched.
Our main task is to improve the lives of all layers of the population by using artificial intelligence, utilizing it extensively in education, public services, and business processes.
We have created a special zone for artificial intelligence projects and data centres in Karakalpakstan. In this territory, until 2040 investors will be exempt from all types of taxes and duties; road, electricity, and water infrastructure will be financed by the state; a preferential electricity tariff of 5 cents per kilowatt-hour will be applied.
Additionally, we are establishing the International Digital Technology Centre of Uzbekistan, which features a special legal regime. Taking this opportunity, we invite you to cooperate on highly attractive projects in these areas.
The fifth priority is the development of regional transport and logistics connectivity.
In recent years, we have been working to transform Central Asia into an interconnected region of broad opportunities, open to the world.
Specifically, in cooperation with China and Kyrgyzstan, we are rapidly continuing the construction of a strategic railway. We are also actively working on the Trans-Afghan Corridor project, which will provide direct access to southern seaports. Furthermore, we are developing the Middle Corridor transport route, which runs through the Caspian Sea. By the full implementation of these projects, we will join the network of transport arteries connecting Asia and Europe.
The sixth priority is elevating investment cooperation in regional development to a new level.
The population of Uzbekistan is approaching 40 million people. Rapid demographic and economic growth requires us to implement major urbanization and urban development programs.
Within their framework, by 2040, we plan to double the volume of housing construction and increase the urbanization level from the current 51 percent to 65 percent.
We are building new investment centres designed for the distant future. In the territory adjacent to our capital, we are constructing a modern metropolis, New Tashkent, designed for 2 million residents. We have also begun implementing projects to transform Andijan, Namangan, and Samarkand into cities with populations over one million.
In general, housing construction projects in our country will provide at least $10 billion a guaranteed market volume per year. In addition, we are ready to implement with you public-private partnership projects in infrastructure development worth $27 billion.
In recent years, tourism and the modern agro-industry have also become drivers of regional development in our country. In particular, over the past five months, the flow of foreign tourists to our country grew by 27 percent, reaching to 5,5 million people. Overall, Uzbekistan has the potential to host 15-20 million foreign tourists annually and provide them with tourism services worth at least $15 billion. We hope that you will actively invest in the tourism sector, not only in tourism pearls like Samarkand, Bukhara and Khiva, but also in our other regions, the Uzbek president said.
Photo: president.uz
