On September 21 of this year, Deputy Minister of Investment, Industry and Trade Oybek Khamraev held negotiations with the CEO of the Singapore
company Surbana Jurong Group Sean Zhian.
The parties are focusing on the progress of implementation of current projects in the areas of water supply and water resources management. Priority areas for
further cooperation are also outlined.
As a result of the negotiations, the parties reached an agreement to increase cooperation in the fields of transport and logistics, petrochemicals,
renewable energy, urban planning and infrastructure.
For background: Surbana Jurong Group, founded in 2015, is Singapore's largest urban planning and infrastructure consultancy.
It has more than 120 offices in 40 countries with a total staff of 16 thousand employees.
The company has implemented over 16 thousand projects.
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In order to study the work carried out by the "project groups" of districts and cities of the Tashkent region, and the problems of 37 enterprises with the participation of foreign capital operating in the region, May 24-27 this year. Representatives of the UzIPA conducted a study in a number of districts and cities of the Tashkent region.
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During the study, the work teams carried out the following:
• Studied the activities of the "Project Groups" created in the regions and cities.
• Analyzed the economic potential of the regions and promising projects in the direction of identified "growth points".
• Familiarized with large industrial enterprises created in the regions with the participation of foreign capital.
Based on the observations, the existing problems and proposals of the "Project Groups" and large industrial enterprises with the participation of foreign capital were considered and appropriate instructions were given.
The Ministry of Energy hosted a meeting with Italy’s Imagro Group CEO, Massimo Pollio.
The parties discussed the possibility of implementing joint projects in Uzbekistan.
According to the Ministry of Energy, Imagro Group CEO noted that all spheres of the country’s economy are developing thanks to the vector of development of Uzbekistan. Economic relations between Uzbekistan and Italy are being strengthened. Italian companies and financial institutions are showing interest in cooperation and project implementation.
The parties considered the possibility of participation of the Italian company in generation projects based on renewable energy sources. Information was provided about upcoming projects.
The sides expressed interest in further elaboration of the discussed issues.
The Business Climate Index in Uzbekistan was introduced according to the methodology of the German analogue of the Business Climate Index of the IFO Institute (“IFO Institute”), one of the key indicators of economic activity in Germany.
The Center for Economic Research and Reforms (CEIR) conducted another round of a survey among enterprises across the country.
More than 1,000 companies took part in the survey in two areas: a qualitative assessment of the current state of the business and the expectations of entrepreneurs regarding the prospects for the development of their business for the next three months.
The sampling methodology is sectoral stratified random sampling according to the World Bank Enterprise Survey methodology.
In January this year. The consolidated indicator of the business climate was 59 points (from -100 to +100), which assesses the state of the business environment in the country as positive.
Compared to December last year, the consolidated indicator of the business climate has slightly decreased by 3 points. This trend is explained by the expected cyclical fluctuations in the sectors of the domestic economy, which, based on a positive assessment of the current state and expectations of entrepreneurs, will experience accelerated development in the next 3 months.
In the context of industries, the business climate indicator was:
- in construction 73 points;
- in industry 58 points;
- in the field of agriculture 58 points;
- in the service sector 58 points.
Changes in the summary business climate indicator are associated with adjustments to the following indicator components:
The indicator of the current state of business compared to the same period last year increased by 10 points and amounted to 43 points, which characterizes the positive mood of entrepreneurs regarding the current state of their business.
The share of respondents who noted the current state of their business as good was 47%.
When asked how the state of business has changed over the past 3 months, 44% of entrepreneurs answered that it has improved, 45% have not changed, and 12% have worsened.
Demand for goods/services improved in 53% of enterprises, while the number of employees increased in 27% of enterprises.
The indicator of expectation of business development prospects amounted to 76 points, which reflects the expectations of entrepreneurs about the prospects for the development of their business for the next 3 months as optimistic.
83% believe their business prospects will improve. It is expected that the demand for goods and services will improve in 78% of enterprises, the number of employees will increase in 76%.
31% of entrepreneurs expect an increase in prices for goods / services in the next 3 months, 39% believe that prices will not change, and 5% - they will decrease. 25% of respondents do not know how prices for their goods/services will change in the near future
In the context of industries, the breakdown of the expectation indicator showed the following dynamics:
- agriculture - 75 points;
- industry - 75 points;
- construction - 84 points;
- services - 76 points.
Among all respondents, 40% stated that there were no obstacles in the development of their entrepreneurial activities.
Access to finance (20%) is one of the main concerns of entrepreneurs. It is followed by access to land - 11%, high tax rates - 10%, high prices and scarcity of raw materials - 5%, electricity supply - 4%, pandemic impact - 4%, tax administration - 4%.
On October 6 this year, an expanded meeting of the Government Commission on Foreign Trade, Investments, Local Industry Development and Technical Regulation was held in the format of a videoconference under the leadership of Deputy Prime Minister of the Republic of Uzbekistan S.Umurzakov to discuss the introduction of a fundamentally new mechanism for the development, financing and implementation of investment projects in the regions of the country.
The meeting was attended by heads of ministries, departments, industry associations, commercial banks and local authorities of the Republic of Karakalpakstan, regions and the city of Tashkent at the regional, district and city levels.
The indicators of investment and foreign trade activity of Uzbekistan for the first 9 months of the current year were considered. The factors that positively influenced the dynamics of attracting investments and stimulating exports in the context of industries and regions have been identified. Reports of responsible executives on the implementation of regional investment programs were heard. The actual tasks of practical support for entrepreneurs in the implementation of investment projects and export activities were outlined. In addition, issues of stimulating the socio-economic development of mahallas were considered.
The key topic of the meeting was a newly developed mechanism to increase the volume of attracted investments and stimulate exports, built on the basis of a systematic approach to the processes of development, search for financing sources and implementation of investment projects, as well as subsequent monitoring of the activities of launched enterprises and industrial facilities. The mechanism is aimed at making full use of the economic and industrial potential of the country's districts and cities and stimulating their accelerated and uniform socio-economic development.
Within the framework of the new mechanism, project groups will be created under the khokimiyats of all 206 districts and cities, which will analyse the available untapped opportunities, taking into account unused land plots, buildings and structures, natural and infrastructural resources. Based on these analyses, project teams will develop strategies and concepts for the development of districts and cities. Coordination of the activities of the project teams will be carried out by the Project Office, to be established under the Agency for Strategic Development of the Republic of Uzbekistan.
On the basis of the developed strategies and development concepts, experts of the Centre for Development of Investment Projects under the Ministry of Investments and Foreign Trade will develop promising investment proposals adapted to the specifics and economic potential of a particular district or city.
Selection of investors and project financing sources will be carried out among local entrepreneurs and foreign companies by local authorities together with the Investment Promotion Agency under the Ministry of Investments and Foreign Trade and the country's diplomatic missions abroad. At the same time, the mechanism envisages allocation of financial assistance to entrepreneurs in the implementation of major projects through attraction of resources from the Direct Investment Fund of the Republic of Uzbekistan.
In connection with the practical implementation of the new mechanism, the responsible heads of ministries, departments, commercial banks and local authorities were given specific and targeted tasks, as well as the necessary explanations and instructions. It was announced that in order to ensure effective interaction of officials during the introduction of the new mechanism, a separate plan of measures has been developed.
Also, responsible executives will receive specially organised capacity building training courses at the Public Administration Academy under the President of the Republic of Uzbekistan with the involvement of qualified domestic and foreign experts. The effectiveness of executives in the practical implementation of the new mechanism on the ground will be assessed through a special rating.
Following the results of the meeting, additional instructions were given to the relevant executives on the practical implementation of the new mechanism of investment attraction and effective use of export potential.
The staff of the Investment Promotion Agency sincerely congratulates you on the Independence Day of the Republic of Uzbekistan!
We wish you and your loved ones good health, happiness and good fortune in all your endeavors.
Happy Independence day!
In the development of the drinking water supply and sewerage system, a total of 22 investment projects are being implemented with the participation of international financial institutions (IFIs), totalling US$2.35 billion. These 22 projects are financed from the following sources: - US$1,972.9 million (83.9%) - IFI funds; - US$377.6 million (16.1%) - state budget funds.
According to the Investment Program in 2021, 22 projects provide for the development of investments in the amount of US$201.3 million. In January-July of this year, loans from international financial institutions were disbursed in the amount of US$82.5 million.
The bulk of the disbursed loans falls on the Asian Development Bank (36.3 percent of the total), the World Bank (35.1 percent), the Islamic Development Bank (19.4 percent), the Saudi Development Fund (4.7 percent). ), OPEC Fund (3.4 percent). The bulk of the disbursed credit funds falls on the Bukhara region (US$23.8 million), the Tashkent region (US$19.2 million), the Syrdarya region (US$16.0 million), Samarkand region (US$11.2 million). ), Jizzakh region (US$9.0 million) and the Republic of Karakalpakstan (US$1.7 million).
These funds will be used for construction and installation work, the purchase of equipment and instruments, the provision of consulting services and other purposes. At the same time, to date, by attracting funds from IFIs in the field of further development of the drinking water supply and sewerage system, work is underway on 23 promising projects with a total cost of US$2.1 billion.
At the moment, work is underway on the development of design and project documents, approval and agreement of the developed documents.
The State-Owned Assets Management Agency reached a sale agreement of the government’s 57.118% stake in Coca-Cola Bottlers Uzbekistan (CCBU) to the Coca-Cola İçecek A. Ş group of companies. (CCI, Turkey) through its subsidiary, CCI International Holland B. V. for a total of USD 252.28 million, announced today the press service of the agency.
The deal was approved by the Tendering Commission for Sale of State-Owned Property. Closing the deal will require some regulatory approvals.
The deal was launched as an open sale process in line with the presidential decree dated October 27, 2020. Investment bank Rothschild & Co. acted as financial advisor to AUGA, and Dentons as legal advisor.
Coca-Cola Bottlers Uzbekistan is the largest producer of fizzy soft drinks in Uzbekistan, has production facilities in Tashkent, Namangan and Urgench, as well as a network of warehouses. In 2020, the company's net profit topped 205 billion sums.
Coca-Cola İçecek is one of the largest enterprises in the Coca-Cola structure. Its majority owners are Anadolu Efes and The Coca-Cola Company.
The sale of the government’s 57.118% stake in CCBU was announced by SAMA in December last year. Coca Cola İçecek was one of the first to apply for the tender in early January.
Exports excluding gold increased 26.7% in the first four months of the year, while total exports declined 19.1% due to a lack of gold sales. This is stated in the report of the State Statistics Committee.
In turn, imports increased by 7% compared to the results of the previous year. However, imports of services fell by 27.1% in four months. Exports of services from Uzbekistan also decreased by 13.2%.
Of the total volume of foreign trade turnover, exports amounted to $ 3 billion 482 million (by January-April 2020, a decrease of 19.1% was noted), and imports - $ 6 billion 840 (an increase of 7.0%). As a result, the foreign trade deficit amounted to $ 3 billion 358.4.
On January 6, a meeting with representatives of the American company GMFR Global group Co.LTD was organized at the Foreign Investment Promotion Agency.
Opening the meeting, the AIIP specialists thanked the guests for their confidence in the rapidly developing market of Uzbekistan, in particular, as part of the planned joint projects for the construction of a hotel and the cluster production of ready-made food products in the Samarkand region.
In September 2019, a tripartite agreement was signed between the Samarkand regional city hall, the American company GMFR Global group Co.LTD and the Chinese holding Beijing Huiyuan Holding Co.LTD in September 2019 as part of a strategic investment partnership project for the development of agriculture in Uzbekistan. The new plant will produce 20 million tons of packaged water, juices and dairy products annually that will be fully exported.
Representatives of the company noted that in the near future equipment for the production of natural juice will be imported to the territory of Uzbekistan. Its cost is estimated at about 100 million US dollars.
In order to develop long-term and effective cooperation, GMFR Global group Co.LTD in January this year will organize a visit of 10 major entrepreneurs from the People's Republic of China, in connection with which, representatives of the IPA were requested information about promising investment projects.
SEO manager Angela Mo emphasized that the GMFR Global group is interested in developing joint projects in the Jizzakh region, in particular in such sectors as agriculture, construction materials (foam blocks) and the construction of social facilities.
The prospective areas of cooperation for the coming years are such industries,such as engineering, construction of hotel complexes and new roads and electronic commerce.
The market of Uzbekistan, having a number of geographical advantages in the field of international transport spots, uniting countries of foreign Europe, the CIS, South-West Asia, India and China, has ample opportunities in the development of electronic commerce, in terms of cooperation with successful global trading platforms like Alibaba, Tmall , JD, Aliexpress and Taobao and others.
A foreign party requested information on measures aimed at the development of the digital economy and e-commerce, the benefits and preferences provided to participants in the information technology market.
At the end of the meeting, APII experts noted that all issues of interest will be taken under control and detailed information will be prepared in the near future to establish fruitful cooperation with GMFR Global group Co.LTD.
The weekly Economist magazine recognized Uzbekistan as thе country of the year.
According to the British magazine The Economist, Uzbekistan has become the country of the year.
This year the competition was difficult, and the democratic progress achieved throughout the country does not guarantee its continuation in the future, the article says.
Three years ago, the “armies” of men, women and children were forced to work in cotton fields, and the country itself was “a closed society without harshness and lack of competence”.
Since the resignation of the head of the State Security Service in 2018, a number of reforms have been carried out in the country.
“The government basically stopped forced labor. The prison, known as Mudhish, was closed. Foreign journalists are allowed into the country. Officials were banned from developing their own business. Foreign technocrats are invited to build a state-owned economy, ”The Economist said.
On November 13, President of Uzbekistan Shavkat Mirziyoyev signed a decree establishing the Council of Foreign Investors under the President.
The Council is an advisory body under the President of the Republic of Uzbekistan.
The composition of the Council is composed of leaders and representatives of foreign companies, banks, investment and other structures, international financial institutions and foreign government financial organizations, including the European Bank for Reconstruction and Development, which carry out investment and business activities in the Republic of Uzbekistan in the established manner, and also other participants.
The Council operates in the form of plenary and interim sessions. Plenary sessions of the Council are held once a year, intermediate sessions – at least twice a year. The coordination of plenary sessions of the Council is coordinated by the Administration of the President of the Republic of Uzbekistan and intermediate sessions are carried out by the Ministry of Investment and Foreign Trade of the Republic of Uzbekistan.
The main tasks of the Council:
- advising the Government of the Republic of Uzbekistan on the most important areas of investment, industrial, technological and innovative development of the country;
- direct participation in creating a favorable investment climate and effective mechanisms to stimulate domestic and foreign entrepreneurs to invest in priority sectors of the economy;
- ensuring effective interaction of state bodies and economic entities with foreign companies, banks, investment and other structures;
- identification and analysis of key factors that impede the attraction of investments and investor activity;
- development of effective proposals aimed at eliminating the factors hindering investment processes;
- assistance in improving export support mechanisms, consistent development of trade infrastructure, e-commerce system, creating favorable conditions for the promotion of domestic goods and services to foreign markets;
- introduction of positive foreign experience in the processes of creating and using modern product quality management systems;
- preparation of proposals and recommendations for further improvement of the legal framework in the field of investment regulation;
- identifying priority areas and developing effective measures to improve the international image, increase the position of the Republic of Uzbekistan in international ratings and indices.
On November 1-2, 2019, Nukus will host the international investment forum “Invest in Karakalpakstan”, organized by the Ministry of investments and foreign trade, Jokargy Kenes and the Council of Ministers of the Republic of Karakalpakstan.
The purpose of the forum is to intensify investment activities, to form an effective platform for business communication and discussion of issues on attracting investments to Karakalpakstan.
Main objectives of the forum:
- formation of the idea of investment potential;
- consideration of real sources of financing for new projects;
- study of investment project implementation mechanisms;
- involvement of stakeholders to establish business contacts;
- presentation of investment projects.
The Forum will be attended by more than 200 foreign guests-government delegations and business representatives from more than 40 countries, such as China, the Russian Federation, the Republic of Korea, Kazakhstan, England, Japan, Bangladesh, Poland, Germany and others.
The Forum will last two days, which allows participants to visit the most significant and promising from the point of view of cooperation objects in the republic by interests and directions. Guests will enjoy not only discussions, presentations, exhibitions, but also an extensive cultural program.
The Forum will host an exhibition and fair of local producers. For the first time visitors of the Forum will get acquainted with the main historical and cultural sites of Karakalpakstan.
As a result, it is planned to sign a number of agreements with foreign investors.