SPECIAL INDUSTRIAL ZONES: NEW OPPORTUNITIES FOR FOREIGN INVESTORS Ministry for Foreign Economic Relations, Investments and Trade of the Republic of Uzbekistan
Feb 25, 2016
SPECIAL INDUSTRIAL ZONES: NEW OPPORTUNITIES FOR FOREIGN INVESTORS
Ministry for Foreign Economic Relations, Investments and Trade of the Republic of Uzbekistan
Political & macroeconomic stability
Rich raw material base
Energy advantageous
Advantageous geographical location
Diversified industrial base
Well educated human resources
Sound legal base
Factors of success in Uzbekistan
Foreign investment in Uzbekistan
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
82%72%
56% 27% 24% 21% 24% 15% 16% 12%18% 28% 44% 73% 76%
79%
76%
85%84%
88%
Credits under the Government garantyForeign direct investment and credits
3284,6
3829,5
2941,7
1882,0
1285,9
895,7748,0754,6
602,1447,8
Territory - 564 ha
Distance between Navoi andTashkent – 490 kmSamarkand – 153 kmBukhara – 110 km
Establishment of Free Industrial Economic Zone in Navoi region (Degree of the President of the Republic of Uzbekistan December 2, 2008 No.UP-4059)
Free Industrial Economic Zone “Navoi“
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)
FIEZ “Navoi“: regulatory and legal documents
Pharmaceutical industry & Medical products
Precision machinery & OEM parts for automobiles
Electronic & electrical products
Food processing and packaging
Plastic goods and polymers
FIEZ “Navoi”: Profile
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/day2nd stage – Cargo processing ability –1000 tons/day1 399 cargo flights (2011)Seoul, Milan, Brussels, Shanghai, Saragossa, Vena, Deli, Mumbai, Istanbul, Doha, Dubai, Hanoi, Moscow
Navoi Logistics Center
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%)
Tax preferences
Period of privileges and incentives:
7 yearsif amount of direct investments is from 3 mln to 10 mln Euro
10 years and 50% reduction of profit tax for the following 5 years
if amount of direct investments is from 10 mln to 30 mln Euro
15 years and 50% reduction of profit tax for the following 10 years
if amount of direct investments is more than 30 mln. Euro
Tax preferences
For the whole period of functioning enterprises are exempted from customs duties for imported:
Equipment
Raw materials
Production components
100%
50%
for goods aimed to exports
for goods aimed to domestic market with delay of payment period up to 180 days
Customs exemptions
Administrative building
Financial center
3 storesConference room for 300 people4600 square meters of office area4 meeting rooms10 rooms for rent 50 square meters each
3 stores4000 square meters of office areaBranch of the National Bank of UzbekistanBranch of the Korea Development Bank
Infrastructure development
Logistics center
Customs office
Infrastructure development
Implemented projects
“Telecom Inovations” JVFull capacity - 50 th. set-top box and 40 th. DSLAM/ADSL. Putting into operation - August, 2010Foreign partners –“Servetechno Pte Ltd”(Singapore), “ZTE”(PRC)
“CFM ProEnergies” JVFull capacity - 50 th. units. LED lamps Putting into operation - August, 2011Foreign partner – “CFM Holding” (Singapore)
Electronic & electrical products
“UzKor Lighting” JVFull capacity – 10,0 mln. units. energy efficient lamps. Putting into operation – August, 2011Foreign partner - “Shinghwa Lighting” (Korea)
Implemented projects
“UzЕгаеCable” JVFull 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, 2010Foreign partner- “Erae Сs Limited” (Korea)
Precision machinery & OEM parts for automobiles
“UzMinda” JV»Full capacity – 250 th. units automobile components Putting into operation – September, 2010Foreign partner - “Minda Group” (India)
Implemented projects
“Hansang Pharm” JVFull capacity - 10,7 mln. package of drugs. Putting into operation - August, 2011Foreign partner – “Trust Investment & Trading Co Ltd” (Korea)
“Navoiy Hunan Pulp” JV Full capacity - 400 mln. units. diapers and hygienic products. Putting into operation – August, 2011Foreign partner – “Hunan Aloft” (PRC)
Pharmaceutical industry & Medical products
“Navoiy Beauty Cosmetics” JVFull capacity - 2,6 mln. units cosmeticsPutting into operation – August, 2010Foreign partner - “Hunan Aloft” (PRC)
Implemented projects
“Polietilen Quvurlari” DCFull capacity - 8 600 ton polyethylene pipes. Putting into operation – August, 2010
Plastic goods and polymers
“Polipropilen Quvurlari» DC Full capacity - 2300 ton polypropylene pipes. Putting into operation – August, 2010
Food processing and packaging
“AgroFresh” JVFull capacity –storage of 3 000 ton fruit and vegetable. Putting into operation – August, 2010Foreign partner - “Kefayat General Trading Co. LLC” (UAE)
Projects under construction
Automobile gas cylinder Gas metering equipment
Optic fiber cables Cross-linked polymer cable
Perspective investment project
Over 70 new perspective investment project in electronics, OEM parts, plastic products, pharmaceuticals, food processing and packaging
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
Development of social infrastructure
March 19, 2012 held the opening ceremony of the Han Jin Navoi complex
Distance between large cities:
Tashkent – 80 km
Ferghana – 240 km
Samarkand – 220 km
“Angren“ Special Industrial Zone
Pedagogical institute
1200 graduating students
9 colleges, including 5 in industry
3 131 graduating, including 1 537 in industry
Establishment of “Angren“ Special Economic Zone (Degree of the President of the Republic of Uzbekistan April 10, 2012 No.UP-4434)
“Angren“ SIZ
Angren - 209 ha (I stage)
Ahangaran - 178 ha (II stage)
Pharmaceutical industry & Medical products
Construction materials
Food processing and packaging
Chemical and petrochemical products
“Angren” SIZ: Profile
Leather products
and other industries
Mineral resources of Tashkent region
Over 30 deposits of mineral resources, including :
Copper
Silver
Lithium
Coal
Kaolin
Building stones
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
Creating a competitive advantage for the country in the international logistics market
30 ga total area 300 vehicles4.0 mln. tones cargo operation (2011)
Angren Logistics Center
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%)
Tax preferences and incentives
Period of privileges and incentives:
3 yearsif amount of direct investments is from 0.3 mln to 3 mln USD
5 yearsif amount of direct investments is from 3 mln to 10 mln USD
7 yearsif amount of direct investments is more than 10 mln. USD
Tax preferences
Customs duties for imported equipment, raw materials, production components, not produced in Uzbekistan, by the degree of the Cabinet Ministers
Current projects
Synthetic motor oil Automobile tires
Ceramic tile Cement
Silicon
Thank you for your attention.
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