WHY INVEST IN UZBEKISTAN?

Investment Promotion Agency under the Ministry of Investments and Foreign Trade of the Republic of Uzbekistan

UzIPA

Area448,978 sq.km.

populationXX

Uzbekistan has the largest and fastest-growing market in Central Asia

KEY

DA

TA

Population33,4M

GDP$ 48.72B (2018)

TashkentCapital

Samarkand519K

2.4 M

Andijan416K

Namangan493K

Bukhara274.4K

Nukus303.6K

Uzbekistan map

Languages

Uzbek (official language),

Russian (often used)

Urbanization rate~51%

Currency

Sum (1 USD = 8’460 UZS)

Political systemPresidential Multi-Party

Democratic Republic

Young, large & educated labour force is a major factor for growth

Age structure of the population Employment by sector as of 2018

6%

4.60%

4.80%

4.80%

8.50%

8.90%

10.50%

11.60%

13.40%

26.90%

Other

Healthcare

State management

Logistics

Education

Construction

Trade

Small trade & services

Industrial production

AgricultureUnder 15

years old

26%

From 15 to 65

years old

69%

Above 65 years old

5%

Qualified workforce of 18.8 million people

Largest workforce

in the region

Literacy rate

is 97%

60 higher educational

institutions and their

30 branches

Labor force in million ppl Literacy rates

2.4

2.6

3.9

4.9

9.2

18.8

Turkmenistan

Kyrgyzstan

Tajikistan

Azerbaijan

Kazakhstan

Uzbekistan

86

95

97

97

98

World average

Upper middle

income countries average

Uzbekistan

Singapore

Spain

Installed Capacity: 1,951 MW

Potential Output: 27.4B KWh

HY

DR

OP

OW

ER

Installed Capacity: 4 MW

Potential Output: 525B KWhSO

LA

R

Installed Capacity: 0.85 MW

Potential Output: 1K KWhWIN

D

Uzbekistan has abundant and diverse natural resources

Gold

Natural Gas

Copper

Uranium

Reserves Production

10th 10th

24th 13th

10th 20th

16th 7thD

IVER

SIF

ICA

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N O

F E

NER

GY

SO

UR

CES

184K km

Strategic location in the middle of Central Asia and heart of the Silk Road

Uzbekistan has a strategic position in the

Central Asia region. It has also probably the

most developed transport infrastructure in

Central Asia.

total length of well-

developed system of railways

5800km

will be connected through China, Kyrgyzstan

and Uzbekistan transit cooperation

East

Asia

Southern

Europe +

total length of roads in Uzbekistan

950km

Through optimized transit procedures

China - Kyrgyzstan – Uzbekistan

road corridor

8day > 2day300$cost reduce per

ton of cargo

Legal and institutional reforms implemented since 2016

State governance

Rule of law and

legal reforms

Liberalization

of the economy

Social sphere

Security, religious tolerance and

interethnic harmony, foreign policy

STRATEGY FOR DEVELOPMENT

State-owned

enterprise reform

One defining characteristic has

been the initiation of wide-

reaching reforms.

Since 2016

2017 - 2021

▪ Modernization of the economy

▪ technological development

▪ attracting FDI

▪ improvements in investment climate

▪ protection of private property

▪ optimization of taxation system

▪ infrastructure investments

Improvements in Taxation Policy

State and

local taxes 2017 2018 2019

Corporate

income tax

7.5%+8%(payment for social

infrastructure)

General rate 14%; commercial banks 22%

General rate 12%; commercial banks 20%

Single tax payment

(SMEs)5% 5% 4%

Personal

income tax From 0% to 23% From 0% to 22.5% Single flat rate 12%

VAT (standard rate) 20% 20% 20%

Corporate

property tax 5.0% 5.0% 2.0%

Social payments to

pension funds8% 8% Abolished

Corporate payments to

other funds1.6%+1.4%+0.5% single rate 3.2% Abolished

Single social

payment

25%

(15% for SME)

25%

(15% for SME)12%

Tax simplification

Reduction of the tax

burden

Increasing local

budgets revenues

Further reforms

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Tax relief under direct investments

Investment amount Relief period

300K – 3M 3 years

3M – 10M 5 years

Over 10M 7 yearsEN

TER

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ISES

WIT

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DI of foreign investments in the

company allow it to be

Enterprises with foreign

investment 15%

NOT LESS

THEN

tax reliefSTILL

GET ALL

by newly created enterprises with

foreign investments, even when tax

legislation changes*

*Depending on conditions of the investment amount

TWO YEARSCUSTOMS DUTY EXEMPTIONof own use property import for enterprises

with at least 33% foreign investments

World Bank: Doing Business ranking change

157 Comoros

158 Suriname

159 Mauritania

160 Afghanistan

161 Cameroon

162 Togo

164 Iraq

165 Lao PDR

166 Uzbekistan

71 Ukraine

72 Greece

73 Indonesia

74 Mongolia

75 Jamaica

76 Uzbekistan

77 India

78 Oman

79 Panama

2012 2019

World Bank Doing Business ranking: 90 points improvement in the past few years

TOP10One of the

global improvers is Uzbekistan

by The World Bank

SIGNIFICANT

in Starting a Business, Getting

Electricity, Getting a Credit, Paying

Taxes and Registering Property

Since 2012

REFORMS

DEVELOPMENT

aimed at opening and liberalizing the

economy and improving investment

climate

2017-2021

STRATEGYFREE

Providing Tax, customs and

other preferences

21

ZONESECONOMIC

AgencyUzbekistan's

RatingRating countries

BB-

stableBrazil, Dominican,

Georgia

B1

stableArmenia, Costa Rica,

Montenegro

BB-

stableBrazil, Dominican,

Georgia

5

pointsAzerbaijan, Brazil,

Kazakhstan, Turkey

Credit rating agencies’ assessment for Uzbekistan and Uzbekistan's first Eurobonds

UZBEKISTAN IN INTERNATIONAL DEBT MARKETS

Uzbekistan sold

$1 billion

Eurobonds

in first entry into

international debt

markets

The deal pricedwith a yield

4.75 percent

on five-year paper

5.375 percent

on 10-year notes

Investorsbid for more than

$5.5 billion

of the bonds

Companies with FDI in Uzbekistan

The World Bank is ready to

significantly increase its presence

in Uzbekistan and to support the

reforms in the countryKristalina Georgieva

World Bank CEO

ADB, in accordance with the

government's strategy, is planning

to provide USD 2.6 billion in

sovereign loans in 2017–2019, to

increase non-sovereign

transactions through equity

investments and private loans.Takehiko Nakao

The President of ADB

We are in a great hurry, we are

striving to expand and deepen our

presence in Uzbekistan as soon as

possible.Philip Bennet

Former First Vice-President of EBRD

The Action Strategy, developed by

the initiative of the President

Shavkat Mirziyoyev, is a very

serious and bright program, it

reflects ideas of the United Nations

and reforms aimed at ensuring

human rights.Zaid Raad Al-Hussein,

UN high commissioner for human rights

The international community acknowledges the recent significant progress in Uzbekistan

get all advantages of

frontier market

opportunities

in the Central Asia

region, reaching

almost 19M people

conditions improving

day by day through

conduction wide-

reaching reforms

and logistic

environment

provides access 4B+

market

Investment Promotion Agency under the Ministry of Investments and Foreign Trade of the Republic of UzbekistanUzIPA

So why invest in Uzbekistan?

Boomingmarket

Biggestmanpower

Centrallocation

High returns