This is the right time to invest in Uzbekistan main facts

Total area 448,000 km2

Total 33 million population

76 people Density per km2

Languages Uzbek, Russian, spoken English

2 Why Uzbekistan is an attractive investment destination? – Growing economy with supportive business climate

Supportive business climate Growing diversified economy

1 Our President named FDI attraction We are one of the fastest growing 4 as a key priority for the country countries in the world with diversified economy structure

2 We are focused on economy liberalization We have abundant natural and 5 and created a set of attractive incentives labor resources – 3rd largest in the CIS

3 Our efforts bring results – Our political, economic, and investment 6 Uzbekistan improved by 90 points environment is stable and on World Bank Doing Business ranking predictable

3 1 Action strategy for 2017-2021 sets up investment climate and FDI attraction as key priorities

President Strategic Priorities Key areas of the economic policy

State and public institution improvement • Stable foreign exchange rate

• Modernization of the economy Supremacy of the rule of law • Technology development Economic development and liberalization • FDI promotion and investment climate

Development of the social sphere • Private property protection mechanisms

• Tax system Security, interethnic harmony, and religious tolerance, and constructive foreign policy • Banking system and financial markets

4 2 Liberalization of currency regulations

No more constraint for private business development and FDI flows starting September 2017

What it is now… The volume of currency purchase and sale increased You earn revenue – it is yours. This is a fair play 1.5 times since the opening of the conversion and amounted to $ 1.3 billion.

Exchange rate is determined by the free market Foreign exchange currency reserves increased by 1.1 billion USD during the year.

Buy as much as you need. No constraints We believe in the market economy!

1 At a fixed non-market exchange rate

5 World Bank Doing Business ranking: 90 points improvement in the past 6 years

2012 2018

157 Comoros 71 Ukraine

158 Suriname 72 Greece

159 Mauritania 73 Indonesia

160 Afghanistan 74 Mongolia

161 Cameroon 75 Jamaica

162 Togo 76 Uzbekistan 164 Iraq 77 India

165 Lao PDR 78 Oman

166 Uzbekistan 79 Panama

6 4 World’s 5th fastest growing economy in 2015-16

and expected to be in the TOP-3 by 2019 Total GDP Historical GDP growth, % Bn USD

Uzbekistan 7.8 67

Tajikistan 6.9 7

Turkemnistan 6.2 36

Kyrgyzstan 3.8 7

Turkey 2.9 858

Georgia 2.7 14

Kazakhstan 1.0 134

Russia -0.2 1 283

Azerbaijan -3.1 38

SOURCE: World Bank for 2016 7 Uzbekistan main facts about resources

Cotton Vegetables Gold Uranium

Copper Zinc Gas/oil Wheat Melons and gourds

Fruits Found in all

Tashkent

Urgench Navoi Jizak Ferghana

Karshi

Natural Over 1800 resources mineral reserves

8 Uzbekistan is a country rich in deposits

More than 2,700 deposits

About 100 kinds of mineral raw materials.

Explored more than 900 deposits

The total mineral and raw material potential - more than 3.3 trillion USD. Large reserves of coal - ranked 2nd in .

Reserves of such minerals as uranium, copper, gold, natural gas, tungsten, phosphorites, potassium salts, kaolin, - leading positions all over the world.

Reserves of uranium and copper - the top ten countries in the world.

40 deposits of precious metals have been explored. 9 Fruits and vegetables in Uzbekistan

10 Price comparison of electricity

Electricity prices by selected countries in 2017 (in U.S. dollars per kilowatt hour)

India South Africa China Brazil Czech Republic Canada Poland 0,0252 USD/kWh Finland In Uzbekistan Slovakia Netherlands France U.S. Austria Sweden UK Portugal Spain Belgium Italy Germany 0. 0.05 0.1 0.15 0.2 0.25 0.3 0.35 USD/kWh

Uzbekistan Source: https://www.statista.com/ 11 Price comparison of natural gas

Natural gas prices for the residential sector as of 2016, by selected countries (in U.S. dollars per m3)

Mexico Canada U.S. Turkey Poland Slovakia 0,123 USD/m3 South Korea Belgium In Uzbekistan UK Czech Republic Germany France Austria Ireland Netherlands Spain New Zealand Portugal Switzerland Sweden 0 0.2 0.4 0.6 0.8 1 1.2 1.4 USD/m3 Uzbekistan Source: https://www.statista.com/ 12 3 Attractive tax incentives

Steady decrease of tax burden (in % to GDP)

45% 41% 38% 30% 23% 20% 19%

1991 95 2000 05 10 15 2016

1 excluding custom clearance fees 2 for 15%-30% export sales We have invested in creating attractive conditions for your business in Uzbekistan 13 5 One of the most populated countries in the region with free trade access to vast neighboring potential

Neighbor countries with free trade agreements Population, in Mn

Russia 144

Ukraine 45

Kazakhstan 18

Belarus 10

Other countries1 28

Outreach of free trade agr. 245

Uzbekistan 32

Total market access 277

Comparable to Brazil

1 Other countries include Tajikistan (pending final signing of free trade agreement), Kyrgyzstan, , Moldova, and Armenia SOURCE: World Bank for 2016 14 5 Educated workforce of 18.5 mln people

65 higher education institutions and General literacy Largest workforce several international of the population in the region universities repre- is 97% sented in Uzbekistan

Labor force in Mn ppl Literacy rates

Uzbekistan 18.5 Spain 98.0

Kazakhstan 9.2 Singapore 97.0 Azerbaijan 4.9 Uzbekistan 97.0 Tajikistan 3.9 Upper middle income 95.0 Kyrgyzstan 2.6 countries average

Turkmenistan 2.4 World average 86.0

SOURCE: World Bank for 2016 15 3 Free economic zones

…and invite them to join one of the 21 FEZ to get full exemption from • Income tax and custom duties1 • Social infrastructure and uniform SME taxes

Nukus-Pharm • Compulsory contributions to the Road Fund

Boustonlik-Pharm Parkent-Pharm -Pharm Khazarasp Angren Total projects: Navoi Jizak 259 projects Syrdarya-Pharm Gizduvan Total amount: Zomin-Pharm US$ 1811,3 million Including FDI: Boysun-Pharm US$ 565 million

16 Tax Preferences

Residents of Free Economic Zones are exempted from all types of taxes if FDI amount is :

US$ 10 million or more 10 years

US$ 5 million – US$ 10 million 7 years

US$ 3 million – US$ 5 million 5 years INVESMENTS US$ 0.3 - 3 million 3 years

17 IMPLEMENTED PROJECTS

Number of projects 65

Cost US$ 464.4 million

Foreign investments US$ 252.5 million

Jobs (people) 4234

18 PROJECTS UNDER IMPLEMENTATION

Number of projects 155

Cost US$ 1173.1 million

Foreign investments US$ 289.8 million

Jobs (people) 13760

19 PROJECTS AT THE STAGE OF AGREEMENT

Number of projects 39

Cost US$ 173.8 million

Foreign investments US$ 22.7 million

Jobs (people) 2682

20 PRODUCTS MANUFACTURED IN FEZ “NAVOI”

IMPLEMENTED PROJECTS

Number 23 Cost 129.3 mln $ Foreign investments 41.1 mln $

21 PRODUCTS MANUFACTURED IN FEZ “ANGREN”

IMPLEMENTED PROJECTS

Number 22 Cost 237.6 mln $ Foreign investments 163.1 mln $

22 PRODUCTS MANUFACTURED IN FEZ “”

IMPLEMENTED PROJECTS

Number 19 Cost 93.9 mln $ Foreign investments 46.6 mln $

23 6 Stable political, economic, and investor environment

Political Year of Economic Year of triple stability 26 independence stability 10 budget surplus

State Substantial crises 0 0 internal debt

Years of 0 political unrests

Investor Legislative acts • “…foreign investors” protection and decrees on: • “…guarantees and measures to protect rights of foreign investors” • “measures to improve the system of protection of legitimate interests of businesses”

24 Companies with FDI in Uzbekistan

25 INVESTMENT OPPORTUNITIES BY INDUSTRY SECTORS

TOURISM FOOD AND FOOD PROCESSING TEXTILE INDUSTRY

CONSTRUCTION MATERIALS PHARMACEUTICAL INDUSTRY CHEMICAL INDUSTRY

26 Current projects in multiple industries need investments of almost $US 9 bn – and there are way more ideas and opportunities

Metals 2.7 (30%)

Textiles 1.7 (19%)

Tourism 1.4 (16%) Construction 1.1 (12%) and infrastructure Chemicals 0.8 (10%)

Oil&Gas 0.7 (8%)

Power 0.1 (2%)

Other 0.2 (3%)

Total 8.8 (100%)

SOURCE: КИ, Team analysis 27 Projects to invest (Chemical Industry)

Ammonia and urea

Synthetic washing detergents

Cosmetics

Plastic accessories for

Household water filters

Toys for children

28 Chemical industry

ESTIMATED COST PROJECT NAME REALIZATION PERIOD IN US$ MILLIONS

Organization of sulfuric acid and 250 2018-2021 phosphoric acid (EPA) in Navoi

Construction of a new sulfuric acid 105 2018-2020 production in region (Almalyk)

The construction of complex fertilizer 330 2018-2021 production JSC “Samarkandkimyo” Construction of the second stage of production of sulfuric acid and phosphoric 250 2026-2029 acid (EPA) in Navoi Organization of production of various types of dyes, pigments and inks JV 30 2025-2030 «Electrokhimzavod» Organization of production of film-forming bases nitrocellulose lacquers, 30 2018-2020 paints, enamels in the region of Navoi Construction & Building Materials

Glass-crystallite

Sanitary ceramics

Natural stone (marble)

Wood-polymer composite products

Thermal insulating materials

Locks (door, wall)

Glass products (glasses, wine glasses)

30 Construction materials

ESTIMATED COST PROJECT NAME REALIZATION PERIOD IN US$ MILLIONS

Manufacture of plumbing in Tashkent 20 2018-2020 region

Manufacture of architectural and 100 2018-2020 construction glass in

Production of porcelain ceramic products 20 2018-2020 in region Production of heat-insulating materials and reinforcement from basalt in Navoi 20 2018-2020 region Production of linoleum in 5 2018-2020 Production of roofing materials in Tashkent 5 2018-2020 region Production of aerated concrete and gas block, polystyrene concrete in Tashkent 10 2018-2020 region Pharmaceuticals & Medical Equipment

Medicaments for cardiovascular diseases

Disposable tests

Anabolic medicines

Finished medicaments

Various diseases vaccines

Medical gloves

Medical equipment

32 Pharmaceutical industry

ESTIMATED COST PROJECT NAME REALIZATION PERIOD IN US$ MILLIONS

Expansion of production of 1.0 2018-2019 medicines for children (syrups)

Organization of production of 1.5 2018-2019 disposable medical instruments

Organization of production of disposable infusion systems for In estimation 2018-2019 intravenous infusion of infusion solutions.

Organization of production of In estimation 2018-2019 single-use syringes Food Industry

Confectionary

Fast foods by using freeze-dried pieces of fruit and vegetables

Ketchup

Fast freeze food

Deep processing of fruit and vegetables

Dry concentrated broths

Packaging containers

34 Food and food processing

ESTIMATED COST PROJECT NAME REALIZATION PERIOD IN US$ MILLIONS

Organization of production of chocolate confectionery products in the 20 2018-2019 territory of FEZ «Angren»

2018-2019 Organization of baby food production 10

Organization of fruit processing at 2.5 2018-2020 «Inter Silk Pro» LLC in Denau district Organization of drying and packaging of agricultural products at LLC 2018-2020 2.5 «Golden Fruit Green Fresh» in Gulistan district The organization of processing of grapes on Open Company «Bogishamol 4.0 2018-2019 Baraka Servis» in Djizak

Organization of ketchup production 3 2017-2019 Textile industry

ESTIMATED COST PROJECT NAME REALIZATION PERIOD IN US$ MILLIONS Creation of a textile complex on the basis of an unfinished construction site in the 65.5 2018-2019 Jondorsk district of the Bukhara region The creation in Tashkent, Namangan and Samarkand regions of textile production of a full cycle with the release of finished under estimation 2018-2019 products and semi-finished products, and in demand on world markets Organization of a textile complex on the basis of the Denovsky cotton plant (cotton 22.1 2018-2019 yarn, sewing and knitwear) Creation of a textile complex on the basis of an unfinished construction site in the 6.5 2018-2019 district of the Bukhara region Organization of textile complex in 22.1 2018-2019 Creation of a textile complex on the basis of an unfinished construction 65.5 2018-2019 site in the Jondorsk district of the Bukhara region Tourism

ESTIMATED COST PROJECT NAME REALIZATION PERIOD IN US$ MILLIONS Reconstruction of hotel complex Samarkand 20 2018-2019 in Samarkand city Reconstruction of hotel complex Afrosiyob In estimation 2018-2019 Palace with 278 rooms Construction of a water-amusement complex with hotel and guest villas in In estimation 2018-2019 Samarkand region with150 rooms Reconstruction of hotel complex Bukhara in Samarkand city with 222 20 2018-2019 rooms Reconstruction of hotel complex Zarafshon In estimation 2018-2019 in Bukhara city with 237 rooms Reconstruction of hotel complex 16 2018-2019 in Bukhara city with 230 rooms Construction of a new year-round sports and entertainment complex in In estimation 2018-2019 the mountains of Chimgan in Tashkent region Oil & Gas Industry

Polymers

Polyethylene foam

Conduction of exploration works

Development of petroliferous shale deposits

38 Automobile Industry

Shock absorbers

Braking pads

Safety belts

Spark plugs

Oil filters

Components of automotive power-train

39 Mechanical Engineering

Industrial deep-well pumps

LPG equipment for liquefied natural gas

Textile (knitting) machinery

Over-lock machines

Electric tools (drills, grinders, screwdrivers)

Heating systems

40 Electrical Engineering

Refrigerators

Washing & dishwashing machines

Microwaves

LED lighting devices

Small household appliances

41 EXPORT PROPOSALS OF UZBEKISTAN

The Republic of Uzbekistan has the opportunity to increase the export of goods up to 2 billion dollars.

42 EXPORT PROPOSALS

TEXTILE & LEATHER (up to US$ 700 million)

Cotton fabrics, Garments Wool blend fabric Apparel Baby clothes Sportswear Uniforms Terry products Hosiery Carpets and rugs Shoes and leather products

43 FOODSTUFF (up to US$ 400 million)

• Fresh and processed fruit and vegetable products • Dried fruits and nuts • Conservation (preserves and jams, compotes, nectars, puree, paste, pickles) • Sauces (ketchup, mayonnaise) • Confectionery and chocolate products • Dairy products (butter, margarine, cheese, dairy products) • Soft drinks (juices, soft drinks) • Salt

44 CHEMICALS & PETROCHEMICALS (up to US$ 300 million)

Uzbekistan produces more than 200 types of chemical products • All types of fertilizers (nitrogen, potash, phosphate, complex) • Plant protection products • Soda ash • Household chemicals • Cosmetics Petrochemicals • Industrial oil • Motor oil • Paraffin • Paraffin candles

45 PLASTIC PRODUCTS (up to US$ 200 million)

• Containers, cans, buckets, boxes • Pipes and fittings • Tables, chairs • Toys • Boxes • Playgrounds

46 OTHER PRODUCTS (up to US$ 400 million)

Pharmaceuticals Furniture Transport Electrical Engineering

47 Ministry for Investments and Foreign Trade will help you along the way

Ideate Select Design Execute Operate

• Offering deep • Providing • Helping • Support and • Helping with on- knowledge of the access to navigate debottlenecking going issues and country most suitable local during reporting economy and a sites and FEZ construction construction repository of and industry and execution business regulations process opportunities across sectors 48 Expand your horizons!

Thank you for attention!

+998 (71) 238-52-58 34 A, Taras Shevchenko street +998 (71) 238-99-91 Tashkent, Uzbekistan 100060 [email protected] Invest.gov.uz

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