Growth points Khorezm region as of October 1, 2020.

January -September, 2020 year ELECTRICITY: 0,05 doll. USA for 1 kvt Population - 1884,1 thous people. DRINKING WATER: 0,37 doll. USA for 1 cube.

Square - 6,05 thous sq.km NATURAL GAS: 0,10 doll. USA for 1 cube. Per capital gross income — 8,6 мill. sum

Average monthly nominal wage — 2 159 mill. CLIMATE CONDITIONS sum

BORDERS: Climate: STRONG CONTINENTAL from the south side – with Minimum temperature: — from -1 to -8 °С from the eastern side – with the Bukhara Average temperature: — from 15 to 25 °С Maximum temperature: — from 35 to 45 °С from the west - with Turkmenistan the north side – with Karakalpakstan

GPR KHOREZM REGION Transport (01.10.2020) infrastructure

Khorezm region in current prices amounted to 14.9 trillion. sums and increased by 2.8% (in real terms) ROADS AND HIGHWAYS GRP per capital amounted to 7.9 million sums — 2265 km. Across the territory of the region is crossed by highways and increased by 1.2% connecting ,

Kazakhstan, Russia, Turkmenistan and Iran. The share of the Khorezm region in the country's economy 3.6% (11th place) RAILWAYS — 128.7 km GPR, Тrillion. sum 3 train stations (Regular flights to Russia and Kazakhstan)

Services; 4,7; Аgriculture; 32% 6,9; 48%

AIRPORT — is located in , there are regular flights to Tashkent and international flights to Moscow, St. Petersburg, Istanbul, Milan, Constrution; Paris, as well as charter flights to 1; 7% EU countries.

Industry; 1,9; 13%

Benefits and Preferences

FREE ECONOMIC ZONE — FEZ HАZORASP

Tax and customs privileges are extended to the participants of the FEZ "HAZORRASP" provided for by the presidential decree of October 26, 2016 No. UP-4853 "On additional measures to activation and expansion of the activity of free economic zones " .

Exemption from payment:

Land tax corporate property tax additional contributions to Republican Road Income tax Fund and the off-budget Fund reconstruction custom payments {except for customs duties) for improvement and development tax imported equipment, raw materials, social infrastructure components, construction and other materials, not produced in the country, for their own single tax payment for small businesses needs according to the approved lists.

«Hаzorаsp» The term of functioning of the FEZ "" is 30 years from the date of its creation, in the future it may be extended. Financing of projects implemented on the territory of FEZ "Khaforrasp" is carried out for the account of funds of international financial institutions, project initiators, incl. direct investment, as well as loans from commercial banks and other sources not prohibited by the legislation.

Validity

Exemption from taxes and payments is granted for a period determined depending on the volume of investments made Investment size Release period from 300 thousand US dollars to 3 million US dollars For 3 years

For 5 years from 3 million US dollars to 5 million US dollars For 7 years from 5 million US dollars to 10 million US dollars for 10 years, with the application over the next 5 years of from USD 10 million and more the profit tax rate and STP in the amount of 50% lower than the current rates, the amount of the project initiator's own funds raised for its implementation cannot be less than 25% of the total cost of the corresponding project.

The number of registered enterprises and organizations by

type of economic activity

Enterprises Trade

There are 162 enterprises with foreign Сonstruction capital. Of these: 104 joint ventures and 58 foreign enterprises Industry For foreign partners (countries): Russia, CIS Agriculture countries, China, Mexico, 2222 Brazil, Turkey, Germany, Transportation and storage Iran, South Korea and others. 700 Number of newly established Accommodation and meals enterprises — 3 771 .

Number of existing enterprises — 20 907 .

The volume of production and the share of agricultural products of the Khorezm region for January-October 2020

Grain - 329.7 thous Milk –884,4 thous.tons; tons; 12th place in the 1th place in the Republic

Republic Egg – 408 mill. pieces; th Potatoes - 101.4 thousand 5 place in the Republic tons; 9th place in the Meat – 126,9 thous. tons; Republic 7th place in the Republic Vegetables – 392,5 thous. Cattle breeding – 896,7 thous. tons; 9th place in the heads; 8the place in the Republic Republic Sheep and goats – 4311 thous. heads; Fruit and berries – 122,7 thous. tons; 12th place in the Republic 8th place in the Republic Poultry – 5,8 mill.heads; Melon – 105,5 thous. tons; 6th- place in the Republic 7,5 % 8th place in the Republic Grapes– 31,8 thous. tons; 11th place in the Republic

Despite the low the share in the Fish – 7,9 thous.tons; region one of the highest growth rates 1th place in the Republic was noted - 4.4%.

The share of Khorezm in the total volume is 6.5%

Potential of the Khorezm region Developed industries in the region January-September 2020year

Fish 14% Milk [Value] 12%

11% 10%

8% 7,5% 7,5% 7,0% 7,0% 6,9% Meat 6% 4% Melon culture Milk Cattle breeding poultry farming

2%

the of republic structure in share the

% % 0%

408 897 5 750 127 7,9 885 105,5 Thous.tons Thous.tons млн. pc thous.heads. thous.heads. thous.tons. thous.tons. .

Volume of production

Export potential

In the Khorezm region, as of October 1, 2020, the number of exporting companies amounted to 192 units; As of October 1, 2020, the volume of exports amounted to USD 129.9 million (the growth rate was 14.3%), the volume of imports was USD 199 million (decreased by USD 69.1 million)

Exported to more than 78 countries worldwide;

Countries with the largest share in the region's foreign trade turnover- Russian Federation (32.6%), China (15.6%), Kazakhstan (6.5%), Korea (6.5%), and Turkey (11.9%) In the structure of exports, 95.5% take goods, which mainly fall on industrial goods (36.1%), chemicals and similar products (0.4%), food products and live animals (30.7%). 6.1% accounted for various finished products, 10.4% - non-food raw materials and 4.5% services;

Investments in Khorezm region for January- September 2020

TOTAL INVESTMENT INCLUDING FIXED CAPITAL – 4 FOREIGN INVESTMENT 962 billion. sum; – 1,2 Trillion. sum (42,2%)

Despite high growth rates For this indicator (12.6%) compared to the for region takes the last previous year, the region's place in the Republic share in the total Republican volume investment remains insignificant (3,5%)

Benefits

The development potential of the tourist cluster is the presence of historical monuments, which attracts a large number of tourists. Hotel business development potential.

Availability of an international airport.

Investments in agriculture (greenhouses and intensive orchards), growing fruits and vegetables and organizing a processing complex.

Conditions for creating industrial zones.

Production of light minibuses

The largest growth in consumer goods production - 122.7%,

Growth points of the districts of the Khorezm region by industry (from the total volume by region)

Industrial Services production Consumer goods

Weak region Growth points Weak region Growth points Weak region Growth points billion.sum billion sum billion sum billion sum billion sum billion sum

• Tuproqalla - 3 185 • city – 107,3 • Urgench city – •Yangibazar 157,4 (47,8%) • Tuproqalla • Khiva city– 58,8 (1,6%) (1,3%) (3,3%) 2 676 , (62%) 2 256,5 (47,9%) • Urgench city- • Tuproqalla • Kushkupir - 115,8 1 239,6 (18,6%) • Yangibazar 48 (1,1%) • Urgench region – (1,7%) • Urgench city – 69,9 (1,4%) 332,3 (7%) 579 (13,4%) • Kushkupir 46 (1%) • Khiva – 230,5 (4,9%)

Agriculture Construction works Investments

Weak region Growth Growth Weak region Growth Weak region points billion.sum points billion.sum points billion.sum billion billion.sum billion.sum (sum) • Urgench- 1 137 • Xazorasp- 228 • Urgench • • Urgench • Xazarasp – 1349 (11,4%) 984 ,3%) 566 5,4%) 76,2 (3,4%) (23%) (4,5%) • Khiva 548 • Khiva 185 (%) • Shavat • Yangibazar • Khiva city • Tuproqlla (11%) • Tuproqalla 136 1 244 (10,5%) 933 (7,9%) 183 (8,2%) 53,2 (2,4%) • Bogot 419 (2,7%) • Khiva • Tuproqalla • Khiva region (8,4%) 1 242 (10,5%) • 261 (2,2%) 180 (8,1%)

Growth points of the districts of the Khorezm region in production agricultural products (from the total volume in the

region)

Fruits and berries Vegetables Potatoes 392,5

Growth Weak region, thous. Growth Growth points Growth Weak region, thous. points sum. points points sum.

thous sum • Shavat- 17 281 (14%) • Gurlan – 4 478 (3,6%) • Bogot – 55 617 (14,1%) • Hazarasp – 25 131 (6,4%) • Urgench– 16 136 (15,8%) • Hazarasp – 5 691 (5,5%) • Khiva – 14 (11,4%) • Tuproqalla –1 790 (1,5%) • Khiva – 54 078 (13,7%) • Tuproqalla • Shavat – 12 427 (12,2%) • Tuproqalla- 1 517 (1,5%) • Yangiariq – 13 081 (10,5%) • Xanqa – 49 379 (12,5%) – 2 665 (0,7%) • Yangiariq – 12 005 (11,8%)

Melon Cereals culture Grapes

Growth points Growth points – Weak region, Growth points Weak region, thous.

thous. sum. sum.

Xanqa – 45 938 (13,9%) • Khiva – 14 521 (13,7%) Bogot – 9 293 (29%) • Yangiariq • Weak region, thous. • Hazarosp –37 407 (11,3%) • Urgench – 13 641 (13,1%) • Bogot – 5 820 (5,5%) Urgench – 4 185 (12,8%) – 20 830 (6,3%) sum. • Gurlan – 36 261 (11%) • Shavat – 12 616 (11,9%) -Тuproqalla – 1 043 (0,9%) Yangibozor – 3 551 (11%) • Tuproqalla

-12 710 (3,8%) - – 962 (3%) -Tuproqalla– 869 (2,8%)

Growth points of the districts of the Khorezm region in animal husbandry (from the total volume by region)

Cattle breeding Poultry Fish

Growth points Weak region Growth points Weak region Growth points Weak region (mill.heads) (mill.heads) (mill.heads) (mill.heads) (mill.heads) (mill.heads) • Янгибазарский • Urgench – 99,4 (11%) • Хивинский – 65,6 (7,3%) • Ургенчский • Хазараспский 328,9 (5,7%) • Янгиарыкский - 2 977 • - 170 (2%) • Xanqa -99,3 (11%) • Тупракальинский • 1 001 (17,4%) • Тупракальинский 94,5 (37,6%) • Тупракальински • 18,1 (2%) • Ханкинский (1,6%) • Хивинский • й -139 (1,7%) • - 877,7 (15,2%) • 1 385(17,5%)

Яйцо Мясо Молоко

Growth points Weak region Growth points Weak region Growth points Weak region (mill.heads) (mill.heads) (mill.heads) (mill.heads) (mill.heads) (mill.heads) • Urgench – 115,2 (13%) • Xanqa – 72,4 (17,7%) • Hazorasp – 20,6 (5%) • Shavat –15,5 (12%) • Urgench city –6,8 (5,3%) • Yangibozor - 68,5 (7,7%) • Hazorasp – 104 (11,7%) • Urgench region.- 60,5 • Tuproqalla- 5,9 (1,4%) • Urgench – 14,2 (11%) • Tuproqalla– 2,9 (2,3%) • Tuproqalla-19 (2,1%) (14,8%)

RISK

24.4% (the highest indicator in the country) of the total income of the population is formed for the account of transfers from for the border, which indicates a high fordependence of the region on the exchange rate dynamics of currencies of other countries.

Climatic risks for agriculture, forestry and fisheries, which in the sectoral structure of GRP are 45% (in 2018 - 52%);

Ecological situation and quality of drinking water.

Instability of sources of aggregate income (remittances from the Russian Federation) of the population in the Khorezm region due to the volatility of the foreign exchange rate, in particular the ruble.

Deterioration or lack of heat supply, water supply and sanitation, which may have a negative impact on the development of tourism in the region.

What area to invest in in the Khorezm region? Priority sectors for investment based on the advantages and opportunities of the region:

• Building materials production;

• Pharmaceutical industry; • Production of dairy products, in particular cheese, there is potential for export, since the quality and taste are not inferior to imported products; ( leading place in milk production) • Small business in the sphere of services and production of consumer goods. The growth of consumer goods production in Khorezm was 25%; • Construction of a modern greenhouse;

• Confectionery production;

• Manufacture of textile products; • The demand for meat products is growing on the market. In this regard, we consider it expedient to organize an enterprise for the processing of meat and dairy products.; • Manufacture of electrical materials and mechanical engineering; • Manufacture of leather goods and footwear.

Priority sectors for the development of the region: Industry and construction

The volume of production of industrial products and construction services per capita is 2.5 times less than the national average, which indicates that there is a potential for the development of this industry. At the same time, the share of the mining industry is 0.007% or 0.6 billion sum.

• In particular, you can focus on the further development of the following areas of ndustrial production: 1. For parts and components for cars, trailers and semi-trailers; 2. Textile products; 3. Food products; 4. Building materials;

• In addition, there is potential in the construction sector, where an increase of 42% is expected to reach the average republican value of volume per capital:

1. Increase in the volume of construction of residential complexes in the regions, including apartment buildings for low-income strata of the population; 2. Acceleration of the construction of social facilities (schools, kindergartens, etc.), especially the construction of social facilities on the principle of PPP; 3. Construction of new parks and other cultural facilities for the leisure of the population;

Priority sectors for the development of the region: Service sphere

In the service sector there is a growth potential of up to 63% to achieve the level of services per capita in the republic. The share of the Khorezm region in the service sector is 3.4%, which also indicates a large unrealized potential of the region. In general, the service sector in this area is very unevenly distributed, as the main share falls on the city of Urgench (50.6%), while the most visited city in the region, in the city of Khiva, has one of the lowest indicators (3.2% ) along with the Yangibzor region.

Attention should be paid to the further development of the following areas:

1. Increase in the volume of services for logistics, transportation and storage (potential to increase volumes by 92% 2. Creation of new firms providing services in the field of architecture, engineering surveys, technical testing and analysis (the share in the service sector is 1.5%); 3. Creation of new diagnostic centers, medical laboratories and other medical institutions (the share of healthcare in the service sector is 1.7%); 4. Increasing the volume of services in the field of trade, accommodation and food (potential increasing volumes by 73%);

Priority sectors for the development of the region: AGRICULTURE The per capita output of agriculture, forestry and fisheries in the region exceeds the national average by 19% (4.68 vs. 3.93 million sums).

In the total volume of production in the region, animal husbandry prevails (54.2%). At the same time, the main share of agricultural production by categories of farms falls on dekhan (personal subsidiary) farms - 73.9%.

25% - these are farms

Only 1.1% are organizations engaged in agricultural activities. The main share of the activities of organizations falls on the livestock sector, namely poultry and fish.

It should be noted that the growth rates of organizations in the poultry industry in January-December 2019. amounted to 20.3%, which is much higher than farm (8.6%) and dehkan (8.2%) farms. This statistics indicates the potential for the development of this category of farms in the region.