Uzbekistan is on the way to radically improve the investment environment

Investments are an important capital that launches and ensures the development of the economy of any country, since it directly depends on the flow of investments. Capital does not come by itself. To do this, it is necessary to improve the environment, strengthen the legal framework, and carry out consistent reforms aimed at protecting the interests of investors. Uzbekistan, which has opened up to the world, has already taken a step in this direction. 

A platform for fruitful cooperation
The regular holding of the Tashkent International Investment Forum, the prestige and scale of which are constantly growing, is proof of this. As President Shavkat Mirziyoyev stressed during the presentation of preparations for the third Tashkent International Investment Forum, if more than a thousand foreign guests from 56 countries attended the first one in 2022, then this year more than 2,500 people from more than 90 countries are participating. Among them are government representatives, heads of large companies, high—ranking guests from international organizations - the UN, EBRD, OPEC, SCO.
The Forum is a convenient platform for demonstrating the economic opportunities of our country and coordinating mutually beneficial projects. It hosts more than 40 events, including breakout sessions, round tables, presentations, and meetings of intergovernmental commissions. Launch ceremonies for a number of projects in our country are also planned. The event serves as a presentation platform for promising projects needed by the Uzbek economy, provides foreign investors with opportunities, created conditions and attractive destinations.
Assessing the investment attractiveness of the state and taking into account its capabilities is an important task for an investor. In Uzbekistan, the priority task is to continuously improve the investment environment, as the country is interested in attracting foreign investment into the national economy. This requires any state to develop its own investment policy. It defines the unique directions of attracting foreign investments, the system of their stimulation and establishes the legal norms of investment activity.
World experience shows that those countries that pursue an active investment policy achieve sustainable economic growth. Because investments are its driver. By actively attracting capital and launching new production facilities, we can achieve rapid development of our economy. Positive results, in turn, create opportunities for a systematic solution to the accumulated problems in the social sphere.
On the other hand, the attraction of foreign investments has a positive effect on the growth of labor productivity in the recipient country. They promote the introduction of new goods, services, and technologies that were not previously available in the country and that are intended for sale on the domestic or foreign market. This has a positive impact on capital funds, as national producers often do not have the necessary knowledge, technical equipment and technologies to produce such goods or provide such services. Another important importance of international capital is that it contributes to strengthening foreign economic and political ties, increases production and foreign trade, accelerates economic development, increases the competitiveness of manufactured products on the world market, expands the technical capabilities of importing countries and increases employment in the country. Foreign investments also expand the opportunities for the introduction of new technologies and know-how.
The world is undergoing a process of globalization. Joining it means cooperation with leading countries, coordinating the economic, political and social policies of the state on a mutually beneficial basis with the policies of these countries. From this point of view, Uzbekistan plays an important role in the world community due to the level of socio-economic development, geographical location, composition and reserves of natural resources, the investment policy pursued by the government, and other factors. This indicates the need to create a favorable environment for attracting foreign capital.
The basis of success is a favorable business climate
In order to increase the attractiveness of the investment climate, on August 1, 2018, the President signed a decree "On measures to radically improve the investment climate in the Republic of Uzbekistan". According to the document, foreign citizens and stateless persons investing in Uzbekistan have been granted the right to a multiple-entry visa for three years with the possibility of unlimited extension of validity without the need to leave the country. The minimum required number of foreign investments in the authorized capital of companies with foreign investments has also been reduced from 30 to 15 percent. In addition, the requirement for the participation of a foreign legal entity as a participant in a company with foreign investments was abolished.
The Law "On Investments and Investment Activities" reflects measures to reduce the tax burden for investors and simplify the tax system, as well as reforms of tax policy and tariff management aimed at supporting a healthy competitive environment, which are being implemented in Uzbekistan at a high speed.
There is an acute international struggle in the world to attract foreign capital. In developed countries, a variety of innovative tools are being created every year to increase the attractiveness of the investment environment, due to the volume of foreign investments, their quality and the use of favorable conditions.
Favorable conditions are also being actively created in Uzbekistan: Financial preferences and rights are provided to foreign investors, and the market infrastructure is being formed. In this context, it is worth mentioning that we first adopted an Action Strategy for the Development of the country, then a Development Strategy, within which the path of large—scale democratic reforms was chosen. The programs of these transformations cover all spheres of the state and society and include ensuring the rule of law, developing competition, and fighting corruption. In particular, in 2017, the free conversion of the national currency, the soum, was introduced, and all restrictions on the repatriation of profits by foreign investors were lifted. For the first time, our banks and large companies received international ratings and entered the global financial markets, where international bonds in national currency were issued. 
The policy of openness in action
The flow of investments also depends on the openness of the country. To ensure the policy of openness, the possibility of visa-free entry to Uzbekistan for citizens of more than 90 foreign countries has been created. Citizens of dozens of other countries have been given the opportunity to obtain a visa under a simplified procedure. According to these indicators, Uzbekistan occupies the position of the most open country in the region.
Investors do not go to a state where corruption is entrenched. The fight against this phenomenon has become one of the priorities of our country's state policy. A special agency has been created to strengthen the fight against corruption.
Investors are also afraid to invest in a country where human rights are violated, and they are afraid that their funds will be plundered. Therefore, ensuring and protecting human rights and freedoms is also a priority. The National Human Rights Strategy was adopted four years ago. For the first time in its history, Uzbekistan was elected a member of the United Nations Human Rights Council.
The transformation of Uzbekistan into a democratic state where law and justice prevail, the formation of an independent and strong judicial and legal system were identified as one of the main goals. Measures are being implemented to develop civil society, ensure freedom of speech, create a democratic media space, turn the media into a "fourth power", increase the responsibility of state bodies to society, which has already led to noticeable results.
A new version of the Constitution has been developed to guarantee fundamental human rights and freedoms. Forced labor, including child labor, was finally banned, which for many years served as the reason for Uzbekistan's inclusion in the black lists. In recognition of this, the international coalition of non-governmental non-profit organizations Cotton Campaign and well-known global brands have canceled the boycott of Uzbek cotton and textile products and have once again begun to establish cooperation with our country.
All conditions for doing business
Tax incentives are also an attractive factor for investors. In Uzbekistan, the value added tax rate has been reduced to 12 percent. Dividends from shares of foreign investors are exempt from income tax for three years. Tax and customs laws do not introduce new or stricter liability measures.
Foreign trade is being liberalized. In particular, customs duties on more than 7 thousand types of raw materials and goods needed by investors have been abolished. A simplified processing procedure has been introduced in the customs zone. The process of Uzbekistan's accession to the World Trade Organization is accelerating in order to enter new markets, and laws are being passed in this direction.
The system of executive power has also been reformed, and the bureaucracy has been reduced. 500 government functions regulating business have been abolished, 70 of them have been transferred to the private sector on the basis of public-private partnerships and outsourcing. As of today, 132 licenses and permits have been canceled, and a notification procedure has been introduced for 33 species.
As part of the ongoing reforms, a unified system of working with investors has been introduced. The Ministry of Investment, Industry and Trade has a "one—stop shop" system that helps investors at all stages - from project initiation to its launch. The Council of Foreign Investors under the President has been established to promptly solve the problems of investors, their suggestions and recommendations and to organize a direct dialogue with the head of state. Its next meeting is scheduled for May 3.