Tashkent International Investment Forum will open up new business opportunities

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President of the Republic of Uzbekistan Shavkat Mirziyoyev took part in the plenary session of the second Tashkent International Investment Forum on April 27.

The forum, which has already become a good tradition, was held for the first time last year and was highly appreciated by the business community. The current event is attended by Chairman of the Cabinet of Ministers – Head of the Presidential Administration of the Kyrgyz Republic Akylbek Zhaparov, President of the Islamic Development Bank Muhammad Suleiman Al-Jassir, Deputy UN General Secretary Olga Algaerova, Minister of Energy and Infrastructure of the United Arab Emirates Suheil al-Mazrui, Minister of Economic Development of Hungary Marton Nagy, Chairman of the Board of ACWA Power Muhammad Abdullah Abunayyan. In general, about 2.5 thousand representatives of business and the banking and financial sector from 70 countries participate in the event.

At the beginning of his speech, the head of our state welcomed all the participants and noted that today's meeting will serve to strengthen bilateral and multilateral cooperation and open new business opportunities. The work carried out in our country to further liberalize the economy, create broad conditions for business, strengthen the rule of law and legal guarantees is listed.

In particular, a favorable fiscal system has been created. The value added tax rate was reduced to 12 percent. The income of foreign investors in the form of dividends on shares is exempt from income tax for a period of three years. There is a strict ban on introducing new or tougher liability measures into the tax and customs legislation.

Foreign trade is also being liberalized. In particular, customs duties on raw materials and goods of more than 7 thousand items have been abolished for investors. A simplified procedure for processing in the customs territory has been introduced. The work on joining the World Trade Organization is accelerating in order to develop new markets.

The system of executive power is being reformed, bureaucracy is being reduced. 500 functions of the state to regulate business have been canceled. Another 70 functions were transferred to the private sector on the basis of public-private partnership and outsourcing.

To date, 132 licensing and permitting documents have already been canceled, 33 have been transferred to the notification form.

The most important thing is that an integrated system of working with investors has been introduced. The Ministry of Investment, Industry and Trade has established a system of assistance to investors at all stages – from the initiation of the project to its launch on the principle of "one window".

In order to promptly resolve issues of investment activity, establish a direct dialogue between investors and the head of state, the Foreign Investors Council under the President has started its work. 

The protection of the rights of business people has been strengthened. Conditions for the purchase of real estate, entry-exit and residence in Uzbekistan have been radically simplified for foreign investors.

Administrative courts are endowed with great powers in the field of judicial protection of investors' rights. From now on, entrepreneurs and investors will not need to prove the legality of their claims in court, on the contrary, now government agencies will be required to prove the legality of their decisions. Any ambiguities that arise will be interpreted in favor of investors. This year, for the first time in the history of Uzbekistan, the activities of the International Commercial Court will be established.

The created opportunities and guarantees give their result. In just one year, over 40,000 new industrial enterprises were created in the country, the volume of attracted foreign investments reached $ 10 billion, an increase of 3 times compared to 2017.

The President noted that this work will continue at an accelerated pace. Its legal foundations are further strengthened in the updated Constitution, which has been submitted to a national referendum in the coming days. In particular, the state undertakes obligations to ensure a favorable investment and business climate, the inviolability of property, the development of market relations, the creation of conditions for fair competition, and the independence of the judicial system.

The Head of our state in his speech focused on new opportunities for expanding cooperation between Uzbekistan and foreign investors.

The first is the "green economy". In our country, with the participation of prestigious international companies, projects for the construction of solar and wind power plants are being implemented. This year alone, more than 2 thousand megawatts of capacity will be commissioned, and next year – 8 thousand megawatts.

The "green economy" also opens up new areas of industry. This means that investors will have the opportunity to invest $8 billion.

The second direction is public–private partnership.  In the process of reforms, private investments began to be actively attracted to previously "closed" areas. For example, wide opportunities have opened up for the private sector in the aviation sector, which was previously considered 100 percent state-owned. Along with this, in such rapidly developing areas as IT, tourism, education, medicine, Uzbekistan is becoming a regional hub, which also opens a wide road for investment.

This year, with the assistance of international financial institutions, separate programs in the field of public-private partnership have been developed for a total of $ 14 billion. They cover such important areas for the state as transport, utilities and water management, and healthcare.

The third direction is the privatization of state property. This year, the program "1 thousand + 1 thousand + 40" was adopted. This means that state shares in 1 thousand enterprises and another 1 thousand state-owned objects will be put up for auction, 40 enterprises will be put up for IPO.

The fourth is industrial development. Currently, the textile, leather and footwear industries, the production of building materials, electrical engineering, mechanical engineering have a sufficient raw material base and qualified personnel. In these areas, there are all prerequisites for an increase in production and exports by 2 times. To do this, it is necessary to establish cooperation with major brands, master foreign markets, innovations and modern technologies.

The fifth possibility is cooperation with neighboring countries. New joint investment funds are being created, major regional projects in industry, energy, transport and water management are being implemented. We should continue to establish cooperative ties in industry and the agricultural sphere based on the principle of complementarity of our economies.

The President of our country expressed Uzbekistan's readiness to create the necessary legal guarantees for investors, separate technoparks and industrial zones, and provide additional benefits.

– I am convinced that the upcoming negotiations and meetings will allow you to see limitless business opportunities in the New Uzbekistan. In our country you will find everything you need for business – peace, stability, a favorable investment climate and reliable guarantees. I am sure that the New Uzbekistan will become the best country for your business activities and will leave a bright mark in it," Shavkat Mirziyoyev said. 

During the session, high-level speakers spoke, they shared their vision of the prospects for investing in Uzbekistan.

The forum's panel discussions will cover topics such as the risks of a global economic recession, modern monetary policy, trade finance, infrastructure development, digitalization of the economy, investment in transport and alternative energy. Special attention will be paid to the study of the experience of creating international financial centers, the transformation of state-owned enterprises, the development of agriculture, healthcare, education, tourism and e-commerce.

Within the framework of the forum, the investment potential of Uzbekistan's regions and over 160 major projects will be presented to foreign partners. Investment and trade agreements will be signed.

The Tashkent International Investment Forum will end its work on April 28.