President of Uzbekistan Outlines Priorities of Investment Policy and Key Areas of Cooperation with Foreign Partners.
President of the Republic of Uzbekistan Shavkat Mirziyoyev attended the plenary session of the third Tashkent International Investment Forum at the Congress Center in the capital on May 2.
The event was also attended by Vice President of the Republic of Turkey Fuat Oktay, Speaker of the Parliament of Singapore Tan Chuan-Jin, Prime Minister of Kyrgyzstan Akylbek Japarov, Minister of Energy of Saudi Arabia Abdulaziz bin Salman Al-Saud, President of the European Bank for Reconstruction and Development Odile Renaud-Basso, UN Under-Secretary-General Tatiana Valovaya, President of the OPEC International Development Fund Abdulhamid Al-Khalifa and others. In total, over 2,500 foreign guests from 93 countries of the world arrived.
Organized at the initiative of the President of the Republic of Uzbekistan, the international forum has become an effective platform over the past three years for expanding bilateral and multilateral investment cooperation, discussing the most pressing issues and developing advanced ideas and approaches to their solution.
At the beginning of his speech, the head of our state welcomed the participants of the session and noted that the growing authority and demand for this format testify to the enormous interest in the reforms being carried out in our country, which have become irreversible, as well as in establishing mutually beneficial cooperation.
It was noted that today’s event is taking place against the backdrop of intensifying systemic problems in global politics and the world economy, risks and threats to sustainable development.
Deep processes of transformation of the world order are taking place. The instability of the situation is clearly evidenced by disruptions in the supply chain of goods and services, a decline in international trade, a reduction in the flow of investments, and an intensification of climate change.
The President of our country emphasized that the last three years have seen a slowdown in the growth rates of the world economy. The trends of growth in foreign direct investment also do not meet expectations. Thus, in 2023, the total volume of investments in developing countries decreased by 9 percent.
“Of course, we understand well that today there is a serious struggle for investors in the world,” Shavkat Mirziyoyev said. “However, it is becoming increasingly obvious that one immutable truth: no country can solve such acute problems alone. The spirit of trust and respect, the principle of mutual support remain a solid foundation for long-term cooperation.”
The leader of Uzbekistan listed the decisive steps being taken to radically improve the investment and business environment in our country, and to gradually eliminate obstacles on this path. Large-scale reforms are being implemented so that each investor feels free and confident.
As a result, over the past few years, the country’s economy has doubled in size, and its growth amounted to 6 percent at the end of last year. The inflation rate has dropped to 9 percent. Trade turnover indicators are steadily growing, the exchange rate of the currency and gold and foreign exchange reserves remain stable.
Over the past few years, more than $60 billion of foreign investment has been mastered. Over $14 billion of funds from international financial institutions have been attracted to the social sphere and infrastructure development.
Last year alone, the volume of investments increased almost twofold.
With great satisfaction, it was noted that more than 300 investment and industrial projects have been launched with such large companies and brands as ACWA Power, Masdar, Total Eren, Voltalia, Çalık and Aksa in energy, Air Products, Indorama and CAMCE in the chemical industry, Orano and DANIELI in the mining and metallurgical industries, BYD, Kia and Samsung in automotive engineering and electrical engineering, Koç and KNAUF in the construction industry. This has resulted in the creation of hundreds of thousands of new jobs.
Within the framework of the current forum, a start will be given to new large projects with such industry leaders as Linde, Orascom, DataVolt, Bonafarm, PASHA holding and other partners.
The decisions taken and the work being carried out on further liberalization of the economy, creating a favorable investment climate, and comprehensively expanding business opportunities were emphasized.
In particular, we are talking about preferences for foreign investors on dividend tax, strengthening the legal framework and expanding the privatization program, introducing a rating of entrepreneurs’ sustainability, developing the infrastructure of industrial zones, introducing a transparent system of land allocation.
In addition, it is planned to extend the conditions for implementing projects on the basis of public-private partnership to the social sphere and infrastructure. Work on harmonizing national legislation within the framework of efforts to join the World Trade Organization is gaining momentum.
To ensure the fair resolution of disputes, the Tashkent International Arbitration Center functions. The National Anti-Corruption Strategy until 2030 is being developed.
Another important indicator for investors. Over the past 7 years, the coverage of higher education has increased from 9 to 42 percent, and the number of higher educational institutions has exceeded 200.
Uzbekistan has introduced a visa-free regime for travel to more than 90 countries.
“Our main goal is to turn Uzbekistan into a reliable and long-term partner for foreign investors,” the President of Uzbekistan declared.
The state guarantees the development of market relations, reliable protection of investors’ rights, further improvement of the favorable investment and business environment, creation of wider opportunities and conditions for fair competition, ensuring the inviolability of private property and the independence of the judiciary.
All these principles are firmly enshrined in the new Constitution, adopted at a nationwide referendum held last year.
The leader of Uzbekistan outlined a number of specific proposals aimed at strengthening the protection of investors’ rights.
In particular, a draft Law “On Investment” has been developed in accordance with the rules and standards of the WTO. The first international commercial court in the country will soon begin its work.
The introduction of a completely new system for the activities of industrial zones will serve to create even more favorable conditions for high-tech investment projects. In this context, it was proposed to abolish all restrictions on the duration of activity of special economic zones and to increase the lease term of land for foreign investors from the current 25 to 49 years.
In general, within the framework of the Strategy “Uzbekistan – 2030”, the goal is set by 2030 to double the income per capita and take its place among the countries with above-average income levels.
In his speech, the head of our state separately focused on the priority areas for expanding mutually beneficial cooperation with foreign investors.
The First: Green Energy
Expanding the energy sector is crucial for the entire region. Currently, 28 projects are being implemented in this direction.
The task is to create more than 20 gigawatts of renewable energy capacity by 2030 and to bring its share in the energy balance to 40 percent.
Large renewable energy facilities are being created with strategic partners, and work has begun in the field of “green hydrogen.” Only last year, together with the companies Masdar, Gezhouba, and China Energy, large wind and solar power plants with a capacity of 1.4 gigawatts were launched.
Also within the framework of the Forum, a presentation of projects for the joint construction of hydroelectric power plants in neighboring Kyrgyzstan and Tajikistan will be held.
Noting that these projects are being implemented on the basis of public-private partnership, the leader of our country invited leading companies from all countries to open dialogue and practical cooperation.
The Second: Banking and Financial Sector
As a result of reforms in Uzbekistan, the number of private banks has grown, leading banks of Europe have entered our market, and a number of digital banks have appeared.
Within the framework of the Forum, an agreement was signed with the European Bank for Reconstruction and Development on the privatization of one of Uzbekistan’s largest banks – Asaka Bank.
Similar processes of transformation and privatization of other large banks are actively underway with the International Finance Corporation and the Asian Development Bank.
Approaches to the development of the capital market are being revised, and international financing instruments are being developed.
The Third: Joint Development of Mineral Resources
Uzbekistan possesses enormous reserves of mineral resources and critical metals. There are colossal resources of gold, copper, tungsten, silver, uranium, and over 30 rare earth metals.
Having noted the established strategic interaction with the European Union in the field of critical raw materials, the President of our country announced the development of similar agreements with the United States and Great Britain, and also invited leading companies to partner in the field of deep processing of strategic raw materials and creating a value chain.
The adoption of the Law “On Subsoil Resources,” developed based on international experience, will also give a new impetus to development.
The Fourth: Digital Transformation of the Country
Over the year, exports of IT services and software products have doubled, with a target of reaching $5 billion.
The head of state noted the opportunities for foreign investors to participate in promising IT projects, including the development of digital solutions for the economy, the introduction of artificial intelligence technologies, and the creation of “green” data centers.
The Fifth: Development of Transport Infrastructure
Special attention was paid by the President of Uzbekistan to the development of transport infrastructure.
Fundamental reforms are being implemented in the railway sector, and ample opportunities are being created to attract private investors to the construction of highways and high-speed railways. Projects are being prepared for the development of existing and construction of new international airports.
It was noted that work has begun with foreign partners on the construction of the China-Kyrgyzstan-Uzbekistan and Uzbekistan-Afghanistan-Pakistan railways, which will radically change the geo-economic landscape of the region, turning Central Asia into a global transit hub connecting North and South, East and West.
Uzbekistan invites investors and international organizations to participate in these major regional projects.
“Investment is the locomotive of our country’s transformation and a powerful driver of economic development,” noted the President of Uzbekistan.
In conclusion, the head of our state expressed confidence that the investment forum and the fruitful negotiations taking place on its sidelines will raise practical cooperation to a completely new, even higher level.
The speakers who spoke during the session highly praised the all-round progress achieved by Uzbekistan and shared their views and proposals for further strengthening and expanding cooperation.
Within the framework of the plenary session, with the participation of the President, 15 new investment projects totaling $8.7 billion were launched, as well as the activities of 5 industrial facilities with a total project value of $2.8 billion.
Source: President.uz