OREANDA-NEWS. October 28, 2009. Tashkent hosted an international conference, Navoi Investment Forum, dedicated to attracting foreign investment in the industrial free economic zone “Navoi”.

The event, organized by the Ministries of Foreign Economic Relations, Investments and Trade and Finance of the Republic of Uzbekistan jointly with the Asian Development Bank and Islamic Development Bank, was attended by representatives of major international financial institutions, international organizations and foreign companies operating in our country’s diplomatic corps.

It was noted in the Forum that under the leadership of President Islam Karimov, wide-ranging reforms implemented in the country have produced notable results. A free industrial and economic zone (FIEZ) “Navoi,” formed on the initiative of President, contributes to the further development of the economy.

Presidential Decree “On establishment of industrial free-trade zone in the Navoi region” on December 2, 2008 is an important factor in further enhancing the productive capacity of Navoi region, and Navoi city, development of transportation and transit and social infrastructure, the introduction of high technologies, attract foreign investment. Creating an international airport in the city of Navoi free industrial economic zone “Navoi” will play an important role in increasing the production of competitive products for world markets, creating jobs, improving living standards. Currently, large-scale work carried out to implement this Decree.

Intercontinental intermodal logistics center, created in this zone will be the only one in the territory of the CIS. The goods shipped fr om Asia to Europe and back, will pass through this center, which will become an important link in global transportation.

The main activity of economic entities in the industrial free-trade zone “Navoi” will become a large-scale production of high-tech products that are competitive on the world market through the introduction of modern equipment and machinery, production lines and models, innovative technologies. It is planned to manufacture a wide range of electrical and electronic products, components for the automotive industry, food, pharmaceuticals and medical equipment.

Business entities registered in the industrial free-trade zone “of Navoi,” are exempt from land tax, property tax, profit improvement and development of social infrastructure, single tax payment (for small businesses), the mandatory payments to the National Road Fund and National school Fund from 7 to 15 years.

Business entities registered in FIEZ are exempted from payment of customs duties (except for customs registration duties) on imported equipment and raw materials. When the raw materials and components imported for the production of products sold on the domestic market of Uzbekistan, customs duties are levied at 50 per cent of the rates (excluding fees for customs clearance) with a deferment of their payment for up to 180 days if the legislation does not installed more preferential treatment.

Economic entities registered in the industrial free-trade zone “Navoi”, allowed to practice within FIEZ settlements and payments in foreign currency in accordance with the agreement concluded between them and the contracts.

Currently FIEZ “Navoi” signed 19 agreements for 187 million dollars to establish industrial enterprises. After the operation of the enterprises at full capacity they will produce good for 375.5 million dollars per year, almost half of which will be exported. In 2010, 50 projects planned development in free industrial and economic zone “Navoi”.

Speaking at the conference, Minister of Foreign Economic Relations, Investments and Trade of the Republic of Uzbekistan E. Ganiev, First Deputy Economy Minister G. Saidova, Director of Information Management and Promotion of Foreign Investment “Uzinfoinvest B. Irmatov, general manager and executive director of the Islamic Corporation for Private Business Khaled Al Aboodi, (Islamic Development Bank), Chief Financial Officer and Director of Finance and Risk Management Agency for the Multilateral Investment Guarantee Kevin Lu (World Bank), Managing Director of "Erae Cs Lim ited” Kim Hong Dock ( Republic of Korea) and others have noted that Uzbekistan created a favorable investment environment, opportunities and preferences for foreign partners. They are an important factor in sustainable development of the economy.
 
At the forum the foreign participants were presented with details of the priorities for attracting investment in the economy, particularly in the industrial free economic zone “of Navoi, Uzbekistan on the potential oil and gas, mining industry, automotive, construction materials, agriculture and pharmaceuticals. It was noted that political and economic stability is a powerful incentive consistent growth of GDP.

”The Asian Development Bank appreciates the cooperation with Uzbekistan,” – said vice-president of the Asian Development Bank Xiaoyu Zhao.

“Once again, I was convinced that in a free industrial and economic zone “Navoi” there are all conditions for business activity. Uzbekistan achieved high economic performance. Asian Development Bank is widely supported reforms implemented in Uzbekistan in all spheres.”

The guests familiarized with the favorable investment climate and opportunities created by free industrial trade zone “Navoi”, the prospects of joint work, the privatization process, reforms to further develop the country’s economy, small businesses and private entrepreneurship.

At the conclusion of negotiations between the Uzbek enterprises and foreign companies have signed documents on cooperation in oil, fuel and energy sector, the field of pharmaceuticals, light industry, textile, food, chemical and electrical engineering, mechanical engineering and other fields.

First Deputy Prime Minister of the Republic of Uzbekistan Rustam Azimov made a speech at the conference.