Uzbekistan Firmly Establishes Itself as a Stable and Predictable Partner for Long-Term International Business

The initiatives announced by President of Uzbekistan Shavkat Mirziyoyev during the Open Dialogue with entrepreneurs in Khiva, Khorezm Region continue to generate a strong response and heightened interest among representatives of the international business community, foreign investors, and transnational corporations.

The scale and depth of the announced reforms are being viewed by the global market as a clear sign of the country’s readiness to guarantee maximum capital security, ensure legal predictability, and create the most favorable conditions for doing business in the region.

The Open Dialogue sent a clear signal to the international business community. The meeting in the Khorezm Region not only summarized the large-scale transformation of the business environment in recent years, but also reaffirmed the country’s strategic course toward deep integration into global value chains, the promotion of exports, and the uncompromising protection of investors’ rights.

In recent years, the country has demonstrated impressive economic growth. The number of registered business entities has nearly doubled and exceeded 530,000, while 2.4 million permanent jobs have been created in the private sector, and export volumes have reached a historic high. However, the main message of the Khiva Dialogue is addressed to international partners and is focused on the future: Uzbekistan is building a highly predictable, secure, and favorable ecosystem for investment capital.

For foreign investors and joint ventures, opportunities for institutional support and access to financing are being significantly expanded.

The State Fund for Entrepreneurship Support has been reoriented toward supporting projects in the services sector and medium-sized businesses, while an additional 100 million dollars has been allocated to guarantee credit lines.

As part of the state program supporting high-growth companies, a system of grants and preferential financing of up to 10 billion sums has been introduced. This creates a strong platform for launching and developing high-tech and innovative startups with foreign capital participation.

In addition, in order to encourage joint ventures to enter global markets, the state will cover up to 50 percent of companies’ expenses for placing their products on major international electronic trading platforms.

A central part of the Dialogue was strengthening the inviolability of private property and ensuring absolute stability of tax legislation.

In order to reduce administrative pressure, a “single window” principle for assessing tax risks is being introduced. In Uzbekistan, duplicative inspections by regulatory authorities are being abolished, while the procedure for analyzing tax gaps is being adapted to international standards with the direct participation of the business community.

At the same time, penalties for administrative and criminal offences have been toughened for any unlawful interference by government bodies in the activities of business entities.

Uzbekistan is consistently implementing sustainable development standards and green growth principles, opening up broad prospects for institutional and green investors.

For enterprises investing in energy-efficient technologies and solar power generation, a package of tax deductions, accelerated depreciation mechanisms, and special tariff preferences has been introduced.

As part of the adaptation to international environmental standards and the requirements of the European carbon regulation mechanism, the country is launching a national certification system for “green” products, which will ensure the unhindered access of domestically produced goods to highly competitive global markets. 

The holding of the Dialogue in Khiva underscores the state’s strategic priority of decentralizing the economy and ensuring the comprehensive development of the regions.

In the Khorezm Region, a special legal regime is being established for pharmaceutical, textile, and IT clusters, with direct integration into international transport and logistics corridors connecting Central Asia with the markets of the Middle East, South Asia, and Europe.

In special economic zones, the principle of full infrastructure readiness is being introduced. All engineering and utility networks are to be provided on a turnkey basis by the state before the arrival of the management company or investor.

The outcomes of the Open Dialogue in Khiva confirm Uzbekistan’s transition from a series of individual reforms to the establishment of strong institutional guarantees.

For international investors and transnational companies, this means a systematic reduction in country risks, direct state support at all stages of project implementation, and reliable access to the dynamic Central Asian market with its young and highly qualified human capital.

Today, Uzbekistan is firmly establishing itself as a stable and predictable jurisdictional hub for long-term international business.

 Sadriddin Suyarov

Dunyo IA