Successful tools for attracting investment
Foreign trade and investment (FTI) are a major catalyst to development. Developing countries, emerging economies and countries in transition have come increasingly to see FTI as a source of economic development and modernisation, income growth and employment. Uzbekistan has maintained macroeconomic stability, achieved high economic growth rates not least fuelled by growth in exports and foreign investments. Nevertheless, investments are concentrated in a few sectors and regions. To address this challenge the Ministry for Foreign Economic Relations and Trade with support of UNDP created tools that promote FTI.
The regional investment guides for Syrdarya and Jizzakh are one of them. Raw supplies for various types of production, qualified workforce, modern infrastructure, logistically favourable geographical location and access to markets of neighboring countries make these regions good for investments. These guides continue the serious of similar publications - Investment Guide to the Food Processing Sector of Uzbekistan and Investment Guide to the Fergana Valley.
The guides intended for potential investors provide introduction to Syrdarya and Jizzakh, main sectors, outlook and investment opportunities. When going through the guide, investors will know that agribusiness, food processing, textile, silk, construction materials, meats and dairy chemical and pharmaceutical industries are exempt from several types of taxes, including profit, property tax for legal entities, tax for improvement and development of social infrastructure, single tax payment, and mandatory payments to the Road Fund.
When it comes to investment opportunities the more potential investors know about Uzbekistan the more investments the country attracts. The www.exporter.uz is an online platform with more than 350 companies that have registered more than 900 types of export products. The site is a catalog - classifier of industries with information on goods, HS code, manufacturing, pricing and news on the country’s economy. With time the site has the potential to develop subcontracting relations between national and international producers and companies.
Competition among countries that are trying to attract foreign capital is high due to the limited amount of foreign capital available and the increasing competition among countries wishing to get benefits from FTI. The investment guides and the online platform are one of the ways how UNDP is helping the country to create an investment climate and determine its attractiveness for foreign investors.