Investment potential of

Samarkand

SAMARKAND – 2018

2

Area

Population

Density

Languages

spoken

Natural

resources

The main facts about Samarkand

16.8 thns. km2 .

3,7 million

210 people

per km2

Uzbek, Tajik,

Russian, English

Over 1800

mineral reserves

Samarkand

Gold Uranium

Copper Zinc Gas/oil

2

3

1

2

3

Why is Samarkand an attractive investment destination? – Growing economy with supportive

business climate

Growing diversified economy

We are one of the fastest growing

countries in the world with

diversified economy structure

We have abundant natural and

labor resources – 3rd largest in

the CIS

Our political, economic, and

investment environment is stable

and predictable

Supportive business climate

Our President named FDI attraction

as a key priority for the country

We are focused on economy liberalization

and created a set of attractive incentives

Our efforts bring results –

Uzbekistan improved by 90+ points

on World Bank Doing Business ranking

4

5

6

4

Action strategy for 2017-2021

sets up investment climate

and FDI attraction as key priorities

• Tax system

• Banking system and financial markets

President’s Strategic Priorities

State and public institution improvement

Supremacy of the rule of law

Economic development and liberalization

Development of the social sphere

Security, interethnic harmony, and religious

tolerance, and constructive foreign policy

Key areas of the economic policy

• Stable foreign exchange rate

• Modernization of the economy

• FDI promotion and investment climate

• Private property protection mechanisms

• Technology development

5

70,5

55

98,8 93

76,5

84,2

29,5

45

1,2

7

23,5

15,8

0

10

20

30

40

50

60

70

80

90

100

GPS Industry Agriculture Retail Service supply Employment

Small businesses Corporates

The part of small business in economy.

6

Samarkand’s macroeconomic data for 2017

Total services

Retail trade turnover

Construction

Agricultural products

Regional industry

Consumption products

Industrial products

GDP

8,2

9,01

2,35

9,08

4,34

5,56

9,1

18,3

104,9%

101,2%

95,6%

101,4%

106,5%

97,7%

104,5%

102,5%

Increase incomparison withprevious year, %

in trln sums

7

Natural Resources

Limestone 3,7 mln.ton

Raw Cement materials 2,94 bln. ton Marble 19,7 mln. m/cubes

8

Livestock products production

Eggs – 1,2 bln. Karakul – 93,6 thns. Wool – 4636 ton

Fish – 3856 ton Milk – 1,2 mln. ton

9

Agricultural products in tons

Cotton – 218,900

grains – 828,400

Cocoons – 2,000

Veg & fruits – 2, 2 mln

10

Veg & fruits production (in thns. ton)

Fruits - 413

Vegetables –

1,7 mln. Potatoes - 632

-479 thns in industrial processing;

-183 thns exported.

Melons & Gourds

128,4 Grapes – 615,5

11

Liberalization of currency regulations

No more constraint for private business development and FDI flows starting September 2017

We believe in the market economy!

What it used to be…

Exporters were required to sell ¼ of hard-

currency revenue to the government

Controlled exchange rate of the Uzbekistani

Sum to the U.S. dollar

Restricted amount of foreign currency that

individuals and companies could buy

What it is now…

You earn revenue – it is yours. This is a fair play

Exchange rate is determined by the free market

Buy as much as you need. No constraints

12

Neighbor countries with

free trade agreements Population, in million

SOURCE: World Bank for 2016

45

18

32

10

Uzbekistan

277 Total market access

Belarus

Outreach of free trade agr.

Kazakhstan

Other countries1

Ukraine

Russia 144

245

28

One of the most populated countries in the region

with free trade access to vast neighboring potential

Comparable to Brazil 1 Other countries include Tajikistan (pending final signing of free trade agreement), Kyrgyzstan, Turkmenistan, Moldova, and Armenia

13

Political

stability

Economic

stability

Investor

protection

Legislative acts

and decrees on:

Year of

independence 26

Substantial crises 0

Years of

political unrests 0

Year of triple

budget surplus 10

State

internal debt 0

Stable political, economic, and investor environment

• “…foreign investors”

• “…guarantees and measures to protect rights of foreign

investors”

• “measures to improve the system of protection of

legitimate interests of businesses”

14

We welcome foreign capital with significant

tax incentives…

…and invite them to join Urgut FEZ which is

divided into 3 locations within Samarkand to

get full exemption from

• 0% income tax (for SMEs)

• 30%-50% income tax reduction1

• 0% VAT

• Income tax and custom duties

• Social infrastructure and uniform SME taxes

• Compulsory contributions to the Road Fund

Attractive tax incentives and free economic zones

38%

05 2016 95

45%

19%

30%

2000 10 15

20%

41%

1991

23%

Total implemented:

58 projects

Total amount:

US$ 188,7 million

Producing capability:

2,9 billion sum

1 for 15%-30% export sales

Steady decrease of tax

burden (in % to GDP)

2 years tax exemption

Tax benefits

Property Tax

Unified tax

payment

Subject to 30% of total produced goods are being

made for export.

Can be extended for

2 more years.

TAX BENEFITS FOR SMALL BUSINESS ENTITIES

Small Business Entities

ha

Buildings thns. m2

67

91

17

16

FOREIGN INVESTMENT POTENTIAL Enterprises with foreign investment – 291, 63 of them foreign

enterprises.

Foreign partners (countries): Russia, China, Iran, USA, Turkey,

Germany, Great Britain, Southern Korea, UAE and others.

17

“SAMARKAND EURO ASIA TEXTILE” LTD

Project:

«SamAntepGilam» LTD

Cost: 8,0 bln. Sum

Producing Country

of equipments :

EU Countries, Turkey, USA, Japan, China.

Producing capability

per annum:

1,2 mln. Men's shirts

Exporting Countries: Russia

Number of

Employees:

150

Date of conduct : March, 2016

18

“SAMARKAND AUTOMOBILE FACTORY” LTD

Project:

«Uzautosanoat» AT, Bank «Asaka»

(JSC)

«ITOCHU Corporation» company,

«ISUZU MOTORS» company (Japan)

Cost: 100 bln. Sum

Producing

Country of

equipments:

EU Countries, Turkey,

USA, Japan, South Korea.

Producing

capability per

annum:

4000

Number of

employees:

980

Exporting

Countries:

Kazakhstan,

Kyrgyzstan,Turkmenistan, Russia,

Turkey, Iraq, Azerbaijan, Tajikistan.

19

“JV MAN Auto-Uzbekistan”

Project: «Uzautosanoat» SJC-«MAN Truck

& Bus AG»

Cost: 70mln. euro

Producing country of

equipments :

Germany, Austria, Italy, France,

England, South Korea

Producing capability per

annum: 3000

Exporting capability: 67 in 2017(equals 5,7 mln. US

dollars )

Exporting Countries:

Current - Kazakhstan Kirghizstan,

Tajikistan, Turkmenistan, Georgia,

Russia.

Future - Ukraine, Azerbaijan,Iran,

Pakistan, Mongolia, Afghanistan,

African Countries.

Number of Employees:

299

Date of conduct : 7th of august, 2009

20

Infrastructural potential (local).

Electricity (power) –

5,5 bln. kVt/h Gas– 1,1 bln. m/cubes

International airport.

Int. air directions

Russia (Moscow, St.

Petersburg,

Yekaterinburg), Turkey

(Istanbul) & other

countries.

Drinkable water–

407,6 mln.m/cubes

Motorway– 4097 km,

incl: magisterial –

1364 km (М-39)

Railway – 382,5 km

Railway station.

Directions: (Russia,

Kazakhstan)

21

“SAMARKAND AFROSIYOB CEMENT”

THE PROJECT OF CEMENT PRODUCTION

Project: Cement production

Cost: 26,1 mln. US dollars

Credit

Asaka-Bank: 16,9 mln. US dollars

New job places: 300

22

HISTORICAL AND CULTURAL

OBJECTS OF SAMARKAND

Samarkand has 1105 archeological,

670 architectural, 37 attractions, 18

monumental, 21 memorial, total 1851

tangible-cultural objects.

In UNESCOs world objects list Samarkand announced as “Samarkand crossroad of cultures”, and

has been placed among 513 the most beautiful heritage objects.

Perks depend on amount of investment:

0.3 - 3

mln $

3 - 5

mln $

10

mln

$

& over

5 -

10

mln

$

*Subject to 50% of total produced good are being made for export.

Investment projects in tourism sphere

ИСТИҚБОЛЛИ

ИНВЕСТИЦИОН ЛОЙИҲАЛАР

Prospective investment projects

Resting zone “Chuponota” Aqua resting zone

The complex of Imam al Bukhari Samarkand City complex

25

85 touristic companies

107 HOTELS about 4500 beds available

TOURISM POTENTIAL OF SAMARKAND

Historical & cultural

Eco & agro

Gastronomic

Extreme

Pilgrimage tourism

SUPPORT FOR INVESTORS IN TOURISM SPHERE

In accordance with Republic of Uzbekistan’s presidential edict

(# PE-4861 December 2nd, 2016 ) is established (for business entities):

Perks

Entities exempt from Taxes: on

benefits, on Land, on property, and

unified tax payment for 5 years. In

the case of putting into service not

less than 4 star (level) hotels and

motels which are certified in the

subject to the normal due process.

Entities exempt from custom (duties) payments for 5

years (apart from fees for custom registration) for the

imported equipment, technique, accessories, spare parts

and materials. If, above mentioned imported items for

building up and reconstruction of hotels and motels are

not produced in Uzbekistan, approved in accordance

with the established procedure.

Thank you for attention