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InvestmentpotentialoftheAndijAnregionWhyAndijanisanattractiveinvestmentdestination?Stableprovisionofgas,electricandwater,infrastructureTransportpotentialIntellectualpotential

(Educatedworkforce)SustainableeconomicandindustrialgrowthThemostdenselypopulatedregion-largeinternalmarketFavorablegeographicallocation.(Accesstoexternalmarkets)RichmineralandrawmaterialpotentialTotalarea-4,3thous.sq.kmAndijanregionisthelargeindustrialregionoftheRepublicofUzbekistan.Fromthenorth-eastandsouthoftheregionbordersonRepublicofKyrgyzstan,inwest-withtheFerganaRegionandinnorth-west–withtheNamanganregion.

Population–2,9millionpeople

(2016year),which47,7%liveinruralareasand52,3%-incities.BRIEFINFORMATIONABOUTTHEREGIONConsistsof-2cities(AndijanandKhanabad)and14districtsDistancefromTashkentcity-360km.NaturalgasCollateralfortheregion–1,5billioncube/mperyearProvisionforruralareas-1billioncubic/metersElectricityProvisionbyarea-2,7millionkw/hourofwhichabout10percentarefreeresourcesDrinkingwaterProvisionfortheregion-38millioncubicmetersProvisionforruralareas-22millioncubicmeters/meterUTILITIESTRANSPORTPOTENTIALRailways-262km.Internationalairport-locatedintheAndijancity.Highwaysenabletransportationofexport-importcargoesthroughthefollowingdirections:Andijan-Osh-Irkeshtam-China-SeaportofKarachi(Pakistan)Andijan-Osh-Irkeshtam-SouthseaportsoftheChina.Andijan-Tashkent-Samarkand-Termez-Afghanistan.Andijan-Tashkent-Kazakhstan-Russia-theCommonwealthofindependentstatescountries.Andijan-Tashkent-Turkmenistan-ThesouthernseaportsofIran.Roadsandhighways-8.2thousandkmlength,includinginternationalhighwayA-373andM-41.Intellectualpotential(Educatedworkforce)OftheseHighereducationalinstitutions-4Thenumberofgraduates-4665Inthesphereofindustry-1500Inthefinancialandeconomicdirection-1820Colleges-119TheNumberofgraduates-31287Inthesphereofindustry-7500Infinancialdirection-6400Lyceums-9Thenumberofgraduates-5068Thereare132educationalinstitutionsintheregionPRODUCTIONCAPACITYTheregion'sshareintheeconomy

ofthecountry-5.7%(6thplacebyGRPvolume)DynamicsofGRPgrowthfor2012-2016.(%)Grossregionalproductstructure(accordingtotheresultsof2016)134%2012year2016yearFOREIGNTRADEVOLUMEStructureofexportsin2016(%)Structureofimportsin2016(%)Machineandequipments69,2%Chemical9,4

%Services7,1

%Ferrousmetals4,2

%Foodproducts4,0

%Non-ferrousmetals0,6

%Others5,0

%Foodproducts29,1

%Machineandequipments18,0%Services9,5

%Chemical0,5

%Ferrousmetals0,2

%Non-ferrousmetals0,1

%Others42,6

%ProductionandreproductionofcottonfiberOfthese:1546enterprises(ofwhich28enterpriseswithforeigninvestments)Morethan300typesoflightindustryproductsareproduced.Annualproductionis247milliondoll.83,2thousandtons.Volumeofcottonfiberproduced

Geologicalreservesas:Brickrawmaterialsreservesamountto24.2mln.cubic/m.locatedinKhanabad,Andijan,Asaka,Marhamat,Pakhtaobad,Khojaabad,IzbaskanandKurgantepadistricts.Limestonereservesamountof52,7mln.cubic/mlocatedinAndijanandBulakbashidistricts.MineralandrawmaterialpotentialResourcesofmineralsas:Sand,gravel,algoporite-reservesamountto34,3mln.cubic/m-locatedinKhanabad,Andijan,Asaka,MarhamatandPakhtaabaddistricts.TouristicpotentialoftheregionIntheAndijanregionthereare:-16hotels-50modernrestaurants-54historicalmonuments-7museums-2theater-4cinemas-3Eco-touristicrecreationalfacilitiesarea(Andijan,Bulakbashi,Khanabadcity)InvestmentpotentialoftheregionOvertheyearsofindependence,attractedforeigndirectinvestmentstotheregiontotaling–1.3billiondollars.Partnercountries-China,Russia,Korea,Turkey,USA,Germany,Switzerland,GreatBritain,Greece,Lithuania,etc.Enterpriseswithforeigncapital–173unitesForeignenterprises–18unitesJointventures–155unitesForeigntradevolume–

916,5millionUSD.Employedworkforce–23,312Law“OnForeignInvestments”Law"OnInvestmentActivity”Law"OnGuaranteesandMeasurestoProtecttheRightsofForeignInvestors”Over50normativelegaldocumentsonregulatingofinvestmentactivityadoptedinUzbekistan7lawsoftheRepublicofUzbekistan,18Presidentialdecreesandresolutions,20decisionsoftheCabinetofMinisters,morethan10departmentalregulationsLegislationbaseonFDIconductingdirectinvestmentstodevelopmentofhigh-technologyproduction;strengtheningencouragementofforeigndirectinvestmentsandmoderntechnologiesintheregionsofUzbekistan;furtherstrengtheningsystemofguaranteesandpreferencesforforeigninvestorsandenterpriseswithforeigninvestments.Creatingmaximumfavorableinvestmentclimateforforeigninvestors:Liquidationofredtapeinworkofforeigninvestorsandpreventillegalinfluenceofcontrollingandstatebodiestoactivitiesoftheenterpriseswithforeigninvestments.MainpurposesofthelegislationonFDiNewlyestablishedenterpriseswiththeforeigninvestmentvolumeforatleast5millionUSD,reservetherighttopayfor10yearsthosetaxesthatoperatedatthedateoftheirregistrationThisruleshallapplyto:CorporateIncomeTax;ValueAddedTax;PropertyTaxforLegalEntities;SocialInfrastructureDevelopmentTax;SingleSocialPayment;SingleTaxPayment;MandatoryPaymentstotheRepublicanRoadFundandtotheReconstructionFund,RefurbishmentandEquippingofEducationalandMedicalInstitutions.PrivilegesandincentivesforFDIinaccordancewiththePresident`sdecree#UP-4434Newprocedure

approved,accordingtowhichunderinvestmentprojectsworthmorethan50millionUSDandwithashareofforeigninvestorsnolessthan50%,theconstructionofthenecessary:-externalengineering;-communicationnetworksiscarriedoutattheexpenseofstatebudgetfundsandotherdomesticsourcesoffinancing.EnterpriseswiththeshareofFDImorethan33%,

locatedincertainregionsandattractingforeigndirectinvestments,wereexemptedfrom:-CorporateIncomeTax;-

PropertyTaxforLegalEntities;-

SocialInfrastructureDevelopmentTax;-

SingleTaxPayment;-

MandatoryPaymentstotheRepublicanRoadFund.President’sDecree#UP-4434

3years,ifamountofdirectinvestmentsis

0,3-3mln.USD;

5years,ifamountofdirectinvestmentsis

3-10mln.USD;

7years,ifamountofdirectinvestmentsismorethan

10mln.USD.PeriodofTaxExemptions:preferencesforforeigninvestorsinaccordancewithpresidentialdecreesAttherequestofforeigninvestorsfortheestablishmentofenterpriseswithforeigninvestment,low-liquidassetsthatareonthebalanceoflocalgovernmentaresoldata"zero"redemptionvalue.ForeigninvestorsareguaranteedfreetransferoffundsinforeigncurrencytoandfromtheRepublicofUzbekistanwithoutanyrestrictionsexportcustomsdutiesonproductsofownproductionareabolishedAlsowithintwoyearsforeigninvestorsexcemptedfromcustomsdutiesforimporteditemsforownusageAttheendof2017,adraftofaconsolidatedlegislativeactwasdrafted-thedraftInvestmentCode,whichwillbecomethebasicnormativelegalactthatmostfullyregulatesinvestmentactivity.Themaintaskswillbetheintroductionofsuchinnovationsas:visaoftheinvestor.(therighttopermanentresidence,simplifiedacquisiti

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