Free Industrial Economic Zone to be set up in Uzbekistan

Press Release № 8

According to the Decree of the President of Uzbekistan, Free Industrial Economic Zone (FIEZ) with special conditions for foreign investments will be created in Navoi Province of Uzbekistan, in the area of Navoi city International Airport.

FIEZ is designed to promote a wide range of high-tech and internationally competitive production using modern high-efficiency equipment, technological lines and units, as well as latest innovations. The operation period of FIEZ is 30 years with possible prolongation.

The Zone will be located at a distance of 800 meters from the highway E-40, 1,8 km from the cargo terminal of Navoi Airport connected to international railway routes towards countries of Europe (via Russia), South Asia (via China), Middle East and the Gulf (via Iran). The distance to the nearest water and gas distribution centres is 800 m, electrical station - 8 km.

Business entities registered in FIEZ will enjoy exceptional customs, currency and tax regulations, simplified procedure for entry, stay and obtaining of work permit for non-resident citizens. They shall be exempt from paying land, property, income, development of social infrastructure, single payment (for small businesses) taxes, mandatory payments to Republic’s Road Fund and Fund of School Education, depending on the amount of direct investments:

1. from 3 to 10 million euros - for 7 years;
2. from 10 to 30 million euros - for 10 years, with reduction of profit and unified tax payment rates by 50% in the next 5 years;
3. more than 30 million euros - for 15 years, with reduction of profit and unified tax payment rates by 50% in the next 10 years.

Along with this, business entities will be exempted from paying customs duties (excluding charges for customs clearance) for equipment, raw materials and components imported for the production of export oriented goods. They will be able to make payments in foreign currency within the FIEZ, as well as to use convenient terms of payments for exported and imported goods.

Coordination and management of FIEZ activity will be carried out by Administrative Council composed of representatives of state bodies and zone administration. The Council can select international company to manage the zone on a contract basis. It is envisaged to create a FIEZ development fund aimed to support infrastructure development.

Navoi province is located in the central part of Uzbekistan, being one of the largest industrial centres of the country. The province possesses rich minerals and raw materials resources – Muruntau gold-bearing field, silica sand fields (of more than 1.5 billion tons), deposits of granite (1.9 billion cubic meters), marble (420 million cubic meters), phosphorites (1.5 billion tons) and many others.

Navoi Mining and Metallurgy Combinat – the biggest enterprise of the province, is included in top ten largest world producers of uranium and gold (9999 standard). Gold bars produced by the Combinat are awarded with the status of “optimal gold delivery” by London Precious Metals Market and Tokyo Commodities Exchange. Along with mining, the province’s economy is based on production of building materials, chemical, textile and food industries.

40 foreign investment enterprises operate in Navoi province. Most of them are established with participation of investors from USA, China, Russia and the United Kingdom – Uzbek-British Joint Venture “Amantaytau-Goldfields” is successfully working in the province.
For further information please visit:
Uzinfoinvest Agency at www.investuzbekistan.uz
Investment Guide for Navoi Region at www.uzbekembassy.org/e/investment_guide_by_navoi 

London, 27 February 2009