Doing business in Uzbekistan
Uzbekistan is a presidential republic in the central and northwestern parts of Central Asia and a member of the Commonwealth of Independent States (CIS). The country borders Kazakhstan, Turkmenistan, Tajikistan, Kyrgyzstan, and Afghanistan. Its capital is Tashkent, the official language is Uzbek, and the currency is the Sum. Administratively it is divided into 12 regions and the sovereign Republic of Karakalpakstan. The current population is 32.8 mn people.
Uzbekistan is an industrially oriented state, with various kinds accounting for more than 50% of GDP. The largest industries are agriculture, construction, freight and passenger transportation, and trade and services. In 2018 the GDP grew 5.1% and accounted for 50.5 bn USD.
The country is rich in mineral resources with large deposits of oil and natural gas, uranium, gold, coal, silver, tungsten, and many other minerals. Because of this, Uzbekistan has a well-developed mining and oil refining industry, non-ferrous and ferrous metallurgy, and gold mining and processing industries.
In recent years, a number of government policies have been enacted to promote small business development, as it plays a key role in the development of the economy as a whole. Rapid economic growth, a great amount of resources, and human potential invariably attract foreign business to Uzbekistan. The volume of investments is growing every year, not only due to the dynamically developing economy but also to the favorable investment climate created by the state for foreign business. The main export items are cotton and cotton products, gold, uranium ore, fertilizers, metals, textile and food products, and cars. Uzbekistan’s largest foreign trade partners are Russia, China, and Kazakhstan, with Russia accounting for almost 30% of the total foreign trade turnover.
Apart from BB-ratings by Fitch and S&P, Uzbekistan received its first-ever Moody’s sovereign rating (B-1) in 2019, which means the country can fulfill its financial obligations and it’s economic outlook remains positive, like it has been in recent years, with an estimated growth of around 6 % for 2020.
5 reasons to invest in Uzbekistan
SCHNEIDER GROUP can help you with
- Market Representative
- Accounting Outsourcing
- Business Setup
- Import, Customs, Certification
- Transfer Pricing
- Due Diligence
- Legal and Compliance Services
- Office Rental
- Interim Management
- Business Workshop and Training
- Expert Recruiting and Outstaffing