Discover Uzbekistan
The Crossroads of Eurasia
A Central Hub enjoying Economic Growth and Strong Stability
Robust Legal Framework and Investor Protections
Economic Stability and GSP +
A Thriving Economy with Strategic Growth
Uzbekistan has emerged as one of Central Asia’s most dynamic economies, showcasing consistent growth and attracting increasing levels of foreign investment. According to the World Bank, the country achieved a GDP growth rate of 5.8% in 2022. This robust performance is a testament to the government’s commitment to market-oriented reforms, modernization, and diversification. Key sectors such as energy, infrastructure, and manufacturing have seen significant development, positioning Uzbekistan as a rising economic powerhouse in the region.
Leading Agricultural Producer
Leveraging its fertile lands and favorable climate, Uzbekistan is a significant player in the global agricultural market. The country is the second-largest producer of dried apricots worldwide, according to the Food and Agriculture Organization (FAO). In 2020, Uzbekistan produced approximately 536,000 metric tons of apricots, a substantial portion of which is processed into high-quality dried apricots for export.
In addition, Uzbekistan ranks among the top producers of raisins globally. The country is the fifth-largest producer of grapes, with a production of about 1.5 million metric tons in 2020. A considerable amount of this grape production is dedicated to raisin processing, supplying substantial quantities to markets across Europe and Asia. These agricultural strengths not only highlight the country’s production capabilities but also its reliability as a trusted exporter of essential goods.
Commitment to International Standards
Uzbekistan’s dedication to integrating with the global economy is evident through its adherence to international trade practices and standards. In April 2021, the European Union granted Uzbekistan the Generalised Scheme of Preferences Plus (GSP+) status. This preferential trade regime indicates the country’s compliance with 27 core international conventions on human rights, labor rights, environmental protection, and good governance.
Participation in GSP+ allows Uzbekistan to export over 6,200 products to the EU with reduced or zero tariffs, facilitating easier access to European markets. This status not only underscores the nation’s commitment to upholding high standards in its trade relations but also enhances its attractiveness as a reliable and secure partner in international commerce.
Security and Legal Framework
A Safe and Stable Environment
Uzbekistan is recognized for its political stability and low crime rates, providing a secure environment for business operations and investment. The government prioritizes the safety of both citizens and foreign nationals, ensuring that businesses can operate without concerns over security risks. According to the Global Peace Index 2022, Uzbekistan ranks favorably in terms of societal safety and security within the Central Asian region.
Comprehensive Legal Reforms
In recent years, Uzbekistan has embarked on significant legal reforms aimed at improving the business climate and protecting foreign investments. The government has introduced new legislation to simplify business registration, reduce bureaucracy, and enhance transparency in governmental procedures. These reforms are part of the country’s broader Development Strategy for 2017-2021, which focuses on liberalizing the economy and fostering a favorable investment climate.
Protection of Foreign Investors
To safeguard the interests of foreign investors, Uzbekistan has enacted laws that provide guarantees and protections. The Law on Foreign Investments and the Law on Guarantees and Measures for the Protection of Foreign Investors’ Rights establish legal frameworks that:
- Ensure Equal Treatment: Foreign investors receive the same rights and protections as domestic investors.
- Protect Against Expropriation: Investments cannot be nationalized or requisitioned without fair compensation.
- Allow Repatriation of Profits: Investors can freely convert and repatriate profits, income, and other funds in foreign currency.
- Provide Dispute Resolution Mechanisms: Access to international arbitration is available for resolving investment disputes.
Adherence to International Standards
Uzbekistan’s dedication to integrating with the global economy is evident through its adherence to international trade practices and standards. The country is a signatory to several key international agreements:
- United Nations Convention on the Recognition and Enforcement of Foreign Arbitral Awards (New York Convention): Facilitates the enforcement of international arbitration decisions.
- Member of the Multilateral Investment Guarantee Agency (MIGA): A World Bank Group entity that offers political risk insurance to investors.
- Active Pursuit of World Trade Organization (WTO) Membership: Uzbekistan is actively engaged in the accession process to become a member of the WTO. The government is implementing significant economic and legal reforms to align with WTO standards, underscoring its commitment to international trade norms and practices.
Transparent and Predictable Legal Environment
The Uzbek government continues to enhance the transparency and predictability of its legal system. Initiatives include:
- Judicial Reforms: Strengthening the independence and efficiency of the judiciary to ensure fair enforcement of laws.
- E-Government Services: Implementing digital platforms for business registration and tax services to reduce bureaucratic hurdles.
- Anti-Corruption Measures: Establishing agencies and legal frameworks dedicated to combating corruption and promoting ethical business practices.