Tashkent, December 20, 2024 – The Europe Today: On December 20 President of the Republic of Uzbekistan Shavkat Mirziyoyev held a meeting with country’s active entrepreneurs. Year-end results on entrepreneurship support and plans for 2025 were discussed at the meeting in a video format.
At the beginning of the meeting the Head of State delivered a speech outlining main objectives and achievements:
- Development of entrepreneurship – our strategic goal. Entrepreneurs are our strongest support and greatest strength. Therefore, their support should become the daily business of all leaders – from the center to the lowest level. Especially at the local level, hokims should interact more often with entrepreneurs, visit enterprises, and live in their concerns. We should cherish and appreciate business representatives, talented and with great potential. They are very valuable people for us, emphasized Shavkat Mirziyoyev.
In this connection, the activity of the Public Council for Support of Entrepreneurship established under the President of the Republic of Uzbekistan has been mentioned. The Council has become a bridge between the state and business, putting forward concrete proposals. This year, 5 laws, 101 decrees and resolutions have been adopted on the most pressing issues of business support.
In recent years, the economy has seen an increase in liquidity. This has provided the ground for sustainable financing of investment projects. Funds in the accounts of enterprises in banks have increased by 20 trillion soums, reaching 107 trillion soums. Deposits of the population increased by 25 trillion soums and amounted to 105 trillion soums.
According to the year-end results, the total volume of issued loans reached 275 trillion soums. In 2025, this figure will exceed 300 trillion soums. Particular attention will be paid to lending to small businesses: its share will increase from 28 to 40 percent, reaching 120 trillion soums.
To meet the needs of entrepreneurs, banks plan to attract $6 billion from external sources without state guarantees in 2025. Owing to the expansion of factoring opportunities, these services have been provided this year in the amount of $100 million.
For the development of infrastructure – roads, water supply, electricity and gas supply, railroads – 35 trillion soums were allocated in 2024, and next year it is planned to allocate 43 trillion soums.
To supply enterprises with stable power supply, electricity production has reached 82 billion kilowatt-hours. Due to the capacities introduced in 2024, the production will increase to 90 billion kilowatt-hours in 2025. In 2025, 25 projects worth $6.4 billion will add 4.8 gigawatts of additional capacity.
Currently, there are 24 independent power producers in the country. In 2025, an online wholesale electricity market will start operating for the first time. As an experiment, the power grids of Samarkand, Jizzakh and Syrdarya regions will be transferred to the management of the private sector.
In the tourism sector, entrepreneurs have invested 6.5 trillion soums in construction of hotels for 24 thousand beds. In 2025, this number will grow by another 30 thousand. Another 25 complexes will be added to the 17 trade and tourist facilities commissioned this year.
A separate company has been set up to promote trade, which has allocated $350 million in export financing. For every dollar invested, entrepreneurs received $6 in export revenue. In 2024, another $300 million will be allocated for this purpose.
In 2024, entrepreneurs acquired 3 thousand state-owned properties and 4 thousand hectares of land with a total value of 11.5 trillion soums. In 2025, another 4.5 thousand buildings and 6 thousand hectares of land will be offered for business.
Private sector involvement in the repair and maintenance of roads, which have long been in the monopoly of the state, is expanding. In 2024, 260 kilometers of roads were handed over to entrepreneurs, and in 2025 this figure will increase to 3 thousand kilometers. With support from the Asian Development Bank, 841 kilometers of roads in 86 districts will be built by local contractors.
In the railway industry, digitalization and improved operational efficiency reduced freight transportation time by 40 percent. By increasing the time for free unloading of cargo at stations from 2 hours to 3 days, entrepreneurs saved 57 billion soums over the year.
In the aviation sector, the number of private companies reached 14. Additional 6 cargo and 16 passenger airplanes were put into operation. Airports in Bukhara and Namangan have been transferred to private management, tenders for airports in Andijan and Urgench are underway.
The President emphasized the importance of maintaining a stable tax policy to maintain an attractive business environment. The main tax rates will remain unchanged. From January 1, 2025, state property and land will be sold VAT-free, excise tax on mobile communications will be abolished, and double land tax on agricultural land outside the city limits will be discontinued. Publishing enterprises will be exempted from income tax for 5 years.
Preferences for IT park residents, exempting them from all kinds of taxes, will be extended until 2040. Preferences for private schools, kindergartens and foreign specialists will be valid until 2030.
The process of Uzbekistan’s accession to the World Trade Organization (WTO) is reaching its final stage. In this regard, privileges contrary to the WTO rules are canceled. At the same time, all conditions will be created for market participants to work in a fair competitive environment.
Transportation and logistics infrastructure also remain in focus. The work of the “Khanabad”, “Mingtepa”, “Karasuv” and “Uchkurgan” border points has been resumed. In 2025, additional corridors will be built at “Gishtkuprik”, “Navoi”, “Davut-ota”, “Shavat” and “Gulbakhor” border crossings, which will increase their capacity fivefold.
Despite the challenging geopolitical environment, the country’s economy grew 6.3 percent in 2024 reaching $111 billion. Industry, agriculture and services attracted $38 billion in investment, while exports exceeded $26 billion.
The President noted the key role of entrepreneurs who create jobs and reduce poverty in achieving these results, expressing gratitude to them.
Next year, it is planned to increase GDP to $120 billion, exports to $30 billion, and investment to more than $42 billion. At the meeting, opinions were exchanged on the necessary steps to achieve these goals. The entrepreneurs suggested simplifying business procedures, deepening processing of raw materials, increasing production of high value-added products and boosting exports. Having listened to the views expressed, the Head of State defined corresponding measures.
Primarily, the importance of increasing the incomes of private sector workers was emphasized. In this regard, textile and leather enterprises that pay their employees a salary of at least 2.5 million soums and have at least 15 percent of employees from low-income families will receive tax benefits. For such companies, the rate of profit tax and income tax for their employees will be only 1 percent.
The Head of State noted that similar social criteria for granting benefits can be applied in other sectors of the economy.
The President underlined the need for entrepreneurs not to limit themselves to bank loans, but to adapt to international standards and independently attract funds from abroad. For this purpose, a center will be created, which will support entrepreneurs’ access to international financial markets with the participation of international consulting companies.
There are 142 so-called “champion” companies with more than 5,000 employees and annual revenues exceeding 1 trillion soums. They become multi-profile corporations, contributing to the development of related industries.
To support such promising entrepreneurs and stimulate others, it is proposed to provide them with land and buildings directly, as well as transfer state-owned enterprises into long-term management.
It is known that 7 out of 10 richest companies in the world work in the field of information technology and fintech services. Additional benefits will be provided for the establishment of such companies in Uzbekistan. In particular, duty-free import of laboratory equipment and technological installations for research and development (R&D) centers will be allowed.
Uzbekistan has about a thousand deposits with reserves of more than 100 types of minerals. To utilize them for production of high value-added products, 400 new deposits will be put up for auction in January.
Land released from cotton and grain crops will be auctioned in large lots of up to 50 hectares and sold to professional investors to create industrial plantations. On plots of up to 20 hectares it will be possible to create blast freezing, sorting and packaging facilities.
It is planned to develop an updated Customs Code, which will meet the requirements of the World Trade Organization (WTO) and modern conditions.
At the end of the meeting, the Head of State once again reaffirmed his commitment to supporting initiatives and projects of entrepreneurs.
- The entrepreneurial movement in Uzbekistan is turning into a great force, and this process is irreversible. No matter what high goals and objectives we set for ourselves at the state level, we and our people count on you above all. The richer our entrepreneurs are, the richer our people and the greater the power of our state will be. The success of an entrepreneur is the success of our entire nation, underscored the President.
