On the Results of the International Investment Forum

The impressive economic growth of Uzbekistan and large-scale structural transformations performed during the years of Independence attract the attention of international organizations, largest companies, investment funds and agencies. Therefore, it is natural that the unprecedented privatization programs of the state-owned property and implementation of the large-scale investment projects started during the current year in Uzbekistan, caused enormous interest on part of the international business community.560 foreign participants including heads and managers of over 300 foreign companies, European Community, Governments of Korea, Germany, Poland, Japan, Kuwait and other states, large companies, banks, investment funds, agencies, analytical centers, representatives of financial and business circles from 33 countries of the world, as well as international financial institutions, such as the Asian Development Bank, the World Bank, the International Finance Corporation and others – participated in the work of the International Investment Forum held in Tashkent on November 5-6, 2015.In course of the first plenary session, the Forum’s participants got familiar in detail with the strategy and the results of the economic reforms, having been implemented in our country during the years of Independence under the leadership of the President Mr. Islam Karimov, based on the five main principles of reforming and development of Uzbekistan, which got wide recognition in the world as the “Uzbek model” of reforms.Special attention of the Forum’s attendants was attracted by the prospective guidelines of Uzbekistan’s development, determined by the Program of further reforming, deepening of structural transformations and diversification of the economy for the period of 2015-2019, aimed at the achievement of the following key targets:- continuation and deepening the economy’s reformation;- further implementation of structural transformations, modernization and diversification of the industry, construction of the modern enterprises and output of products with the high added value on basis of the richest resources of Uzbekistan and attraction of the highest technologies from Korea, Germany, Japan, USA, Switzerland, France and other countries;- development of the private ownership and private entrepreneurship, improvement of the regulatory and business environment, expansion of the share and significance of the private sector in the economy, which is becoming the main driving force in the economic growth;- reduction of the role and place of the state in the economy as well as development of the joint-stock and corporate forms of property and, implementation of the state companies’ privatization. In Uzbekistan the large-scale Privatization Program has been adopted which stipulates sale to potential investors of 1247 pieces of the state-owned assets.The aim of the large-scale privatization of the state-owned facilities, first of all is being the transfer of the state-owned shares and facilities to the experienced professional investors who are ready to introduce the advanced technologies and modern methods of corporate governance in the domestic enterprises, provide output of competitive demanded products and their promotion into the external marketsAt the plenary session, the speeches were made by the Managing Director General of the Asian Development Bank Mr. Juan Miranda, Vice-President of the World Bank Mr. Cyril Muller, Vice-President of the International Finance Corporation Mr. Dimitris Tsitsiragos, First Vice-Minister of Trade, Industry and Energy of the Republic of Korea Mr. Lee Kwan-sup, EU Special Representative for Central Asia Mr. Peter Burian, who highly estimated the results of the social and economic transformations implemented in Uzbekistan during the years of Independence and welcomed the strategic programs on further reforming, structural transformations and diversification of the economy for the period of 2015-2019 adopted under the leadership of the President Mr. Islam Karimov.It was noted that in conditions of the deepening crisis processes in the global economy, not many countries of the world are capable to demonstrate the stability of their economic growth. In this connection, all speakers stressed the effectiveness of Uzbekistan’s economic policy, which provides, within the long period, the steady and dynamic economic growth against the background of complicated external economic situation, conducts the active investment policies and implements the deep structural reforms which reliably protect the country from deceleration of economy faced by many other countries.Regional Director of MAN Truck & Bus AG Mr. Jan Kohlmeier, President of Lotte Chemical Corporation Mr. Huh Soo Young, President of GM Uzbekistan Operation Mr. Hector Villarreal, Director General of the Uzbek-Oman Investment Company Mr. Badar Al Shanfari, Regional Director of Isuzu Corporation Mr. Tsutsui Hiroshi, Managing Director of Indorama Corporation Mr. Prakash Kejriwal - shared their successful experience of projects’ implementation in Uzbekistan.Speakers noted that Uzbekistan possesses the big investment potential and attractiveness for foreign investors. Presence of the high-level trained human resources and professionally trained youth, rich raw-material reserves, developed industrial base and production infrastructure as well as convenient geographic location on the crossroad of the transport passageways of Europe and Asia - allow the foreign companies to regard Uzbekistan as a country where it is beneficial to invest into creation of the modern high-technology production facilities for output of the products being competitive at the external markets.Foreign participants specifically stressed that Uzbekistan has established a reputation of a reliable and solvent partner with the wide system of privileges, preferences and guarantees set forth for foreign companies investing into the country’s economy. Thanks to it, presently over 5 thousand Joint Ventures created by investors from more than 90 countries successfully operate in the Republic.In course of the five sectional meetings held, broad exchange of views and discussions over the concrete enterprises offered for sale to foreign investors as well as the new prospective investment projects – took place. The issues of cooperation in implementation of projects in gas and oil, petrochemical and chemical, automotive and electro-technical, textile, tanning, food and pharmaceutical industries, construction materials’ and communication equipment production as well as spheres of information communication technologies, international tourism and other branches of the services’ sector - were discussed.Within the framework of the Forum the potential investors also were provided with the opportunity to visit the large enterprises and joint-stock companies located in Bukhara, Navoiy, Samarqand, Fergana, Khorezm Regions and the City of Tashkent, where the state-owned shares are being offered for sale to strategic foreign investors in accordance with the adopted Program of Measures Aimed at Increase of the Share and Significance of the Private Ownership in the Economy.Upon the results of the Forum more than 100 Agreements and Memorandums on purchase by foreign investors of the state-owned stock packages and implementation of new investment projects in the oil and gas, chemical, electro-technical industries, food production, construction materials’ production and other branches were signed for the total amount of over 12 billion US Dollars, within which almost 5 billion US Dollars constitute the direct foreign investments.(Source: Press Service of the State Committee of the Republic of Uzbekistan for Privatization, Demonopolization and Development of Competition)