Mr. Mr. ShokirShokir FayzullaevFayzullaevDeputy Minister of Economy Deputy Minister of Economy

Republic of UzbekistanRepublic of Uzbekistan

Economic Development and Economic Development and Industrial Policy of UzbekistanIndustrial Policy of Uzbekistan: :

Principle DirectionsPrinciple Directions

Growth rate of GDP (%)

4,0

4,4

7,7

7,0

7,3

9,5

9,0

8,1

0,0 2,0 4,0 6,0 8,0 10,0

2002

2003

2004

2005

2006

2007

2008

2009

3

Main macroeconomic parameters

Structure of GDP (in % to previous year)

12,7 7

27,2 44

6,17

30,4 18

13,824

0%

20%

40%

60%

80%

100%

2000 year 2009 year

industry

agriculture

construction

service

taxes

The main Macroeconomic parameters(continued)

The main Macroeconomic parameters(continued)

101,0

103,8107,0

109,1

122,9

128,3

124

95

100

105

110

115

120

125

130

Budget balanceBudget balance (% to GDP)(% to GDP)

7,47,86,86,8

7,8

21,6

0

10

20

30

2002 2005 2006 2007 2008 2009

Inflation rate (%)Inflation rate (%)

Dynamics of growth rate of industrial output and share of the industry in GDP

108,5%

106,2%

107,2%

110,8%

112,1%112,7%

109,1%109,4%

24,0%

15,8%

21,2%22,3%24,0%

21,8%

17,5%

14,5%

102%

104%

106%

108%

110%

112%

114%

2002 2003 2004 2005 2006 2007 2008 20090%

5%

10%

15%

20%

25%

30%

industrial products share of the industry in GDP

Development of the industry of UzbekistanDevelopment of the industry of Uzbekistan

23%

3%

18%

26%

30%

23,6%

27,4%

5%

36,3%

7,7%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2000 2009

Budgetary funds

Funds of the enterprises

Foreign investments andcredits under guarantee ofthe Government

Foreign direct investmentsand credits

Other funds

High rates of investments into economyHigh rates of investments into economy

Growth of investments (%)

High investment activity High investment activity of entrepreneurs and the populationof entrepreneurs and the population

23%

3%

18%

26%

30%

23,6%

27,4%

5%

36,3%

7,7%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2000 2009

Budgetary funds

Funds of the enterprises

Foreign investments andcredits under guarantee ofthe Government

Foreign direct investmentsand credits

Other funds

Structure of the sources of InvestmentsStructure of the sources of Investments

Stimulation of domestic demand for maintenance of Stimulation of domestic demand for maintenance of industrial outputs, employment and incomes of the industrial outputs, employment and incomes of the population population

Realization of measures on decreasing production Realization of measures on decreasing production costs at the enterprises and production price not less, costs at the enterprises and production price not less, than to 20 %, implementation of a rigid economy effort than to 20 %, implementation of a rigid economy effort

Support of enterprises Support of enterprises -- exporters in maintenance of exporters in maintenance of their competitiveness in foreign markets in conditions their competitiveness in foreign markets in conditions of deterioration of the current conjunctureof deterioration of the current conjuncture

The AntiThe Anti--crisis program of the Republic of Uzbekistancrisis program of the Republic of Uzbekistan

Compensation of losses from negative consequences Compensation of losses from negative consequences of influence of global financial and economic crisisof influence of global financial and economic crisis

Measures of support of enterprises Measures of support of enterprises -- exportersexporters

Re-structuring of debts against the budget and off-budget funds with charge-off penalty fee, and also debts on the electric power, natural gas and municipal services (in 2009 (6 M) – 9 enterprises to 55,9 billion sum)

Restriction of a price rise on natural gas, the electric power and water for entrepreneurs within 2009 no more than 6-8 %

Reduction to 20 days of term of return of the VAT to exporter of products, and also simplification of the mechanism of return of the VAT (in 2009 (6 M) returned20,6 bln.sum)

Prolongation of tax privileges for exporters, manufacturing finished textile products, increase the terms of bank guarantees for purchasing cotton - fiber

Short term reduction of a ratio of amortized deduction, as far as discontinuance of their charge

Re-structuring of debts of the enterprises which have carried out last two years at the expense of bank credits for technical modernization (in 2009 (6 M) – 41 enterprises to54,3 bln.sum, 64,7 mln. USD, 7,8 mln. Euro)

Increasing in volumes and reduction in the rate of crediting of exporters under turnover means (in 2009 (6 M) allocated 83,1 bln.sum)

Increasing competitiveness of the country Increasing competitiveness of the country In intermediate term and longIn intermediate term and long--term prospectterm prospect

The AntiThe Anti--crisis program of the Republic of Uzbekistancrisis program of the Republic of Uzbekistan((continuationcontinuation))

Allocation of additional public funds in volume of about 500 billion sum for increasing the authorized capitals of banks, with a target direction of the specified means for realization of investment projects

Acceleration of realization of some major strategic projects in sphere of electric power industry, oil-gas-chemical, iron and steel industry

Additionally developed three big programs of modernization of a railway transportation, electric power industry and the tunning-shoe industry with the beginning of realization of these programs in 2009

Adopted program of technical modernization and reconstruction ofmanufacture for 2009-2014, containing 852 projects with total cost of USD 42,5 billion

Worked out energy saving program, providing the accelerated outlet and replacement of the power-intensive equipment to energy saving, full automation of accounting system, and also application of alternative sources of the electric power

About 200 hydrocarbon deposits have been discovered in Uzbekistan including:- more than 50% are under development- 35% - prepared for development- exploration works are underway at 15%.

Natural gas reserves in Uzbekistan exceed 8 trillion cubic meters.Liquid hydrocarbon reserves are estimated to exceed 1 billion tons.

Oil and Gas Sector

Value of proven mineral deposits in Uzbekistan (USD billion ; % of total value)

Ceramics, fireproof and glass materials; 6; 0%

Coal; 105; 6%

Underground waters; 37; 2%

Construction materials; 84; 4%

Raw materials for chemical industry; 60; 3%

Raw materials for mineral fertilizers; 51; 3%

Flux and other mining ore; 50; 3%

Non-ferrous, rare and radioactive metals; 421; 22%

Precious metals; 125; 7%

Oil, gas, and condensate; 943; 50%

Reserves of explored minerals over the territory of Uzbekistan are estimated by international experts in USD 1.9 trillion, while the total mineral & feedstock potential of Uzbekistan - in USD 11 trillion.

Uzbekistan takes leading position in the world for its reserves and expected resources of a number of most important minerals such as gold, uranium, copper, potassium salts, phosphorites, kaolin, etc.

Mineral Resources in Uzbekistan

II IIII IIIIII IVIV VV VIVI VIIVII VIIIVIII

11 11

22 22

33 33

44

44

55

5566

77

6688

99

77 1010

Elements of Periodic Table in Uzbekistan

Construction Materials Sector

About 600 explored deposits of construction About 600 explored deposits of construction raw materials includingraw materials including ::Building stone blocksBuilding stone blocks –– 3030 deposits;deposits;CementCement–– 3030;;Raw limestoneRaw limestone–– 2525;;Silicate Silicate –– 2525;;GypsumGypsum –– 1313; ; Raw glassRaw glass –– 55;;Sand and gravel Sand and gravel –– 7575;;Brick and ceramics Brick and ceramics –– 200200;;And huge reserves of marble and graniteAnd huge reserves of marble and granite..

List of Deposits and Future Sites for Construction of List of Deposits and Future Sites for Construction of Cement Factories Cement Factories

1. 1. Karakalpakstan, Karakalpakstan, KarauzakKarauzak rayon rayon ((limestone limestone ––proven reserves proven reserves –– 2222..36 36 mln. tonsmln. tons,, iron containing iron containing ores ores -- 44..0 0 ммlnln.. tonstons).).

2. 2. JizzakhJizzakh oblastoblast,, ZafarobodZafarobod rayon rayon ((limestone limestone -- 200 200 mln.tonsmln.tons).).

3. 3. KashkadaryaKashkadarya oblastoblast, , KitabKitab rayon rayon ((limestone limestone –– 117117..5 5 mln. tonsmln. tons, , gypsumgypsum –– 1616.. mln. tonsmln. tons).).

4. 4. SurkhandaryaSurkhandarya oblastoblast, , SherabadSherabad rayon rayon ((limestone limestone ––122122..3 3 mln. tonsmln. tons, , iron containing ores iron containing ores -- 5 5 mlnmln. . tonstons, , gypsumgypsum –– 11..5 5 mln. tonsmln. tons).).

Textile companies in UzbekistanTextile companies in Uzbekistan

Process Process 3030% of cotton fiber% of cotton fiber

Produce about 200,000 tons of cotton yarnProduce about 200,000 tons of cotton yarn

Manufacture more than 300 mln rm. of cotton fabrics Manufacture more than 300 mln rm. of cotton fabrics and 2.5 mln. sq. m. of carpetsand 2.5 mln. sq. m. of carpets

Amount of projected sales of textile products exceeds Amount of projected sales of textile products exceeds USD 1 billionUSD 1 billion

Textile Sector

MultiMulti--tier sector features more than 30 companiestier sector features more than 30 companies

Sector produces more than 67% of electrical Sector produces more than 67% of electrical goods in Central Asia, including equipment for goods in Central Asia, including equipment for cotton and silk industry of Uzbekistancotton and silk industry of Uzbekistan

Opportunities for investors to joint manufacturing of Opportunities for investors to joint manufacturing of printing boards, electrical modules, computers, TVprinting boards, electrical modules, computers, TV--sets, sets, DVDDVD--players, and other household appliancesplayers, and other household appliances

Electro-technical Industry

More than 90 pharmaceutical companies More than 90 pharmaceutical companies in Uzbekistan, producing pills, capsules, in Uzbekistan, producing pills, capsules, galenicsgalenics, , salinessalines, bandages, gauze, etc. , bandages, gauze, etc.

Pharmaceutical Industry

Uzbekistan has solid potential for processing agricultural produce

• One of the biggest producers of fresh fruits and vegetables in the world•• One of the biggest producers of fresh fruits and One of the biggest producers of fresh fruits and vegetables in the worldvegetables in the world

• One of five major producers of tomato paste worldwide•• One of five major producers of tomato paste worldwideOne of five major producers of tomato paste worldwide

• Available raw material resources to process about 10 mln. tons of fruits and vegetables•• Available raw material resources to process about Available raw material resources to process about 10 mln. tons of fruits and vegetables10 mln. tons of fruits and vegetables

Processing Fruits and Vegetables

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