Investment opportunities in Uzbekistan: How can Chinese enterprises seize the
In the globalized economic landscape, Central Asia has become a new hotspot for international investment. Uzbekistan, as an important country in Central Asia, has released policy dividends through economic reforms in recent years. China has established diplomatic relations with Ukraine for more than 30 years, with a cumulative investment and financing of over 11 billion US dollars, making it its largest trading partner and main source of investment. In this context, how should Chinese enterprises seize the investment highland in Central Asia? This article will provide a comprehensive analysis of Uzbekistan's economic situation, key investment areas, policy dividends, and other aspects to provide investment guidance for Chinese enterprises.
Table of Contents
01 | | Introduction to Macro Investment Environment
02 || Introduction to Foreign Investment Dividends
03 || Key investment areas: Seven "golden tracks" for Chinese enterprises
04 || Free Economic Zone: A Super Springboard for Foreign Investment Landing
05 || Conclusion
01
Introduction to Macro Investment Environment
YINGHE CHUHAI
1. Basic information of the country
Uzbekistan is located in the hinterland of Central Asia, bordering five countries, with a land area of 448900 square kilometers. As the core hub of the ancient Silk Road, the country has a population of 36 million, of which 60% are under 30 years old, forming an abundant labor dividend. The capital city of Tashkent is currently under construction as the 'New Tashkent', with a planned area of 10000 hectares, which will become the largest smart new city in Central Asia.
Uzbekistan is connected to China's energy artery through the "Central Asia China" natural gas pipeline D line, which has an annual gas transmission capacity of 55 billion cubic meters. Uzbekistan is also a key node in the China Central Asia West Asia Economic Corridor, with transit freight volume exceeding 25 million tons in 2023.
2. Economic Growth and Industrial Structure
In 2023, Uzbekistan's total GDP reached 90.7 billion US dollars, with a growth rate of over 5.5% for three consecutive years (reaching 6.0% in 2023), ranking first among the five Central Asian countries. The industrial structure presents a "three carriage" driving pattern:
Traditional advantageous industries: mining (accounting for 12.3% of GDP), agriculture (10.8%)
Emerging growth poles: Manufacturing (21.6%), Construction (7.9%)
Modern service industry: digital economy (5.3%), tourism industry (4.1%)
02
Foreign investment dividends
YINGHE CHUHAI
Uzbekistan has introduced a series of policy dividends to attract foreign investment:
1. Tax incentives
Oil and gas purification joint ventures and non resident mining enterprises enjoy a 7-year corporate income tax exemption period; Other industries are exempt from taxes for 3/5/7 years based on investment amount (300000 to 3 million/3 to 10 million/over 10 million US dollars). Enterprises with foreign investment accounting for over 33% are exempt from tariffs for importing self use equipment, materials, etc. for 2 years.
2. Admission Policy
Foreign investment is allowed to establish joint ventures, sole proprietorships, and acquire shares, but there are restrictions in some industries (such as agricultural land only being granted management rights); The proportion of joint venture foreign investment in the financial industry is ≤ 50%, and foreign investment is not allowed to establish wholly-owned banks and insurance companies; The proportion of media joint venture foreign investment is ≤ 15%.
3. Free Economic Zone Discounts
Enterprises within the zone are entitled to a tax exemption period of 3-10 years based on their investment amount (10 years of tax exemption for investments exceeding 10 million US dollars, with a 50% reduction in income tax for 5 years after the expiration), and import production materials for locally produced goods are exempt from tariffs.
4. Encouragement for specific industries
Encourage and support many industries such as wireless electronics, computer accessories, light industry, silk products, etc., and exempt them from corporate profit tax, property tax, social infrastructure construction tax, etc.
5. Land use discounts
Enterprises with a foreign investment ratio of over 33%, whose investment does not involve sovereign guarantees, can receive land tax exemptions if at least 50% of the tax reduction amount is used for reinvestment activities.
6. Key Points for the Revision of the New Investment Law in 2025
The newly revised version of the Investment and Investment Activities Law of the Republic of Uzbekistan, passed by the Uzbekistan Parliament on January 23, 2025, further improves the investment environment in Uzbekistan and aligns its investment legal system with international standards. Its main content includes:
Investment protection: incorporating the "Sarini principle" and other measures to safeguard the rights and interests of foreign investment and reduce administrative intervention.
Shareholding relaxation: The minimum shareholding ratio for foreign investment in joint ventures has been reduced from 15% to 10%.
Equity equality: Foreign and local enterprises are treated equally, and priority areas are exempt from property tax, equipment import tariffs, etc.
03
Key investment areas: Seven golden tracks for Chinese enterprises
YINGHE CHUHAI
1. Mining development: value reconstruction of resource endowment
The total value of Uzbekistan's mineral resources is approximately $3.5 trillion, with gold reserves of 3350 tons (ranked fourth in the world) and uranium reserves of 185800 tons (ranked seventh in the world). The Mineral Resources Law of 2023 allows foreign investment to hold up to 70% of shares in uranium and rare earth projects, and implements a gradient preferential treatment of "50% reduction in the first 5 years and 25% reduction in the second 5 years" for corporate income tax. Equipment imports are exempt from tariffs.
2. Automotive manufacturing: a production capacity springboard for the Eurasian market
Uzbekistan is the earliest automobile producing country in Central Asia, with existing brands such as Chevrolet and Lavo. In recent years, Chery and BYD have been assembled using SKD technology, and their products have been exported to many neighboring countries, serving as a production capacity springboard for Chinese investment to radiate to Europe and Asia.
3. Textile Industry: Vertical Integration of Value Chain
Uzbekistan is the sixth largest cotton producing country in the world (producing 3.7 million tons of cotton in 2023), with over 8000 textile enterprises concentrated in Tashkent and other places. Uzbekistan's textile industry is transitioning from exporting raw materials to manufacturing finished products.
4. Infrastructure: a super project for regional connectivity
The "2022-2026 Transportation Development Strategy" plans to invest over 30 billion US dollars, with key projects including the China Kyrgyzstan Uzbekistan Railway (with a capacity of 20 million tons per year) and the Tashkent Smart Transportation System (with a budget of 4.7 billion US dollars). PPP projects are exempt from corporate income tax for the first 5 years, equipment import tariffs are fully exempted, strategic projects can receive a 50% reduction in land leasing fees, and the AIIB's $2 billion fund will prioritize supporting projects in Ukraine (with interest rates 2-3 percentage points lower than commercial loans).
5. Digital Economy: Market Dividend in Transformation
Digital transformation has become an important direction of Uzbekistan's national development. The "2030 Strategy for Digital Uzbekistan" aims to increase the Internet access rate from 85% to 100%, including plans for optical fiber construction and "one million programmers". The pragmatic cooperation between China and Ukraine in the field of digital economy mainly focuses on the telecommunications and information and communication technology sectors, and the main cooperative enterprises with Ukraine include Huawei and ZTE.
6. Green Economy: The Engine of Sustainable Development
Uzbekistan attaches great importance to green development in the energy sector. Ukraine allows 100% foreign ownership of new energy enterprises, extends the lease term of project land to 30 years, grants 10-year corporate income tax reduction for photovoltaic/wind power projects, and exempts import tariffs on environmental protection equipment. China Ukraine cooperation focuses on the development of new energy vehicles and clean energy.
04
Free Economic Zones: A "Super Springboard" for Foreign Investment Landing
YINGHE CHUHAI
The Uzbekistan government regards the Free Economic Zone as an important platform for attracting investment, and implements special customs, taxation, citizen entry and exit, and residence systems within the Free Economic Zone. Currently, the Ukrainian Free Economic Zones are spread across various provinces and cities in China. The four more mature Free Economic Zones are as follows:
1. Navoi Free Economic Zone (established in 2008)
Located in the central state of Navoi, with an area of 110000 square kilometers and a population of 850000, it mainly introduces advanced foreign technology to produce high-tech products with international competitiveness. The operation period is 30 years, and it enjoys special customs, foreign exchange policies, and tax systems, simplifying the procedures for foreign employees' entry and exit, residence, and labor permits. Priority should be given to attracting enterprises in the fields of electronics and electrical products, precision machinery, automotive manufacturing, and components.
2. Angren Free Economic Zone (established in 2012)
Located in Tashkent Oblast, 75 kilometers away from the capital, with an area of 1634 hectares, relying on Tashkent's resource advantages, it has significant advantages in production factors, financial services, international transportation, energy supply, infrastructure and other aspects.
3. Jizak Free Economic Zone (established in 2013)
It is constructed with the participation of Chinese enterprises, focusing on agriculture and animal husbandry. The policy is the same as that of Navoi District, and there are currently Chinese enterprises such as Mingyuan Silk Road Glass Factory settling in.
4. Syr Darya Free Economic Zone (established in 2018)
The main body is Pengsheng Industrial Park (a national level overseas economic and trade cooperation zone in China), with a Chinese enterprise investment of 134 million US dollars and an area of 380 hectares, enjoying preferential policies between China and Ukraine. The Central Asia International Industrial Cooperation Center in the region is linked with Kazakhstan, and enterprises enjoy specific tax, customs and other preferential policies for a period of 30 years
05
Conclusion
YINGHE CHUHAI
Uzbekistan is rising as the most attractive investment destination in Central Asia with its bold economic reforms and sustained policy dividends. Chinese enterprises need to take the "the Belt and Road" cooperation as an opportunity to deeply participate in Uzbekistan's industrial upgrading and green transformation, seize the first opportunity in this "new blue ocean" of Central Asia through professional layout and resource integration, achieve sustainable growth, and share the dividends of regional economic prosperity.
Data source
Uzbekistan National Statistical Committee, World Bank, International Monetary Fund (IMF), United Nations Conference on Trade and Development (UNCTAD), Ministry of Commerce of China, etc.
Table of Contents
01 | | Introduction to Macro Investment Environment
02 || Introduction to Foreign Investment Dividends
03 || Key investment areas: Seven "golden tracks" for Chinese enterprises
04 || Free Economic Zone: A Super Springboard for Foreign Investment Landing
05 || Conclusion
01
Introduction to Macro Investment Environment
YINGHE CHUHAI
1. Basic information of the country
Uzbekistan is located in the hinterland of Central Asia, bordering five countries, with a land area of 448900 square kilometers. As the core hub of the ancient Silk Road, the country has a population of 36 million, of which 60% are under 30 years old, forming an abundant labor dividend. The capital city of Tashkent is currently under construction as the 'New Tashkent', with a planned area of 10000 hectares, which will become the largest smart new city in Central Asia.
Uzbekistan is connected to China's energy artery through the "Central Asia China" natural gas pipeline D line, which has an annual gas transmission capacity of 55 billion cubic meters. Uzbekistan is also a key node in the China Central Asia West Asia Economic Corridor, with transit freight volume exceeding 25 million tons in 2023.
2. Economic Growth and Industrial Structure
In 2023, Uzbekistan's total GDP reached 90.7 billion US dollars, with a growth rate of over 5.5% for three consecutive years (reaching 6.0% in 2023), ranking first among the five Central Asian countries. The industrial structure presents a "three carriage" driving pattern:
Traditional advantageous industries: mining (accounting for 12.3% of GDP), agriculture (10.8%)
Emerging growth poles: Manufacturing (21.6%), Construction (7.9%)
Modern service industry: digital economy (5.3%), tourism industry (4.1%)
02
Foreign investment dividends
YINGHE CHUHAI
Uzbekistan has introduced a series of policy dividends to attract foreign investment:
1. Tax incentives
Oil and gas purification joint ventures and non resident mining enterprises enjoy a 7-year corporate income tax exemption period; Other industries are exempt from taxes for 3/5/7 years based on investment amount (300000 to 3 million/3 to 10 million/over 10 million US dollars). Enterprises with foreign investment accounting for over 33% are exempt from tariffs for importing self use equipment, materials, etc. for 2 years.
2. Admission Policy
Foreign investment is allowed to establish joint ventures, sole proprietorships, and acquire shares, but there are restrictions in some industries (such as agricultural land only being granted management rights); The proportion of joint venture foreign investment in the financial industry is ≤ 50%, and foreign investment is not allowed to establish wholly-owned banks and insurance companies; The proportion of media joint venture foreign investment is ≤ 15%.
3. Free Economic Zone Discounts
Enterprises within the zone are entitled to a tax exemption period of 3-10 years based on their investment amount (10 years of tax exemption for investments exceeding 10 million US dollars, with a 50% reduction in income tax for 5 years after the expiration), and import production materials for locally produced goods are exempt from tariffs.
4. Encouragement for specific industries
Encourage and support many industries such as wireless electronics, computer accessories, light industry, silk products, etc., and exempt them from corporate profit tax, property tax, social infrastructure construction tax, etc.
5. Land use discounts
Enterprises with a foreign investment ratio of over 33%, whose investment does not involve sovereign guarantees, can receive land tax exemptions if at least 50% of the tax reduction amount is used for reinvestment activities.
6. Key Points for the Revision of the New Investment Law in 2025
The newly revised version of the Investment and Investment Activities Law of the Republic of Uzbekistan, passed by the Uzbekistan Parliament on January 23, 2025, further improves the investment environment in Uzbekistan and aligns its investment legal system with international standards. Its main content includes:
Investment protection: incorporating the "Sarini principle" and other measures to safeguard the rights and interests of foreign investment and reduce administrative intervention.
Shareholding relaxation: The minimum shareholding ratio for foreign investment in joint ventures has been reduced from 15% to 10%.
Equity equality: Foreign and local enterprises are treated equally, and priority areas are exempt from property tax, equipment import tariffs, etc.
03
Key investment areas: Seven golden tracks for Chinese enterprises
YINGHE CHUHAI
1. Mining development: value reconstruction of resource endowment
The total value of Uzbekistan's mineral resources is approximately $3.5 trillion, with gold reserves of 3350 tons (ranked fourth in the world) and uranium reserves of 185800 tons (ranked seventh in the world). The Mineral Resources Law of 2023 allows foreign investment to hold up to 70% of shares in uranium and rare earth projects, and implements a gradient preferential treatment of "50% reduction in the first 5 years and 25% reduction in the second 5 years" for corporate income tax. Equipment imports are exempt from tariffs.
2. Automotive manufacturing: a production capacity springboard for the Eurasian market
Uzbekistan is the earliest automobile producing country in Central Asia, with existing brands such as Chevrolet and Lavo. In recent years, Chery and BYD have been assembled using SKD technology, and their products have been exported to many neighboring countries, serving as a production capacity springboard for Chinese investment to radiate to Europe and Asia.
3. Textile Industry: Vertical Integration of Value Chain
Uzbekistan is the sixth largest cotton producing country in the world (producing 3.7 million tons of cotton in 2023), with over 8000 textile enterprises concentrated in Tashkent and other places. Uzbekistan's textile industry is transitioning from exporting raw materials to manufacturing finished products.
4. Infrastructure: a super project for regional connectivity
The "2022-2026 Transportation Development Strategy" plans to invest over 30 billion US dollars, with key projects including the China Kyrgyzstan Uzbekistan Railway (with a capacity of 20 million tons per year) and the Tashkent Smart Transportation System (with a budget of 4.7 billion US dollars). PPP projects are exempt from corporate income tax for the first 5 years, equipment import tariffs are fully exempted, strategic projects can receive a 50% reduction in land leasing fees, and the AIIB's $2 billion fund will prioritize supporting projects in Ukraine (with interest rates 2-3 percentage points lower than commercial loans).
5. Digital Economy: Market Dividend in Transformation
Digital transformation has become an important direction of Uzbekistan's national development. The "2030 Strategy for Digital Uzbekistan" aims to increase the Internet access rate from 85% to 100%, including plans for optical fiber construction and "one million programmers". The pragmatic cooperation between China and Ukraine in the field of digital economy mainly focuses on the telecommunications and information and communication technology sectors, and the main cooperative enterprises with Ukraine include Huawei and ZTE.
6. Green Economy: The Engine of Sustainable Development
Uzbekistan attaches great importance to green development in the energy sector. Ukraine allows 100% foreign ownership of new energy enterprises, extends the lease term of project land to 30 years, grants 10-year corporate income tax reduction for photovoltaic/wind power projects, and exempts import tariffs on environmental protection equipment. China Ukraine cooperation focuses on the development of new energy vehicles and clean energy.
04
Free Economic Zones: A "Super Springboard" for Foreign Investment Landing
YINGHE CHUHAI
The Uzbekistan government regards the Free Economic Zone as an important platform for attracting investment, and implements special customs, taxation, citizen entry and exit, and residence systems within the Free Economic Zone. Currently, the Ukrainian Free Economic Zones are spread across various provinces and cities in China. The four more mature Free Economic Zones are as follows:
1. Navoi Free Economic Zone (established in 2008)
Located in the central state of Navoi, with an area of 110000 square kilometers and a population of 850000, it mainly introduces advanced foreign technology to produce high-tech products with international competitiveness. The operation period is 30 years, and it enjoys special customs, foreign exchange policies, and tax systems, simplifying the procedures for foreign employees' entry and exit, residence, and labor permits. Priority should be given to attracting enterprises in the fields of electronics and electrical products, precision machinery, automotive manufacturing, and components.
2. Angren Free Economic Zone (established in 2012)
Located in Tashkent Oblast, 75 kilometers away from the capital, with an area of 1634 hectares, relying on Tashkent's resource advantages, it has significant advantages in production factors, financial services, international transportation, energy supply, infrastructure and other aspects.
3. Jizak Free Economic Zone (established in 2013)
It is constructed with the participation of Chinese enterprises, focusing on agriculture and animal husbandry. The policy is the same as that of Navoi District, and there are currently Chinese enterprises such as Mingyuan Silk Road Glass Factory settling in.
4. Syr Darya Free Economic Zone (established in 2018)
The main body is Pengsheng Industrial Park (a national level overseas economic and trade cooperation zone in China), with a Chinese enterprise investment of 134 million US dollars and an area of 380 hectares, enjoying preferential policies between China and Ukraine. The Central Asia International Industrial Cooperation Center in the region is linked with Kazakhstan, and enterprises enjoy specific tax, customs and other preferential policies for a period of 30 years
05
Conclusion
YINGHE CHUHAI
Uzbekistan is rising as the most attractive investment destination in Central Asia with its bold economic reforms and sustained policy dividends. Chinese enterprises need to take the "the Belt and Road" cooperation as an opportunity to deeply participate in Uzbekistan's industrial upgrading and green transformation, seize the first opportunity in this "new blue ocean" of Central Asia through professional layout and resource integration, achieve sustainable growth, and share the dividends of regional economic prosperity.
Data source
Uzbekistan National Statistical Committee, World Bank, International Monetary Fund (IMF), United Nations Conference on Trade and Development (UNCTAD), Ministry of Commerce of China, etc.
