Tuesday, April 17, 2012 -
Uzbek President Islam Karimov decreed on Friday the creation of a new special economic zone (SEZ) in the eastern industrial town of Angren.
The SEZ in Angren, like that in Navoi, will provide a tax-free environment for foreign investors in a move to encourage foreign direct investment (FDI) in Uzbekistan’s economy, still run on command-style lines with little integration into the global economy.
The creation of the Angren SEZ aims to establish “modern high-tech industries for the production of competitive domestic and global markets products with high added value.” The presidential decree said.
The SEZ also intends to improve processing of natural resources and minerals, and using Uzbekistan’s raw materials to produce high-tech products.
Tax-free benefits will last for varying periods, depending on how much foreign enterprises invest in the country. Companies investing $300,000 to $3 million will receive the benefits for three years. Investors bringing between $3 million and $10 million will have tax-free status for five years, and companies investing more than $10 million will be granted seven years without taxes.