Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Uzbekistan sets out an ambitious road map to becoming a key start-up hub

Uzbekistan sets out an ambitious road map to becoming a key start-up hub

In a major national event held physically in Tashkent and virtually across the country on August 20, Uzbek President Shavkat Mirziyoyev talked to around 10,000 entrepreneurs, addressing concerns and laying out plans for a root and branch reform of business and tax regulations.

The Central Asian republic has been slowly transitioning to a market economy since Mirziyoyev took power in 2016. An overhaul of economic policy has seen inflation reduced and the currency stabilised, attracting overseas investment and boosting job creation.

As a result, the number of new business owners has almost tripled, and previously established businesses have expanded across the country. Small and medium-sized enterprises (SMEs) have become a major driver behind Uzbekistan’s remarkable economic growth, which has defied the challenges of the pandemic.

SMEs already employ around 78 per cent of the nation’s workforce and contribute 57 per cent of Uzbekistan’s GDP.

“The private sector accounts for 90 percent of the jobs created annually in the country,” said Mirziyoyev, in a speech at the event. “The fact that it now employs more than five million people, mainly young people, testifies to its growing role not only in the economic, but also in the social life of the republic.”

Traditionally, the country has relied on substantial exports – particularly of cotton, gold, gas and oil – to keep the economy afloat, but Mirziyoyev's vision for the future will see a much broader diversification.

The country is moving away from the export of natural gas, for example, and there has been major investment in downstream processing intended to generate feedstock for clusters of value-adding manufacturing.

Drivers for the economy include an IT park in Tashkent, where SMEs can make use of tax breaks designed to free up capital for investment. Early-stage start-ups can also take advantage of the park’s incubator.

Education is also a key priority, and one of the challenges faced by the country is to expand the pool of talent in order to attract foreign investment.

Oiling the wheels of growth


Defying the challenges brought about by the COVID-19 pandemic, the government has continued to adopt or adapt a raft of regulations. Over the last five years, around 2,000 laws, decrees and resolutions have been drafted to help small businesses.

Strides have been made in abolishing unnecessary red tape, and procedures have been simplified. Inspections have been brought down to the minimal levels necessary, and restrictions governing currency and raw materials have been lifted.

Mirziyoyev spoke about the need to improve in seven areas: business financing; the tax system; the procedures for land acquisition; development of infrastructure; support for export companies; the transport and logistics sector and to simplify business procedures.

Matters related to business financing made up almost half the concerns of entrepreneurs invited to send in their queries. Many called for a solution to high-interest loans on prohibitively short timescales. Loans in foreign currencies were seen as particularly problematic, given the fluctuations of the exchange rate.

In order to address this, the Ministry of Finance is creating a loans system in local currency, and banks will next year receive US$600 million from the Fund for Reconstruction and Development on Market Principles.

Taxation, too, has seen some beneficial changes for those creating businesses. Among other improvements, taxable income will take expenditure into account, and the process for VAT refunds will be speeded up.

In a nod to the difficulties of the last 18 months for the hospitality sector, restaurants will be made exempt from property taxes, and hotels will see a two-year break from tourist taxes.

A major headache for any post-Soviet economy is land distribution, and various measures have been introduced to address this. The regulations around sale and purchase have been tightened, with agricultural land leased on the basis of open tender and non-agricultural land sold through auction.

Other announcements welcomed by attendees at the event included state-guaranteed provision of electricity, water, gas and road infrastructure for large projects; preferential loans for export companies; and continued subsidies for railway networks.

The conference provided a hugely successful way for business owners to communicate with those in power, and President Mirziyoyev plans to turn this into a regular event.

He has also proposed that August 20 should be named Entrepreneurs' Day.

“Together we have found practical solutions to many issues and problems,” he said. “Based on the topical issues you raised, and the specific proposals you made for their solution, we can see how the knowledge and level of our entrepreneurs have increased…today you are using completely different working methods and innovative approaches.”

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Munich Airport Reopens After Second Drone Shutdown
Pro Europe and Anti-War Babiš Poised to Return to Power After Czech Parliamentary Vote
Sean ‘Diddy’ Combs Sentenced to Fifty Months in Prison Following Prostitution Conviction
Altman Says GPT-5 Already Outpaces Him, Warns AI Could Automate 40% of Work
Russian Research Vessel 'Yantar' Tracked Mapping Europe’s Subsea Cables, Raising Security Alarms
Global Cruise Industry Posts Dramatic Comeback with 34.6 Million Passengers in 2024
U.S. Demands Brussels Scrutinize Digital Rules to Prevent Bias Against American Tech
Private Equity’s Fundraising Surge Triggers Concern of European Market Shake-Out
Tokyo’s Jimbōchō Named World’s Coolest Neighbourhood for 2025
European Officials Fear Trump May Shift Blame for Ukraine War onto EU
The Personality Rights Challenge in India’s AI Era
Italy Considers Freezing Retirement Age at 67 to Avert Scheduled Hike
Italian City to Impose Tax on Visiting Dogs Starting in 2026
Study Finds No Safe Level of Alcohol for Dementia Risk
Trump Says Ukraine Can Fully Restore Borders with NATO Backing
Europe Signals Stronger Support for Taiwan at Major Taipei Defence Show
Germany Weighs Excluding France from Key European Fighter Jet Programme
Cyberattack Disrupts Check-in and Boarding Systems at Major European Airports
Björn Borg Breaks Silence: Memoir Reveals Addiction, Shame and Cancer Battle
When Extremism Hijacks Idealism: How the Baader-Meinhof Gang Emerged and Fell
JWST Data Brings TRAPPIST-1e Closer to Earth-Like Habitability
Trump Orders $100,000 Fee on H-1B Visas and Launches ‘Gold Card’ Immigration Pathway
France’s Looming Budget Crisis and Political Fracture Raise Fears of Becoming Europe’s “Sick Man”
Three Russian MiG-31 Jets Breach Estonian Airspace in ‘Unprecedentedly Brazen’ NATO Incident
European manufacturers against ban on polluting cars: "The industry may collapse"
Turkish car manufacturer Togg Enters German Market with 5-Star Electric Sedan and SUV to Challenge European EV Brands
Christian Brueckner Released from German Prison after Serving Unrelated Sentence
World’s Longest Direct Flight China Eastern to Launch 29-Hour Shanghai–Buenos Aires Direct Flight via Auckland in December
New OpenAI Study Finds Majority of ChatGPT Use Is Personal, Not Professional
The conservative right spreads westward: a huge achievement for 'Alternative for Germany' in local elections
Pope Leo Warns of Societal Crisis Over Mega-CEO Pay, Citing Tesla’s Proposed Trillion-Dollar Package
Poland Green-Lights NATO Deployment in Response to Major Russian Drone Incursion
U.S. and China Agree on Framework to Shift TikTok to American Ownership
Le Pen Tightens the Pressure on Macron as France Edges Toward Political Breakdown
Czech Republic signs €1.34 billion contract for Leopard 2A8 main battle tanks with delivery from 2028
Penske Media Sues Google Over “AI Overviews,” Claiming It Uses Journalism Without Consent and Destroys Traffic
Indian Student Engineers Propose “Project REBIRTH” to Protect Aircraft from Crashes Using AI, Airbags and Smart Materials
One in Three Europeans Now Uses TikTok, According to the Chinese Tech Giant
Could AI Nursing Robots Help Healthcare Staffing Shortages?
NATO Deploys ‘Eastern Sentry’ After Russian Drones Violate Polish Airspace
The New Life of Novak Djokovic
German police raid AfD lawmaker’s offices in inquiry over Chinese payments
Volkswagen launches aggressive strategy to fend off Chinese challenge in Europe’s EV market
France Erupts in Mass ‘Block Everything’ Protests on New PM’s First Day
Poland Shoots Down Russian Drones in Airspace Violation During Ukraine Attack
Apple Introduces Ultra-Thin iPhone Air, Enhanced 17 Series and New Health-Focused Wearables
Macron Appoints Sébastien Lecornu as Prime Minister Amid Budget Crisis and Political Turmoil
Vatican hosts first Catholic LGBTQ pilgrimage
Apple Unveils iPhone 17 Series, iPhone Air, Apple Watch 11 and More at 'Awe Dropping' Event
France joins Eurozone’s ‘periphery’ as turmoil deepens, say investors
×