INVESTMENT ENVIRONMENT OF UZBEKISTAN AND PROSPECTS OF ECONOMIC COOPERATION WITH THE CHINESE PEOPLE’S REPUBLIC, AND INVESTMENT PROSPECTS OF CHINESE COMPANIES COOLABORATION IN PROJECTS IMPLEMENTATION WITHIN FIEZ “NAVOI” The Uzbekistan – Chinese Business Forum September 7, 2009 Tashkent, Uzbekistan Bakhtier M. IRMATOV Director of “Uzinfoinvest” Agency under the Ministry for Foreign Economic Relations, Investment and Trade

[2][2] The leading industrial country in CA FACTORS OF SUCCESS IN UZBEKISTAN Rich raw materials base Advantageous geographical location Transport-logistic system integrated into air and land communications of international importance Diversified industrial base Scientific and intellectual capacity of the country

[3][3] ACCESS TO RICH RAW MATERIALS BASE Uzbekistan possesses unique resources: solid raw materials, including metallic and non-metallic hydrocarbons

[4][4] ENERGY SELF-SUFFICIENCY Oil and gas Hydro energy Heat energy Electric energy Energy resources are sufficient to cover demand of the economy at least for 100 years

[5][5] ALTERNATIVE ENERGY SOURCES Alternative energy sources in Uzbekistan: solar energy wind energy biofuel solid waste recycling combustible shale

[6][6] East Asia London Paris Berlin Moscow Beijing Tokyo Seoul Singapore Jakarta Manila Bangkok Phnom Penh Muscat Cairo Abu Dhabi Doha Jerusalem Baghdad Riyadh Amman Tehran Europe South-East and South Asia Ankara Shanghai BENEFICIAL GEOGRAPHICAL LOCATION TO THE LARGEST MARKETS Minsk Kiev CIS Middle East & Africa Central Asia Astana Ashgabat Kabul Bishkek CA & Afghanistan: 90 mln. people CIS: 300 mln. people Brussels

[7][7] CIS FREE TRADE AREA 300 mln. consumers MFN Treatment with 44 countries, including Republic of Korea, EU countries, China, US, Japan BENEFICIAL TRADE CONDITIONS 12 countries

[8][8] WELL EDUCATED HUMAN RESOURCES AND HUGE INTELLECTUAL POTENTIAL 65 universities and institutions affiliates of key foreign universities: Moscow State University Westminster International University Singapore Institute of Management Development Turin Polytechnic Institute and others

[9][9] MACROECONOMIC INDICATORS GDP growth (%) Industrial production growth (%)

[10] Effective moderately rigid monetary and fiscal policy has allowed to support inflation rate at rather low level INFLATION RATE (%)

[11] FOREIGN RESERVES OF UZBEKISTAN By the end of 2008 foreign reserves could ensure imports in 22 months External debt of the country is 13.3% of GDP

[12] FOREIGN INVESTMENTS IN UZBEKISTAN Attracted 1.7 bln USD of foreign investment Attracted 1.7 bln USD of foreign investment In 2008: 423 large- scale enterprises were set in operation 423 large- scale enterprises were set in operation Growth rate of total investment – 132.7%, incl. FDI – 2.4 times Growth rate of total investment – 132.7%, incl. FDI – 2.4 times In 1H 2009:

[13] PROJECTS IMPLEMENTED IN UZBEKISTAN Production of liquid synthetic fuels from natural gas, coal, oil shale Modernization of existing TPP with ABB, Alstom, Siemens with the installation of modern steam power generation technologies Production of poly-, single crystals of silicon Production of chemical fertilizers Manufacture of automobile engines and diesel engines for agricultural machinery Manufacture of large-capacity buses and heavy trucks

[14] Gas Explored reserves – more than 2 trln m3 Extraction – about 65 bln m 3 Uzbek share in Central Asia: 40% - natural gas 40% - natural gas 55% - coal 55% - coal coal reserves – 2 bn tons coal reserves – 2 bn tons Uzbek share in Central Asia: 40% - natural gas 40% - natural gas 55% - coal 55% - coal coal reserves – 2 bn tons coal reserves – 2 bn tons Uzbek gas transportation system - 9 main gas pipes with 12 thousand km length Sector Investment Capacity USD 5 bln OIL & GAS INDUSTRY

[15] Explored Reserves USD 3.5 trln MINING & QUARRYING

[16] ELECTRICAL ENGINEERING Central Asia demand in: Refrigerators and air conditioners – 1 mln. units Washing machines and vacuum cleaners – 600 thsd. units Microwaves – 300 thsd. units Lamps – 500 mln. units USD 1 50 mln Sector Investment Capacity:

[17] CHEMICAL INDUSTRY USD 2 bln Sector Investment Capacity: Annual regional demand for soap – 130 thsd. tons, detergents – 300 thsd. tons

[18] Domestic demand for pharmaceuticals: injections – 300 mln. ampoules infusions – 50 mln. flasks biopharmaceuticals – 500 thsd. packs anticeptics – 100 thsd. flasks uncture – 1 bln. packs antibiotics – 50 mln. flasks suture – 500 thsd. r.m. syringes – 200 mln. units PHARMACEUTICAL INDUSTRY

[19] CONSTRUCTION MATERIALS Glazed tile Stone tile Ashlar Parquet ceramic tiles - 10 mln. sq. m sanitary ware - more than 160 thsd. units Annual domestic needs in USD 700 mln Sector Investment Capacity: Marble

[20] USD 300 mln Sector Investment Capacity: FRUITS-AND-VEGETABLES PROCESSING one of the largest producers of raisin and dried fruits one of the largest producers of raisin and dried fruits one of the top-five producers of tomato-paste in the world one of the top-five producers of tomato-paste in the world cultivate 10 mln tons of fruit- and-vegetables p.a. cultivate 10 mln tons of fruit- and-vegetables p.a.

[21] Total domestic demand for textiles: TEXTILE INDUSTRY Finished fabrics – 900 mln. sq. m Footwear – 170 mln. pairs Garments – 275 mln. units USD 700 mln Sector Investment Capacity:

[22] Prospective directions for joint cooperation: modeling and manufacture of men’s, women’s and children’s shoes modeling and manufacture of men’s, women’s and children’s shoes production of leather for furniture and clothes production of leather for furniture and clothes manufacture of leather accessories manufacture of leather accessories manufacture of bottom parts of shoes, insoles, etc. manufacture of bottom parts of shoes, insoles, etc. LEATHER-SHOE INDUSTRY

[23] TOURISM CAPACITY Largest tourist potential among the countries of Central Asia Ecological and sports tourism Medical and health tourism

[24] INVESTMENT PROPOSALS IN TOURISM Construction of new world-class hotels Construction of motels and camping’s recreation units along automobile roads Establishment of joint travel agencies Management of existing hotels in Samarqand, Urgench, Tashkent Tourists exchange

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