On December 20, President of the Republic of Uzbekistan Shavkat Mirziyoyev met with active entrepreneurs of the country. End-of-year results on entrepreneurship support and plans for 2025 were discussed at the meeting in video form.
At the start of the meeting, the Head of State delivered a speech describing the main objectives and achievements:
– Entrepreneurship development – our strategic objective. Entrepreneurs are our greatest support and strength. Their support should therefore become the daily affair of all leaders – from the center down. Particularly at the local level, hokims should interact more often with entrepreneurs, visit businesses and live in their businesses. We should cherish and appreciate business representatives who are talented and have great potential. They are very valuable people for us, – emphasized Shavkat Mirziyoyev.
In this regard, the activity of the Public Council for Support of Entrepreneurship, established under the President of the Republic of Uzbekistan, was mentioned. The Council has become a bridge between the State and businesses, presenting concrete proposals. This year, 5 laws, 101 decrees and resolutions were adopted on the most pressing issues of business support.
In recent years, the economy has experienced an increase in liquidity. This laid the foundations for sustainable financing of investment projects. Funds in corporate accounts in banks increased by 20 trillion soums, reaching 107 trillion soums. The population’s deposits increased by 25,000 billion soums and amounted to 105,000 billion soums.
According to the end-of-year results, the total volume of issued loans reached 275 trillion soums. In 2025, this figure will exceed 300,000 billion soums. Particular attention will be paid to loans to small businesses: their share will increase from 28 to 40 percent, reaching 120 trillion soums.
To meet the needs of entrepreneurs, banks plan to attract $6 billion from external sources without state guarantee in 2025. Thanks to the expansion of factoring possibilities, these services were provided this year for an amount of 100 million dollars.
For the development of infrastructure – roads, water supply, electricity and gas, railways – 35 trillion soums were allocated in 2024, and next year it is planned to allocate 43 trillion soums.
To provide businesses with stable power supply, electricity generation has reached 82 billion kilowatt hours. With capacities introduced in 2024, production will increase to 90 billion kilowatt hours in 2025. In 2025, 25 projects worth $6.4 billion will add 4.8 gigawatts of additional capacity.
There are currently 24 independent power producers in the country. In 2025, an online wholesale electricity market will start operating for the first time. As an experiment, the electricity networks of the Samarkand, Jizzakh and Syrdaria regions will be transferred to private sector management.
In the tourism sector, entrepreneurs have invested 6.5 trillion soums in the construction of hotels with 24 thousand beds. In 2025, this number will increase by another 30,000. To the 17 commercial and tourist facilities commissioned this year, another 25 complexes will be added.
A separate company was created to promote trade, which allocated $350 million for export financing. For every dollar invested, entrepreneurs received $6 in export revenue. In 2024, an additional $300 million will be allocated for this purpose.
In 2024, entrepreneurs acquired 3,000 public properties and 4,000 hectares of land with a total value of 11.5 trillion soums. In 2025, 4,500 additional buildings and 6,000 hectares of land will be offered to businesses.
Private sector participation in road repair and maintenance, long a state monopoly, is expanding. In 2024, 260 kilometers of roads were handed over to contractors, and in 2025 this figure will increase to 3,000 kilometers. With support from the Asian Development Bank, 841 kilometers of roads in 86 districts will be built by local contractors.
In the rail sector, digitalization and improved operational efficiencies have reduced freight transport time by 40%. By increasing the time for free unloading of goods at stations from 2 hours to 3 days, entrepreneurs saved 57 billion soums over the year.
In the aviation sector, the number of private companies reached 14. Six more cargo planes and 16 passenger planes were put into service. Bukhara and Namangan airports have been transferred to private management and tenders are underway for Andijan and Urgench airports.
The President stressed the importance of maintaining a stable tax policy to maintain an attractive business environment. The main tax rates will remain unchanged. From January 1, 2025, state properties and land will be sold without VAT, excise taxes on mobile communications will be abolished, and the double land tax on agricultural land outside the city limits will be abolished . Publishing companies will be exempt from income tax for 5 years.
Preferences for residents of IT parks, exempting them from all kinds of taxes, will be extended until 2040. Preferences for private schools, kindergartens and foreign specialists will be valid until 2030.
Uzbekistan’s accession process to the World Trade Organization (WTO) is reaching its final stage. In this regard, privileges contrary to WTO rules are canceled. At the same time, all conditions will be created for market participants to work in a fair competitive environment.
Transport and logistics infrastructure also remains the focus of attention. Work on the “Khanabad”, “Mingtepa”, “Karasuv” and “Uchkurgan” border posts has resumed. In 2025, additional corridors will be built at the border crossings of “Gishtkuprik”, “Navoi”, “Davut-ota”, “Shavat” and “Gulbakhor”, which will increase their capacity five times.
Despite a difficult geopolitical environment, the country’s economy grew by 6.3% in 2024, reaching $111 billion. Industry, agriculture and services attracted $38 billion in investments, while exports exceeded $26 billion.
The President highlighted the key role of entrepreneurs who create jobs and reduce poverty in achieving these results, expressing his gratitude to them.
Next year, it is expected to increase GDP to $120 billion, exports to $30 billion, and investments to more than $42 billion.
During the meeting, opinions were exchanged on the measures necessary to achieve these objectives. Entrepreneurs suggested simplifying business procedures, deepening the processing of raw materials, increasing the production of high value-added products and boosting exports. After listening to the opinions expressed, the Head of State defined the corresponding measures.
Firstly, the importance of increasing the income of private sector workers was highlighted. In this regard, textile and leather companies that pay their employees a salary of at least 2.5 million soums and have at least 15 percent of employees from low-income families will benefit from tax benefits . For these companies, the tax rate on profits and on the income of their employees will be only 1 percent.
The Head of State stressed that similar social criteria for granting benefits can be applied in other sectors of the economy.
The President stressed the need for entrepreneurs not to limit themselves to bank loans, but to adapt to international standards and independently attract foreign funds. For this purpose, a center will be created, which will support entrepreneurs’ access to international financial markets with the participation of international consulting companies.
There are 142 so-called “champion” companies, with more than 5,000 employees and an annual turnover of more than 1,000 billion soums. They become multi-professional companies, contributing to the development of related industries.
To support these promising entrepreneurs and stimulate others, it is proposed to directly provide them with land and buildings, as well as transfer state-owned enterprises to long-term management.
It is known that 7 of the 10 richest companies in the world work in the field of information technology and fintech services. Additional benefits will be provided for the establishment of such companies in Uzbekistan. In particular, duty-free import of laboratory equipment and technological facilities for research and development (R&D) centers will be permitted.
Uzbekistan has about a thousand deposits with reserves of more than 100 types of minerals. In order to use them for the production of high value-added products, 400 new deposits will be auctioned in January.
Land released for cotton and grain crops will be auctioned in lots of up to 50 hectares and sold to professional investors to create industrial plantations. On plots of up to 20 hectares, it will be possible to create freezing, sorting and packaging facilities.
It is planned to develop an updated customs code, which will meet the requirements of the World Trade Organization (WTO) and modern conditions.
At the end of the meeting, the Head of State once again reaffirmed his commitment to supporting the initiatives and projects of entrepreneurs.
– The entrepreneurial movement in Uzbekistan is becoming a great force, and this process is irreversible. Whatever high goals and objectives we set for ourselves at the state level, we and our people rely, first of all, on you. The richer our entrepreneurs are, the richer our people are and the greater the power of our state will be. The success of an entrepreneur is the success of our entire nation – the President emphasized.
