Transcript ***** 1 - Amcham Uzbekistan

THE STATE COMMITTEE OF THE REPUBLIC OF UZBEKISTAN
FOR PRIVATIZATION, DEMONOPOLIZATION AND
DEVELOPMENT OF COMPETITION
INVEST IN UZBEKISTAN
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PRIVATIZATION IN UZBEKISTAN
BRIEF STATS:
 Housing Fund - fully privatized by 1993
 More than 31,000 legal entities transferred to private ownership
 A new class of owners formed = more than 2.0 million holders of shares and stakes
 Due to privatization more than 85 thousand citizens became owners of private and
small enterprises
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WHY INVEST IN UZBEKISTAN
8% GDP growth
each year over
the last decade
57th in global
prosperity index by
Legatum Institute
success stories
by global brands ,
operating in
Uzbekistan
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progressive
infrastructure and
qualified labor
in the top 10 of
“doing business”
reforms
abundant
resource base
(global top 10 reserves
in minerals and more)
lowest costs
of running a
business in
Central Asia
among top-5
fastest growing
economies in
the world
favorable
investment
climate
60+ Universities,
300K+ degree
holders per year
16 points up in
2015 Doing
business
report
SAVVY INVESTOR’S
BEST CHOICE
tax incentives
and other
preferences
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WHY INVEST IN UZBEKISTAN
Indicators of the banking sector
2015
Capital adequacy ratio
On average 23,6%
(Central bank requirement 10%, and Basel recommendation – 8%)
Liquidity ratio
On average 64,5%
(two times more than int’l requirement)
Non-performing loans
Less than 1,0% (of total loans volume)
Real GDP growth rates
9.5
State budget surplus (% of GDP)
(%, YOY)
9.0
1.1
8.5
8.1
8.3
8.2
8.0
8.1
0.1
8.0
0.5
1.0
0.2
1,1 0.4
0.4
0.3
0.2
-1.5
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
2007
2008
2009
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2010
2011
2012
2013
2014
2015*
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FOREIGN ENTERPRISES IN UZBEKISTAN
More than 5 000 enterprises with foreign capital
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ADDITIONAL STIMULI FOR INVESTORS
Payment period can be extended
for up to 24 months
Amounts paid by the Investor remain at the
purchased company
Targeted use of investments for modernization and
expansion of production
Flexible possibilities : delegating voting rights on
state shares to minority foreign investor to enable
governance and management policy decisions
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FOCUS ON CORPORATE GOVERNANCE
 Jointly with foreign experts the Corporate governance code was prepared
and adopted in Uzbekistan, based on international principles
 Transfer to IFRS and international standards of auditing was set by
legislation
 Independent directors are introduced to the boards of joint-stock companies
 Internet portal for corporate information disclosure was launched
 KPI was introduced to measure executive directors efficiency
 Foreign managers are to be attracted to senior executive positions in jointstock companies
 Scientific-educational center for corporate governance was established and
started training of executives and board members in line with advanced
standards
Starting 1 July 2016, joint stock companies in Uzbekistan are to be created with
foreign capital’s participation.
Currently, large joint-stock companies are actively developing partnerships with
foreign investors and are attracting investments.
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PROGRAM AIMED AT INCREASE OF THE PRIVATE SECTOR’S SHARE IN THE ECONOMY
On April 28, 2015 President of the Republic of Uzbekistan approved the
Program aimed at Increase of the Private Sector’s Share in the Economy,
which stipulates transition into the Private Ownership of over 1247
Enterprises and Facilities, including:
State-owned shares at 68 Enterprises offered to the Foreign Investors
State-owned Facilities and Shares at 667 Enterprises subject to be put onto
Sales for the Foreign and the Local Investors
512 State-owned Facilities offered to the Foreign and the Local Investors
at a “Zero” Purchase Price in return for the undertaken Investment
Obligations
Prices of the state-owned assets offered to foreign Investors have been
appraised by international appraisal companies
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CURRENT TREND IN PRIVATISATION
 Adopted decisions on privatization foresee that more
than 1300 enterprises and assets of the state are to be
transferred to the private sector.
 Over the last year alone, 800 assets were already
transferred to the private sector, which illustrates the
high level of demand from investors.
 Exclusive offers for foreign investors currently
encompass over 300 assets in every segment of the
economy, represented by shares of regional industry
leaders and other large companies.
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PROGRAM AIMED AT INCREASE OF THE PRIVATE SECTOR’S SHARE IN THE ECONOMY
On 25th of December, 2015 another Presidential Resolution was adopted for
joint-stock companies, operating in Uzbekistan.
The adopted act establishes, that:
starting 1 July 2016, foreign investors’ share in a joint-stock company shall
comprise at least 15% of authorized capital;
existing joint-stock companies shall ensure that by 1 July 2016, foreign
investors hold at least 15% of their authorized capital;
this requirement does not apply only to certain companies (the list is
approved by the Cabinet), which are of strategic importance (natural
monopolies, belong to mineral resources extraction and processing sector, or
render socially important services at regulated prices etc.).
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OFFERS PER INDUSTRIAL BRANCHES
Agricultural Sphere (1)
Oil and Gas Sphere (16)
Light Industry (2)
External Trade Sphere (2)
Transports Sphere (3)
STOCKS AT 68
Food Products’
Industry (15)
LARGE
Construction Materials (5)
ENTERPRISES
Chemical Industry (4)
Printing Industry (1)
Electrical Engineering (4)
Financial Institutions (4)
Other Branches’ Enterprises (8)
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Winery Plants (2)
Automotive Industry (1)
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EXCLUSIVE OFFERS FOR FOREIGN INVESTORS
Open for investment
Electrical
Engineering
Industry
Services
Constructions
sphere
and more
Chemical
Industry
IPAK “SHARK”
JSC “NavoiAzot”
Ahangaran
Shifer
JV LLC «Ipak Yo’li –
Turizm Invest»
JSC “Kokand
Superphosphate
Plant”
JSC «ONIX»
JSC «CHIRCHIC
TRANSFORMER PLANT»
JSC
“FerganaAzot”
JSC “URGENCH EXCAVATOR”
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FEATURED OFFER
Leading manufacturer of mineral fertilizers in Uzbekistan
and the Central Asia
JSC “NavoiAzot”
Offered Stocks Package: 49 percent
Characteristics
Data
Kind of Activity
Production of Mineral Fertilizers, Chemical
Agents, Small-Capacity Chemistry
Number of Personnel
10 068 persons
Territory
895,6 hectares
Net Revenues
$ 252,7 million
Production Capacity
ammonia (550 thous. tons), nitric acid (870
thous. tons), ammonia nitrate thous. tons
(950 thous. tons), other fertilizers (200 thous.
tons), chemical agents (52 thous. tons), and
other chemical products (102 thous. tons)
Market Share
80 percent
According to the Investment Program, during 2015 – 2019 at JSC “NavoiAzot” implementation
of projects for the total amount of $1,8 billion is planned
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FEATURED OFFER
Leading manufacturer of cement in Uzbekistan and the
Central Asia. Located in Navoiy Region
Offered Stocks Package: 36 percent
Characteristics
Data
Kind of Activity
Production of Cement
Number of Personnel
3 497 persons
Territory
1,3 thous. hectares
Net Revenues
$ 397,5 million
Production Capacity
3.080.000 tons
Market Share
55 percent
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FEATURED OFFER
JV LLC «Ipak Yo’li –
Turizm Invest»
One of the best hotels of Uzbekistan, located in the
center of Tashkent City
Share offered to Foreign Investors: 39 percent
Characteristics
Data
Kind of Activity
Hotel services
Number of Personnel
175 persons
Territory
11,8 thous. sq. ms
Space under the roof
20 thous. sq. ms
Net Revenues
$ 6,1 million.
Number of rooms
206, including 100 standard, 98 semi-suits, 2
suits and 1 Presidential Suit, 5 apartments
Infrastructure
Restaurant, café, confectioner's shop, four
conference-halls, banquet hall for 750 seats
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FEATURED OFFER
The largest Business Center of Uzbekistan, located in
the center of Tashkent City
Offered Stocks Package: 29.9 percent
Characteristics
Data
Kind of Activity
Lease of Office and other room spaces
Number of Personnel
70 persons
Territory
3,6 hectares
Space under the roof
8,2 thous. sq. ms
Net Revenues
$ 5,4 million
Occupancy rate
85 percent
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FEATURED OFFER
Largest Exhibition Center in Uzbekistan,
located in the Center of Tashkent City
Offered Stocks Package: 38,3 percent
Characteristics
Data
Kind of Activity
Render of services related to Exhibition Activity
Number of Personnel
309 persons
Territory
43,4 hectares
Space under the roof
28 thous. sq. ms.
Net Revenues
$ 4,2 million
Brief description
Annually holds over 50 large Exhibitions,
including the Innovations’ Fares, International
Industrial Fairs, Cooperation Exchange,
International Uzbek Cottons Fairs, ExhibitionsFairs “Uzbekistan AgroMiniTech Expo” and
“Uzbekistan AgroTechMash Expo” and others.
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FEATURED OFFER
Angren
Logistika
Markazi
One of the largest logistics hubs of Uzbekistan, located in
Tashkent Region
Offered Stocks Package: 49 percent
Characteristics
Data
Kind of Activity
Loading-unloading, transportation and
forwarding services
Number of Personnel
1604 persons
Territory
36.9 hectares
Net Revenues
$ 30,2 million
Market Share
100 percent
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FEATURED OFFER
One of the largest banks in Uzbekistan, located in Tashkent
City, possesses the developed affiliated branches in the
Regions
Offered Stocks Package: 63,1 percent
Characteristics
Data
Kind of Activity
Banking Activity
Number of Personnel
70 persons
Territory
2,9 hectares
Net Revenues
$ 62,3 million
Net Income
over $ 8,7 million
Attainments
Awarded by positive rating score by “Moody’s”,
“Standard & Poor’s” and other Agencies
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ADDITIONAL INFO ON ASSETS OFFERED FOR SALE
www.gkk.uz
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Thank You for your kindest attention!
www.gkk.uz
[email protected]
55, Uzbekistan Avenue, Tashkent, Republic of Uzbekistan, 100003
Tel:(+ 99871) 259-20-90
Fax: (+ 99871) 239-47-84
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