Tashkent, Uzbekistan (UzDaily.com) —  A videoconference meeting chaired by President of Uzbekistan Shavkat Mirziyoyev was held to review the work completed in 2024 and the main plans for 2025 regarding comprehensive support for entrepreneurship, as well as to engage in a dialogue with leading entrepreneurs.

“From the very first days of our large-scale reforms, I have always emphasized one point: the development of entrepreneurship is a strategic task for us. Our support, hope, and main strength lie precisely in this sector. That is why supporting entrepreneurs must become the everyday responsibility of all leaders, from central offices to the grassroots level,” the President stated at the beginning of his speech.

Special attention was given to the importance of local governors engaging more frequently with each entrepreneur, visiting businesses, and understanding their challenges.

It was also highlighted that members of the Public Council for Entrepreneurial Support have acted as a bridge between the state and businesses by putting forward specific proposals. As a result, five laws, 101 decrees, and regulations with critical importance for entrepreneurial activities were adopted this year.

The President expressed deep gratitude to the council members and, through them, to the entire business community for their active participation.

It was noted that in recent years, there has been an increase in the availability of capital within the economy, creating a strong foundation for the sustainable financing of investment projects.

Specifically, business deposits in banks have increased by 20 trillion soums, reaching 107 trillion soums. The population’s deposits have also risen by 25 trillion soums to total 105 trillion soums.

This indicates the stable development of the banking sector and growing trust in these institutions from both the population and entrepreneurs.

At the end of the year, the total volume of loans issued is expected to reach 275 trillion soums. By 2025, this figure is projected to exceed 300 trillion soums.

Special attention was given to increasing the share of loans for small businesses from the current 28% to 40%, raising the total volume to 120 trillion soums.

In response to entrepreneurs’ needs, Uzbekistan’s banks plan to attract US$6 billion from abroad by 2025 without government guarantees.

Thanks to the widespread adoption of factoring, services worth US$100 million were provided this year.

For business development, 35 trillion soums were allocated this year for the improvement of infrastructure such as roads, water supply, electricity, gas, and railways. An additional 43 trillion soums is planned for next year.

To ensure stable energy supply to enterprises, electricity production reached 82 billion kWh.

With the commissioning of new energy capacities based on "green" and advanced technologies worth US$6.3 billion, the production of electricity is expected to reach around 90 billion kWh next year.

Work in this direction will continue, with 25 projects worth US$6.4 billion planned for 2025 to create new capacities totaling 4.8 GW.

It was noted that it is time to transition to a competitive energy market. Currently, there are 24 independent electricity producers in the country. In 2025, an online wholesale electricity market will begin operations for the first time.

In the tourism sector, significant progress has been made. Thanks to investments of 6.5 trillion soums by entrepreneurs, hotels with a total capacity of 24,000 guests have been put into operation.

Next year, the number of available rooms will increase by another 30,000, with entrepreneurs ready to invest 10 trillion soums in this expansion.

In addition to the 17 large trade-tourist complexes launched this year, 25 more will be added.

An agreement has been reached to begin the construction of a large center called "Sea Breeze" in the Bostanlyk district, with an investment of US$10 billion.

Furthermore, prestigious hotel brands such as Swissôtel, Sheraton, Ritz-Carlton, Novotel, Pullman, Marriott, ibis, and Mercure, totaling 23 brands, are entering the country.

Separate Company Established for Trade Development, US$350 Million Allocated for Export Financing

Tashkent, Uzbekistan (UzDaily.uz) — A new company has been established to foster trade development, with US$350 million allocated for export financing. As a result, for every dollar allocated, entrepreneurs were able to generate US$6 in export revenue.

For the coming year, an additional US$300 million will be allocated for these purposes.

This year, entrepreneurs have acquired 3,000 state-owned properties and 4,000 hectares of land, totaling 11.5 trillion soums, to launch their businesses.

Next year, an additional 4,500 properties and 6,000 hectares of land will be offered to entrepreneurs.

The involvement of the private sector in the repair and maintenance of roads, which had long been a state monopoly, will be expanded. This year, 260 km of roads were transferred to private entrepreneurs for maintenance. Next year, this figure will increase to 3,000 km.

Under the initiative budget, 92% of road repair work was carried out by private contractors, with the goal of reaching 100% in the future.

As part of a project involving the Asian Development Bank, local contractors will fully construct 841 km of roads in 86 districts.

In the railway sector, digitalization and increased operational efficiency have led to a 40% reduction in cargo delivery time.

Importantly, due to an increase in unloading time from 2 hours to 3 days at stations, entrepreneurs save 57 billion soums annually.

The role of the private sector in the aviation industry is also growing. The number of private airlines has reached 14, with an additional 6 cargo and 16 passenger aircraft purchased.

The airports in Bukhara and Namangan have been transferred to private partnerships, and tenders for the airports in Andijan and Urgench are ongoing.

The President emphasized that to maintain the most convenient and attractive business climate in the region, a stable tax policy will continue.

In particular, despite the need to finance essential expenditures, the rates of key taxes will remain unchanged, regardless of the importance of budget revenues.

Additionally, starting from January 1, land or state-owned property will be sold without VAT, and the 10% excise tax on mobile communications will be abolished.

The collection of a doubled land tax on agricultural lands located at the city’s border will be suspended. Printing industry enterprises will receive a 5-year exemption from paying corporate income tax.

Tax Benefits Extended for IT Park Residents, Export Growth and Economic Investments Highlighted

Tashkent, Uzbekistan (UzDaily.uz) — Tax benefits for IT park residents will be extended until 2040, with similar tax relief for private schools, kindergartens, and foreign specialists lasting until 2030.

During the meeting, it was noted that Uzbekistan is nearing the final stages of joining the World Trade Organization (WTO), with agreements reached with major countries such as the United States and China.

Despite the cancellation of privileges conflicting with WTO rules, the government assured that it would continue supporting entrepreneurs and creating favorable conditions for business operations in a competitive market.

This year, solutions were found to several issues related to border crossings with neighboring countries. Specifically, border posts such as "Khonobod", "Mingtepa", and "Korasu" in Andijan, which had been closed for 13 years, as well as "Uchkurgon", closed for 8 years, have been restored. As a result, the distance for both citizens and entrepreneurs has been reduced by 100 kilometers.

In total, over the past 11 months, the number of vehicles crossing the border increased by 400,000, reaching 3 million.

Next year, additional corridors will be built at the border posts of "Gishtkuprik", "Navoi", "Dovut-ota", "Shovot", and "Gulbahor", which will increase throughput by five times.

Despite the challenging geopolitical situation, Uzbekistan’s economy has grown by 6.3%, reaching US$111 billion. Investments in industry, agriculture, and services amounted to US$38 billion, and exports exceeded US$26 billion.

During the open dialogue, many entrepreneurs expressed their readiness to take on social responsibility, providing jobs for those in need. In a short period, entrepreneurs have supported 387,000 members of poor families and 40,000 individuals with disabilities.

By the end of the year, the poverty rate is expected to decrease to 9%.

“I am confident that if we continue our cooperation based on mutual trust at this pace, we will be able to reduce this figure to 6% in the coming years without issues,” said President Shavkat Mirziyoyev.

“In this context, I sincerely thank all the entrepreneurs who, keeping their promises, are creating thousands of jobs through new capacities, introducing modern technologies, capturing new foreign markets, and making a significant contribution to the sustainable growth of our economy,” he added.

Next year, the country plans to increase GDP to US$120 billion, exports to US$30 billion, and investments to US$42 billion. The government also aims to create 5 million jobs and lift 1.5 million people out of poverty.

This year, the number of taxpayers in the private sector grew by 365,000. The next goal is to increase their income and create conditions for a decent life.

However, in the private sector, 30% of workers receive official salaries of less than 1 million soums. This issue is particularly pressing in Karakalpakstan, Kashkadarya, Samarkand, Surkhandarya, Syrdarya, and Khorezm, in sectors like textiles, construction, agriculture, trade, and food service.

To address this problem, measures of support for entrepreneurs have been developed.

Tax Benefits for Textile and Leather Industries, Support for Entrepreneurs Expanding Globally

Tashkent, Uzbekistan (UzDaily.uz) — In the textile and leather industries, companies producing finished products and paying their workers at least 2.5 million soums per month, with 15% of their employees from needy families, will receive tax benefits. These companies will pay only 1% profit tax and 1% income tax for workers, in return for employing 50,000 people from needy families.

The government is ready to extend these socially-oriented benefits to other sectors whose tax exemptions are set to expire this year.

Large state-owned companies are undergoing a transformation and are preparing to enter international financial markets. In addition to loans from banks, entrepreneurs must now adapt to international standards and attract independent resources from abroad.

Importantly, international financial organizations are ready to cooperate actively in this area.

A key step in this process will be the opening of a center that, with support from international consulting firms, will help entrepreneurs access foreign financial markets. In the coming year, at least 100 local companies will be trained on how to operate on international financial markets.

The country has also seen the rise of 142 champion entrepreneurs, who employ more than 5,000 people, have an annual revenue exceeding 1 trillion soums, and pay at least 100 billion soums in taxes. These companies have implemented advanced technologies, modern management methods, provide affordable resources, pay loans and taxes on time, and have no overdue debts.

These entrepreneurs are constantly innovating and conducting research, evolving into multi-profile corporations, and significantly contributing to the development of related industries.

President Shavkat Mirziyoyev emphasized the importance of supporting other potential entrepreneurs and increasing the number of such "champions."

These entrepreneurs can be provided with land and buildings directly, as well as state-owned enterprises for long-term management, creating beneficial cooperation in sectors such as the defense industry, drone manufacturing, IT, and artificial intelligence development.

Seven out of the ten wealthiest companies in the world are from the IT and fintech sectors. With 56% of the population under the age of 30, President Mirziyoyev noted that these figures reflect the immense potential, job opportunities, and high income prospects in these sectors.

A prime example of this is the rise of private companies like "TBC Uzbekistan" and "Uzum", which have exceeded US$1 billion in valuation, thanks to the conducive environment for rapid development of private enterprises in IT, fintech, innovation, and telecommunications.

To foster the growth of companies, even broader conditions will be created, particularly by granting permits for duty-free import of laboratory equipment and technological devices for research and development (R&D) centers.

It was also noted that expert groups should be established within the Public Council to address pressing issues such as support for IT, fintech, entrepreneurship, financing, exports, tourism, services, and tackling the shadow economy.

Over the past three years, more than 100 amendments have been made to the Customs Code. However, its provisions do not meet the requirements of the World Trade Organization or the needs of entrepreneurs. Therefore, it was emphasized that a project for a comprehensive update of the Customs Code should be developed.

The meeting stressed the importance of increasing exports and expanding beyond the domestic market. Opportunities in sectors such as textiles, electrical engineering, and food industries have not been fully utilized. Currently, cotton processing stands at 50%, raw silk at 75%, copper at 64%, and fruits and vegetables at just 16%.

Uzbekistan has over 1,000 mineral deposits with a base of more than 100 types of minerals, and confirmed reserves are estimated at nearly US$1 trillion. While production volumes are increasing annually, the share of high-tech production in industry is only 25%.

As a result, President Shavkat Mirziyoyev called for deep processing of raw materials, increased added value, and a sharp rise in exports.

Government agencies were tasked with developing a five-year program in collaboration with industry structures to organize deep processing and high-tech manufacturing in each sector.

Entrepreneurs face challenges in ensuring steady and high-quality exports of one type of product, particularly since fruits and vegetables mostly come from private plots. This results in low export income. However, there are opportunities to export fruits and vegetables worth US$3.5 billion next year.

To address this, 1 million hectares of land dedicated to fruits and vegetables were connected to 760 seed companies and 824 export firms. Additionally, a new experiment is being launched in Tashkent and Namangan regions, where land previously used for cotton and grain farming will be auctioned in large plots of up to 50 hectares and sold to professional investors for industrial plantation farming.

On these plots, it will be allowed to build refrigerators and sorting and packaging workshops of up to 2,000 square meters, using "shock" technology. Subsidies of up to 1 billion soums will also be allocated for equipment purchased for processing grown fruits and vegetables.

In his closing remarks, President Mirziyoyev addressed all entrepreneurs, saying: "I want you to always remember one thing: entrepreneurial activity in Uzbekistan has become a powerful force that cannot be reversed. No matter how great the goals and tasks we set at the state level, we rely primarily on you, our people, in their realization."

"We consider you the decisive force in the construction of the New Uzbekistan. The wealthier our entrepreneurs become, the more prosperous our people will be, and the stronger our state will be. The success of entrepreneurs is the success of our entire nation."

The President expressed his readiness to support any ideas and initiatives from entrepreneurs aimed at good causes and emphasized their importance as reliable supporters in promoting reforms and societal development.

During the meeting, reports from responsible officials were heard, as well as proposals and initiatives from entrepreneurs.