Navoi FEZ expecting European investments in textile, processing of agricultural goods, basalt ore (Exclusive)
Baku, Azerbaijan, June 12
By Fikret Dolukhanov – Trend:
About 25 percent of all goods produced in the Navoi Free Economic Zone (FEZ) are currently being exported, the directorate of the FEZ told Trend.
Geography of supplies currently includes such countries as Kazakhstan, Russia (car parts), Afghanistan (detergents), Turkey (cables) and so on, with the leader in terms of export volume being the Green Line Profile (BENKAM) company, whose products are supplied to Germany, Canada, etc.
As of today, there are 22 enterprises operating at the Navoi FEZ, carrying out activities in various spheres.
"The directorate of the FEZ is acting as an initiator of attracting foreign investors. We hold presentations for visitors, we promote the Navoi FEZ through various media and social networks. We conduct offline presentations in China and South Korea, organize various business forums, conferences, we send letters directly to large companies and embassies of countries," the directorate said.
According to the concept, high-tech projects of any industries whose products are exported can be opened at the FEZ. At the same time, the directorate added that they would like to see European investors in such industries as textile, deep processing of agricultural products and processing of basalt ore.
In addition to European investors, Azerbaijani companies are also showing considerable interest in the FEZ.
"In 2018, an Azerbaijani delegation on air transportation visited the free economic zone. Several enterprises and private entrepreneurs from Azerbaijan participated in the recent business forum on May 12, among which was the Matanat-A company, for example," the management of the FEZ said.
The directorate concluded that although contribution of the Navoi FEZ to the economy of Uzbekistan is currently not so significant, there are great plans for 2018-2019.
The Navoi Free Economic zone was established on Dec. 2, 2008 by the decree of the president of Uzbekistan. The total area of the FEZ is 564 hectares, with the production area being 364 hectares.
Natural gas, electricity, drinking water, sewerage and irrigation water, are connected directly to the enterprises.
The FEZ is located near the Navoi International Airport, which serves 30 flights a week, with 300 tons of cargo per day at the first stage and 100 tons per day at the second stage.
The Karmana Logistics Center Next is also located near to the Navoi FEZ. The center has a capacity of unloading 50 containers per day.
Investors are granted a wide range of benefits and preferences in the FEZ. Depending on the volume of investments, investors are exempted for different periods from payment of land tax, profit tax, corporate property tax, tax on improvement and development of social infrastructure, single tax payment for microfirms and small enterprises, as well as mandatory contributions to state trust funds.
With investments of $300,000 to $3 million, an investor will receive benefits for three years, with $3 to $5 million – for five years, with $5 to $10 million – for seven years, and with over $10 million – for 10 years.
In addition, investors will be freed for the entire period of activity of the FEZ from payment of customs duties for imported raw materials and components used for production of goods aimed at export.
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