Uzbekistan Expands Network of 47 Free Economic Zones

Tashkent, Uzbekistan (UzDaily.com) — Uzbekistan aims to strengthen its position as a leading investment hub in Central Asia through the development of a network of free economic zones, said Ilzat Kasimov, Deputy Minister of Investments, Industry and Trade, during a panel discussion at the Tashkent International Investment Forum (TIIF).

According to the official, 47 free economic zones currently operate across all regions of the country. More than 1,300 investment projects are being implemented within these zones, with China leading foreign direct investment participation at around 200 projects worth approximately US$4 billion.

“The activities of all free economic zones in the country are primarily aimed at developing export potential, increasing the share of high value-added goods, creating jobs, and forming a modern industrial infrastructure,” Kasimov said.

Key incentives and benefits

Residents of free economic zones are provided with a wide package of tax and customs incentives, including zero customs duties on imported materials and raw goods not produced domestically, VAT exemptions for up to 120 days with possible extension, and exemptions from property and water taxes. Depending on the investment volume, the preferential period ranges from three to ten years.

Land plots are provided free of charge, while infrastructure is extended to zone boundaries at state expense.

Flagship complexes

Among existing facilities, Kasimov highlighted the Bukhara Free Industrial Complex covering 1,000 hectares, where companies such as Unitel, Silk Road Innovation Group and Evolution Motors are already operating. Total investments in the complex exceed US$500 million, with 800 jobs planned.

The second example is the Navoi Industrial Complex, covering 50 hectares, with residents including Union Group and Dolce East. Total investment amounts to US$55 million, with more than 200 jobs planned.

Sectoral diversification

The sectoral structure of projects in free economic zones includes construction materials production (more than 160 projects, US$1.5 billion), mechanical engineering (over 40 projects, US$1 billion), textiles (more than 90 projects, US$300 million), and the food industry (70 projects, US$500 million). Chemical, electrical engineering and pharmaceutical industries are also actively developing, along with furniture production and logistics services.

In addition to China, significant contributions come from investors from Russia (more than 30 projects, US$300 million) and Türkiye (30 projects, US$157 million). Investors are also represented from the UAE, Iran, the United Kingdom, Saudi Arabia, Kazakhstan, India and South Korea.

One-stop registration system

The procedure for obtaining free economic zone resident status consists of four stages: submission of a business plan (review within no more than 10 days), participation in a land auction (up to 15 days), company registration and lease agreement signing (3 days), and registration with tax and banking authorities. The entire process is carried out through a one-stop digital platform.

Kasimov said the ministry is finalizing a unified digital platform for all free economic zones in the country, which will integrate selection, registration and reporting procedures in electronic form.

Among the anchor international brands already operating in Uzbekistan’s free economic zones, the deputy minister named Hyundai, Kia, BYD, Chery, Haval, Coca-Cola and BSIL.

The TIIF forum is being held in Tashkent and brings together representatives of government bodies, international financial institutions and private businesses from dozens of countries.