Investment Priorities
Presidential Resolution “On Investment Program of the Republic of Uzbekistan in 2008” (December 9, 2007 # PP-704) approves the limits of the 2008 capital investment to be allocated from the public budget and non-budget funds. The Resolution also approves: target programs of the 2008 investment projects which will involve resources of the Fund of Reconstruction and Development of the Republic of Uzbekistan, and foreign credits under the guarantee of the Government of the Republic, as well as the targeted list of the 2008 investment projects aimed at modernization, technical and technological reequipment. 

Privatization of Public Enterprises
Resolution “On Measures for Further Intensification of Privatization Processes and Active Attraction of Foreign Investment in 2007-2010” issued by Islam Karimov, President of the Republic of Uzbekistan, on July 20, 2007, stressed the necessity of sharp reduction of the State share in the enterprises of strategic sectors. The need to increase participation of private property in the economic development of the country was especially marked, as well as a wide attraction of direct foreign investment to such sectors. In compliance with the above, 1432 enterprises were planned for privatization before 2011, and only 45 of them would retain the public share.

According to the official information, about three hundred public enterprises were privatized in Uzbekistan in the first part of 2007 in compliance with the Resolution. More than five hundred agreements for the state property sales were concluded; the total amount of the agreements made up more than thirty eight million US Dollars.

In particular, the total amount of direct agreements with foreign investors made up more than 25,8 US Dollars. Commodity exchange operations involving foreign investments reached the amount of 4,4 million US Dollars. More than 250 enterprises and other facilities were established based on the denationalized enterprises. Majority of privatized companies belong to the oil and gas sector, social sphere of healthcare, agriculture and other branches of economy. 

As a result of above steps aimed at denationalization of enterprises, the public budget acquired additional 3,2 bln soums (more than 2,5 US Dollars).

According to the State Property Committee (information as of October 2007), privatization of almost 700 public enterprises has begun. Among them one can find UzDAEWOOAuto JSC, SAMAUTO CJSC, Kungrad alkali-works. Stocks of such companies as Uzbektelekom, Asaka Bank, Tashkent Aircraft Factory, etc. have also been offered for sales, says Novosti Uzbekistana, an independent newspaper.

The first steps have been made to privatize such chemical enterprises as Ammofos, Samarkand Chemical Plant, Kokand Phosphorous Plant, as well as Foton, Algoritm and Oniks factories, and motor and unit plants.

Timely fulfillment of foreign investors' commitments becomes the most significant factor at this stage of privatization. Investors should modernize the enterprises in which they have invested, reequip them technically and technologically and begin to manufacture competitive and exportable products.  If such commitments are not executed on time, the purchase agreements will be cancelled by the stipulated procedure.

According to the State property Committee, the current non-state sector embraces 80 per cent of the industrial sphere, 88,4 per cent of the construction industry, 96,6 per cent of the communications sector and almost 100 per cent of the trade facilities. Now the GDP share of the private sector makes up 75 per cent.
                                                                                                              
Presidential Resolution “On Measures for Further Enhancement of Capitalization of Their Participation in Investment Processes Aimed at Modernization of Economy”, adopted on July 12, 2207, allowed raising level of efforts in the area.
The document specifies priority trends of intensification and liberalization of reforms in the banking and finance sphere. The document envisages issuance of additional stocks, their placement at the stock market, increased capitalization of the banks, establishment of new modern production facilities by means of commercial bank resources, and modernization of operating enterprises, their technical and technological reequipment, and, as a result, increased output of competitive and exportable products; all this should be done to attract available cash from people, entrepreneurship entities and investors. 

The above stated will also facilitate to reduction of the extra-bank cash circulation, smooth and unconditional provision of clients with cash on their first demand, extension of the mini-bank network, increased number of bank services, improvement of the bank services quality. 

Improving Investment Attractiveness
In accordance with the Presidential Decree “On Measures for Further Intensification of Privatization Processes and Active Attraction of Foreign Investment in 2007-2010” (July 20, 2007, #PP-672), the Cabinet of Ministers adopted Resolution #192 on September 12, 2007. This Resolution modifies and amends the Procedure for compulsory sales of hard currency revenues obtained by the economic entities and Provisions on the zero redemption value competition-based sales of low-profit, unprofitable and insolvent public enterprises to investors, provided the investors will undertake the related investment liabilities.   

Insurance Rules Precised
Law #ZRU-108 (September 14, 2007) modifies and amends the Law “On Insurance Activities”. The Law specifies a comprehensive list of the insurance market participants, i.e. insurers, insurance agents, adjusters, actuaries, insurance surveyors and assistants. Their rights have been extended considerably. Thus, insurers are entitled to duly request and receive the related information and documentation from the law-enforcement bodies, courts, medical and seismological organizations and other institutions; such information and documentation will be required to determine the amounts of insurance compensations, to check compliance of the insurers with the requirements and clauses of the insurance contracts, to provide surveying and adjusting services to the foreign insurers. 

It has been stated that the initial authorized fund, in which insurance and re-insurance brokers have no right to participate, should be formed by the moment of the license issuance, and its amount should not be less than the minimum authorized fund stipulated by the law.

General clauses envisaged for the insurance activities, lists of offered hedgings and operations, rates, types and terms of insurance should not be confidential.

 (Material from published articles compiled by Uzbek A. Rustamov, General Representative, Interconcepts Inc. Translation to English: Lyubov Belokon)