(MENAFN- Trend News Agency) BAKU, Azerbaijan, May 30
By Ilkin Seyfaddini - Trend:
The creation of the Navoi Free Economic Zone (FEZ) in Uzbekistan gave impetus to business activity in the region, Director of Navoi FEZ Habib Abdullaev told Trend .
"The special feature of the Navoi free economic zone is that it covers the entire Navoi region, while usually, only projects physically located within the FEZ can receive resident status. In our case, FEZ can accept projects from anywhere in the region, and this is especially important for companies that are linked to sources of raw materials, such as deposits. Secondly, FEZ retains great privileges such as exemption from income tax and customs duties on raw materials and components. Finally, Navoi FEZ is strategically located in the geographical center of Uzbekistan," said Abdullaev.
He added that the largest multimodal logistics hub of Uzbekistan will start operating in Navoi FEZ this year.
"To date, 41 projects worth $202.2 million have been realized in the Navoi FEZ, and 55 projects worth $495.3 million are being implemented. In total, $298.4 million has been invested in the zone so far, and the volume of foreign direct investment is $84.8 million," noted the director.
Abdullaev added that in the near future, a number of new enterprises will built on the FEZ territory including two plants for production of hydrogen peroxide with involvement of British and Turkish investors allocating $12 million and $27 million respectively; a plant for production of float glass worth $107 million (with participation of Uzbek investor with German credit); a plant for production of ammonium sulfate under the investment of $11 million from Turkish investor; and a plant for production of composite stone and architectural products with $38 million provided by Austrian investor.
Recently, the Navoi Free Economic Zone announced commencement of Navoi Motors car manufacturing plant construction, with a designed production capacity of 30,000 cars per year.
The plant, worth $12 million, is expected to start operations activities by the end of 2020, and Austrian company Parsalpine Management GmbH is involved in the construction process, Abdullaev said.
The new plant is expected to supply vehicles primarily to the Uzbek market, while exporting about 30 percent to neighboring countries.
Navoi Free Economic Zone (the first in Uzbekistan) was established in 2008. Today, about 30 enterprises with foreign investors operate in the region, and their number is growing every year.
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