Investment activity

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FOREIGN INVESTMENTS IN UZBEKISTAN

Foreign investment activity in Uzbekistan is now regulated by a number of laws which include those concerning property, taxes, compa­nies, employment, and privatization. It is stated that foreign investors can be:

•Foreign states;

•Foreign legal entities;

•International organizations;

•Foreign sitizens;

•Uzbek citizens permanently resident abroad. Foreign investments are considered all types of assets and the at­taching thereto, including intellectual property, which are invested by foreign investors for the purpose of making a profit. Foreign investors usually get the following guarantees:

• 
  That the laws which are applied to them should be no less favour
  able than those applied to similar domestic legal entities or individuals;
  
• 
  Compensation if state agencies adopt regulations which infringe
  the rights of a foreign investor;
  
• 
  Freedom from the state interference if the foreign investor is in
  compliance with the law;
  

• 
  That the investment will not be nationalized;
  

• 
  The right to repatriate profits in hard currency or to use profits
  without restriction within Uzbekistan;
  
• 
  The right to open bank accounts in Uzbekistan without restric
  tion and the right to use the fund in such accounts to purchase hard
  currency;
  
• 
  The right to import goods for use by a company or its employ
  ees without import duty.
  

In addition, foreign investors are permitted to take out insurance. The official state insurance agency is the National Insurance Com­pany of the Republic of Uzbekistan. There are also several joint-venture insurance companies which can provide risk cover. Typical coverage will include:

• 
  War or civil disturbances;
  

• 
  Interference by state authorities in the contract between the in
  surance company and the investor;
  
• 
  Introduction of convertibility or export restrictions on national
  currency;
  

• 
  Introduction of a new, discriminatory legislation.