News

The session was dedicated to «New Tashkent» project, which was presented as part of UzBuild 2024 

During the meeting the members of The AmCham Real Estate Committee, such as, ADUI, EY, Iteca Exhibitions, KPMG Uzbekistan, Zarbuloq Engineering, Bureau Veritas Tashkent LLC, UzOman Investment, Exadel, Korzinka, CMWP discussed Initiatives and the possibility of creating a consortium to support the “New Tashkent” project. Additionally, the chair of the committee proposed recommendations on solving the systemic problems of foreign investors in Uzbekistan, agenda for the next meeting and future activities of the RE Committee in 2024.

For more information about The “New Tashkent” project, please, visit: https://uzbuild.uz/en/news/ shavkat-mirziyoyev-lays-foundation-stone-for-construction-of-new-tashkent-city

Join AmCham Uzbekistan to participate in the activities of the Real Estate Committe! https://amcham.uz/

Key notes:

• Uzbekistan’s economy resilient in 2023, with 6% GDP growth driven by fiscal expansion and exports; 2024 growth projected above 5% despite the need for fiscal consolidation.

• In 2024, inflation expected above CBU 5% target, with persistent pressures from administered energy price hikes, requiring ongoing tight monetary policy.

• Current Account Deficit to increase in 2024, driven by strong imports and declining remittances; 2023 deficit at 4.7% of GDP, rising modestly to 5.2% in 2024, with comfortable international reserves.

• In 2023, fiscal deficit widened to 5.5% of GDP, exceeding 3% target; 2024 sees anticipated consolidation with the government aiming for 4% deficit, improving to 3% in 2025.

• Credit activity remains high in 2024 despite tight monetary policy; 2023 credit growth exceeded 23%, with household loans up 47%, and business loans up 12%; macro-prudential tools to moderate credit growth in 2024.

• While the balance of risks has improved, it remains tilted to the downside.

• Structural reforms key for resilience and growth in the near and long terms.

 

Key notes:

1. Economic Growth in Central Asia: 

   – Most Central Asian economies experienced acceleration in 2023.

   – Forecasted to maintain strong growth trajectory in 2024.

2. Sectoral Expansion in Uzbekistan:

   – All key sectors expanded, with services leading.

   – Trade and hospitality sectors grew by 10% and 12%, respectively.

   – ICT sector grew considerably by 24.3% year-on-year.

3. Inflation Trends and Monetary Policy:

   – Inflation is decreasing due to tight monetary policy.

   – Regulators are cautious about easing policy due to pro-inflationary risks.

4. Pro-Inflationary Risks:

   – Escalating global conflicts may spike transportation, energy, and food prices.

   – Some countries have pro-cyclical fiscal policies.

   – Planned tariff adjustments may contribute to inflation.

5. Resilience in Borrowing Costs:

   – Central Asian borrowing costs have decreased as FED and ECB rates peak.

6. Public Finances:

   – Fiscal deficit reached 5.5% in 2023 but remains sustainable.

   – Uzbekistan’s public debt level is relatively low and expected to decline further in 2024.

   – Government actions support fiscal consolidation.

   – Increase in electricity tariffs aimed at reducing government subsidies.

   – Positive outlook by Fitch on Uzbekistan’s Long-Term Foreign-Currency Issuer Default Rating (IDR) with a Stable Outlook.

The panel of esteemed economists from International Finance Institutions (IFIs) presented their institutions projections on Uzbekistan’s economic growth in 2024.

“We have been the most optimistic of IFIS in terms of GDP gtowth”,- started his presentation Eric Livny, Regional Lead Economist, EBRD.

“Uzbekistan has achieved  remarkable progress in poverty reduction ( 11%) if translated to people it is 1 mln people”, – Pinar Yasar, Senior Country Economist, The World Bank

“We will be realising new state of data, more comprehensive, longterm and medium term projections for all Central Asia countries”, – Koba Gvenetadze, Resident Representative, IMF

“Uzbekistan needs to adopt a consolidated green development policy to build up its competitive edge for forthcoming green economic landscape internationally and domestically”, – Begzod Djalilov, Senior Economics Officer, ADB

Long awaited panel discussion was attended by over 70 participants- members of the Chamber, diplomatic corps and international organizations of Uzbekistan.

Stay tuned for each panelists presentation delails.

Foreign Investors Council and American Chamber of Commerce in Uzbekistan Announce Strategic Collaboration

Foreign Investors Council (FIC) and the American Chamber of Commerce in Uzbekistan (AmCham Uzbekistan) are thrilled to announce a strategic partnership aimed at fostering economic growth, investment opportunities between Uzbekistan and the United States.

This collaboration marks a significant milestone in strengthening the ties between the business communities of Uzbekistan and the United States.

Key objectives of the partnership include:

1. Investment Promotion: The FIC and AmCham Uzbekistan will work collaboratively to promote investment opportunities in Uzbekistan to the American business community, fostering economic development and creating mutually beneficial partnerships.
2. Business Networking: The collaboration aims to provide a platform for business networking, knowledge exchange, and the establishment of strategic alliances between Uzbek and American companies.
3. Policy Advocacy: The organizations will jointly advocate for policies that support a conducive business environment, regulatory transparency, and fair-trade practices to enhance economic cooperation.
4. Educational Initiatives: Both entities will engage in educational initiatives, workshops, and seminars to facilitate a better understanding of the business landscapes in Uzbekistan and the United States.

Mr. Kholjigitov, Head of the Secretariat of the Foreign Investors Council, expressed his enthusiasm for the collaboration, stating, “This partnership aligns with our vision of creating a vibrant and investor-friendly ecosystem in Uzbekistan. We look forward to leveraging the expertise of the American Chamber of Commerce to further enhance our efforts in promoting economic growth and facilitating investments.”

Mr. Khalilov, President of AmCham Uzbekistan, echoed these sentiments, saying, “We believe that this collaboration will open new avenues for American businesses to explore the dynamic opportunities present in Uzbekistan. By working together, we can contribute to the prosperity of both nations.”

The partnership between FIC and AmCham in Uzbekistan represents a powerful alliance that is set to drive economic development, promote cross-cultural understanding, and create a foundation for enduring business relationships.

For more information, please visit investorscouncil.uz and amcham.uz.

AmCham, in collaboration with the USAID Uzbekistan and U.S. International Development Finance Corporation (DFC), convened its monthly meeting on February 20th.

The speaker of the month Tim Sherwood, Director of Investments, DFC presented the role and investment opportunities of the U.S International Development Finance Corporation.

The speaker covered the following topics:

What are the DFC Financing Options:

• Debt Financing 
• Equity Investment
• Feasibility Studies 
• Investment Funds 
• Political Risk Insurance 
• Technical Assistance

Who is eligible to apply for DFC Direct Loans:

• Private sector companies, banks, financial intermediaries, private equity/debt funds 
• >50% owned by private sector company 

What are the terms?

• Loans from ~$1M up to $100m  
• Tenors from 5 to 15 years 
• Fixed rate or variable rate (UST + credit spread) 
• Primarily a U.S. dollar lender with limited local currency solutions 

On September 22, 2023 The American Chamber of Commerce in Uzbekistan and the UN Global Compact in Central Asia, in partnership with EY, PWC, and KPMG held the high-level event “ESG and Capital Markets: attracting financing via best ESG practices” which marked the beginning of a series of 8 workshops aimed at promoting sustainable development, corporate social responsibility, and environmental, social, and governance practices among companies operating in Uzbekistan.

The Forum was opened with welcoming remarks by Consuelo Vidal Bruce, United Nations Resident Coordinator a.i. in Uzbekistan and Oybek Khalilov, AmCham Uzbekistan President, who both noted the importance of private sector participation in the integration of ESG practices.

The forum was followed by a panel discussion with the participation of such prominent experts as Nodir Khusanov, First Deputy Director of the States Assets Management Agency, Gabit Musrepov from KPMG, Almaz Sadykov from PwC and Tatiana Miroshnichenko from EY, who shared their valuable insights and knowledge on the topic of ESG.

This event signals a significant step towards transforming Uzbekistan’s business landscape into a more resilient, sustainable, and prosperous one. By encouraging the adoption of ESG practices that align with global sustainability efforts, AmCham, the UN Global Compact, and their partners are poised to usher in a new era of responsible business practices in Uzbekistan.

On June 4-6, the Certified Trade Mission took place in Uzbekistan, where U.S. companies came to strengthen their partnership with Uzbek businesses and the government. The mission was organized by AmCham Uzbekistan, the U.S. Commercial Service, the U.S. Embassy of Uzbekistan, and sponsored by the Investment Promotion Agency of Uzbekistan. 

The Certified Trade Mission brought together a delegation of 7 U.S. companies from a variety of industries, including technology, engineering, power, and human infrastructure. 

During the mission, the U.S. delegation met with Uzbekistan senior government officials and business leaders to discuss opportunities for increased trade and investment between the two countries. The delegation also participated in briefings by the U.S. Embassy and the Uzbekistan government, B2B and B2G meetings, an Evening Reception at U.S. Ambassador Jonathan Henick’s Residence, and Business Roundtable with AmCham Uzbekistan members. 

Some of the highlights of the mission include the meeting where representatives of the Ministry of Digital Technologies and IT Park met with SAS (Statistical Analysis System) Senior Director of Customer Service Hamid Haktan Ishchi. The parties discussed the prospects for cooperation in the development of artificial intelligence, the creation of new jobs, and the possibility of opening a regional representative office of SAS in Uzbekistan. 

Overall, the Certified Trade Mission was seen as a success by both U.S. and Uzbekistan officials. 

As a part of Regional AmCham Initiative supported by FGI Project, USAID we organized the “Capital Markets” Panel on May 8th, 2023.
– 60+ private sector representatives of Uzbekistan 
– Online participants from Kyrgyzstan, Tajikistan, and Turkmenistan joined this historic event. 
 Key industry experts discussed the state of the Capital Markets in Uzbekistan including challenges, opportunities, legal framework, and role of the regulator. 
-Victor Moiseev, investment director of UzDIF
– Robert Jensen, managing partner of Mosaic Financial
– Timur Rakhmanov, director general of Abu-Dhabi Uzbekistan Investment 
– Marina Guledani, founding partner of CFS Legal Guledani & Partners
Participants from the private sector joined vivid discussion that followed.

American Chamber of Commerce in Uzbekistan held the 2023 Annual General Assembly that showed a high level of membership involvement.

✔️50 Voting Members took part in the Board of Directors Elections for 2023.

Voting Members of AmCham Uzbekistan elected the following Board of Directors:

1. Oybek Khalilov, Mosaic Insurance
2. Tetrashvili Nukri, TBC UZ
3. Abdulkhamid Muminov, PwC Uzbekistan
4. Eleanor Kramers, Montfort Eurasia
5. Puneet Tandon, Hyatt Regency Tashkent
6. Serkan Dilek , The Coca-Cola Company
7. Louie Manev , GM Uzbekistan
8. Vaclav Harant, Air Products Central Asia LLC
9. Shameka Fernander, Mosaic Financials

Hugo Minderhoud, Senior Advisor to the BOD

▶️Tatyana Bystrushkina, Executive Director of AmCham Uzbekistan, presented the results and achievements of 2022, membership statistics and highlights of the chamber’s recent activities.
▶️Abdulkhamid Muminov, Treasurer of AmCham Uzbekistan, presented the chamber’s annual financial report.
▶️Chairs of the committees wrapped up the results of their annual activity and shared the projects set for the next year.

In addition to BOD elections, Members voted to amend the bylaws proposed at the initiative of the Membership Committee.