Foreign investments as a source of financing sectors of the economy Plan

Foreign investments as a source of financing sectors of the economy

Plan:

Introduction

1. 
   Foreign investments and their pros and cons
   
2. 
   National legislation regarding foreign investment
   
3. 
   Analysis of financial reports and indicators of the foreign investments
   

Conclusion

Introduction

Investments play an important role in the development of the economy. Our president, Shavkat Mirziyayev Miramanovich, is saying “Without investment, the economy will not develop” saying for not only a reason but numerous reasons. Attracting both foreign and domestic investments can increase productivity, substitute import based goods and improve life quality, create more vacancies for local people, speeds up industrial relations and develop country generally in all spheres.Reforms in Uzbekistan during the three last years, such as liberalizing the foreign currency market and establishing seven special economic zones with tax breaks for investors, has made the country a more appealing destination for international capital. According to the UNCTAD's 2020 World Investment Report, FDI inflows increased significantly in 2019 to USD 2,3 billion, compared to USD 625 million in 2018. Total FDI stock stood at USD 9.5 billion in 2019. FDI traditionally arrives from Russia, South Korea, China and Germany, but Canada recently increased its financial presence. Investments focus on the energy sector, including alternative/renewable energy in recent years.¹

Uzbekistan ranked 69th in the World Bank 2020 Doing Business, same as the previous year. The country is among the economies that improved the most across three or more Doing Business reports. The national investment promotion agency provides aid for foreign investors who seek to invest in Uzbekistan. The government seeks to attract FDI, especially in specific sectors - such as banking, energy, oil and gas, manufacturing, telecommunications, transport, and agriculture - as part of the president's large-scale privatization plan. As we have seen here, the huge part of the investments is spent on innovative industry which is correlated with telecommunications, IT industry and so on. Moreover, due to the abundant number of natural recourses, more an more investors are keen on having a modest stake in any sphere related to advanced industry such as metallurgy, gold mining, gas and rock substances.

All in all, Investments are raining over our country because of very rich natural environment and it directly has an impact to all spheres and develops infrastructure step by step.