Uzbekistan Athens, Greece 2-3 April, 2009

Country economic profile Largest consumer market in Central Asia with population of about 27 mln; Stable economic environment: average GDP growth of 8% in ; Growing private sector: share of SMEs in GDP increased from 30% in 2000 to 48% in 2008; Overall business environment is improving despite certain deficiencies in banking services, import regulations, access to inputs etc. Selected Human Development indicators: ▫Adult literacy rate – 96.9%; ▫GDP per capita (PPP based) – 2189 USD.

Investment sectors Agriculture and agro processing; Furniture and fittings; Transport infrastructure services; Travel and tourism services.

One of the largest agricultural producers, but only about 15% of its production is processed; Sector is largely dominated by small producers: good basis for b2b cooperation; Good opportunities for: ▫exports of fruits and vegetables (apples, grapes, tomatoes, peppers, mountain herbs etc); ▫processing of agricultural products (juices, nectars, concentrates etc). ▫investments into milk and meat processing. Investment Sector Overview: Agricultural Sector

Opportunities in Agriculture Investment opportunity in juice and concentrates production: ▫Investment into creation of modern laboratory testing system in Uzbekistan. ▫Access to EU markets (supply chains) is required to support further expansion of production. Investment opportunity in milk and meat processing: ▫Investment into production of quality yogurt, cheese, ice creams, sausages etc. ▫Introducing quality brand products in the domestic market, which is currently dominated by imported goods or low quality local foods.

Investment Sector Overview: furniture production Market is highly segmented into imported luxury goods and low cost low quality goods; There is strong demand for good quality affordable goods (medium segment); There are a number of tax privileges for local production and their sales.

Opportunities in furniture sector Investments required into production of furniture and promotion of locally produced brand products; Local producers available for possible JV arrangments; Good opportunities for B2B cooperation among producers and service providers.

Transport infrastructure services 181 thousand km of developed automobile roads network in Uzbekistan; Over 700 million tons of international cargo, more than 4 million passengers annually transported via automobile roads; Transport infrastructure services are concentrated in major cities, while services along major highways are not developed.

PPP opportunities in transport infrastructure services Creation of roadside infrastructure along Great Silk Road, consisting of the following services: ▫Motel, mini market, restaurant, pharmacy, auto repair services, parking etc ▫In total 8 service points along “Tashkent-Samarkand- Bukhara-Khiva” highways are identified for development, project documentation is available; ▫Estimated budget of the project is Euro 4 mln., of which 30% is own funds of project initiators «KARVON SAROY SERVIS».

Investment Sector Overview: Travel and Tourism Samarkand, Bukhara and Khiva……etc with over 4000 historical monuments and sites; Opportunities for other types of travel and tourism such as ecotourism, mountains etc Over 2 mln visitors every year, including large number of people from Germany, France, Belgium, Japan, South Korea, Malaysia; Uzbek Airways has direct flights and good connections with all major international airports.

Opportunities in Tourism Sector Investment and partnership opportunity for creation of hotel operating company: ▫Setting up hotel operating company, possibly by entering into franchising agreement with foreign brands; ▫Creation of central reservation system (CRS) connecting to hotels, tour operators, airways, transport firms, etc ▫European partners required to support the project and its integration into international markets (hotel chains, booking systems).

Contact Info: Mr. Narzullo Oblomurodov Project Manager “Business Forum of Uzbekistan” Project UNDP / UZBEK CHAMBER of COMMERCE and INDUSTRY Tel Fax Uzbekistan