Invest in Uzbekistan: Conference in Riga unveiled Uzbekistan’s investment potential

On April 4th, in Riga, with the support of the Investment and Development Agency of Latvia, the Embassy of Uzbekistan in Latvia, Ministry of Investment, Industry and Trade, and IT Park Uzbekistan, the “Invest in Uzbekistan conference” took place, dedicated to exploring Uzbekistan’s investment potential for Latvian companies.

More than 100 representatives from Latvian companies, engaged in business development in Europe and Latvia, participated in the event, demonstrating keen interest in the Uzbekistan market. Attendees of the conference received comprehensive insights into the attractiveness and potential of Uzbekistan’s burgeoning market, alongside elucidation on the advantages of doing business and the conducive conditions being created for investors.

The objective of the conference is to facilitate the expansion of economic and investment relations within the IT sectors of both nations, promote knowledge exchange, attract investors for the realization of novel projects and startups, and furthermore, entice foreign IT enterprises by offering tax incentives and preferences for development in Uzbekistan.

The conference commenced with opening remarks from high-ranking diplomats. Ambassador of Latvia to Uzbekistan, Reinis Trokša, expressed his support and a desire to fostering deeper collaboration between the two nations in the domains of IT and investment.

The conference accorded particular attention to the presentation of the primary socio-economic development directions of Uzbekistan. The investment potential was showcased by the Investment Promotion Agency of the Republic of Uzbekistan. Notably compelling was the presentation delivered by PricewaterhouseCoopers on the principal legal and tax aspects of conducting business in Uzbekistan.

Abdulakhad Kuchkarov, Executive Director of IT Park Uzbekistan, elaborated on the key directions of innovative development within the country. Among these, he underscored the established opportunities and favorable conditions for conducting IT-business in Uzbekistan, including tax incentives and preferences. Furthermore, detailed insights were provided regarding residency in IT Park, which grants exemption from all corporate taxes and VAT, alongside initiatives such as the Zero Risk and Regional Headquarters programs tailored for foreign IT and BPO companies seeking market entry into Uzbekistan devoid of any risks. 

Latvian companies presented their experiences regarding business operations in Uzbekistan. Specifically, a representative from SBS Logistics emphasized the development of the BPO sector in Uzbekistan and highlighted that subsequent to the relocating their support office to Uzbekistan, the company achieved a reduction in payroll expenditures exceeding two-fold.

The information technology industry in Latvia exhibits stable growth, with particular emphasis placed on collaboration in the domain of IT outsourcing, emerging as one of the most promising avenues for development. 

As of today, the export of IT services from Uzbekistan to Latvia stands at slightly over $2 million and demonstrates ongoing growth, with substantial potential for significant expansion. The principal area of activity pertains to software development.

It is crucial to note that Latvia and Uzbekistan continue to foster their bilateral relations. The visa-free regime for Latvian citizens in Uzbekistan, along with the prospects for the advancement of trade and economic cooperation between the two nations, unveil new opportunities for investors and entrepreneurs. 

The “Invest in Uzbekistan” conference in Riga is aimed at stimulating the development of information technologies in Uzbekistan, fostering investment attraction, facilitating knowledge exchange, and establishing business contacts between companies from Latvia and Uzbekistan.

This event stands as another pivotal strategic step in pursuit of the overarching goals set forth by President Shavkat Mirziyoyev, including the establishment of over 300,000 job positions for IT specialists domestically, the elevation of Uzbekistan into a global IT outsourcing hub, and the increase of the republic’s IT service exports to $5 billion by 2030. These initiatives, in turn, are poised to mitigate unemployment, foster economic expansion, and enhance the welfare of Uzbekistan’s population.