Uzbekistan: New Approach To Free Economic Zones In Uzbekistan

Last Updated: 14 January 2019
Article by Eldor Mannopov and Bobur Shamsiev

The "Presence of systemic problems and deficiencies" in the Free Economic Zones (the FEZ) is a major reason for the adoption of the Decree of the President of the Republic of Uzbekistan "On Measures for Further Development of the System of Coordination and Management of the Activities of the Free Economic Zones" dated December 21, 2018 (the Decree). This Decree was issued in the light of recent polls, which indicated negative attitudes of the FEZ participants. The participants claimed that the ineffectiveness of the system is hindering their businesses: particularly, long bureaucratic procedures and extremely long terms of consideration of their applications by state bodies; unclear separation of obligations, as well as a lack of infrastructure for conducting and developing business. The polls showed that only 112 companies (28 percent) out of 402 registered participants of the FEZ have started their activities.

The Decree approved new procedures for conducting activities in the FEZ, specifically:

  • From now on, a separate decision of the khokim (Mayor) of the city is not required for the provision of a land plot to the FEZ participants.
  • Exports of at least 25 percent of production by the end of the second financial year, and at least 50 percent for subsequent years became one of the conditions for the placement of projects in the FEZ.
  • FEZ directors are appointed by the administrative council with the consent of the Cabinet of Ministers. Previously, they have been appointed by the Republican Council on Coordination of the Activities of Administrative Councils of the Free Economic Zones and Small Industrial Zones (the Republican Council).

(The Republican Council is an inter-departmental body led by the Prime Minister, members of which are approved by the President of the Republic of Uzbekistan.

  • The Cabinet of Ministers will have the power to cease or stop the membership status of the FEZ members. Previously, only the Republican Council was entitled to this. We kindly remind that the cessation of the status of the FEZ member is one of the grounds for terminating investment agreements with the investors.

Decisions on the placement of projects in the territory of the FEZ will be made within 30 days which includes the process of giving an opinion (20 days) by the State Unitary Enterprise "Center for Complex Expertise and Import Contracts under the National Agency of Project Management under the President of the Republic of Uzbekistan" (the Center). The Center will also approve the list of goods of the FEZ participants subject to customs preferences, within 15 days.

The State Committee of the Republic of Uzbekistan on Investments was instructed to monitor the progress of the implementation of investment projects in the FEZ. At the same time, the Cabinet of Ministers was entrusted with the task of overseeing the activities of the administrative councils and directorates of the FEZ. Control over the implementation of these tasks is given to the departments of the adviser to the President of the Republic of Uzbekistan on the development of economic sectors, the implementation of investment and foreign trade policies. They will hear reports from the heads of the relevant departments of the Cabinet of Ministers, the State Committee of the Republic of Uzbekistan on Investments and other authorized bodies on the implementation of the tasks assigned by the Decree.

Weak development of the transport, engineering and communications infrastructure was emphasized by the Decree as one of the main reasons for the "insufficiently effective" work of the FEZ. In order to eliminate this problem, the Decree approved the "Road Map for the Construction and Repair of Roads and Water Supply and Sewerage Systems of Free Economic Zones in 2019."

The State Investment Committee was entrusted to:

  • Within a month:
    • to draft and submit a draft government decision on the approval of the Regulation on the organization of activities of the administrative councils and directorates of the FEZ to the Cabinet of Ministers;
    • to develop and implement Electronic System for the consideration of applications for the implementation of projects on the territory of the FEZ together with the Ministry for the Development of Information Technologies and Communications;
  • Within two months: to revise the land use agreements of the FEZ participants with the return of inefficiently used land
    • to revise the land use agreements of the FEZ participants with the return of inefficiently used land;
  • Before March 1, 2019
    • to make an inventory of the legislative base for the FEZ and submit to the Cabinet of Ministers a draft law "On Special Economic Zones."

The Ministry of Economy, together with other authorized bodies, will analyze the infrastructure solutions within a month and approve the network schedules of the implementation of engineering, communications and production infrastructure for each FEZ within two months, ensuring that such an implementation is synchronized with the completion of construction and commissioning of production facilities.

The Decree also provides for the adoption of a new draft regulatory act to improve the activities of Navoi Free Economic Zone.

Dentons is the world's first polycentric global law firm. A top 20 firm on the Acritas 2015 Global Elite Brand Index, the Firm is committed to challenging the status quo in delivering consistent and uncompromising quality and value in new and inventive ways. Driven to provide clients a competitive edge, and connected to the communities where its clients want to do business, Dentons knows that understanding local cultures is crucial to successfully completing a deal, resolving a dispute or solving a business challenge. Now the world's largest law firm, Dentons' global team builds agile, tailored solutions to meet the local, national and global needs of private and public clients of any size in more than 125 locations serving 50-plus countries.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

Some comments from our readers…
“The articles are extremely timely and highly applicable”
“I often find critical information not available elsewhere”
“As in-house counsel, Mondaq’s service is of great value”

Related Topics
Related Articles
Up-coming Events Search
Font Size:
Mondaq on Twitter
Mondaq Free Registration
Gain access to Mondaq global archive of over 375,000 articles covering 200 countries with a personalised News Alert and automatic login on this device.
Mondaq News Alert (some suggested topics and region)
Select Topics
Registration (please scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of

To Use you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.


The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.


Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions