Page 18 - Theoretical and Practical Interpretation of Investment Attractiveness

Uzbekneftegaz JSC - $154.8 million (Shurtan GKM LLC - increase in production
capacity - $122.7 million);
JSC Uzeltehsanoat - $101.8 million (production of household refrigerators - $48
million);
Ministry of Defense and Security - $89.4 million (development of a broadband
network - $35.5 million);
JSC "Uzkurilishmaterialari" - $91 million.
22.1% of foreign direct investment was directed to the implementation of projects
in the field of natural gas production, 22.5% - to the production of other non-metallic mineral
products, 9.3% - to construction work.
In addition, the level of direct investment in the formation of fixed capital in the fields
of mechanical engineering, electrical engineering, metallurgy, chemistry and pharmaceuticals
with high export potential remains low. Investments and loans fell by 28 percent.
It should be noted that the continuation of current investment trends may jeopardize
the achievement of economic growth rates in 2021 (projected at 5.1%), which requires the
adoption of practical measures to improve the investment climate and increase their
efficiency. aimed at significantly increasing the volume of investments attracted to the
economy.
The main sources of investment are government external debt, funds from the Fund for
Reconstruction and Development, unsecured external loans and foreign direct investment, as
well as the ratio of commercial bank loans to GDP in 2019 amounted to 23.1 percent, and at
5
the end of 2020 this figure will be 20.1 percent of GDP .
Also, the lack of active foreign direct investment in high technology and human capital
threatens the process of achieving goals such as achieving a high level of inclusive growth
and reducing poverty in the country.
The main directions of government policy aimed at improving the investment
environment include the following:
innovation and research activities, support for first-class research centers in the field
of information technology;
6
organization of technology parks and innovation clusters ;
formation of infrastructure and financial conditions convenient for foreign
investors. Among them: the provision of land for the construction of industrial enterprises,
grants for the implementation of projects in the field of research, experimental construction
and vocational training, capital subsidies and tax incentives to cover the costs of acquiring
land, buildings and technological equipment;
investment processes and infrastructure.
The regions of Uzbekistan are distinguished by their diversity. Therefore, in order for
a potential investor to make a decision to invest, objective information about the investment
potential of each region must be available . The creation of a system for assessing the

5 https:// www .gazeta.uz/uz/2021/02/26/investments/
6
Note: Detailed information on the importance of clusters in the formation of regional infrastructure, research is reflected
in paragraph 1.4 of the monograph.
15