The Uzbekistan – Chinese Business Forum September 7, 2009 Tashkent, Uzbekistan Bakhtier M. IRMATOV

1. INVESTMENT ENVIRONMENT OF UZBEKISTAN AND PROSPECTS OF ECONOMIC COOPERATION WITHTHE CHINESE PEOPLE’S REPUBLIC, AND INVESTMENT PROSPECTS OF CHINESE COMPANIES COOLABORATION IN PROJECTS IMPLEMENTATION WITHIN FIEZ “NAVOI” The Uzbekistan – Chinese Business Forum September 7, 2009Tashkent, Uzbekistan Bakhtier M. IRMATOV Director of “Uzinfoinvest” Agency under the Ministry for Foreign Economic Relations, Investment and Trade

2. FACTORS OF SUCCESS IN UZBEKISTAN The leading industrial country in CA • Rich raw materials base • Advantageous geographical location • Transport-logistic system integrated into air and land communications of international importance • Diversified industrial base • Scientific and intellectual capacity of the country

3. ACCESS TO RICH RAW MATERIALS BASE Uzbekistan possesses unique resources: • hydrocarbons • solid raw materials, including metallic and non-metallic

4. ENERGY SELF-SUFFICIENCY Heat energy Oil and gas Energy resources are sufficient to cover demand of the economy at least for 100 years Hydro energy Electric energy

5. ALTERNATIVE ENERGY SOURCES Alternative energy sources in Uzbekistan: • solar energy • wind energy • biofuel • solid waste recycling • combustible shale

6. BENEFICIAL GEOGRAPHICAL LOCATION TO THE LARGEST MARKETS CA & Afghanistan: 90 mln. people CIS: 300 mln. people CIS Europe Moscow Central Asia Minsk London Berlin Astana East Asia Kiev Brussels Paris Beijing Bishkek Ashgabat Tokyo Ankara Seoul Tehran Baghdad Kabul Jerusalem Shanghai Amman Cairo Doha Riyadh South-East and South Asia Abu Dhabi Muscat Middle East& Africa Manila Bangkok Phnom Penh Singapore Jakarta

7. BENEFICIAL TRADE CONDITIONS CIS FREE TRADE AREA MFNTreatment 12 countries 300 mln. consumers with44countries, including Republic of Korea, EU countries, China, US, Japan

8. WELL EDUCATED HUMAN RESOURCES AND HUGE INTELLECTUAL POTENTIAL • 65universities and institutions • affiliates of key foreign universities: • Moscow State University • Westminster International University • Singapore Institute of Management Development • Turin Polytechnic Institute • and others

9. MACROECONOMIC INDICATORS GDP growth (%) Industrial production growth (%)

10. INFLATION RATE (%) Effective moderately rigid monetary and fiscal policy has allowed to support inflation rate at rather low level

11. FOREIGN RESERVES OF UZBEKISTAN By the end of 2008 foreign reserves could ensure imports in 22 months External debt of the country is 13.3% of GDP

12. FOREIGN INVESTMENTS INUZBEKISTAN In 2008: • Attracted 1.7 bln USD of foreign investment • 423 large-scale enterprises were set in operation In 1H 2009: • Growth rate of total investment – 132.7%, incl. FDI – 2.4 times

13. PROJECTS IMPLEMENTED IN UZBEKISTAN • Production of liquid synthetic fuels from natural gas, coal, oil shale • Modernization of existing TPP with ABB, Alstom, Siemens with the installation of modern steam power generation technologies • Production of poly-, single crystals of silicon • Production of chemical fertilizers • Manufacture of automobile engines and diesel engines for agricultural machinery • Manufacture of large-capacity buses and heavy trucks

14. OIL & GAS INDUSTRY • Uzbek share in Central Asia: • 40% - natural gas • 55% - coal • coal reserves – 2 bn tons Gas • Explored reserves – more than 2 trln m3 • Extraction– about 65bln m3 • Uzbek gas transportation system - 9 main gas pipes with 12 thousand km length Sector Investment Capacity USD 5 bln

15. MINING & QUARRYING Explored Reserves USD 3.5 trln

16. ELECTRICAL ENGINEERING Sector Investment Capacity: USD 150mln Central Asia demand in: • Refrigerators and air conditioners – 1 mln. units • Washing machines and vacuum cleaners – 600 thsd. units • Microwaves – 300 thsd. units • Lamps – 500 mln. units

17. CHEMICAL INDUSTRY Sector Investment Capacity: USD 2bln Annual regional demand for soap – 130 thsd. tons, detergents – 300 thsd. tons

18. PHARMACEUTICAL INDUSTRY Domestic demand for pharmaceuticals: • injections – 300 mln. ampoules • infusions – 50 mln. flasks • biopharmaceuticals – 500 thsd. packs • anticeptics – 100 thsd. flasks • antibiotics – 50 mln. flasks • uncture– 1 bln. packs • suture – 500 thsd. r.m. • syringes – 200 mln. units

19. Glazed tile Ashlar Stone tile Marble Parquet CONSTRUCTION MATERIALS Sector Investment Capacity: USD 700 mln Annual domestic needs in ceramic tiles - 10 mln. sq. m sanitary ware - more than 160 thsd. units

20. FRUITS-AND-VEGETABLES PROCESSING Sector Investment Capacity: USD 300mln • one of the largestproducers of raisin and dried fruits • one of the top-five producers of tomato-paste in the world • cultivate 10 mln tons of fruit-and-vegetables p.a.

21. TEXTILE INDUSTRY Sector Investment Capacity: USD 700mln Total domestic demand for textiles: • Finished fabrics – 900 mln. sq. m • Footwear – 170 mln. pairs • Garments – 275 mln. units

22. LEATHER-SHOE INDUSTRY Prospective directions for joint cooperation: • modeling and manufacture of men’s, women’s and children’s shoes • production of leather for furniture and clothes • manufacture of leather accessories • manufacture of bottom parts of shoes, insoles, etc.

23. TOURISM CAPACITY Largest tourist potential among the countries of Central Asia Medical and health tourism Ecological and sports tourism

24. INVESTMENT PROPOSALS IN TOURISM • Construction of new world-class hotels • Construction of motels and camping’s recreation units along automobile roads • Establishment of joint travel agencies • Management of existing hotels in Samarqand, Urgench, Tashkent • Tourists exchange

25. THANK YOU!