Page 840 – The Times Of Central Asia

04 Mar 2024

Central Asia, Uzbekistan, Business & Economy, Uzbekistan Business & Economy

Foreign IT Companies Earned Over $50 Million in Uzbekistan Last Year

June 27, 2024
By Times of Central Asia

Foreign IT companies who pay tax in Uzbekistan almost doubled their profits last year. That’s according to statistical data published by the Uzbek State Tax Committee. In 2023 their total profit amounted to $50.8m.

There are currently 57 foreign firms providing internet and IT services in the country. In 2023 alone the list grew by 17 — including the Singaporean company TikTok PTE LTD. TikTok has been blocked in Uzbekistan since July 2021 for violating the law on personal data, which requires that data servers must be located in Uzbekistan.

Compared to 2022, the taxes paid by foreign IT companies to the Uzbek budget increased by 56.2%. The lion’s share of payments falls on tech giants such as Facebook parent company Meta ($2.114m), Google ($1.6m), Apple ($1m) and Amazon ($176,000). Booking.com, Netflix, Xsolla, Zoom, Yandex and Adobe Systems make up the top ten.

Foreign companies providing internet services in Uzbekistan have paid taxes in the country since 2020.

Blogger and co-founder of the business publication Spot.uz Temurmalik Elmuradov notes that recently in Uzbekistan “the digital market is growing, and people’s consumer habits are changing. There are more people willing to pay for movies and TV series rather than search for them on free online [movie sites].”

In February, president Shavkat Mirziyoyev received a presentation on key strategic reforms for 2024, according to which over the past 10 years the volume of services in the telecom sector has grown 6.5 times — and the coverage of the population with mobile internet has risen to 98%.

As part of the reforms, among other things, there is a plan to give bandwidth providers direct access to the international internet channel. That means that an independent regulator of telecommunications should appear in the country by September 1. As of today, almost all Uzbek internet providers get access through the International Packet Switching Center of Uzbektelecom.

04 Mar 2024

Central Asia, Uzbekistan, Uzbekistan International Affairs, Uzbekistan Local Politics

Uzbekistan to Introduce New Visa Program for Those Looking for ‘Second Home’

June 27, 2024
By Times of Central Asia

Uzbekistan is introducing a tourist visa program called Uzbekistan Is My Second Home, enabling foreign visitors to stay in its north-western Khorezm region for up to a year without restrictions.

President Shavkat Mirziyoyev has also unveiled a three-year plan for developing the region’s tourism industry, commenting that the sector is one of Khorezm’s primary economic drivers.

In the town of Khiva, in the western part of Khorezm, authorities are planning to open new 24-hour cafes, restaurants, and grocery stores. Major Uzbek cities, including Urgench just north of Khiva, are to receive 30 billion sum (around $2.4m) in subsidies in order to lower the cost of airline tickets.

Unfortunately, several parts of Khorezm still currently lack hotels. Loans at present are offered at an 18% interest rate for a period of seven years — with a two-year grace period — for the construction of hotels and resorts to increase the number of available tourist beds.

The Khorezm region has the highest density of tourist attractions, historical sites, and architectural artifacts in all of Uzbekistan. The area is home to 254 cultural heritage monuments, which span the Neolithic era and the 19^th century. Thirty-two are holy places, 66 are sculptures, six are attractions, and 18 are archaeological.

04 Mar 2024

Central Asia, Business & Economy, Kazakhstan, Kazakhstan Business & Economy

Kazakhstan, Lithuania to Launch Joint Container Transportation Program

June 27, 2024
By Times of Central Asia

Kazakhstan and Lithuania plan to link up from afar to carry out container transportation on the Trans-Caspian International Transport Route (TCITR). The two sides agreed on the plan in Vilnius at the 14th session of the Kazakhstan-Lithuanian Intergovernmental Commission on Trade & Economic Cooperation.

“The event also included a meeting of the Kazakhstan-Lithuanian mixed commission on international road transportation with the participation of representatives of the Ministry of Transport of Kazakhstan, the Union of Transport Workers of Kazakhstan, Kazlogistics, where an agreement was reached on the quota of permits for 2024,” the press service of the Ministry of Trade and Integration of Kazakhstan said in a statement.

“We offer the Lithuanian side cooperation in launching container transportation between our countries within the framework of the Trans-Caspian International Transport Route (TCITR). In addition, taking advantage of this opportunity, we invite all Lithuanian companies to participate in the New Silk Way transport forum, which is planned to be held in October this year in Astana,” said Almaz Aisin, a representative of the Kazakh delegation.

During the talks, the Kazakh side informed its Lithuanian partners about the prospects and possible measures that may be taken for development of the TCITR — while emphasizing that in recent years the TCITR has attracted great attention from European companies.

As of October 2023, the trade turnover between Kazakhstan and Lithuania for the previous 12 months increased by 28.7% annually to $584.3m. Last year, the countries reached an agreement to increase the export potential of Kazakh products across 70 categories worth $350.5m.

04 Mar 2024

Central Asia, Tajikistan International Affairs, Tajikistan Business Economy, Tajikistan

Tajikistan Seeks EU Cooperation on Energy Projects

June 27, 2024
By Times of Central Asia

Tajikistan believes that the European Union (EU) will encourage energy projects that are being implemented in the country and throughout Central Asia to mitigate climate change. That’s the view held by Sirojiddin Mukhriddin, the head of Tajikistan’s Ministry of Foreign Affairs, expressed during a speech at the diplomatic forum “New Dynamics of Cooperation in Eurasia” in Antalya, Turkey.

“Just five percent of the nation’s current hydropower potential has been utilized up to this point. Our projects are wonderful. Among them is the Rogun HPP, one of the world’s biggest hydroelectric power stations. Of course, we also invited all of our partners to help us build these initiatives, [and] the European Union is one of them,” said Mukhriddin. The minister mentioned that the United States and the EU are funding the construction of a hydroelectric power plant in the republic’s mountainous Badakhshan autonomous region. Mukhriddin claimed that this would contribute to the energy supply for both this area and Afghanistan, a neighboring country with its own pressing electricity needs.

Mukhriddin mentioned the Sustainable Energy Connections in Central Asia project, which is being managed by the EU. “We believe that the program will fortify the institutional, legal, and regulatory framework for the region’s shift to a sustainable energy system,” the minister said. “With the help of our partners, especially the European Bank for Reconstruction and Development (EBRD) and others, we anticipate that this project will be implemented successfully,” he added.

04 Mar 2024

Central Asia, Kazakhstan, Kazakhstan International Affairs, Business & Economy, Kazakhstan Business & Economy

Qaz Steppe Innovation Hub Opens in Dubai

June 28, 2024
By Times of Central Asia

The launch of the Qaz Steppe Innovation Hub took place on March 1st at the Trade House of Kazakhstan in Dubai, UAE.

Attending the opening ceremony, Arman Shakkaliev Kazakh Minister of Trade and Integration reported, “The Qaz Steppe Innovation Hub will help promote the Kazakh IT services sector to international markets, unite the interests of business sectors in Kazakhstan and the UAE, enable the development of mutually beneficial cooperation, and increase the competitiveness of our IT companies.”

To date, the new platform has already helped present 15 Kazakh start-up projects to the Middle East market and in 2023, the export of Kazakhstani IT services reached $500 million compared to $30 million in 2020. A goal to raise the export of IT services to $1 billion by 2026 has now been set by president of Kazakhstan

According to Timur Mauleshov, co-founder of Qaz Steppe Innovation Hub, entry to UAE and Middle East markets will further spur the development of export of high-tech solutions from Kazakhstan.

“The Qaz Steppe Innovation Hub will be a unique platform for the implementation of the ambitious task set by President Kassym-Jomart Tokayev to transform Kazakhstan into an IT country. Since 2021, locally based Kazakh start-ups have attracted investments worth over $1 billion. The technological boom that is happening in the UAE today opens up new prospects for our talented specialists and interesting start-ups.”

04 Mar 2024

Central Asia, Uzbekistan, Uzbekistan Business & Economy

Uzbekneftgaz’s Gas Production Target Declines Again

June 27, 2024
By Times of Central Asia

Uzbekistan’s state-owned JSC Uzbekneftegaz plans to produce 29.3 billion cubic meters of natural gas in 2024, according to the Kun.uz website. The company’s gas-production metrics have shown declines for the past three years.

Among the geological and technical scopes of work that lie ahead for Uzbekneftgaz are 42 technological measurements, comprehensive overhauls of 81 wells, and the drilling of 95 operational production wells.

In 2021 and 2022 the company produced 33.9 billion and 32.2 billion cubic meters of natural gas respectively. That means that by the end of 2024 the company will have decreased gas production by 13.6 percent over just three years, considering the production target of 29.3 billion cubic meters this year.

Although official figures for 2023 have not yet been released, Uzbekneftgaz in 2023 twice lowered its full-year 2023 forecast for natural gas production. Initially, at the end of 2022 representatives of the company said that they expected 34.1 billion cubic meters of gas production for 2023, with 1.8 billion of those cubic meters coming from geological exploration. However, the estimate was lowered to 32.8 billion cubic meters in February 2023 and 32.3 billion cubic meters in August of last year.

According to Uzbek statistics, 53.8 billion cubic meters of gas were extracted in 2021 across the country, which then decreased to 51.7 billion cubic meters in 2022, and 46.7 billion cubic meters in 2023.