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* The United Arab Emirates and Uzbekistan are on agreement on the amendment of the economic cooperation agreement and a memorandum of understanding on economic, trade and investment cooperation. The amendment protocol was signed by UAE Minister of Economy Sultan Al Mansouri and Uzbek First Deputy Prime Minister and Finance Minister Rustam Azimov. The MoU was signed by Al Mansouri and Uzbek Minister of Foreign Economic Relations, Investments, and Trade Elyor Ganiyev. The protocol stipulates the addition of an article that allows for reciprocal treatment on customs fees and taxes on imports and exports from both the UAE and Uzbekistan as countries of origin. The amendment stipulates that it shall not be in conflict with any bilateral and international agreements and their pursuant stipulations. The MoU aims to boost long-term economic, trade and investment cooperation and relations between the two countries. Accordingly, the UAE and Uzbekistan will exchange data on legislations on trade, export and import, investment and economy. The two countries will additionally engage in the implementation of the current effective economic agreement signed back in March 2008 as well as in encouraging the forging of cooperation and relations between the private sectors and chambers of commerce, trade and industry.

* The Uzbek State Property Commission has decided to freeze plans to privatize key energy stations. Stakes in thermal power plants in Tashkent and Syrdarya have been up for grabs for years, but the global economic crisis has forced the government to admit that it would be tough to get an investors to pay the right valuations for the plants "We do not exclude the involvement of foreign investors in the energy sector, but now is not the best time," the State Property Committee said.

* Real gross domestic product of Uzbekistan will grow by 7% in 2009 and 2010, the International Monetary Fund said in its April World Economic Outlook. The report said the economy of Uzbekistan grew 9.5% in 2007 and 9% in 2008 respectively. Consumer prices in Uzbekistan will decrease from 12.7% in 2008 to 12.5% in 2009 and 9.5% in 2010, the report said. Uzbekistan's current account balance will decrease from 13.6% in 2008 to 7.7% and 6.8% in next two year

* General Motors Corp. is backing a move to expand the operations of an Uzbek auto venture in which it is a partner. The expansion is coming despite recent disastrous sales figures. The venture, Uz-Daewoo, has announced it will in effect divide its operations. Currently, the automaker produces cars at the Asaka plant in the Ferghana Valley’s Andijan province. Under the new production scheme, the assembly line for two models currently manufactured in Andijan will move to a site at the Chkalov Tashkent Aircraft Production Plant. The new plant is slated to produce about 15,000 cars per year and create about 1,200 new jobs, the UzReport.com website reported March 26. The struggling US automaker holds a 25% share in Uz-Daewoo; Uzavtosanoat owns the other 75%. Uzbekistan’s car market, both domestic and export, has been hit hard by sagging demand over the last year. Uzavtosanoat claims that more than 195,000 vehicles were manufactured in 2008, a 13.5% increase over output in 2007. Many of the cars produced last year went unsold, however.

In January, the Uzbek government extended a five-year tax break to domestic dealers, and in December 2008, Asia-Invest Bank, a subsidiary of the National Bank for Foreign Economic Activity of Uzbekistan in Russia, opened a $25 million credit line to Russian distributors of Uzbek vehicles to help maintain sales in 2009. However, Uzbek auto exports to Russia appear to be in freefall. Uz-Daewoo exported just 935 vehicles to Russian dealers in January, a massive 85% drop over the previous month’s total. In addition, some 15,000 unsold vehicles were returned to the Asaka car plant during the last quarter of 2008. The Asaka car plant employs more than 5,000 people.

* The Ministries of Finance of Saudi Arabia and Uzbekistan signed a credit agreement on allocation of credit for "Alat" pump station reconstruction in Bukhara region with a total value of USD 5.59 million. Minister of Finance of Saudi Arabia Ibrahim Abdel Aziz Al Assaf held negotiations in Ministry of Finance of Uzbekistan on June 4.

* An Uzbek-Korean joint venture on production of medications and medical products will be established in Navoi free industrial economic zone, Uzpharmsanoat said. South Korean investors will invest USD 2 million for the project, the Uzbek firm said.

Bukhara International Airport impressed judges with comprehensive airport reforms…

In Moscow, “Best Airport of The Year 2009” competition among the CIS countries has come to the end. About fifty participants took part in the competition and the Bukhara International Airport became the winner.
Introduction of electronic ticketing at the Bukhara International Airport, presence of a strong material base, in particular repair and increase in number of parking for planes, application of new technologies on clearing of runways of a dust and snow, expansion of a wide spectrum in airport management and improvement of quality of services to passengers - all drew the attention of the judges of competition.
There was also improvement in the financial and economic performance of the Bukhara Airport - level of profitability rose from 29.3 % to 32.6 %. Also, expansion plans of cooperating with international airports are also underway. Safety of flights tops the list of requirements for all flight maintenance programs, and charter flights are also growing steadily – all pointing to an airport working its way to make a mark internationally.

IMF's Managing Director Dominique Strauss-Kahn on Thursday praised Uzbekistan's policies as the Central Asian state's predicted economic growth of 7%, one of the world's highest amid continued global economic crisis.
"The route which is followed by the Uzbek government while being somewhat different from the policy implemented in other countries, has its own merits," Dominique Strauss-Kahn told reporters as he wrapped up his trip to the region.
While the global economic growth was set at minus 1.3 and few countries hoped to top 5%, Uzbekistan's forecast of a seven-percent growth was among the highest, the IMF chief said.
Dominique Strauss-Kahn said Uzbekistan adopted serious measures on implementation of anti-crisis programmes in the country. Financial support of Uzbek economy reached 4% of GDP, which gives its fruits.
He said IMF stands ready to support the Republic of Uzbekistan in its efforts to reduce the impact of the global crisis in the short term and strengthen the medium-term goal of sustaining higher and broad based economic growth.

Uzbekistan insurance market remains steady despite conditions of world uncertainty…

Modern conditions have significantly influenced insuring business. One of the main factors of insurance companies’ development was rise in business profitability and stability at markets. However, these processes have not become a reason to talk about a lull in the market.

The insurance market of Uzbekistan is yet another example of dynamically implemented program of the branch’s development, worked out by all parties concerned. The global economic crisis has not been a hinderance to this advancing movement forward, since the main directions in formation of a national insurance system were achievement of stable and balanced expansion of an insurance market, presenting all kinds of benefits and preferences to insurers and their companies. The Tashkent forum has once more acknowledged the high effectiveness of ongoing economic reforms in the country, including in insurance and mapped out further prospects for opening up new opportunities in the development of the branch.

The current forum was held by SAIPRO Company in assistance with the Chamber of Commerce and Industry of the Republic of Uzbekistan and the Association of Professional Participants of Insurance Market of Uzbekistan. General partner of the Forum was Kapital Sig’urta Insurance Company. Over 200 insurance specialists and experts from 15 countries took part in the forum, in particular, Uzbekistan, United Kingdom, Germany, Austria, France, Switzerland, Poland, Bulgaria, Turkey, Russia, Ukraine, Kazakhstan, Azerbaijan and others.

“The global financial crisis has not influenced much the domestic insurance market,” said Rustam Turayev, Director, Ingo-Uzbekistan Insurance Company. “We are ready for any surprises and Uzbekistan for negative effect and consequences of the crisis. Therefore, working together, I mean representatives of other economic branches too, we will achieve stability even in conditions of world uncertainty.”

South Korea is one of Uzbekistan’s largest business investor with investments exceeding US$2 billion…

The forum of business circles of Uzbekistan and South Korea was held in Tashkent on 11 June. The event was organized by the Ministry of Foreign Economic Relations, Investments and Trade of Uzbekistan (MFERIT) and the subcommittee of the National assembly of South Korea.

The participants of the forum considered issues of development of trade and economic, as well as investment cooperation between the two states. In particular, the discussions covered sectors of banking and finance, oil and gas, construction, machinery building, air transportation, agriculture, mineral resources, healthcare, electronics, transport and logistics, IT and telecommunications, etc.

After the forum the cooperation exchange with participation of companies and enterprises of Uzbekistan and South Korean businessmen was held. Its participants learnt about the potential of their partners and exchanged views on cooperation and implementation of new projects.

South Korea is one of the largest investment partners of Uzbekistan. The volume of investments from this country in the Uzbek economy has exceeded US$2 billion.

The trade turnover in 2008 comprised more than US$1 billion. More than 350 Uzbek-South Korean joint ventures operate in Uzbekistan, along with 91 representative offices of South Korean companies.

In the framework of the forum, the foreign businessmen visited the cities of Navoi and Samarkand. As reported earlier, South Korea is actively participating in the creation of the free industrial zone in Navoi region of Uzbekistan.