INFORMATION DIGEST OF PRESS OF UZBEKISTAN # 114 June 10, 2016

posted 18 Jun 2016, 12:57 by Webmaster Ambasciata
ECONOMY
Domestic Footwear to Expand Exports
The effect of practical cooperation

INVESTMENTS
Volume of deals at RSE "Toshkent" amounts to 14.1 billion soums

SOCIETY
Uzbekistan seize 2.51 tonnes of drugs in 2015

economy

Domestic Footwear to Expand Exports

O’zbekcharmpoyabzali Association, which incorporates domestic enterprises of leather and shoe industry, is planning to increase exports by 14.1 times this year.

The goal will be achieved through a package of measures to ensure sustainable production growth by successive modernization of the industry, re-equipment of enterprises and technological renovation of operating facilities.

Foreign investments in local enterprises would notably enhance the technical capacity of the industry, enable them to purchase new equipment, which in turn will help to scale up the production volume and expand the product range.

Aiming at drawing foreign investments and establishing up-to-date enterprises, O’zbekcharmpoyabzali Association in cooperation with provincial authorities developed and approved the regional program of industry development for 2020, which comprises 82 projects on the establishment of modern manufactures, upgrade and expansion of operating enterprises.

For example, 48 out of 82 projects are aimed at establishment of new businesses, and 34 projects envisage modernization. The total investment in the sector will exceed $114 million. The production volumes will grow to $476.5 million by 2020, which is 2.8 times more against 2015. Along with that, it is planned to increase exports to $301.2 million, and create 3,240 new jobs.

In pursuance of increasing export capacity, the Association is planning to open 12 new trade houses abroad this year.

Moscow, with as many as five trade houses, will lead in this direction. Three trade houses will be launched in the white stone city in the third quarter of 2016. Two of them will specialize in shoes sales, and the third one will be an exposition center of leather and footwear products by Uzbek manufacturers. Two more houses will open later in 2016 to promote sports shoes.

Kazakhstan ranks the second after Russia with four trade houses. It is followed by Turkey, South Korea and China.

In the first quarter of 2016, Uzbek leather and shoe manufacturers exported products totaling $22.3 million, with 4.3 percent increase YOY. They have planned to increase exports to a total of $190 million by the end of the current year.

By 2020, Uzbekistan will expand the geography of exports to 16 countries. This year, delivery contracts have been already signed with 11 countries - Singapore, Ukraine, Czech Republic, Kyrgyzstan, India and Pakistan, in addition to the abovementioned countries.

(Source: «Uzbekistan Today» newspaper)

 

The effect of practical cooperation

The systemic and consistent realization of prioritized tasks set in the National Economic Program for 2016 has allowed the country to attain a steady rate of economic growth and macroeconomic stability in the first quarter of the current year.

The great strides made by the country were graphically demonstrated at a regional industrial fair and a cooperation exchange held in the town of Bukhara not long ago. Some 250 organizations and enterprises with various forms of property that took part in the event exhibited a whole spectrum of commodities and services.

Traditionally, companies and enterprises operating in the light industry have a broad representation at the regional industrial fair and cooperation exchange. This year, their number exceeded 20. All the participants showed off not only the results of their work, but also their export potentialities.

Upwards of 1,450 product categories were placed on view in the exhibition halls. Among them were yarn, furniture, carpets, clothes, detergents, heating systems and others. There were lots of completely new commodity groups, including children’s footwear, medicines, equipment for poultry and rabbit-breeding farms etc. According to many participants, a mechanism of the economy’s further development is perfected in the course of economic reforms carried out on the initiative of the Uzbek President. The International Industrial Fair and Cooperative Exchange convened in the space of a decade already proves to be a crucial factor behind the development of mutually beneficial ties between enterprises, the formation of an extensive product portfolio  and the stimulation of production of new commodity categories.

As a consequence, the scope of cooperation between large-scale industrial enterprises and entrepreneurs has been expanding from year to year. The same is true of the production volumes of competitive, import-substituting and export-oriented output, spare parts and components made of local raw materials.

Noteworthy is the fact that manufacturers from different regions and provinces of Uzbekistan took part in the event. In addition, a broad range of services were demonstrated by banks, insurance agencies and other institutions of financial infrastructure. The exhibition provided an optimal framework for sharing experience and giving good pieces of professional advice.

As many as 10 enterprises based in Bukhara province offered building materials. The biggest interest on the part of participators was shown for the output of Knauf, a firm operating in the Kagan district. A given enterprise specializes in the production of decoration materials and gypsum board. In the words of its representatives, during the exhibition they managed to sign a number of new contracts for the delivery of their produce.

At the exhibition, much attention was devoted to a stand of OOO Bukhoro Rezinotechnika, a company situated in the Karaulbazar district. Shukhrat Temirov, director of this limited liability company, pointed out, in particular, that a list of its business partners encompasses tens of enterprises, organizations and entrepreneurs operating in the Republic’s oil and gas industry.

On the whole, the Industrial Fair and Cooperation Exchange provided an ideal platform on which to display their goods and services by business people, who develop the regional economy, create new jobs and invest heavily in the production of import-substituting and export-oriented goods. Indeed, it was a kind of presentation of Bukhara province’s export potential. The two-day event attracted over 15,000 visitors. More than 30 participants of the Industrial Fair and Cooperation Exchange were rewarded with prizes from the event’s organizers.

“The regional stage of the Industrial Fair and Cooperation Exchange surpassed our expectations”, said Sanjar Fozilov, director of the Combined Administration for Complex Development of Territories at the Bukhara Province Khokimiyat. “Upwards of 800 agreements concluded in the course of the exhibition are estimated at 47.4 billion Soum (currency rates of CB RU from 10.06.2016, 1$= 2929.14 soums), a 1.5-fold increase on the 2015 level. Among them are 5 contracts signed with foreign customers, to the tune of US $7.9 million.”               

(Source: «Business partner.uz» newspaper)

 

investments

Volume of deals at RSE "Toshkent" amounts to 14.1 billion soums

In May, the Republican Stock Exchange "Tashkent" registered 20 trading sessions. In total, the past month saw 324 transactions concluded for the purchase and sale of 36.6 million pieces of securities of 33 issuers. The volume of exchange transactions with securities in May amounted to 14.1 billion soums (currency rates of CB RU from 10.06.2016, 1$= 2929.14 soums), which is 2.1 times higher than the figure for May 2015.

In the reporting period, deals were concluded in the following sections:

- circulation of shares of listed companies - 64 transactions in the national currency in the amount of 12.1 billion soums and 3 transactions for hard currency in the amount of $229.6 thousand;

- the sale of state assets – 73 deals in the amount of 5 million soums;

- placement of additional shares– 128 deals amounting to 0.8 billion soums;

- sale of corporate securities for individuals – 51 transactions in the amount of 0.01 billion soums;

- block-trading – 1 deal in the national currency in the amount of 0.2 billion soums and 4 deals in hard currency in the amount of $91.1 thousand.

he biggest transaction was concluded on 17 May in the section of circulation of shares of listed companies, as a result of which 19.4 million shares of Bank "Savdogarbank" in the amount of 1.9 billion soums were sold.

In general, the structure of stock exchange's turnover over the past month was dominated by the volume of transactions on the secondary market, which accounted for 93% (13.1 billion soums).

The average size of the volume of exchange transactions in May amounted to 43.6 million soums. The size of the average daily volume of transactions in securities amounted to 705.9 million soums. The average price of per security sold amounted to 385.9 soums.

One of the indicators characterizing the formation of demand for securities is the ratio of the sales price of securities to their nominal value, i.e. a measure of liquidity. In the reporting month, 78.8% of the total number of transactions in securities were concluded at prices higher than their nominal value. The greatest indicator of liquidity could be observed in the construction industry – 2.32 and agro-industrial complex – of 1.18. In general, the average ratio of the sale price of the securities to their face value in May totaled 1.05 (May 2015 – 1.11).

The analysis of the sectoral indices of the exchange in terms of investment attractiveness shows that the greatest demand in the past month was for securities of commercial banks – 83.6%, construction companies – 5.4%, agriculture – 3.8%.

In terms of categories of investors the highest activity was observed:

- the amount of transactions – 54% of the total volume of transactions by legal entities;

- the number of concluded deals –81.5% of the total number of stock exchange transactions by individuals.

The volume of investments of individuals in May 2016 showed a significant increase and amounted to 6.4 billion soums or 45.6% of exchange's turnover (in May 2015 the share of investors – individuals amounted to 16.2%).

(Source: UzReport.uz)

 

Society

Uzbekistan seize 2.51 tonnes of drugs in 2015

Uzbekistan seized 2.51 tonnes of drugs in 2015 against 2.29 tonnes of drugs in 2014, the Uzbek National Information and Analytical Center for Drug Control said in its yearly analytical review.

The review said that some 6,648 drug-related crimes in 2015 compared to 6,698 crimes in 2014.

It said that about 3,017 crimes were related to drug distribution, 709 to contraband and 1,301 illegal growing of drug crops.

A total of 138 foreign citizens were detained in Uzbekistan last year on drug trafficking charges. Most of them were citizens of Afghanistan (33), Tajikistan (27) and Russia (24).

Over 2.51 tonnes of drugs were seized in Uzbekistan in 2015, including 147.9 kg of heroin, 882.3 kg of opium, over 1 tonne of marijuana and 250.2 kg of hashish, 204.7 kg of kuknar and 7184 pills of psychotropic means.

(Source: UzDaily.com)

 (currency rates of CB RU from 10.06.2016, 1$= 2929.14 soums)


 

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