Investment opportunities / By Province

Navoi province 

1. Geographical location, territory, climate

Navoi province is located in the central part of Uzbekistan. Area of the province constitutes 110.8 thousand square kilometers or 24.8% of total area of the country. Populationis 864,2 thousand.

The province borders with the Republic of Kazakhstan in the north and with Jizzakh province in the east, with the Republic of Karakalpakstan in the west, with Samarkand, Bukhara and Kashkadarya provinces in the south.

The province includes following 8 districts: Kanimekh, Kyzyltepa, Navbakhor, Karmana, Nurata, Tamdyn, Uchkuduk, Khatyrcha and following 6 cities: Zarafshan, Karmana, Kyzyltepa, Navoi, Nurata and Uchkuduk; there are also 8 urban-type villages and 53 villages.

The administrative center of the province is Navoi city which was named in honor of the Uzbek poet and philosopher, scientist and statesman Alisher Navoi. City, located in the Zarafshan river valley, was built using a general layout plan in 1960s.

The territory of the region is 110,0 thousand sq km, (it occupies 24,7% of the territory of Uzbekistan) and rank second place after Republic of Karakalpakstan . The administrative centre of the region is the city of Navoi with the population 132 thousand people and it is situated in the valley of river Zarafshan, 360 km south-west of the city of Tashkent.Navoi situated between the two ancient cities of Uzbekistan: in the west - the city of Bukhara (100 km) in the East - Samarkand (175 km).

The north-western part of the province is occupied with Kyzylkum plateau; Nurata mountainous ridges stretch in the east and the south of the province is fringed with ZarafshanRiver.

The climate of the province is sharply continental and arid; summer is dry and hot, winter is relatively cold and snowless.

2. Historical excurcus

In ancient times, the territory of the province was trespassed with important trade routes such as the Great Silk Road from China to the Mediterranean and further to Europe as well as a trade route connecting western and northern countries with India.

The Sogdian civilization which is one of the most ancient world civilizations was born in the ZarafshanRiver valley. The valley served as a passage which conducted a dialogue of cultures and communication for people of the East and West.

The province was established within the Uzbek USSR on April 20, 1982. It was re-established on January 27, 1992.

3. Social and economic development

Navoi province is a large industrial and cultural center of the country and plays important role in economic development of the country.

The volume of gross regional product of the province for year 2010 amounted to 3276,6 billion soums (1997,9 million US dollars). Highest volume of GRP accounts to following sectors such as industry - 53.5%, construction - 5.6%, agriculture - 12.6%,trade - 4.4%., transport and communications -5,9%.

Consumers goods were produced in amount of 231,5 billion soums (141,2 million US dollars) in 2010, growth rate amounted to 115% as compared with 2009. Food products constitute 39.4% and light industry products comprise 11.3% in the structure of consumer goods.

Main purpose of economic reforms implemented in Uzbekistan is establishment and development of a diversified economy in which non-state sector shall gain priority. Non-state sector amounts to 91.3% in the structure of industrial production.

Quantity of small and private enterprises is 14.6 thousand units; and they account to 34,2% of GRP of the province.

3.1. Population

As of January 1, 2011, the population of the province amounted to 864,2 thousands including 358,7 . thousand people residing in cities and 505,5 thousand people living in rural areas. Average age of the population reaches 26,1 years.

The employed population of the province constitutes 531,2 thousand or 74,7% of able-bodied population. 64.1% of the employed population is workers and employees of enterprises and organizations, 18.8% is employed in agricultural production, 7,2% - in small business, 8,5% constitutes the able-bodied student youth.

Quantity of unemployed population amounts to 1,4% of the able-bodied population.

3.2. Banking and financial system

The banking and financial sector of the province is represented with 13 branches of commercial banks and 23 insurance companies. Main Division of the Central Bank of the Republic of Uzbekistan, branches of following main commercial banks such as the National Bank for Foreign Economic Activity, Joint Stock Bank Asakabank, Joint Stock Bank Promstroybank, Joint Stock Bank Pakhtabank and others function in the province.

The insurance sector of the province is represented with Uzbekinvest National Company of Export and Import Insurance; Madad, Agrasugurta, Kafolat, Alfa Invest, Alskom insurance agencies.

3.3. Development of agrarian sector 

Main sectors of agriculture are cotton-growing, grain-growing, vegetable growing, melon and gourd cultivation, viticulture, astrakhan sheep breeding and silkworm breeding.

110 thousand tons of raw cotton, 247,2 thousand tons of grain as well as 421 thousand tons of fruit and vegetable products including more than 149 thousand tons of vegetables, 42 thousand tons of potatoes, about 46 tons of grapes, 61 thousand tons fruits and 42 thousand tons of melons and gourds are being grown in the province annually. Approximately 20% of total amount of fruits and vegetables is processed.

The share of production of agricultural products in total volume of production of the country amounted to 4,1% for grain, 5,2% for vegetables, 2.1% for potatoes, 6,1% for melons and gourds, 3,8,4% for fruits, 9,1,6% for grapes and 41,5% karakul fur.

More than 500 thousand pieces of karakul fur are produced each year in the province. The province ranks the second place after Bukhara province in production of karakul fur in the country. Quantity of livestock amounts to more than 326 thousand, quantity of sheep reaches 1.8 million and quantity of pigs amounts to 18,2 thousand; this allows developing hide processing.

Total land area constitutes 10.9 million hectares, area of agricultural lands amounts to 10.1 million hectares including 10 million hectares of pasture lands, irrigated areas comprise 91.6 thousand hectares with their portion being 0.9%.

There are more than 7 522 farm enterprises in the province. 

3.4. Minerals and raw materials potential

The province possesses rich minerals and raw materials resources. Minerals and raw materials resources of the province are described with availability of such fields as Muruntau gold-bearing field, silica sand fields (of more than 1.5 billion tons), deposits of granite (1.9 billion cubic meters) and marble (420.0 million cubic meters) as well as phosphorites (1.5 billion tons), precious and rare-earth metals, bentonitic clay, basalts, kaolin rocks, limestones, dolomites, wollastonites and feldspar.

One of the most important types of non-metallic raw materials is silica sands. Jeroy, Aydaly and Kulatay silica fields are most thoroughly explored.

There are detected more than 50 occurrences of kaolin rocks on the territory of the Central Kyzylkums; kaolin rock deposits constitute 240.8 thousand tons for a given average yield of 35%. Kaolin concentrate is used for production of low-grade ceramics as well as in refractory industry and coarse ceramics.

Deposits of slate coal, dolomitic limestones are explored in the province; extraction of feldspar in Lyangar field which deposits constitute 9.2 million tons is made. There are also a Lyavlyakan salt field located in Kanimekh district and a Tuzkuduk salt field in Uchkuduk district.

Limestones reserves constitute 43.3 million tons according to Categories ++1 and 2.2 million tons according Category 2 in the province.

Such fields of building semi-precious stones such as Gazgan and Nurata marble fields, Lyangar and Karasoy granite and gabbro fields, Azlartal and Karasoy fields of granite for facing materials and wollastonites fields are in the province.

Phosphorites fields such as Jeroy-Sardar, Janakhmet and Tashkura stand out with high content of 25.

Main basalts field is Aydarkul in the province, one section of which has been explored and its deposits are estimated in amount of 1.9 million cubic meters.

3.5. Industrial potential

The share of the regional industrial production in total republican production amounts to 11,2%.The economy of the province is based on such industrial enterprises as Navoi Mining and Metallurgical Combinate, chemical industry enterprises (Open Joint Stock Company Navoiazot, Uzbek-Panamanian Joint Venture Joint Stock Company Electrokhimzavod), enterprises producing construction materials (Joint Stock Company Kyzylkumcement, Joint Stock Company UPP), machinery-building and electrochemical factories, a hydroelectric power plant (Open Joint Stock Company Navoi TES), enterprises of textile and food industries.

In total, 1147 enterprises function in the province with annual production output of more than 1304.2 billion soums (795.2 million US dollars).

Industrial enterprises of the province produce more than 50 types of important industrial products such as ammonia nitrate (70% of overall republican production), nitronic fiber (100%), sulfuric acid (25.4%), protective chemicals for plants (100%), ammonia sulfate (1%), cement (44.8%), precast reinforced concrete products (4.2%), cotton fiber (3.5%), hosiery (1%) and knitwear (0.5%) products, jewelry products (56%), walling materials (6%), foodstuff such bakery products (2.4%), meat and meat products (2.1%),  confectionery products (1.3%) and bear (2.6%).

Mining Industry

Navoi Mining and Metallurgical Combinate (NMMC) is the biggest enterprise of the province and is included in top ten biggest world producers of uranium and gold. The Combinate is a big diversified industrial enterprise which main activity is exploration, extraction and production of uranium, gold, fluorspar, construction materials, marble products and phosphorites.

Central Ores Division for processing of gold-containing ores from Muruntau Field functions within the NMMC structure. Purity of the gold produced is guaranteed with four nines 99.99. Gold bars produced in the enterprise are awarded with the status of optimal gold delivery by the Arbitration Laboratory of London Precious Metals Market and Tokyo Commodities Exchange.

Uzbek-British Joint Venture Amantaytau-Goldfields also functions in the province; it processes oxidized and sulfide ores of Amantaytau Field and produces more than 7.5 tons of gold.

Production of Building Materials

Open Joint Stock Company   Kyzylkumcement is the biggest cement producer in the country and is one of leading enterprises in the province; its design capacity comprises 3.08 million tons of cement per year.

Production of marble slabs was organized at the enterprise in 1995 with production capacity of 25 thousand square meters of facing slabs; a production line for thermo-activated mineral additive production was put into operation in 1998.

The accomplishment until 2011 of the reconstruction of the existing capacities and building of the fourth technological line for production of cement that would increase production capacity of the enterprise up to 4.08 million tons per year is planned.

Such enterprises as Subsidiary Enterprise Karrara-mramor and Private Production Firm Nuratamramor where marble slabs are cut and polished using Italian technology also function in the province. Raw materials base is the multi-colored Gazgan marble which has 22 colors and about 200 various color tones and which obtained its international recognition.

Chemical Industry

The biggest producer of mineral fertilizers in Uzbekistan Open Joint Stock Company Navoiazot functions in the province; it also produces synthetic fiber nitron, resins, caustic soda, acetum and methanol. Building of a new nitric complex for production of 550 thousand tons of ammonia and 450 thousand tons of carbamide per year on the basis of the enterprise during 5 years is planned.

Uzbek-Panamanian Joint Venture Closed Joint Stock Company Electrokhimzavod also functions in the province and it is the only specialized enterprise in Central Asia for production of protective chemicals for plants. The enterprise also produces iodized table salt and superphosphates for field works.

Textile Industry

Following light industry enterprises perform activity for production of cotton and knitwear products:

- Uzbek-Liechtenstein Joint Venture Baxtextile and turkish foreign enterprise Navbaxotextile in the production of cotton yarn;

- Production Commercial Firm Agama which is a state knitting factory at NMMC specializing in production of upper knitted garments and socks;

-  Uzbek-Russian Joint Venture Velan for production of quilted blankets made of silk, cotton fabric with camel's hair padding, camel's hair medical belts and sleeping sacks.

3.6. Transport infrustructure and communication

Infrastructure of transport communications is well developed in the province: there are 8 railway and 9 automobile stations, 2 airports and developed network of automobile roads in the province. Length of railways constitutes 390.7 kilometers, length of automobile roads amounts to 4.1 thousand kilometers of which 3.3 thousand kilometers with hard surface.

Tashkent-Turkmenistan and Tashkent-Uchkuduk-Nukus-Kazakhstan railway lines trespass the territory of the province.

There are telecommunications, telephone communication (including cellular) in the province; 75 telephone stations function. Cellular communications services are rendered by following 5 operators: MTS-Uzbekistan, Beeline, Coscom (U-Cell), PerfectumMobile and Uzmobile. 400 kilometersoffiberopticcablesarelaid.

The first stage of a cargo terminal with an annual volume of 100.0 thousand tons of cargo traffic of International freight intermodal logistics hub in NavoiInternationalAirport was put into operation in August 2010.

3.7. Social infrustructure and recreational services

 Navoi State Pedagogical University, Navoi Institute of Mines, 362 secondary schools, 57 lyceums, 4 specialized sport and musical schools function in Navoi province. There are more than 120 clubs, 300 libraries and 2 museums in the province.

Navoi city is planted well with greenery; it has a lot of umbrageous squares with fountains. There are no dull squat outskirts and repeated typical projects creating monotonous constructions of residential districts in the city.

Zarafshan and Uchkuduk cities in the Central Kyzylkum were established on the basis of fields of nonferrous metal ores. The cities are supplied with transmission facilities lines and water supply pipeline. Artificial lakes for recreation of residents of these cities are created there.

4. Investment Potential

Total volume of investments amounted to 1611.7 billion soums (982.7million US dollars) in 2010 including attracted foreign investments in amount of 281.1 million US dollars or 28.6% of total volume of investments.

Volume of foreign investments per capita amounted to 325.3 US dollars.

4.1. Foreign investment enterprises

50 foreign investment enterprises function on the territory of Navoi province; most of these enterprises are concentrated in Navoi, Zarafshan cities and Karmanan district which are established with 23 participation of investors for USA, Republic of Korea, UAE, Panama, China, Russia, Ukraine, Singapore and others. These enterprises perform activity in following sectors:7 enterprises in chemical industry, 7 enterprises in production of building materials, 2 enterprises in nonferrous metallurgy, 5 enterprises in machinery building, 2 enterprises in electronic industry, 2 enterprises in food industry, 10 enterprises in light industry, 6 enterprises in trade and 3 enterprise in agriculture.

Total volume of products produced by foreign investment enterprises amounted to 107.8 billion soums (65.7 million US dollars) in 2010. The highest volume of products produced is attributed to enterprises producing marketable goods products.

Volume of exported products by foreign investment enterprises reached 38.1 million US dollars in 2010.

MFERITMEDEF InternationalInternational Business CenterGov.uzPress ServiceOliy MajlisUzASARIO