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Investment opportunities / By Province

Samarqand province

1. Geographical location. Territory, climate.

Samarqand province is located in central part of Republic of Uzbekistan. The total territory of the province is 16,8 thousand sq. km or 6,3% of the total areas of the republic. The administrative center of the province is Samarqand city.

The province is bordering with Republic of Tadjikistan on the east, on the south with Kashkadarya province, on the west with Navoi province and on the north-east with Djizzak province.

There are 2 cities of provincial subordination, 14 districts, 9 towns of district subordination, 88 rural towns, 124 major settlements and 1871 villages.

2. Histocial excursus

The first documented notion about Samarqand is considered to be the description in the holly book of Zoroastrism “Avesta”, a developed land-cultivating region in Zarafshan river valley (in Persian – “Carrying glod”), which is located on south-east of modern Uzbekistan in first millennium BC. The region is called Sugd (Sogd) in the book and it indicated the approximate age of 3000 years.

In spring 329 BC, AlexanderMacedonian has entered the territory of Middle Asia, pursuing Persian emperor – Dariy. Having passed though Ox (Amudarya), his troops were forwarded to the valley of Politimet (the Greek name for Zarafshan) to Maraqand and conquered the city. During the battles between Alexander and skiffs, Spitamen headed the rebellion in Maraqand. Without hesitation, Alexander brutally suppressed the rebellion, demolished the city and Spitamen was killed.

Around 306 BC, the region became a part of Greek-Baktrian kingdom, and in first century of AD – was a part of Kushan kingdom.

Around middle of 5th century AD, regents of Ephtalit dynasty settler their reign over Middle Asia (white Hunnes, descendants of Massagets, who had crushed the Kyr’s army) and later (in 565) Turkish tribes coming from Altay.

Since 712, Arabs campaigned against the city. Arab troops under command of Kuteibibn Muslim occupied the city. Introducing new religion and culture, they had demolished historical values, written and cultural sources.

The city has often been a part of various state – firstly Tahirids, then (in IX-X) Samanids, in the end of X-XI – Karahanids, Gaznevids, Seldjuk Sultanat, in XII karakitays from northern China and Khorezm-Shahs this is the time referred to as Eastern Renaissance.

The army of Chengizkhan entered Samarqand on 17th March 1220 devastating the city. After seven years, he dies having divided his empire between his sons (Samarqand was given to Chagatay, the second son of Chengizkhan). The empire would agonize almost 1,5 century before Amir Temur comes to power, the descendant of Chengizkhan’s cousin who created his empire Movaronahr, from east to west – from Kashmir to Mediterranean, and from north to south – from Aral Sea to Persian Gulf, making Samarqand the capital city.

By means of local and brought craftsmen, many palaces are built, Gur-Emir tomb, Bibi-Khanum mosque, several mausoleum complexes Shohi-Zinda, which still fascinate by its beauty and majesty.

Trading routes from China to Middle East that have been lost for a while are re-established, again connecting in Samarqand. Meanwhile, on south-west of continent, Osman empire of Turks collects power, which crushed top of Europe’s knights and siege Constantinople. The regent of Constantinople, Greek emperor, ruler of Venice offer Temur to be Europe’s ally. Even Bayazid, the Sultan of Osmans offers alliance. Temur makes his choice and on 28th July 1402 with his 20-thousand-army of selected warriors crushed Bayazid at Ankara. After 500 years, grateful French would settle the gilt monument in Paris, which is signed as “to Europe’s liberator”.

After 4 years after Amir Temur’s death (he died in 1405, campaigning against China), the country is ruled by his grandson – 15-year-old Mirzo Ulugbek, his 40-year rule would pass under the slogan “Striving for knowledge is every Muslim’s (male and female) responsibility”. The main brainchild of Ulugbek are his University (Ulugbek madras) on Registan square and his observatory.

After Ulugbek, for a short period, ZakhiriddinBabur would run Samarqand, who is an author of famous notes “Babur-name” and founder of State of Great Mogols in India.

In 16th century Sheybanid dynasty, which united Turkic-Mongol tribes practically terminate all ruling elite of Temurids, however in the process of struggle for power the most influential representatives of Sheybanids die as well. The search for khans lead to Ashtarhanids (originated in Astrahan). The capital moves to Bukhara, however Samarqand stays among major cities.

After a century, with Mangits, Samarqand would join Bukhara khanate, as a special district. Within this period, Emir of Samarqand Bahodur Yalangtush would build two more madras at his own expense (central – TillyaKori and on the right – Sher Dor) on Registan square.

The end of 17th and first halve of 18th century are featured as times of distemper. The life in the city will be resettled at the end of 70-es of 18th century.

On 2nd May 1868, Samarqand was occupied by troops of Russian empire and became the center of Zarafshan district and later (since 1887) of Samarqand province. Samarqand’s role increased in 1898 when it was connected with Caspian Sea via railroad.

In 1917 Soviet reign was established which ended in 1991 when Uzbekistan together with other soviet republics acquired state sovereignty.

On 18th of October 1996, on celebrations dedicated to 660 anniversary of Amir Temur, first President of Uzbekistan I.Karimov presented the city the Order of Amir Temur and offered to establish this day as official Day of City.

3. Social infrustructure

The theatre of musical drama, youth theatre, puppet shows, recreation parks, recreation zone n.a. Navoi, sport complexes, museums, palace of culture, libraries and cinemas are offering services to residents and guests of Samarqand province.

There are 1218 academic schools (for 580071 students), 156 professional colleges, 14 – academic lyceums (for 161589 students), 7 higher education facilities (for 23225 students), 94 hospitals (13686 beds), 592 polyclinics (396 specialized), 260 clubs, 9 museums, 4 theatres, 34 musical and art schools, 9 amusement parks.

A great attention is paid for sports and physical culture. There are 61 stadiums, 49 sports schools for children and youth, 39 tennis courts, 61 football stadiums, 11 swimming pools functioning in the province. As a whole 4954 sports facilities are functioning in the province.

Samarqand is a pearl of Great Silk Road and the city has been entered on the UNESCO’s “Cultural heritage of humanity” in 2002.  

Over 20 historical and architectural monuments acknowledged as a greatest achievements of human culture. These are: Registan, “Gur-Emir” mausoleum (the mausoleum of Amir Temur), “Bibi-Khanum” mosque, “Shakhi Zinda” mausoleums’ ensemble.    

There are operated 62 hotels in Samarqand region. The most elite of them are “President Hotel”, “AfrosiyabPalace” and “Panorama Grand”. There are also 45 travel companies and firms, among which one need to tote “Orient Voyage” private travel agency, “Sarbon Tour” LLC, “Sogda Tour” LLC, “Samarqand business center” LLC and “Zamin Travel” LLC.   

3.1.Population

Population is 3119,8 thousand people (urban – 1160,1 thousand (37,2%) and rural 1959,7 thousand (62,8%).

National composition: Uzbek -86%, Russian – 1,9 %, Kazakh – 0,2%, Karakalpak -0,3%, Tadjiks -8,2%, others (Ukrainians, Belarusian, Georgians, Azeri, Tatar and other)-2,5%.

In part 40% of permanent population is an economically employed, that is evidence of availability of great manpower resources. About 70% of employed population concentrated upon industrial and rest 30% on non-industrial sector. It’s necessary to note, that rate of growth of opening new job places in region makes up 21.1%, including 18.1% in rural area, that favorably affect upon reduction of unemployed, number of which decreased in fact by 13% as against 2009. 

3.2. Economic development

 There is strengthening of existing macroeconomic and financial stability trends in region’s economy for last years. It has been carried out on the ground of implementation of measures aimed to extend economic reforms, form of multi-structure economy, enhance of economic potential, development of rural infrastructure and further improvement of people’s welfare.       

There are 1741 industrial enterprises functioning in the province, among them 36 are big-sized, such as “Sino” SC, “Isuzu Motors”, Samarqand Chemistry Plant, “Samarqand Liftsozlik Zavodi” SC, “Elholding” SC, “Kattakurgon eg-moy” SC, “Vinkombinat n.a. Hovrenko” SC, “Praga Pivo” JV and others, which produces passenger elevators, mineral fertilizers, automobile and tractor spare parts, modern refrigerators and air conditioners, Tea, buses, porcelain-faience crockery, wines, oils and tobacco products.

More than 85 main types of industrial production are produced on industrial enterprises. As of 1st April 2010 there are 179 JVs with foreign capital are registered.

According to spheres of economics, functioning JVs are mainly present in following fields: light production – 22,9% (39) food industry– 17,1% (29), chemistry and oil and gas industry – 14,1% (24), construction materials industry – 8,8% (15), machinery and metal processing industry – 7,1% (12).By countries: Russia – 15,3% (26), Turkey – 14,1% (24), UAE – 7,6 % (13), China – 7,1% (12), Korea – 4,1% (7), USA – 3,5% (6) Germany 2% (4). The share of these countries is more than 57% of all active JVs.

Samarqand province is well-known historically for its outstanding taste and aroma of apples, peaches and pears, cherry and plump, quince and grape. There grows such valuable subtropical crops as anjir, pomegranate, persimmon, which distinguish themselves by pleasant taste and aroma. Samarqand province is also rich in various kinds of tasty melons and water-melons. It is recognized that uzbek vegetables and fruit usually exceed the quality of other countries’ products.

The total area of cultivated lands – 253869 hectares, (99200 hect. – cotton, 107000 hect. – grains). The gross agricultural product – 140,4 billion UZS, the growth rate to the similar period of 2009 is 107,1%

 

3.3. Development of agrarian sector

The region being rich on agricultural resources has a great raw materials potential. There are growing cotton, grain, nearly all kinds of fruits and vegetables, as well as melons and gourds and etc in farms.

9 districts of region are oriented to cotton production, 2 - fruit and vegetable crops growing, caracul breeding and 1- tobacco production.

3.4. Mineral and raw materials potential

Samarqand region is rich on reserves of natural and rew materials resources as manganese, lead, tungsten, gold, silver, marble, granite, wollastonite, stuff to produce of cement, lime, gypsum, whitewash and keramzite stuff.  

Up-to-date 78 minerals deposits have been explored. There are also great undiscovered reserves.  

The region has substantial reserves of:

- non-ferrous and ferrous metals (4 deposits – 84,9 million tons),

- mining stuff (1 deposit – 1,4 million tons),

- molding stuff (1 deposit – 3,77 million tons),

- clays for ceramic goods production (2 deposits – 3043 thousand cubic meters),

- whitewash-like rocks (1 deposit – 1647 thousand tons),

- cement stuff for building materials production (4 deposits – 242 817 thousand tons),

- facing stones (11 deposits – 11851 thousand cubic meters),

- keramzite stuff (1 deposit – 3755 thousand cubic meters),

- gypsum (2 deposits – 39666,7 thousandtons),

- concrete sand and silicate materials for building materials production (3 deposits – 36486 thousand cubic meters),

- sand-gravel materials (9 deposits – 29758 thousand cubic meters),

- brick stuff for production of brick of “75”, “100”, “125” sorts (19 deposits – 43645 thousand cubic meters).

3.5. Industrial potential

The main factor, which describes industry of Samarqand region, is a social orientation.  Consumer goods manufacturing composes 70.8% of region’s whole industrial production capacity. Consumer goods exactly covered domestic market satisfying people’s wants. In total capacity of consumer goods, manufactured in 2010, 55% fall to the share of foodstuffs and rest 45% - nonfoods.  

The rate of production growth reflects on enhancement capacity of consumer goods per head manufacturing, which increased within by 14-15% per year for last period.

Textile, food and machinery construction branches, as well as building materials manufacture prevails in industrial production. So, for past 3 years about 40% of produced goods fall to the food industry, 35% - to the light industry, 7% - to the mechanical engineering and metal-working, 2% - to the chemical and petrochemical industries. 

The groundwork of region’s industry composed by such enterprises as “Samarqand elevator construction plant” JSC on manufacturing passenger lifts, “Samarqand chemical plant” JSC on manufacturing fertilizers, “Alpomish” JSC on manufacturing genuine parts for automobiles and tractors, “Sino” JSC, specialized on production of modern fridges and air conditioners, Samarqand tea-packing factory, Samarqand automotive plant on manufacturing ISUZU trucks and buses, as well as their genuine parts, “Nafis” JSC on manufacturing whitware, “Samarqand winery named after Hovrenko” JSC on manufacturing of wines and wine-vodka products, “Kattakurgan fat-and-oil” JSC on manufacturing of vegetable oil and “UzBAT” JV o manufacturing tobacco goods.     

There are producing over 85 kinds of industrial outputs in the region’s plant facilities. Among them are fertilizers (about 11% of national production capacity), cigarettes (about100% of national production capacity), ginned cotton (about 8-12% of national production capacity), polymer film (about 17% of national production capacity), floor (about 12% of national production capacity), building materials (about 12% of national production capacity), porcelains (about 24% of national production capacity) and etc.    

The localization program has been implementing in region. Its main goal is production of import-replacement output on the bass of local raw materials, saving of currency means and opening new job places. Implementation of this program leads to reduction of prime cost of final goods of the enterprises, included in program on average of 5-10%.  

3.6. Transportation and communication

Transport communicationinfrastructure is represented by a developed network of rail road, motor and air transport.

Total length of rail roads in  the province is 328 kilometers. There are 14 goods and passenger depots with traffic capacity of 20 freight trains per day. Rail road stations “Ulugbek” in Pastdargom district and “Kattakurgan” in Kattakurgan district of the province are equipped with modern cargo-handling facilities, platforms, warehouse and luggage premises.

Total length of automobile motor highways of the province is 4 678 kilometers. According to quality of covering, motor roads of the province are divided into cement-concrete roads with total length of 62 kilometers, asphalt concrete road with total length of 2 068 kilometers, black top roads with total length of 1 576 kilometers, gravel road - 351 kilometers, un-surfaced roads - 64 kilometers.

Policy conducted by the Government of Uzbekistan aimed at integration with world economic system and establishment of contacts with foreign countries is supported by creation of a new rail road access from Central Asia to Europe such as TRASECA, motorways via mountainous pass Kamchik to China, the second rail road outer access to central Russia and Europe via Navoi-Nukus. All of them are located on the route of the Great Silk Road.

Reconstruction of first stage of Samarqand International airport terminal, conducted by a consortium made up of “Mitsubishi”, “Mautsi”, “Shimidzu” companies with attraction of Japanese Government’s loan, made possible landing of Boeing air-planes.

Modern communication facilities are presented with wide network of wireless, radio-relay, cellular and satellite communication and Internet. Dozens of automatic telephone exchange stations in Samarqand were reconstructed with participation of German company “Siemens” and Japanese company “Nec”

Cellular communication services in the province are provided by enterprises with foreign investments “MTS-Uzbekistan”, “Beeline” and “Coscom” (U-Cell).

4. Investment potential

4.1. Foreign investments in region

According to regional program for 2010, aimed to attract foreign investments, 22 projects worth 32.0 million USD included in Samarqand region.  Up to January 1, 2011 32.504.5 thousand USD on 41 projects attracted within the framework of very program, that made up 101.5% of annual forecast according to program. 

Attraction of investments by financing means divides into followings:

- owing to enterprise’s own funds – 8279.9 thousand USD;

- owing to foreign direct investments – 9504.9 thousand USD;

- owing to foreign loans – 3303.3 thousand USD;

- owing to local banks’ loans – 11416.4 thousand USD.

As an outcome of performance of the regional investment program’s main parameters work with total amount of 64.0 billion som has been developed. Product, worth 10.3 million USD was exported. At that main nomenclature of manufactured an exported output consist of reprocessed agricultural product, textile goods and carpets.  

It’s necessary to note, that 1.188 new job places were created within aforesaid program that makes up 102.8% by prognosis of year.   

In territorial division main share of attracted investments falls to the Samarqand city (48%), Pastdargom district (12.1%), Samarqand district (9.8%), Jambay district (7.31%) and Nurabad district (4.9%).  

As an outcome of development of these projects in region was launched manufacturing of such goods as trailers (scientific production association “Elholding”), fruits drying cabinets (scientific production association “Elholding”), fridges and deep-freezers (“Sino” JSC), polyethylene tubes (“SamPlasticPlus” LLC), carpets (“SamAntepGilam” JV), prophnastils, foam plastics and sandwich panels (“SamRosHolod” JV), rubber footwear (“Asir Export” JV), asphalt (“Me’yor Qurilish Style” LLC), polypropylene sacks (“Bakht Polymer” JV) and foam blocks (“Alina Invest” JV).   

4.2. Enterprises with contribution of foreign investments

The dynamics of foreign investments development shows, that investing mainly carried out in reprocessing industry.  

Up to January 1, 2011 in region registered 181 enterprises with foreign investment contribution, 167 of which are active and 14 – inactive. 

11 new enterprises with foreign investment contribution have been established in 2010 and 4 of them – in Samarqand, 2 – in Jambay district, 2 – in Samarqand district and one by one in Payarik, Taylak and Urgut districts. 

Aforesaid enterprises were established with contribution of more than 30 world countries.

MFERITMEDEF InternationalInternational Business CenterGov.uzPress ServiceOliy MajlisUzASARIO