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Home About Uzbekistan Government INVESTMENT GUIDE OF QASHQADARYO REGION

INVESTMENT GUIDE OF QASHQADARYO REGION

GEOGRAPHICAL LOCATION. TERRITORY. CLIMATE


Qashqadaryo region is located in the Southern part of Uzbekistan, in the basin of the Qashqadaryo river on the western mountainside Pamir-Alai.

Qashqadaryo region is located on a similar geographic latitude with such countries as Turkey, Greece, Italy, Spain, the US and Japan.

The territory of the region is 28,6 thousand square meters (6,3% of the territory of Uzbekistan), which is comparable with territories of such countries as Belgium, Albania or Armenia.

The region consists of 13 administrative districts: Guzar, Dehqonobod, Qarshi, Koson, Kamashi, Kitab, Kasbi, Muborak, Nishon, Mirishkor, Chiroqchi, Shahrisabz, Yakkabogh. Administrative centre of the region is the city Qarshi, with population of more than 247 thousand people.

On the North, the region borders with Samarqand region, on the North-West with Bukhoro region, on the East and South-East with Surkhandaryo region. From the North-East part passes the state border with Tajikistan, on the Western part with Turkmenistan. The perimeter of the total border is 795 km, out which 400 km passes through mountain ranges.

The population of the region as of the 1 January 2012 is 2777,8 thousand people (more than 8% of the population of the country). Density of population is 94,3 people per one square kilometer.

The climate is continental, dry, somewhere subtropical, and favorable for land cultivation and cattle breeding. Average annual temperature is +15C, the average temperature in January is +2C. The average annual rainfall of precipitations - 187-285 mm; in mountainous and sub-mountain areas - 500mm.

HISTORICAL OUTLINE

The history of Qashqadayo region contains multitude of remarkable events. It is the history of courageous people, loving its motherland.

The territory is located between the two rivers - Zarafshan and Amudaryo. According to chronicles of Ancient Greece and China, the territory in ancient times had the name of Southern Sogd and Southern Turon.

In ll-l millennium B.C. in this territory had a developed culture and people conducted a settled way of life.

The discoveries found on the place of ancient cities and barrows as Navtak -Yerkurgan, Kesh, Iskifagi, Subah, Bazda, Kalandartepa, Kamaytepa, Altintepa testify that their residents were engaged in agriculture and animal breeding, pottery, processing of iron and other crafts. Pottery was developed at a high level; iron melting was carried out even B.C.

On seat of havens where the agriculture were developed the cities were established where culture, architecture were developed, madrassahs, mosques and caravanserais were erected.

This region with its beautiful nature and rich minerals attracted the attention of many foreign conquerors and went through Alexander the Great invasion, the Mongolian campaign, governance of Akhmenids. This region was in an epicenter of revolts of local


population against foreign invasions: under leadership of Spitamen against Alexander the Great in 329 B.C., Hashim ibn Hakim (Muqanna) against the Arabian Caliphate in 70-80s VIII century.

Shakhrisabz city (from Persian -"Green city") of Qashqadayo region is the homeland of Amir Temur (Tamerlan), who freed the country from the Mongol yoke and established the great Timur's empire that consisted of not only Middle Asia but also the territory of Middle East from the Mediterranean Sea to North India.

At that time, have developed science and culture, lived scholars and poets Najmuddin Nasafi, Abu al-Makhul Nasafi, Shihabuddin Nasafi, Abul al-Barakot Nasafi, Abdul Haris Varsini, Mustagfiri An Nasafi and others.

In Shahrisabz Amir Timur erected the Ak-sarai-huge palace that was its residence in XIV - the beginning of XV centuries. Unfortunately, by the end of XVII century this magnificent building was partially destroyed. But the remained parts of a portal testify the scale of its construction, the Ak-Sarai has so far unsurpassed mosaic patterns reflecting a high level of art of that time.

After an era of Timurids region have conquered by Shaibaneeds - the dynasty formed from settled and nomadic Uzbek tribes. The long period followed after that has been marked by internal wars, invasions and campaigns from the neighboring states, influenced negatively on development of economy and culture of the region.

The Qashqadaryo region has been organized in 1924, and from 1927 to 1964 entered again into structure of Bukhara, then Surkhandaryo regions of Uzbekistan. In 1964 it has been reorganized.

In 1986-1989 the Qashqadaryo region supervised by the first President of the Republic of Uzbekistan I.A.Karimov.

POPULATION

The population of Qashqadaryo region as of January 1, 2012 is about 2777,8 thousand people (more than 8% of the population of Uzbekistan). The population mainly consists of Uzbeks. There is also inhabitance of more than 90 nations and nationalities, including Russians, Tajiks, Turkmens, Tatars, Kazakhs and others.

The number of able-bodied population is 1564,1 thousand people, the number of employed people is 1001,6 thousand.

DEVELOPMENT IN AGRICULTURE SECTOR

The economy of the region is focused on agriculture. The share of agricultural production in the gross regional product is more than 18,2 %. The gross agricultural output the region is 1070.1 billion Uzbek soums.

Natural and climatic conditions of the region are connected with a higher average temperature than in other regions. Long duration of warm period and fertile soil gives opportunity to produce heat-loving plants-late-fine-fiber varieties of cotton, sugar cane and permission. Favorable climatic conditions and irrigation system of Qashqadaryo region allow to growing two to three harvests a year.

Qashqadaryo region is a main country's granary of grain, cotton and other supplier of agricultural productions. This is evidenced by the fact that 10.2% of all agricultural products, as well as more than 10% cotton, 11% grain, 19% karakul (sheep) fall on this region.

The most important directions of agricultural production are the cultivation of staple varieties of cotton, as well as breeding cattle and small livestock.

If the total land area of the region is 2.857 thousand hectares and 1.381 thousand hectares from them are pastures. About one million in hectares of the fields are suitable for irrigation.

The most important branches of agriculture in the region are dry and spray grain cultivation and pasturable sheep breeding.

Environment of region are favorable also for cultivation of grapes, pit fruit trees, fig and pomegranate. Grapes of Karshi city, especially a grade «Maska», are famous for the flavoring qualities.

In the region, alongside with cotton cultivation also develops silk production. The region takes one of the leading places in the sphere of karakul sheep production.

Expansion of pastures, increasing of corn and Lucerne sowing and using of industrial wastes promote the further development of animal industry.

The main branch of animal husbandry - karakul sheep, growing mainly in the western, southwestern and central areas. Fat-tailed sheep, and goats that provide meat and wool, are contained in the pastures of the northern and northeastern foothills and mountainous areas. For the development of productive livestock in the foothills grown fleece sheep and long-haired sheep goats. The quantity of large horned livestock is calculated on satisfaction of needs of the population of the area in dairy products.

MINERALS AND RAW POTENTIAL

The Qashqadaryo region is the large and significant region, having rich natural resources. 98% of gas and more than 80% of oil extracted in Uzbekistan are on the share of the region. According to calculations, the oil stock of the region makes tens million tons.

Explored in considerable reserves of potash and rock salt, marble, limestone, alumina, oil shale, coal, lead, zinc, cement raw materials, marble and other minerals for the production of building materials. Among the most promising fields is possible to note Yahton deposit tungsten, manganese Dautashe field. Also, in the area identified promising occurrences of gold, copper, aluminum, antimony, and mercury. In the Kashkadarya region there are 61 deposits of ore and nonmetallic minerals:

-   Manganese - 813.4 thousand tons;

-   Quartzite -1735.4 thousand cubic meter;

-   Porcelain stone - 853.9 thousand tons;

-   Pegmatite -1617.1 thousand tons;

-   Agri-ore-bentonite clay and glauconite -15.7 million tons;

-   Marble - 2.7 million tons;

-   Dolomite - 10.0 million tons;

-   Limestone - 8.9 million tons;

-   Building stones - 5.9 million cubic meter;

-   Cement raw material - 265.5 million tons;

-   Haydite - 14.5 million tons;

-   Glass raw material-more than 10.0 million tons;

Together with it, the lead prospecting works reveal perspective ores of gold, tungsten, copper, lead and zinc, aluminum, antimonies, quicksilver, coal, combustible slates and native sulfur.

INDUSTRIAL POTENTIAL

13% of industrial production of the country falls on the region.

The industry of the Qashqadaryo region is inextricably linked to agriculture. Its basic branches include cotton-cleaning plant, creameries, factories on manufacture of fruit-vegetable canned food and others. Of all production the share of light and the food-processing industry is more than 66%.

In the region there are about 365 industrial enterprises, including 37 large enterprises in oil and gas, in light industry, food-processing industry, mechanical engineering, building materials industry. The basic from them is the enterprises borrowed oil and gas, cotton-cleaning, building, also in the light and local industry.

Largest of them are Shurtan gaz - chemical complex, Mubarek gas field management, Muborek oil refinery factory, the joint venture "Oksaroy tukumachi", the joint venture "Cotton road", Shahrisabz vine-vodka factory, Shahrisabz cannery, the joint venture "Qarshi oil-extraction factory", the joint venture "Kasan oil-extraction factory" and others.

Putting into operation in 2004 of first block Talimardzhan hydroelectric power station with power 800MVt, has solved the problem of energy supply in the region.

Qashqadaryo region is a fundamental fuel-energy base of the country supplying more than 90% of produced natural gas, condensate and oil.

PETROCHEMICAL INDUSTRY

Qashqadaryo region - is the main fuel and energy base of the republic, giving more than 90 percent produced in the country of natural gas, condensate and oil.

In 2001 in the area commissioned Shurtan Gas Chemical Complex, the largest gas processing plant. Construction of the complex was carried out with the assistance of a consortium of foreign companies company ABB Lummus Global (USA), ABB Soimi (Italy), Mitsui & Co.Ltd., Toyo Engineering, Nissho Iwai Corp. (Japan).

Currently the activity of the Shurtan gas-chemical complex includes following parts: processing natural gas with production of ethylene, production of somonomer and production of polyethylene according to the Sclairtech technology. Production capacity of the Complex is processing of approximate 4 billion cubic meters of natural gas, output of 125 thousand tons of different kinds of polyethylene of low and high consistence, 137 thousand tons of liquefied gas and 37 thousand tons of gas condensate, about 4 thousand tons of sulfur. On the base products of Shurtan gas-chemical complex, Qarshi plant Termoplast produces modern polyethylene pipes for water and gas supply.

Mubarak gas refinery with the capacity of billion cubic meters of gas which comprises significant part of gas processed in the country, about 17% of stable condensate and 11% of liquefied gas. Currently, the enterprise is undergoing reconstruction of production, construction of propane-butane blend plant for production of liquefied gas.

TEXTILE INDUSTRY

Currently, there are dozens of modern textile enterprises on production of yarn, knitted wear and fabric.

Main enterprises are: JV Cotton-road, Oqsaroy-Toqimachi, Yakkaboghtex. The JV Cotton-road produces 920 tones of yarn, 5.0 millions pieces of knitted wear per annum. Oqsaroy-Toqimachi produces 4800 tones of yarn, 2000 tones of knitted wear, and the JV Yakkaboghtex produces 3 thousand tones of yarn per annum. Main part of producing goods is export oriented.

FOREIGN-TRADE RELATIONS

Foreign trade turnover at January 1, 2012 amounted to 579.5 million dollars, the export of - 462.3 million and import -117.2 thousand dollars

The main export article is cotton fiber, chemical production, machinery and equipment. In the structure of import heavy import consist of machinery and equipment, chemical production, foodstuffs, ferrous and non-ferrous metals.

TRANSPORT INFRASTRUCTURE

Since ancient times through the territory of Qashqadaryo passed the Great Silk Road.

Nowadays, transportation carried out in the field of rail, road and air transport modes. Throughout the territory of the region passes railway communication which connects Tajikistan, Turkmenistan and Surkhandaryo region of Uzbekistan with neighbor and distant counties. There is a modern railway station in Karshi city, from where the trains go to many counties of the world. The extension of railways is 3801 kilometers.

For the economic development of the region the important role plays the increasing (promotion) of it's export potential the construction of railway Toshguzar-Boysun-Kumkurgan with the general extension of 223 kilometers from which passes 106.2 km through the territory of the region. Putting into operation this railway in the august of 2007 the territory of the region had become a main transit for cargo which goes to Surkhandaryo region, Tajikistan and Afghanistan and back. It also helps to develop south east regions.

In the economy of the region important role play highways, which general extension of 30 thousand km, including highways of the international and regional importance.

Pipe line area, with a total length of 2106 km, serves the needs of oil and gas industry. There are basic highways Karakitaj - Karshi, Shurtan - Muborek, Shurtan-Bukhara- Gazli - Tashkent.

From the airport in Karshi and Shakhrisabz operates regular flights to Tashkent and other cities of the republic and CIS countries.

SOCIAL INFRASTRUCTURE AND RECREATION SERVECES

The second large city in the field is Shahrisabz, has received world popularity that it is Amir Temur's native land, through city passed the Great Silk Road. The attention of tourists is drawn with the architectural monuments constructed by Amir Temur and his grandson Ulugbek.

Moreover Shahrisabz is one of the ancient centers of crafts. Golden-sewed hats, embroidered here, are awarded to gold medals of the international exhibitions in Canada, Turkey, and Japan. Copper, a pottery executed with a great skill, became prize-winners of many exhibitions.

In foothill areas of Qashqadaryo region - Kitab, Shahrisabz, Yakkabogh, Dehkanabad, Chirakchi, Kamashi - natural conditions and favorable climate allow to develop ecological tourism. There are health complexes, resorts and rest houses, including 3 resorts and 4 children's health camps in Kitab, 1 rest home and 7 children's health camps in Shahrisabz and 9 children's health camps in Yakkabag are acting.

There are State University, Institute of Engineering Economy, Karshi branch of Tashkent University of Information Technologies, 130 colleges, 7 academic lyceum.

FOREIGN ECONOMIC ACTIVITY

In 2011 the region attracted 1914.9 billion soums of foreign investment in sectors such as in oil and gas sector, in agriculture, light industry, in services and in other industries.

ENTERPRISES WITH FOREIGN CAPITAL

There are about 57 enterprises with foreign capital operating in Kashkadarya region created jointly with investors of China, the USA, Iran, Germany, Afghanistan, Pakistan, Turkey and Russia.

Foreign investments in the Republic of Uzbekistan are provided national treatment that means that foreign investments are granted conditions not less favorable than those provided foreign vestments carried out legal and natural persons of the country.

Enterprises attracting direct private foreign investments and situated in Kashkadarya region, which also carry out activities in the following trades: radio electronic, computer accessories and engineering production, light, silk, construction materials industries, commercial production of bird meat and eggs, food, meat and milk, chemical and pharmaceutical industries; are realized from paying income and property taxes, tax for social infrastructure development and lands accomplishments, unified tax for micro-firms and small enterprises as well as obligatory deductions to republic roads fund.

Above mentioned tax exemptions are provided in case of attracting direct private foreign investments in the following volumes:

At the same time, the above tax exemptions are applied in case of fulfilling the following requirements:

         Direct private foreign investment without a guarantee of the Republic of Uzbekistan;

         The share of foreign partners in authorized capital stock shall be not less than 50
percent;

         Depositing of direct private foreign investments after registration of above mentioned enterprises;

         Depositing   of  foreign   investments   in  freely   usable  currency  or  new  modern equipment;

         Reinvestment of income obtained as the results of the above mentioned tax exemptions in the period of their application to further development of the enterprise.

 
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