Volume of transactions at UZEX exceeds 1 trillion soums

In May 2016, the Uzbek Republican commodity exchange retained the activity of participants of electronic trading, which had a positive impact on the performance of the trading platforms. In particular, the volume of trading compared to May 2015 increased by 53%, fair trading by 47% public procurement by 15% and corporate procurement by 29%. Against this background, the total volume of transactions concluded on the stock exchange increased by 50% having exceeded 1 trillion soums, the press service of UZEX said.

Over the period, significant sales growth could be observed in the system of trading, the volume of which increased from 531.4 billion soums (currency rates of CB RU from 16.06.2016, 1$= 2933.99 soums) to 810.8 billion soums. Hereby, a positive trend was recorded in almost every segment of the stock market. The structure of goods sold has been diversified in comparison with last year. The total share of construction materials and food products fell from 53% to 47% due to the increase in the share of other commodity groups. Thus, the volume of sales of liquefied gas grew by 72%, with its market share having increased from 7% to 9%. The share of feed for livestock increased from 7% to 9%. The volume of sales through exchange trades on average rose by 54%.

Along with this, the list of exported goods has significantly expanded. Leading position in the export structure went to polyethylene with a share of 59% and non – ferrous metals - 30%. Liquefied natural gas and fertilizers in equal shares took 5% each, while the market outsider technical oil – 1%.

The past month also saw an increase in trading volume with the participation of small business and private entrepreneurship entities. In particular, they purchased raw materials worth 503.3 bln. soums, with the growth of 24.3%. They also sold products worth 227.5 billion soums, which is 27.7% higher than the same period last year.

In particular, entrepreneurs remained active in the system of fair trades, the volume of which increased from 92 to 135.1 billion soums. The share of small business in the total volume of committed market transactions reached 77%.

The amount of transactions concluded on public procurement ("D-xarid") following the results of last month amounted to 54.9 billion soums, with budget savings amounting to 12.4 billion soums. The share of small businesses in the supply of goods under government procurement amounted to 98% of the number and volume of transactions.

The volume of corporate procurement in the system of "E-xarid" compared to May 2015 increased from 30.7 to 39.7 billion soums. The share of small business entities in the delivery of the goods on corporate procurement made up 98% of the number of transactions and 96% of their volume. In the course of the auction, each application received on average 16 counter-offers.

(Source: UzReport.uz)

BUSINESS CLIMATE

Uzbekistan: More Opportunities for Business

The State Committee on Privatization, Demonopolization and Development of Competition of the Republic of Uzbekistan has initiated amendments to the Law ‘On competition’.

"The new draft law stipulates the simplification and cancellation of certain licensing procedures for private enterprise. For example, it is proposed to abolish the procedure of approval for the establishment of associations of economic entities, transactions on the acquisition of other property rights, as well as simplify the cases that require the prior consent of the antimonopoly body on the merger, consolidation and acquisition of shares of business entities," noted a representative of the State Committee on Privatization, Demonopolization and Development of Competition.

The amendments are initiated as part of liberalization of the business environment, elimination of obstacles and undue interference in the activities of economic entities, reduction of excessive licensing procedures, and creation of additional conditions for doing business.

The bill is under consideration by the relevant ministries and agencies and is available for discussion in the Single Portal of Online Public Services.

(Source: «Uzbekistan Today» newspaper)

International cooperation

Tashkent has hosted the Ninth Tashkent International Insurance Forum

Signing of a Memorandum of Understanding between the Guarantee Fund for Compulsory Insurance of Civil Liability of Vehicle Owners of Uzbekistan and the Institute of Insurance of the Republic of Korea was the spotlight of the event.

Uzbekistan has been carrying out a large-scale work on the development of the insurance market, creation of legal, organizational and technical conditions for effective operation of insurance companies and opening of insurance service offices in convenient locations for the public and clients.

Insurance companies provide a wide range of modern insurance services, reimbursing the damage to life, health and property of citizens caused in emergency accidents. The financial stability of insurance companies is increasing as a result of the growing level of capitalization, thus promoting public confidence in insurance services.

As noted at the event, Uzbekistan has been modernizing and diversifying its economy, developing up-to-date business infrastructure, providing stability and reliability of the insurance market. Leasing was emphasized as an effective mechanism of modernization of production capacities of small businesses, expansion of private entrepreneurship and consequent channeling of funds for the establishment of mini-manufactures.

The participants were introduced to the ongoing reforms in Uzbekistan, privatization processes, insurance and reinsurance, joint projects with foreign countries and international organizations. They paid attention to the development of small business and private entrepreneurship in Uzbekistan.

”Our organization is engaged in reinsurance of risks in all areas of business,” said the representative of the Hanover company Johann Fuchs. “I would like to point out to the active development of the insurance market in Uzbekistan. The forum has provided an opportunity for researchers and engineers from different countries to exchange views on the development of the insurance and reinsurance market, and explore the experience of Uzbekistan.”

“We have been actively cooperating with Uzbekistan for several years,” said the Department Director of the Saudi Corporation ICD Ariff Hasan. “We have been implementing several joint projects on the development of private sector. Uzbekistan is a beneficial country to invest. Small business and private entrepreneurship has been evolving at a high level, so we intend to develop mutual cooperation, and actively participate in joint projects.”

As noted by forum participants, Uzbekistan has achieved stable growth in the banking and financial sector along with other sectors. International rating agencies Moody's, Standard & Poor's and Fitch Ratings have been assessing the banking system of Uzbekistan as ‘stable’ over the recent years.

“I have been regularly participating in this forum,” said the Secretary General of the Financial Companies Association of Romania Adrian Ahciarliu. “The forum has contributed to the study of experience in the field of leasing, insurance and reinsurance. I am glad to have had the opportunity to learn about the measures Uzbekistan has been taking for the development of these areas.”

(Source: «Uzbekistan Today» newspaper)

Society

Uzbekistan: Children of about 40 thousand employees will have a chance to have a rest for free at children’s health summer camps

The Federation of Trade Unions of Uzbekistan has taken care about the quality and diversity of their holiday.

1204 summer camps will operate this summer in Uzbekistan where more than 292 thousand children will spend their summer holiday. The best sanatoria too are well prepared for the summer season having created good conditions for the children’s joint recreation with their parents.

There are camps of common interests, those of technical and artistic creativity, ecological, biological and local history, operating similar to last year programs.

Winners of “Bilimlar bellashuvi” contest will be awarded free vouchers to intellectual development camps. The recreation program here included meetings with scientists, authors of text books and other interesting personalities. 

Particular attention is allocated to students of professional colleges and academic lyceums. They will be able to not only relax but also undergo a production internship at the camps of labor and recreation. These camps were organized by the Federation of Trade Unions and Center of secondary special and professional education jointly with the companies and farmers.

The Federation of Trade Unions of Uzbekistan realized a whole number of projects on providing benefits to make sure that the greater number of children gets a good recreation. For example, parents will have an opportunity to pay 30% of the voucher cost on the average through trade unions at the place of their employment. Boys and girls from low-income families will receive vouchers for free. Children of more than 40 thousand employees will enjoy this benefit on the basis of relevant Collective bargaining agreements. 4,5 thousand children from Karakalpakstan and Khorezm region will be able to spend their summer vacation in the camps of the City of Tashkent, Tashkent, Jizzakh, Samarkand and Qashqadaryo regions in compliance with the State program “The Year of Healthy Mother and Child.”

Apart from that, the Council of Federation of Trade Unions organizes free recreation for 2 thousand pupils of mercy homes and 50 children with physical disabilities. It also plans to provide free health improvement jointly with the “Makhalla” charity public foundation for 600 boys and girls from the needy families.

For those who prefer family recreation the sanatoria “Turon”, “Chinobod”, “Botanika”, “Buston”, “Oqtosh”, “Koosonsoi”, “CHortoq”, “Chimyon”, “Zomin”, and “Sitorai Mokhi Khosa” offer their services. There are special “Mother and child” vouchers offered with discounts to mothers with children. 2400 such vouchers are planned to be allocated this year.

Daytime camps will be opened under schools, academic lyceums and professional colleges where will be organized cultural and enlightenment events, visits to parks of culture and recreation, architectural monuments, museums and a zoo. 

All camps and sanatoria offer their campers and holiday-makers interesting recreational programs, sporting events and circles. Libraries too will have something to offer, in the process of preparing for the summer season they were provided with fiction and periodic publications.

(Source: «Uzbekistan Today» newspaper)