Introduction

Uzbekistan operates over 20 free economic zones (FEZs) across the country, each offering significant tax and customs incentives designed to attract foreign investment. For companies making qualifying investments, FEZ participation can dramatically reduce the cost of entering and operating in Uzbekistan.

However, navigating the FEZ landscape — understanding which zones match your industry, what incentives are available, and how to qualify — requires practical guidance. This guide provides it.

What Are Free Economic Zones?

Free economic zones are designated territories where businesses operate under preferential tax and customs regimes. The Uzbek government uses FEZs as a tool to attract foreign investment, promote regional development, and encourage specific industries.

Each FEZ has its own focus areas, infrastructure capabilities, and management team. Some are well-established with modern facilities; others are newer and still developing their infrastructure.

Available Incentives

Tax Exemptions

The duration of tax exemptions depends on investment volume:

  • Investment of $300,000–$3 million: exemptions for 3 years
  • Investment of $3 million–$5 million: exemptions for 5 years
  • Investment of $5 million–$10 million: exemptions for 7 years
  • Investment over $10 million: exemptions for 10 years

Taxes covered by exemptions typically include:

  • Corporate income tax (profit tax)
  • Property tax
  • Land tax
  • Water use tax
  • Infrastructure development tax

Customs Benefits

  • Exemption from customs duties on imported equipment, raw materials, and components used in production
  • Simplified customs procedures

Other Benefits

  • Simplified registration procedures
  • Dedicated FEZ administration support
  • Available infrastructure (utilities, roads, buildings in some zones)
  • One-stop-shop for permits and approvals (in better-managed zones)

Major Free Economic Zones

Navoi FEZ

One of the largest and best-established zones. Located near the Navoi International Airport (a major cargo hub). Focus: logistics, manufacturing, food processing, pharmaceuticals, textiles. Strong infrastructure and established management.

Jizzakh FEZ

Focus: automotive components, building materials, food processing, textiles. Located along the major transportation corridor between Tashkent and Samarkand.

Angren FEZ

Located in the Tashkent region. Focus: manufacturing, building materials, mining services, industrial production. Benefits from proximity to Tashkent’s labor market and infrastructure.

Urgut FEZ

Located near Samarkand. Focus: textiles, food processing, leather goods, and light manufacturing.

Gijduvan FEZ

Located in the Bukhara region. Focus: textiles, ceramics, food processing, and tourism-related manufacturing.

Nukus FEZ

Located in the Republic of Karakalpakstan. Focus: agricultural processing, textiles, and manufacturing. Offers some of the most generous incentives due to the region’s development priority status.

Eligibility and Application Process

To become an FEZ participant, a company must:

  1. Register a legal entity in Uzbekistan (or plan to do so)
  2. Submit a business plan and investment proposal to the FEZ administration
  3. Demonstrate a qualifying investment commitment (minimum $300,000 in most zones)
  4. Receive approval from the FEZ administrative council
  5. Sign a participation agreement outlining investment commitments and timelines

The application process typically takes 15–30 business days. The FEZ administration evaluates proposals based on investment volume, job creation potential, technology transfer, and alignment with the zone’s focus areas.

How to Choose the Right FEZ

Consider these factors:

  • Location relative to your target market and supply chain — proximity to transportation infrastructure, labor pools, and raw materials
  • Industry alignment — choose a zone that focuses on your sector
  • Infrastructure quality — visit the zone if possible to assess roads, utilities, buildings, and internet connectivity
  • Management quality — well-managed zones provide better support and faster approvals
  • Investment threshold — ensure your planned investment qualifies for meaningful incentive periods
  • Labor availability — zones near larger cities generally offer better access to skilled workers

Common Pitfalls

  • Overestimating the quality of available infrastructure in newer or more remote zones
  • Failing to meet investment commitments on schedule (which can result in loss of incentives)
  • Not accounting for logistics costs when choosing a zone far from major markets
  • Assuming all FEZ administrations provide the same level of support (they vary significantly)
  • Not budgeting for the time required to become fully operational within the zone

How Lexford Group Can Help

We advise on FEZ selection based on your specific industry, investment size, and operational requirements. Our services include:

  • FEZ comparative analysis and recommendation
  • Business plan preparation for FEZ applications
  • Application preparation and submission
  • Company registration within the selected zone
  • Ongoing compliance with FEZ participation requirements
  • Coordination with FEZ administration on operational matters

Considering a free economic zone? Let us help you choose the right one →