NEWSLETTER | WINTER 2023-2024 | Updates in Central Asia

Uzbekistan is among the five countries with the largest improvements in the World Bank index

According to the World Bank's annual report "Women, Business and the Law", Uzbekistan was included in the list of five countries that have made the greatest progress in improving conditions for women. This significant achievement reflects the country's successful work in the area of gender equality and improving the social status of women.

Since October 2022, Uzbekistan has successfully implemented four key legal reforms that have significantly improved the social status of women. These reforms have had a positive impact on two key indicators - "remuneration for work" and "marriage".

In particular, Uzbekistan adopted legal norms guaranteeing equal pay for women and men for work of equal value. This was an important step in the struggle for gender equality in the labor sphere. In addition, restrictions on women's employment in certain sectors were lifted, expanding opportunities for women to choose a profession and advance in their careers.

An important component of these reforms was the adoption of regulations to protect women from domestic violence. In April 2023, the Criminal Code and the Code of Administrative Responsibility were amended to strengthen the fight against domestic violence in all its manifestations - physical, psychological and economic.

Thus, these reforms were an important step in improving the social status of women in Uzbekistan and promoting the principles of gender equality.

Changes in the rules for obtaining an Individual Identification Number (IIN) for non-residents in the Republic of Kazakhstan

At the moment, the Ministry of Internal Affairs of the Republic of Kazakhstan (hereinafter - the Ministry of Internal Affairs of the Republic of Kazakhstan) is planning to amend the Order of the Minister of Internal Affairs of the Republic of Kazakhstan dated 27 March 2020 No. 258 "On Approval of the Rules for Providing the State Service "Formation and Adjustment of Individual Identification Number for Foreigners and Stateless Persons Temporarily Staying in the Republic of Kazakhstan" (hereinafter - the Order). According to these rules, foreign citizens will have to apply personally to the service provider for formation of IIN through the Population Service Centres of the State Corporation "Government for Citizens" (hereinafter - GFC) at the place of stay.

The planned amendments have passed all stages of discussion and are at the stage of signing but are not yet in force. Nevertheless, based on practice, changes have already been made in the base of IIN formation in the GFC, and at the moment the representatives by power of attorney are not able to apply for IIN formation for and on behalf of their principals.

We remind that foreign citizen for employment in Kazakhstan, as well as for obtaining any digital government and banking services are required to have IIN. Previously, IIN was obtained on the basis of a power of attorney from a foreign citizen.

Moreover, we would like to inform you that from 1 January 2024 foreign citizens will have to undergo a mandatory dactyloscopic registration procedure in order to obtain a visa and residence permit in the Republic of Kazakhstan. These changes are related to the entry into force of Chapter 2 of the Rules of Dactyloscopy and Genomic Registration approved by the Resolution of the Government of the Republic of Kazakhstan dated 31 January 2018 No. 36.

If a foreign citizen refuses to undergo this procedure, according to Article 443-1 paragraph 2 of the Code of Administrative Offences of the Republic of Kazakhstan, this person will be deported from the country.

From 1 February 2024, a rating system in Uzbekistan has been introduced to assess the sustainability of businesses

From 1 February, Uzbekistan will introduce a rating system to assess the sustainability of businesses. The system will provide incentives for businesses that operate in accordance with the rules. Companies with a high rating will be exempt from all types of inspections. They will also receive a quick VAT refund and more attractive conditions for the acquisition of land and state property.The criteria are divided into three categories: general, reducing, and encouraging. The first ten criteria are evaluated on a common basis for all, with a maximum score of 100 in this category. The rating system divides companies into the following categories:

• Category "AAA", "AA" and "A" - high sustainability rating;
• Category 'BBB', 'BB' and 'B' - medium sustainability rating;
• Category 'CCC', 'CC' and 'C' - satisfactory sustainability rating;
• Category 'D' - low sustainability rating.

Some of the criteria include the duration of the company’s operation, the level of profitability, the presence of real estate or land, the ratio of employee salaries to the industry average, and more. This is a significant step towards fostering a more sustainable and robust entrepreneurial ecosystem in Uzbekistan.

Uzbekistan opens doors for investment in the electrical engineering industry

On 10 January 2024, Presidential Decree No. PP-15 "On additional measures to further increase the production and export potential of the electrical engineering industry" was adopted in order to offer foreign investors attractive opportunities in the Uzbek electrical engineering sector. The decree sets clear development goals for the years 2024-2025, including increasing the processing capacity of copper, production volumes and export opportunities.

Tax incentives and price preferences for domestic manufacturers in state tenders offer attractive investment opportunities. The regulation also contains measures to ensure the product quality of imported goods.

From February 2024, new regulations will apply to facilitate the import of raw materials and components for foreign companies. A dedicated site on the national industry portal will be introduced to make it easier for foreign investors to purchase domestic electrical engineering products.

The regulation thus creates a favourable environment for foreign investors looking to invest in Uzbekistan's emerging electrical engineering industry.