Uzbekistan Enhances Preferences for Hungarian Investors: New Opportunities in the “Uzbekistan–Hungary” Special Industrial Zone
2025-08-01 14:00:00 / News
Uzbekistan continues to actively strengthen its strategic partnership with Hungary, with a focus on expanding trade, economic, and investment cooperation. A new milestone in this direction is the adoption of a Presidential Decree of the Republic of Uzbekistan introducing additional incentives and preferences for Hungarian and European investors within the newly established Special Industrial Zone (SIZ) “Uzbekistan–Hungary,” located in the Akhangaran district of Tashkent region.
Legal and Institutional Framework for Cooperation
Bilateral cooperation is underpinned by 64 legal instruments, including agreements on the promotion and mutual protection of investments, avoidance of double taxation, and the effective Partnership and Cooperation Agreement between Uzbekistan and the EU, which provides for Most-Favored-Nation (MFN) treatment.
Within the framework of the Intergovernmental Commission on Economic Cooperation, a number of strategic projects are being implemented in pharmaceuticals, agriculture, engineering, and the hospitality industry. Key initiatives include the privatization of Ipoteka Bank by Hungary’s OTP Bank and the launch of poultry cluster projects.
Key Provisions of the New Decree
The Presidential Decree aims to create highly favorable conditions for Hungarian businesses in Uzbekistan. Key preferences include:
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Tax incentives for a period of 10 years in accordance with the Law on Special Economic Zones;
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Autonomy granted to the management company in the allocation of investors;
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State commitment to provide external infrastructure for the SIZ.
The decree also approves a key document – the Investment Agreement between the Republic of Uzbekistan and the Hungarian company “Inpark.”
In addition, an Administrative Council chaired by the Prime Minister of the Republic of Uzbekistan has been established to ensure the timely implementation of projects related to engineering, communications, and road infrastructure within the Special Industrial Zone.
Expected Outcomes
The introduced measures are designed to stimulate foreign direct investment, accelerate the development of industrial cooperation, and boost exports and job creation. Furthermore, the initiative is expected to enhance production capacity in pharmaceuticals, agriculture, and high-tech industries.
The “Uzbekistan–Hungary” Special Industrial Zone is poised to become a flagship of Uzbek-Hungarian economic cooperation, reflecting Uzbekistan’s openness to foreign investment and its commitment to fostering a predictable and business-friendly environment.