In order to attract investment to the Republic of Karakalpakstan and to further expand the region’s opportunities, Decree of the President No. UP-129 "On additional measures to create favorable conditions for entrepreneurs in the Republic of Karakalpakstan" was adopted on August 8, 2023 (the "Decree No. UP-129").
According to the Decree No. UP-129, the Fund for Reconstruction and Development will allocate 100 million USD to commercial banks to finance investment projects to expand production in the Republic of Karakalpakstan.
At the same time, within the framework of these funds:
For the purpose of further attraction of investments and development of entrepreneurship, the following benefits are provided to business entities:
Small businesses of all regions in the sphere of trade, catering, as well as gas stations and electric charging points will be compensated for the loans allocated for the purchase and installation of solar panels in the amount and on the terms established by the State Fund for Support of Entrepreneurial Activity.
Within the framework of family entrepreneurship development programs, credit funds worth at least 2 trillion soums will be allocated from 2024.
Furthermore, according to the Decree No. UP-129, credit funds will be allocated for youth training in foreign countries in the amount not exceeding the main rate of the Central Bank for a period of 10 years with a 4-year grace period.
It is planned to create a "Youth Socio-Economic Center" (the "Youth Center") with an area of 100 hectares in Khojaili district, which will include an IT-park, project offices, startup technopark, "innovation groups" to support startup projects, cultural and spiritual centers, libraries and sports complexes. And multi-storey and individual residential buildings will be built for entrepreneurs and young people working in the Youth Center.
Subject to employment of unemployed youth, business entities located on the territory of the Youth Center are subject to tax and customs privileges established by the legislation for participants of special economic zones.