Sentiment Index

As part of its activities, FIC conducts a quarterly survey among the largest international commercial companies operating in Uzbekistan to compile an Investment and Business Sentiment Index (IBSI). The survey, which is completed by top management officials (CEO, CFO, etc.) of FIC member companies, solicits brief responses regarding their expectations for the upcoming quarter (Q2, April-June 2023) for their own companies and the overall investment and business climate in Uzbekistan.

FIC considers the IBSI an invaluable tool for both the investment and business community and the government. Although not a perfect instrument, the sentiment of the leading foreign investors in Uzbekistan can help the authorities understand how the market may respond to policy initiatives or the general macroeconomic environment in the country.

Business Growth

Do you expect your revenues to:

0 %

GROW

0 %

UNCHANGED

Do you expect your production volume to:

0 %

GROW

0 %

UNCHANGED

0 %

DECREASE

Do you expect your capital investments to:

0 %

GROW

0 %

UNCHANGED

0 %

DECREASE

Do you expect the number of your workers to:

0 %

GROW

0 %

UNCHANGED

0 %

DECREASE

Do you expect your capital investments to:

0 %

GROW

0 %

UNCHANGED

0 %

DECREASE

0 %

DOESN'T APPLY

The survey results indicate that the majority of respondents anticipate an increase in their revenues and production volume in Q2 2023. However, only half of them plan to make capital investments, and less than half of them intend to invest in research and development. Nearly 70% of the respondents expect an increase in their workforce.

Market Development

Do you expect local market to:

0 %

GROW

0 %

UNCHANGED

Do you expect export market to:

0 %

GROW

0 %

UNCHANGED

Do you expect the entry to your market to be:

0 %

GROW

0 %

UNCHANGED

0 %

DECREASE

Do you expect access to raw material (resource) base to be:

0 %

GROW

0 %

UNCHANGED

0 %

DECREASE

Do you expect human resources capacity / quality to:

0 %

GROW

0 %

UNCHANGED

0 %

DECREASE

The majority of respondents anticipate market growth in Q2 2023, with a corresponding increase in exports. Respondents expressed caution when estimating market conditions and foresee a greater challenge for new players seeking to enter the market. The feedback suggests that access to raw materials will remain unchanged while the human resource capacity is expected to improve

Business Environment

Do you expect tax burden to:

0 %

GROW

0 %

UNCHANGED

0 %

DECREASE

Do you expect customs burden to:

0 %

GROW

0 %

UNCHANGED

0 %

DECREASE

Do you expect business risks to:

0 %

GROW

0 %

UNCHANGED

0 %

DECREASE

Do you expect communica- tions with the state bodies to:

0 %

GROW

0 %

UNCHANGED

0 %

DECREASE

Do you expect judicial system to:

0 %

GROW

0 %

UNCHANGED

0 %

DECREASE

Based on the graphs, it appears that a majority of respondents do not anticipate any changes in tax and customs burdens, moreover, more than 26% of entrepreneurs expect that situation with tax and customs burdens will be improved. Also respondents expect business risks to remain the same in Q2 2023. Additionally, many entrepreneurs hope for stable communication with state bodies. However, approximately 40% of respondents expressed the expectation that the local judicial system will be improved

Do you expect public infrastructure level to:

0 %

GROW

0 %

UNCHANGED

0 %

DECREASE

Do you expect the state support and subsidies to:

0 %

GROW

0 %

UNCHANGED

0 %

DECREASE

Do you expect the legislation environment to:

0 %

GROW

0 %

UNCHANGED

0 %

DECREASE

Do you expect access to financial services to:

0 %

GROW

0 %

UNCHANGED

0 %

DECREASE

Do you expect bureaucracy to:

0 %

GROW

0 %

UNCHANGED

0 %

DECREASE

Do you expect shadow (informal) economy to:

0 %

GROW

0 %

UNCHANGED

0 %

DECREASE

Most of the respondents expect improvements in public infrastructure (i.e., services provided by state agencies and authorities for entrepreneurs) and access to financial services in Q2 2023. State support and subsidies are also anticipated to increase. Additionally, the legislative environment and access to financial services are expected to improve. However, respondents predict that bureaucracy and the shadow economy will remain unchanged

Infrastructure

Do you expect access to new technologies in Uzbekistan to:

0 %

GROW

0 %

UNCHANGED

0 %

DECREASE

Do you expect energy infrastructure to:

0 %

GROW

0 %

UNCHANGED

0 %

DECREASE

Do you expect telecommu- nications infrastructure to:

0 %

GROW

0 %

UNCHANGED

0 %

DECREASE

Do you expect transport and logistics infrastructure to:

0 %

GROW

0 %

UNCHANGED

0 %

DECREASE

The expectations of the respondents regarding infrastructure are quite similar in Q2 2023. It is expected that access to new technologies in Uzbekistan will be improved, and entrepreneurs are eagerly anticipating advancements in energy, telecommunications, and transportation infrastructure