A new free economic zone

A new "Karakol" free economic zone (FEZ) will be built in the Bukhara region. The gas-chemical complex being built on the basis of MTO technology will be laid in the free economic zone.

With the decision of the Cabinet of Ministers of the Republic of Uzbekistan № DCM-357 adopted on July 4, 2022, the construction of an industrial cluster that contributes to the development of high-tech related industries for the production of final products has begun.

The complex produces up to 730,000 tons of polymer products per year and becomes the largest polymer producer in the country and one of the few enterprises in the world that produces such materials from methane.

"This is an important step towards the development of the energy industry of our country, and serves to create the first industrial platform for the implementation of large-scale gas and chemical projects in the Republic of Uzbekistan and Central Asia. The cluster will serve the development of the region and the creation of more than 2,300 new jobs, says” M.Shakirov, deputy general director of SEG, MTO project manager.

A number of tax, regulatory and other benefits are provided for the residents of Karakol FEZ. In particular, tax benefits for property and water supply, as well as the right to import equipment and raw materials without duty, have been granted for 10 years. Also, excise duty and income tax will be reduced by 50% and other benefits will be applied.