ON ADDITIONAL MEASURES TO PROMOTE THE EXPORT OF SERVICES IN THE FIELD OF DIGITALIZATION IN THE COUNTRY RESOLUTION OF THE PRESIDENT OF THE REPUBLIC OF UZBEKISTAN DD FEBRUARY 26, 2024, №. RP-87

RESOLUTION

OF THE PRESIDENT OF THE REPUBLIC OF UZBEKISTAN

FEBRUARY 26, 2024,

No. RP-87

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ON ADDITIONAL MEASURES TO PROMOTE THE EXPORT OF SERVICES IN THE FIELD OF DIGITALIZATION IN THE COUNTRY

In order to further expand the opportunities for enterprises operating in the field of digital technologies to enter world markets, to widely attract foreign companies engaged in the export of services using digital technologies to our country, to introduce additional mechanisms to support the increase in exports in the field, as well as to ensure the fulfillment of tasks defined by the Strategy “Uzbekistan — 2030”:

1. To agree with the proposals of the Ministry of Digital Technologies and the Ministry of Investment, Industry and Trade, which include:

a) implementation by the Technology Park of Software Products and Information Technologies (hereinafter referred to as the IT Park):

the launch of the Program aimed at the development of the IT industry, providing highly profitable jobs and modern professions to the population in the Republic of Karakalpakstan and the regions, as well as the widespread attraction of enterprises engaged in the export of IT services to the regions (Zero Risk) (hereinafter — the Program);

the realization of the Project on introducing to the international IT market the enterprises operating in the field of IT services in the domestic market and supporting their export activities (Local to Global) (hereinafter referred to as the Project);

b) assignment the status of a resident of the IT Park in the order established by the legislation to organizations operating in two or more foreign countries, in the total volume of services of which the share of export of services exceeds the volume of services rendered in the domestic market, provided that their activities are established in the Republic of Uzbekistan as a legal entity.

2. Establish that the enterprises participating in the Program:

a) based on the recommendation of the IТ Park, vacant objects of state real estate, as well as vacant buildings and areas (premises) of the organizations of the system of the Ministry of Digital Technologies and branches of the IТ Park, which are state property, are transferred for a period of up to one year on the basis of the right of gratuitous use.

Herewith:

The Council of Ministers of the Republic of Karakalpakstan and regional khokimiyats together with the State Assets Management Agency submit to the Directorate of the IT Park a quarterly updated List of vacant objects of state real estate;

The IT Park Directorate, if necessary, sends to the State Assets Management Agency a list of enterprises participating in the Program and a recommendation on the placement of these enterprises in vacant state real estate facilities for up to one year on the basis of the right of gratuitous use, taking into account the effective operation of the relevant areas;

after one year, a direct contract is concluded with the enterprises participating in the Program for buildings and areas (premises) transferred to them on the basis of the right of gratuitous use, the cost of one square meter of which is determined based on the average amount of rent in the relevant territory, formed on the electronic trading platform “E-auksion“;

b) new computers, other equipment and machinery purchased by the IT Park are transferred for up to one year on the basis of the right of gratuitous use with the condition of subsequent payment (purchase) within three months in installments without interest;

c) salary expenses are reimbursed within one year in the amount of up to 15 percent in proportion to the number of employees engaged in labor activity;

d) expenses of one enterprise in the direction of human resources development are reimbursed within one calendar year, in particular:

related to retraining and advanced training (including with the involvement of foreign specialists) of production and management personnel — in terms of up to 50 percent of such expenses, but not exceeding 200 times the size of the basic estimated value;

for the services of selecting qualified specialists for employment (commensurate with the number of specialists) — in terms of up to 50 percent of such expenses, but not exceeding 20 times the size of the basic estimated value.

3. To determine that organizations participating in the Program must have the status of a resident of the IT Park and meet one of the following requirements:

in the total volume of services, the share of exports of services exceeds the volume of services provided on the domestic market;

having valid export contracts worth the equivalent of 500 thousand US dollars or more;

which are new organizations founded by foreign companies with an annual turnover of the equivalent of 1 million US dollars or more.

4. Establish the procedure according to which, within the framework of the Project, IT Park resident organizations:

a) the IT Park provides free consulting services (export mentoring) in such areas as the development of an export plan, identification of promising foreign markets and training in the requirements for entering these markets, searching for customers and negotiating with them, registration of export documentation, organization of the support process at the stage after the implementation of services;

b) a part of up to 50 percent of the costs of promotion to the world market are reimbursed in the following maximum amounts:

for consulting services of foreign experts — in the equivalent of up to 10 thousand US dollars;

for participation in international exhibitions and conferences — in the equivalent of up to 5 thousand US dollars;

to organize visits to our country by foreign partners to conduct business negotiations with them — in the equivalent of up to 20 thousand US dollars in proportion to the volume of services actually exported by them according to Annex No. 1;

for official business trips to foreign countries (for transport and hotel services) — in the equivalent of up to 5 thousand US dollars;

c) half of the costs of training on prestigious international platforms and areas of education, the list of which is approved by the Ministry of Digital Technologies, are reimbursed — no more than 50 percent of the total number of employees, but only once in one calendar year per employee;

d) the opportunity is provided for free training on popular online training courses of prestigious international educational platforms in the direction of export in order to improve the skills of employees within the framework of the One Million Programmers project.

5. To determine that within the framework of the Project, the costs for each direction of promotion to the world market of enterprises operating in the IT sector are reimbursed only once in one calendar year.

6. To approve the proposal of the Ministry of Digital Technologies, the Council of Ministers of the Republic of Karakalpakstan, the khokimiyats of the regions and the city of Tashkent on setting targets for the export of services in the field of digitalization for 2024 in accordance with Annex No. 2.

To assign personal responsibility to the Minister for Digital Technologies, Sh.Kh. Shermatov, for achieving targets related to the export of digital services, and to require the Minister to submit a report to the Office of the President and the Cabinet of Ministers at the end of each month on the effectiveness of measures taken.

To the Prime Minister of the Republic of Uzbekistan, A.N. Aripov, to coordinate and hold monthly discussions on the activities of ministries and departments for the timely and thorough development, as well as the full implementation of measures aimed at ensuring the achievement of targets.

7. The Council of Ministers of the Republic of Karakalpakstan and the regional khokimiyats, together with the State Asset Management Agency, within a month to identify and conduct an inventory of vacant state real estate objects that meet the requirements established by the IT Park Directorate, as well as submit to the IT Park Directorate a list based on the results of the inventory.

At the same time, to ensure quarterly updating of the List of vacant objects of state real estate.

8. To establish that:

In 2024, up to 65 billion soums will be allocated to finance the measures provided for under the Program and the Project — at the expense of the IT Park, up to 35 billion soums — at the expense of the Digital Technology Development Fund;

Since 2025, the measures provided for in the framework of the Program and the Project are funded by the IT Park, the missing part is funded by the Digital Technology Development Fund;

consideration of applications within the framework of the Program and the Project, identification of compliance of enterprises with the established criteria, determination of the scope of support measures, their implementation processes are carried out through a special information system of the IT Park free of charge.

9. In order to promote the potential of the IT sector of Uzbekistan in the world market, to widely attract foreign companies and orders to our country for domestic enterprises engaged in the production of software and the provision of IT services, to approve the proposals of the Ministry of Digital Technologies and the Ministry of Investment, Industry and Trade, providing:

a) the organization of the activities of representative offices (branches) of the IT park in Germany and Saudi Arabia, the main activity of which is aimed at attracting orders for IT services for domestic enterprises, in 2024.

At the same time, allow the IT Park Directorate to allocate funds to finance each representative office (branch) in the equivalent of up to 200 thousand US dollars per year until January 1, 2027 in order to organize their activities in the above-mentioned foreign countries;

b) regular holding of international events “IT days of Uzbekistan” in foreign countries, in particular in 2024 in the USA and Germany;

c) granting the IT Park Directorate permission to conclude direct contracts in the equivalent of up to 200 thousand US dollars for each of the following directions:

with foreign companies (including social networks), the list of which is approved by the Ministry of Digital Technologies, the Agency of Information and Mass Communications and the Committee for the Development of Competition and Protection of Consumer Rights, for production and advertising services, services for the preparation and broadcast of advertising materials, reports and other commercials of foreign TV and radio companies and other mass media aimed at propaganda The IT potential of the Republic of Uzbekistan in foreign countries;

with foreign companies, the list of which is approved by the Ministry of Digital Technologies and the Committee for the Development of Competition and Protection of Consumer Rights for the organization and participation in events (exhibitions, conferences, round tables and seminars) abroad, as well as with foreign consulting companies and consultants for the development of the IT industry in our country and propaganda in the world.

10. To determine that the funds necessary for the organization of the activities of the representative offices (branches) of the IT Park in Germany and Saudi Arabia are allocated on the basis of estimates agreed with the Ministry of Digital Technologies and approved by the IT Park.

At the same time, the Management of the IT Park regularly submits to the Ministry of Digital Technologies a detailed report on the expenses incurred at the end of the year.

11. To the Ministry of Digital Technologies within a month:

to ensure the development and approval of a draft regulation providing for support mechanisms for Program and Project participants;

in conjunction with the Agency of Information and Mass Communications, the Committee for the Development of Competition and Protection of Consumer Rights to approve and, if necessary, update the list of organizations and consultants provided for in subparagraph “b” of paragraph 9 of this resolution;

to announce and update the lists of foreign companies providing expert advisory services, international exhibitions and conferences, the costs of which are covered under the Project.

12. To the Ministry of Foreign Affairs together with the Ministry of Investment, Industry and Trade:

to provide comprehensive assistance to the IT park in the preparation of the necessary documentation for the establishment of its representative office (branch) in Germany and Saudi Arabia;

after the establishment of representative offices (branches) of the IT park in these countries, ensure wide coverage of their activities in the media and the Internet.

13. To the Ministry of Digital Technologies:

within a month, submit to the Cabinet of Ministers a draft Government resolution providing for the inclusion in the list of activities authorized by residents of the IT park of activities for the provision of services by an organization operating in two or more foreign countries in which the share of exports of services in the total volume of services is higher relative to the volume of services provided in the domestic market;

in collaboration with the Council of Ministers of the Republic of Karakalpakstan, the regional khokimiyats, and the IT Park, take measures to widely popularize the Program and the Project, and to widely involve organizations in the IT sector in the regions to participate in them;

in collaboration with the Ministry of Investment, Industry and Trade, to widely publicize the essence and significance of this resolution in the media, the Internet and social networks;

In collaboration with the interested ministries and departments, within two months, submit proposals to the Cabinet of Ministers on amendments and additions to legislative acts arising from this Resolution.

14. Assign to the Minister of Digital Technologies Sh.Kh. Shermatov personal responsibility for the effective organization of the execution of this Resolution.

The discussion on the implementation of this resolution and coordination and monitoring of the activities of organizations involved in its implementation should be entrusted to Prime Minister of the Republic of Uzbekistan, A.N. Aripov.

President of the Republic of Uzbekistan SH. MIRZIYOYEV

ANNEX No. 1

to the resolution President of the Republic of Uzbekistan No. RP-87 dated February 26, 2024

ALLOCATIONS

covering up to 50 percent of expenses to IT Park resident organizations for organizing visits of foreign partners to our country to conduct business negotiations with them within the framework of the Project (Local to Global)

No.	The volume of services actually exported by a resident of the IT Park that is participating in the project	Covered Expenses Rate
1.	In the equivalent of $200,000 USD or more	In the equivalent of $20,000 USD
2.	In the range of equivalent $150,000 to $200,000 USD	In the equivalent of $15,000 USD
3.	In the range of equivalent $100,000 to $150,000 USD	In the equivalent of $10,000 USD
4.	In the range of equivalent $50,000 to $100,000 USD	In the equivalent of $5,000 USD

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ANNEX No. 2

to the resolution President of the Republic of Uzbekistan No. RP-87 dated February 26, 2024

TARGETS

for the development of services in the field of digitalization in the Republic of Karakalpakstan, regions and the city of Tashkent in 2024

No.	Regions and Responsible Organization	IT services export target in 2024 (in millions of dollars)	By quarters (in millions of dollars)				Number of specialists to learn English (conversational level C1)	Number of specialists to learn German and other languages (at B2 level)
			1	2	3	4
Countrywide		1 010	142,8	198	300	369,2	60 000	10 000
1.	Republic of Karakalpakstan	15	2	3	4,5	5,5	2 700	450
2.	Andijan region	50	7,5	10	15	17,5	5 100	850
3.	Bukhara region	40	6	8	12	14	3 300	550
4.	Jizzakh region	50	7,5	10	15	17,5	2 100	350
5.	Kashkadarya region	20	3	4	6	7	5 100	850
6.	Navoi region	20	2	4	6	8	2 400	400
7.	Namangan region	20	2	3	6	9	5 100	850
8.	Samarkand region	50	7,5	10	15	17,5	7 200	1 200
9.	Surkhandarya region	20	2	4	6	8	4 500	750
10.	Syrdarya region	20	2	4	6	8	1 800	300
11.	Tashkent region	35	5,3	7	10,5	12,2	6 600	1 100
12.	Fergana region	20	3	4	6	7	6 600	1 100
13.	Khorezm region	50	3	7	12	28	3 600	600
14.	Tashkent	100	15	20	30	35	3 900	650
15.	IT Park	500	75	100	150	175	–	–

The document presented in an unofficial translation from the database of the law firm “S VERENIN’S LEGAL GROUP”.

The document presented from the database of the law firm “S VERENIN’S LEGAL GROUP”.

The document presented as of _______2024г.

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