Annual activity results review at the press conference

Annual activity results review at the press conference

On February 7, this year there was held a press conference in the Administration of Sughd FEZ with the participation of representatives of local and regional mass media.

The head of the Administration Firdavs Olimzoda summarized the work for 2018 and defined the mainstream development and growth in 2019.

To date, 24 subjects (entities) in the Sughd FEZ are entitled to privileges and preferences. “Next year, based on our forecast we are planning to increase the number of our subjects up to 30” he noted.

In 2018, two large enterprises of FEZ were officially launched, where the President of the country Emomali Rahmon took part in their opening ceremony. The Tajik-Turkish enterprise “Archa-Mebel” produces a wide range of furniture. The owner invested 9 million TJS to its construction. The second enterprise is “Ariana Metal Plast” engaged in the production of metal-plastic products. The plant has already started the production of children’s cars, wheelchairs, bicycles, walkers etc. The product range will be expanded at the nearest future, and the company will produce 36 types of items, in particular, household goods, fans, and various plastic parts for cars and household appliances. The company established by domestic entrepreneurs, who have invested more than 14 million TJS for the building works.

At the eve of official opening of mentioned subjects several preparation and construction works were carried out in the territory of FEZ, such as repair and asphalting of a part of the roadway, lighting of the area, decorative gardening and decoration of the access site. Works are continued on the construction of an administrative building.

At the press conference, also annual statistical indicators were announced that marked a growth trend. According to F. Olimzoda, the volume of production in 2018 increased by 36 million TJS compared with 2017 and amounted to 116 million TJS. About 20% of production was exported to Kyrgyzstan, Uzbekistan, Turkmenistan, and Afghanistan in an amount of 17 million TJS.

In 2018, the subjects invested 19.7 million TJS. More than 500 people are employed in FEZ. Also, there were given figures that are deducted by subjects to the social and income tax budget and customs duties.

In 2018, in honor of the tenth anniversary of the creation of free economic zones in Tajikistan with the active participation of Sughd FEZ Administration the International Economic Forum “Sughd-2018” was held, where individuals and organizations made a special contribution to the development of the FEZ in Tajikistan were awarded.

It was also noted that the Administration of Sughd FEZ continues to cooperate actively with free zones of Kyrgyzstan, Kazakhstan, Uzbekistan, Belarus, and China. There are also agreements and memorandums of cooperation with international organizations leading to the implementation of joint projects.

Lastly, F. Olimzoda emphasized that the Administration of Sughd FEZ intends to fulfill the realization of goals set at the creation of FEZ.

After the completion of the report, the representatives of the media asked their questions of concern.

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Sughd FEZ subject founder awarded as the “Best Entrepreneur of 2018”

Sughd FEZ subject founder awarded as the “Best Entrepreneur of 2018”

December 21, 2018, in Sugdiyon culture palace of Khujand city the award ceremony for the winners of the contest “Best Entrepreneur of 2018” organized by the Chairman of the region Rajabboy Ahmadzoda was held. The purpose of the event was to render state support for entrepreneurship and promotion of active entrepreneurs of the region contributing to the development of the economy and society, raising production and services.

The competition lasted from April to December, this year, and the winners were determined in 8 directions and 42 ranks.

In particular, the CEO of Kedr Association Ochilov Dodokhon Ikromovich, who is the owner of several subjects in Sughd FEZ, became the winner in the nomination “The Best Entrepreneur of the Year for the Implementation of Innovative Technologies in the Industry”. The victory was awarded for the development of the industry and the use of modern technologies at Archa-Mebel company.

It should be noted that Archa-Mebel is a subject of Sughd FEZ and produces a wide range of different types of furniture, such as furniture for preschool, educational, administrative, medical institutions, for home, office, sports and playgrounds, and cinemas. This is one of the largest enterprises in its field, which meets all modern requirements and international standards.

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Production of metal ingots will be launched in Sughd FEZ

Production of metal ingots will be launched in Sughd FEZ

On December 21, 2018, at the meeting of the Commission for reviewing business plans and investment projects of applicants for obtaining the status of a subject of the free economic zone under the Ministry of Economic Development and Trade of the Republic of Tajikistan, the project of Okhankor LLC for setting up the production of metal ingots in Sughd free economic zone was approved. The company plans to start production next year. The investor plans to invest in the production of more than 1.8 million US dollars.

This will be the first entity in Sughd FEZ established at the expense of Uzbek investments that is revealing that at the background of renewal and improvement of Uzbek-Tajik relations.

The project envisages the construction of a modern metalworking mini-plant focused on the processing of ferrous metal. The production process will be carried out on modern equipment, which will ensure the environmental safety of production. Produced metal ingots will be exported to the Republic of Uzbekistan for further processing.

The aim of the project is to meet the resource needs of the regional market for metal products. In process of studying of the market, the enterprise plans to diversify the range of products. In addition to metal ingots, the range will be supplemented with fittings, metal profiles, squares, blocks, etc.

On December 22, 2018, the solemn presentation of the subject status certificate to the new enterprise took place in the Administration of Sughd FEZ. The head of FEZ Administration Firdavs Olimzoda wished the new company great success and good results.

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Construction works in a large manufacturing enterprise to be opened soon in Sughd FEZ

Construction works in a large manufacturing enterprise to be opened soon in Sughd FEZ

The subject of Sughd FEZ – OJSC “Ariana Metal Plast” is implementing a project for the production of metal-plastic products. Construction works in most of the workshops already completed. Currently, works are underway in separate buildings and shops and the territory is being upgraded.

In the test mode, the production of children’s toys (strollers, scooters, bicycles) has already begun. Advanced equipment was imported from China, and pellets used in production were imported from China and Iran. In addition to children’s toys, the company will produce household appliances, such as fans, various plastic parts for cars, etc.

The experimentally annual production volume is 48 thousand items. After the full launch of production capacity, the company is planning to increase the production volumes. The construction investment of the company is about 14 million TJS. The main part of the products will be exported to Kazakhstan, Kyrgyzstan, Russia, and Afghanistan.

The implementation of the project will employ more than 150 local people.

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Visit of Tajik entrepreneurs owning business abroad

Visit of Tajik entrepreneurs owning business abroad

On September 9, a group of domestic businesspersons who conduct their business activities abroad, in particular, in Russia and Kazakhstan, have visited Sughd free economic zone.

A tour to the subjects of FEZ – Archa and Archa Mebel was organized for the guests, during which they familiarized with the benefits and privileges granted to domestic and foreign investors.

We note that September 5 to 9, a forum of domestic business abroad held in Sughd region where more than 70 Tajik entrepreneurs have participated.

The forum was organized on the 27th anniversary of the Independence Day of the Republic of Tajikistan, as well as to present the potential of the region for future investments.

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Introduction of Sughd FEZ in the International Blockchain Summit 2019

Introduction of Sughd FEZ in the International Blockchain Summit 2019

January 21-23, this year an International Blockchain Summit 2019 held in the Chinese province of Hainan in Sanya city. The main purpose of the summit dealt with the discussion of the development and implementation of the blockchain system in countries where this technology less represented. For three days, such topics as the use of blockchain technology in the industry and crypto financing, business models and future trends were discussed. It should be noted that this technology is developing rapidly and is already being adopted by such large corporations as IBM, JP Morgan Chase, Microsoft, Visa, and Intel.

The summit was organized by the Clear Water Bay Information and Industrial Park Hainan in collaboration with the provincial government. The event was attended by several hundred people, such as investors, politicians, executives of business companies, academics and start-up owners from America, Asia, and Europe, including representatives of Central Asian countries.

The head of the Administration of Sughd FEZ Firdavs Olimzoda took an active part in the work of the summit.

Representatives of the participating countries shared their vision regarding the implementation of blockchain technology in their country, the role of this system in the economy, particularly in business development. Thus businesspersons from the USA, where the technology is already being successfully used in various spheres of economy, shared their experience in using the blockchain in farms, in particular in raising cattle.

Firdavs Olimzoda in his speech presented the activities of free economic zones of Tajikistan, which were created as a platform for the implementation and testing of innovative activities, and where business projects have been proposed, the scope of which is related to crypto-financing. The Republic of Tajikistan, which is open to innovation, in turn, is actively exploring this technology based on the experience of neighboring countries.

As part of the program, there were organized visits for participants to the largest corporations in the province, in particular to the Hainan free trade zone.

At the end of the summit, multilateral cooperation agreements were signed between the participating countries. Thus, the Administration of Sughd FEZ entered into a memorandum with the Information Industrial Park of Hainan on mutually beneficial cooperation, in particular, to open a representative office of Sughd FEZ and an exhibition hall for promoting goods of Tajik manufacturers. Space is provided by the park for annual free use.

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Grand opening of JSC “Ariana Metal Plast” took place in Sughd FEZ

Grand opening of JSC “Ariana Metal Plast” took place in Sughd FEZ

On October 24, an enterprise for the production of metal and plastic products “Ariana Metal Plast” has been launched in Sugd free economic zone. The Founder of Peace and National Unity – Leader of the Nation, President of the Republic of Tajikistan his Excellency Emomali Rahmon has participated in its opening ceremony.

The enterprise has already started production of children cars, strollers, bicycles, walkers. In the future, the product range will be expanded and the company will manufacture 36 types of items, in particular, household goods, fans and various plastic parts for cars and household appliances. Eight modern technological lines allow producing of high quality and environmentally safe products worth over 20 million TJS per year.

The new large enterprise occupies 4 hectares of Sughd FEZ territory and includes several production workshops, an administrative building, and storage facilities. Domestic entrepreneurs Alisher and Mirzo Umarovs established this company and they have invested more than 14 million TJS to the construction of the enterprise.

Work at the enterprise is carried out in two shifts and all employees and specialists before starting activity passed special training courses. At the moment, about 100 residents of Khujand and neighboring cities, some of whom are women, are employed in the enterprise. After launching of the second line, another 50 people will be provided with permanent employment.

The granules used for the production of plastic products are partially imported from abroad, in particular, from China and Iran. According to the idea of experts, this is the first company in the country where all parts of toys, children bicycles, and household equipment will be produced domestically. Manufactured products along with the provision of the domestic market, will be exported to Kazakhstan, Kyrgyzstan, Russia, Afghanistan as well.After reviewing the working conditions and the production process, the Head of State highly appreciated local entrepreneurs for their support of the constructive policy of the Government of the Republic of Tajikistan and directed them to continue these initiatives. The Leader of the Nation instructed the employees and specialists of the enterprise to pay attention to the quality of the products first and not to put personal interests above public health. Thus, they will be able to attract more buyers in the domestic and foreign markets, because customer confidence in product quality is considered as a basic requirement on the path to the success of the enterprise.

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Free economic zones of Tajikistan celebrated their tenth anniversary

Free economic zones of Tajikistan celebrated their tenth anniversary

October 11, 2018, Sugdiyon culture palace of Khujand opened its doors to the participants of the International Economic Forum “Sughd-2018”, which was held in honor of the tenth anniversary of the creation of free economic zones in Tajikistan.

The event that was organized by the Ministry of Economic Development and Trade of Tajikistan, the Executive Body of the Government of Sughd region and the Administration of Sughd FEZ has attended by more than 350 people of business, public and scientific circles. Free economic zones of Tajikistan, Uzbekistan, Kyrgyzstan, Kazakhstan, and Russia have become active participants in the economic forum.

The event was opened with a welcoming speech of Chairman of Sugd region Mr. Rajabboy Ahmadzoda. He expressed confidence that today’s forum will give a new impetus to the process of strengthening friendly relations and strengthening cooperation with national and foreign investors. The Chairman informed participants about the socio-economic situation of the region by stressing that thanks to the wise and constructive policy of the Head of the State, the small and large industrial enterprises are being created and entrepreneurship is developing. Sughd region can rightly be called the “valley of opportunities”.

The official part of the forum was made by the Deputy Minister of Economic Development and Trade of Tajikistan Todjiddin Jurazoda, Deputy Chairman of the Committee for Regional Development under the President of the Republic of Tajikistan Yokub Ismoilzoda, Extraordinary and Plenipotentiary Ambassador of Ukraine to the Republic of  Tajikistan Viktor Nikityuk. The representatives of the OSCE and UNDP donor organizations also were given speeches who were the main partners of the forum.

The program of the forum included presentations of Tajik, Uzbek, Kazakh, Kyrgyz and Russian free economic zones. Thus, the representative of the special economic zone “Alabuga” told why such world brands as Ford, Rockwool, HAYAT, Kastamonu choose this zone. The management of the special economic zone Ontustik, which is one of the best SEZ in Kazakhstan, presented the conditions for investors and the success of its activities. Information on economic zones of Kyrgyzstan was presented by the General Director of the Naryn FEZ Ms. Gulzat Abdyrasulova.

The head of the Administration of Sughd FEZ Firdavs Olimzoda told about the history of the formation of the FEZ in Tajikistan and their future intends.

The forum participants heard an expert assessment of the further vision of the development of Tajik free economic zones. The multilateral analysis was carried out by the candidate of economic sciences Daler Mirpochoev.

Then, Dadoboev Narzullo – Deputy Chairman of the Board of the Association of “Kedr” among which three enterprises have the status of a subject of Sughd FEZ shared a chronicle of the formation of enterprises, a success story and plans for the future. Ilhom Sangin who is not only the head of Ravzana Plastic, but also the deputy chairman of the Small and Medium Business Association of Tajikistan, shared with the forum participants the peculiarities of the establishment of free economic zones in Tajikistan as an integral part of the mechanism that drives and develops the country’s economy and voiced the Association on their further development in order to improve and ensure greater investment attractiveness.

During the event, the guests visited Sughd FEZ, where they were acquainted with the activities of large enterprises, such as Tajprof, Archa and Archa Mebel. The participants of the forum, while communicating for the buffet in an informal setting, were able to lay the foundations for further negotiations on possible cooperation. Thus, between the Administration of Sughd FEZ and Ontustik SEZ a memorandum of cooperation was signed.

The forum ended with a solemn presentation of awards to individuals and organizations that have made a special contribution to the development of free zones in Tajikistan.

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Relevant issues of further development of Sughd FEZ were discussed during the international trade fair

Relevant issues of further development of Sughd FEZ were discussed during the international trade fair

The analysis of efficiency and issues of further development of Tajikistan’s free economic zones were discussed within the framework of the International Trade Fair “Sughd-2018” held on July 6-7 in Khujand. This traditional fair, which is held for the fifth consecutive year is a modern platform for the development of international trade, increasing the export potential, attracting investments and establishing effective cooperation with the countries of near and far abroad.

Within the framework of the fair’s business program a panel session entitled “Free Economic Zone of Sughd: Topical Issues of Development” was held along with the other business forums and conferences. The session brought together specialists from different industries related to the themes of FEZ. The head of Administration of Sughd FEZ Firdavs Olimzoda opened the session. He focused his speech on the special role of free economic zones in the country’s economy, for which was given special attention by the President of Tajikistan Mr. Emomali Rahmon. “Everyone knows that in our country there are four free economic zones, and they are gradually developing. Where there is development, there is a problem. Proceeding from this, the speeches of the experts of the event will be devoted to explaining the essence of the FEZ, its role in the development of the social and economic sector of the state, the relationship with other government bodies, the discussion of existing barriers to development and mechanisms for overcoming them” – said Firdavs Olimzoda, urging participants to effectively and actively participate in discussions.

A video about the potential of the free economic zones of Tajikistan, created at the initiative of the Ministry of Economic Development and Trade of the Republic of Tajikistan was shown to the audience.

Presentations were made by representatives of the Center for Strategic Studies under the President of the Republic of Tajikistan, the tax and customs departments in the Sughd region, academic circles, independent experts, specialists of Sughd FEZ Administration and its subjects.

The presentations touched upon topical issues on the further vision of the development of free zones. Expert-consultant – Farrukh Sultanov spoke about the application of the latest technologies as an opportunity to create a technical breakthrough in the FEZ. Daler Mirpochoev – a candidate of Economic Sciences, shared the Chinese experience in the development of FEZ in his report “Directions for improving the activity of Sughd FEZ: an analysis of international experience” and announced three stages of the best FEZ regime, favorable for attracting foreign investments.

Mirzoyon Mirzomanon – head of the Investment Promotion Department of the Administration, in his speech, presented his vision of further steps to improve the activities of Sughd free economic zone.

Representatives of successful companies operating in the territory of Sughd FEZ have shared their experience on enterprise creation and operation.

After having heard all the presentations, participants of the session have raised the topical issues; comments and visions for the future development of free economic zones in Tajikistan were given. At the end of the event, Firdavs Olimzoda thanked those present for their participation, noting that the proposals made in the session are very important for the future successful operation of the FEZ and, if appropriate, they will be included to the long-term plan of the Administration.

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The leader of the Nation Mr. Emomali Rahmon solemnly launched production of furniture enterprise in Sughd FEZ

The leader of the Nation Mr. Emomali Rahmon solemnly launched production of furniture enterprise in Sughd FEZ

On June 26, the grand opening ceremony of the modern furniture factory “Archa mebel” took place with the participation of The Founder of Peace and National Unity – Leader of the Nation, President of the Republic of Tajikistan Emomali Rahmon.

The founders of the new Tajik-Turkish enterprise are “Fortuna-Co” LLC and the Turkish company “UchYuldiz”.

The enterprise occupies 7 thousand square meters and includes two production halls, administrative offices, a site for raw materials and a storage. 9 million TJS were invested in the construction. The main investors of the enterprise are “Fortuna-Co” LLC and the Turkish company “UchYuldiz”, as well as the European Bank for Reconstruction and Development. It should be noted that the EBRD initially supported the project of woodworking enterprise “Archa” with 4,5 million TJS, which is already successfully operating in the territory of Sughd free zone.

Archa mebel produces a wide range of different types of furniture, such as furniture for kindergarten, schools, administrative and medical institutions, furniture for home, office, gyms, children’s playgrounds, cinemas, etc. This is one of the largest enterprises in its field, which meets all modern requirements and international standards.

It should be noted that production workshops have modern types of equipment imported from Italy, Turkey, and China. 80% of domestic raw materials are used in production and some of the raw materials are imported from Belarus, Russia, Turkey, and Uzbekistan. The enterprise provides with a permanent job and high salary to 50 people, some of whom are women.

At the enterprise for the high-ranking guests, an exhibition was organized, which demonstrated a wide range of manufactured furniture. The Leader of the Nation highly appreciated what he saw, noting the need to produce a large assortment of domestic furniture for the home, in order to meet the requirements from the high rate of construction of multi-story houses and, which are currently built. The president drew attention to the fact that current consumers are following fashion changes, and this almost always guarantees the availability of demand for the products of Archa mebel.

At the end of the ceremony, the President of the country Emomali Rahmon received a memorable gift from the company’s founder, which was manufactured at this newly opened factory. The Leader of the Nation highly appreciated it.

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