Investment potential of the Republic of Karakalpakstan

The total territory of the Republic of Karakalpakstan is 166.6 thousand square meters. km.
The capital is the city of Nukus (population - 307.6 thousand people).

The structure includes 15 administrative districts and 1 city.


- in the west, north, northeast with Kazakhstan.

- in the south and south-west with Turkmenistan.

Population: more than 1.8 million people, more than 60 nationalities.

Engineering Communication


113.1 million c / watt

Natural gas

120.1 million m3

Drinking water

22.2 million m3

Transport infrastructure

2 railway stations are regular flights to destinations: Russia, Kazakhstan, Turkmenistan
The airport is located in the city of Nukus, regular flights to Tashkent and Moscow of the Russian Federation
Railways length of 845.3 kilometers
Highways and highways stretching 11 061 thousand km, including motorways of international, republican, regional significance.

Population and labor resources

As of January 1, 2017, the total population of the Republic of Karakalpakstan was 1817.3 thousand people. The number of able-bodied population - 1036.2 thousand people (57.1% of the total population of the region), increased by 1.3% compared to the indicators of 2015.

The largest city of the Republic of Karakalpakstan is the capital city of Nukus with a population of 307.4 thousand people. Other major cities are Khodjeyli, Takhiatash, Chimbay, Beruniy, Turtkul and Kungrad.

The number of employed people is 638.6 thousand people (61.6% of the able-bodied population). Of these, 409.5 thousand people are employed in the production sector, 229.1 thousand people in the sphere of non-material production.

The bulk of the employed population is in agriculture (47.0%), education and culture (42.0%), construction (14.0%), industry (13%), trade (12.0%) and health ( 20.0%).

The bulk of the employed population in the production sector

  •  Agriculture
  •  Transport and communications
  •  Building
  •  Industry
  •  Trade
  •  Other

The number of employed in the sphere of intangible production

  •  Education and culture
  •  Health care
  •  Finance and credit
  •  Household and household services
  •  Government Offices
  •  Other

The total population is 1,817,300 people.

(as of Jan. 1, 2012)

Number of employed people (thousand people)

able-bodied population

1036.2 thousand people.



in the production sphere (409.5)

in the sphere of intangible production (229.1)


including, the employed population

638.6 thousand people.


Climatic conditions:

The climate in Karakalpakstan is sharply continental with hot and dry summers, and also cold winters with some minor precipitation. The average temperature in January is -5 to -8 C. The minimum temperature in winter is -38 C. The average temperature in June ranges from +26 to +28 C, and in July and August - +50 C. The average level of precipitation is 100 mm per year.

The main types of fruit and vegetables are:

By the end of 2016, 256.3 thousand tons of vegetable crops, 52.5 thousand tons of potatoes, 127.5 thousand tons of melons, 43.7 thousand tons of fruits and berries and about 6 thousand tons of grapes were harvested.

In 2017, 355.9 thousand tons of vegetable crops, 109.0 thousand tons of potatoes, 146.6 thousand tons of melons, 80.5 thousand tons of fruits and berries and 12.8 thousand tons of grapes are expected to be harvested.

List of medicinal plants growing in the city of Nukus and its environs

Their biological characteristics, cultivation and application

  • 1. Amaranth - White squirrel - Amarantus albus.
  • 2. Amaranth - Shiritsa Meltelchaya - Amarantus paniculatus.
  • 3. Garmala, adraspan - Peganum harmala.
  • 4. Chicory common - Cichorium intybus.
  • 5. Two-year-old gerant (enotera) - Oenothera biennis.
  • 6. Althaea officinalis - Althaea officinalis.
  • 7. Hops medicinal - Humulus lupulus.
  • 8. Celery odorous - Apium graveolens.
  • 9. Peppermint - Mentha piperita.
  • 10. The window is hard, rough - Symphitum asperum
  • 11. Plantain large – Plantago major.
  • 12. Amorpha – Amorpha frucitosa
  • 13. Physalis vulgaris – Physalis alkekengi
  • 14. Stinging Nettle – Utrica diodica.
  • 15. Mint Asian – Mentha asiatica Boriss.
  • 16. Willow white – Salix alba
  • 17. Rosehip in May or brown – Rosa cinnamomea.
  • 18. Blackcurrant – Ribes nigrum
  • 19. Parsley garden – Petroselinum crispum.
  • 20. Common horseradish – Armoracia rusticana
  • 21. Jerusalem artichoke (ground pear) – Helianthus tuberosus
  • 22. Highlander bird (sporich) – Polygonum aviculare.
  • 23. Dandelion officinalis – Taraxacum officinale.
  • 24. Asparagus – Asparagus officinalis
  • 25. Licorice is naked – Glycyrrhiza glabra
  • 26. Melissa officinalis – Melissa officinalis
  • 27. Convolvulus of the field – Convolhus arvenis
  • 28. Plantain lanceolate – Plantago lanceolate
  • 29. Marigolds of small color – Tagetes patula

Foreign investments in the region

In 2016, the Republic attracted 13.8 million dollars of foreign investment. To date, 79 enterprises with foreign investments are registered in the Republic of Karakalpakstan, most of them are organized at the expense of foreign investments from China, Russia, South Korea, Great Britain and Kazakhstan. The main field of activity of registered enterprises is processing of licorice root, production of light industry products, production of building materials, oil and gas industry and services. Currently, there are 76 enterprises with foreign investments. The foreign trade turnover of enterprises with foreign investments in 2016 amounted to 436.1 million dollars.

Tax benefits for foreign investors

(Presidential Decree No. UP-3594 of 11.04.2005)

Terms of granting tax benefits:

rom 300 thousand US dollars to 3 million US dollars - for a period of 3 years

over $ 3 million to $ 10 million for a period of 5 years

over 10 million US dollars for a period of 7 years

Free economic zone "Nukus"

The Nukus FEZ was established in accordance with the Decree of the President of the Republic of Uzbekistan of September 4, 2019. № ПП - 5809

The total area is 32.79 hectares.

To the airport - 8 km
The nearest railway station is 1 km away.

Before Tashkent - 1120 km

The main objectives of the creation of the Nukus  FEZ

provision of integrated and effective use of the productive and resource potential of the Republic of Karakalpakstan in terms of growing medicinal plant material in special natural conditions for its further processing;

attraction of foreign direct investments and domestic investors for the creation of modern production facilities for the production of pharmaceutical products and medicines with high added value, primarily on the basis of medicinal substances (substances) and medicinal plant raw materials produced on established plantations;

creation of new modern productions and capacities for the processing of medicinal plant raw materials and the production of medicines, medical products, auxiliary and packaging materials;

deepening the processes of localization of production of pharmaceutical products based on local medicinal plant raw materials and materials on the basis of establishing close cooperation ties and developing industrial cooperation between organizations of free economic zones and the republic as a whole;

the creation of research centers for the study of the introduction and cultivation of medicinal plant raw materials with experimental laboratories.

FEZ "Nukus": Benefits and preferences

Residents of FEZ are exempt from payment / deductions:

  • land tax
  • property tax of legal entities
  • income tax
  • a single tax payment for microfirms and small businesses
  • Republican Road Fund
  • The off-budget Fund for the Development of the Material and Technical Base of Brain and Medical Institutions under the Ministry of Finance of the Republic of Uzbekistan

Exempt from customs payments imported for their own production needs for:

  • equipment
  • raw materials
  • materials and components
  • construction materials not produced in the republic and imported in the framework of projects, according to the lists approved by the Cabinet of Ministers of the Republic of Uzbekistan

FEZ "Nukus": Terms of provided benefits

Benefits are granted for a period of 3 to 10 years, depending on the amount of investment made, including the equivalent:

  • from 300 thousand US dollars to 3 million US dollars - for a period of 3 years;
  • from 3 million US dollars to 5 million US dollars - for a period of 5 years;
  • from 5 million US dollars to 10 million US dollars - for a period of 7 years;
  • from 10 million US dollars and above - for a period of 10 years, with application of the income tax rate and single tax payment for the next 5 years at a rate of 50 percent below the current rates.
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