At a recent panel session titled "Private Investment: Discussion of the New Law on Investment," experts convened to dissect the provisions of Uzbekistan's new Law on Investment. The aim was to enhance the regulatory framework and entice private investment into the country.
Moderated by Tarik Sahovic, a Principal Operations Officer at the IFC, the session drew insights from a panel of distinguished speakers including Jason Chung, Thomas Emanuel Dans, Anton Konnov, Mikhail Turetsky, and Golib Holjigitov.
Citing World Bank reports, it was emphasized that a transparent, predictable, and open regulatory environment is paramount in attracting and retaining foreign investment. Uzbekistan, aligning with its "Uzbekistan 2030" strategy, is striving to create favorable conditions for investors by the end of the decade.
The discussion centered on how the new Investment Law's provisions are poised to enhance the regulatory framework, offering clarity and predictability to lure private investment. Of particular concern were support and protection measures for investors, crucial factors influencing investment decisions, project implementation success, and reinvestment sustainability.
Thomas Emanuel Dans underscored the importance of investor rights protection within the new law, emphasizing the need for robust strategies to safeguard investments. He highlighted the impediments posed by legal complexities, with expropriation standing out as a worst-case scenario. Dans advocated for a seamless capital flow, expressing hope that the new law would facilitate this goal.
“For thirty years, I have invested directly in venture capital in many countries, including Uzbekistan. As investors, our main priority is to secure our income. We must focus on developing robust strategies to protect our investments. Unfortunately, some deals may fall through due to legal complications. Expropriation is our worst-case scenario. Spending time and money on legal disputes is ineffective. Our goal is to invest, earn, and reinvest effectively. We need a smooth flow of capital. I hope that the new investment law will support this goal,” Thomas Emanuel Dans shared.
Mikhail Turetsky delved into specific provisions of the law, notably Article 63, which mandates investors exhaust domestic remedies before resorting to international arbitration. Turetsky expressed concerns regarding the time-consuming nature of this process within the local legal system, potentially hindering investor confidence. However, he highlighted a significant change in the new law: the introduction of a 180-day freeze period, offering investors reassurance that if disputes are resolved within this timeframe, they can pursue international arbitration. This alteration is poised to be well-received by foreign investors, Turetsky suggested.
The session also delved into measures supporting and protecting investors, critical for investment direction choices, project implementation, and reinvestment in Uzbekistan.
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