Abu Dhabi Development Fund to hold 75% shares of the Uzbek-Emirati investment company

An Uzbek-Emirati investment company will be created in Uzbekistan, Kun.uz correspondent reports with reference to the presidential decree.

Its founders will be the Fund for Reconstruction and Development of Uzbekistan and the Abu Dhabi Development Fund (UAE).

The investment company is created in the form of a limited liability company with a statutory fund of $5 million and a declared capital of $1 billion. It will be organized at the expense of the share of Abu Dhabi Development Fund (UAE) in the amount of 75 percent and the Fund for Reconstruction and Development of Uzbekistan - 25 percent with the possibility of attracting additional participants.

The company will have the right to make investments through the acquisition of shares in the authorized capital of existing and newly created economic entities, the allocation of loans, issuance of securities, the sale to domestic and foreign investors of the investment company in the authorized capital of economic entities and in other forms not prohibited by law.

It will also perform functions for the development of investment cooperation with financial institutions and companies of the United Arab Emirates, coordinates investment interaction with them, and accompanies and assists in the implementation of joint investment projects.

The document provided the Uzbek-Emirate investment company with a number of benefits and preferences.

An investment company, as well as its founders, is exempt from income tax for 3 years, including income from dividends and interest, property tax and land tax, as well as value added tax on the sale of its property and assets.

In addition, newly created enterprises, at least 30 percent of the authorized capital of which is formed at the expense of the investment company, will also enjoy the privileges and preferences envisaged by legislation for enterprises with foreign investments.