Authors

  • Gulzodakhon Umarova
    Tashkent State University of Economics.

DOI:

https://doi.org/10.71337/inlibrary.uz.jmsi.113503

Abstract

have been developed in the field of transformation and restructuring of the economy in the direction of the market, and its most important feature is that the main goals and priorities have been carefully defined at each stage of the reforms. An active investment policy is one of the most important conditions for achieving sustainable economic development.


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volume 4, issue 4, 2025

1181

METHODS AND FORMS OF ATTRACTING FOREIGN INVESTMENTS

Umarova Gulzodakhon Qodirbekovna

Lecturer at the Department of "Specialized, Social-Humanitarian and Exact Sciences"

of Tashkent State University of Economics.

Abstract:

have been developed in the field of transformation and restructuring of the economy

in the direction of the market, and its most important feature is that the main goals and priorities

have been carefully defined at each stage of the reforms. An active investment policy is one of

the most important conditions for achieving sustainable economic development.

Key words:

Investment, investment policy, foreign investment, investor, investor's right,

investor's obligation, state, income, cost, securities, securities market, financial investment, real

investment, intellectual investment, state investment, private investment, foreign investment.

After Uzbekistan gained the status of an independent state, it determined its own direction,

taking into account the various features of building and developing a national economy, and

continues to follow this path in its economic development.

Currently, one of the significant results of the rational investment policy pursued by our state in

establishing and improving investment activity is the implementation of the Investment Program

for 2021–2026, as emphasized by our President. This program plays a crucial role as a key

instrument of structural transformation in the industrial sector and the economy as a whole.

Investments in fixed assets are primarily made in the form of capital investments and include

expenses for new construction, expansion, reconstruction, technical re-equipment of operating

enterprises, acquisition of equipment, and the purchase of raw materials needed for projects. It is

often emphasized in economic theory and practice that the terms “investment” and “capital

investment” are not synonymous. Investments represent a broader concept than capital

investments. In Western literature, when discussing investments, the focus is usually on stock

markets and exchanges, as in developed countries, investments are mainly made in the form of

securities.

Providing a single, complete definition of the term "investment" is quite difficult. In economic

sciences and in practice, the meaning and specific characteristics of investments vary depending

on the area. In economics, investments include expenditures aimed at acquiring new technologies

and technical equipment, buildings, and increasing the volume of both tangible and intangible

resources, which can also be viewed as part of total expenditures.

Investments represent the portion of gross domestic product (GDP) that is not consumed during a

specific period and that helps increase capital stock in the future. Inflation rates significantly

influence the volume of investments. High inflation reduces the future value of investor returns

and can discourage investment. Investments can take different forms, and analyzing and planning

them requires categorizing them based on their unique features.


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First, by the object of investment, we can distinguish between real and financial investments.

Real investments involve the use of financial resources to acquire tangible and intangible assets

by enterprises. Tangible (material) investments involve the purchase of specific components of

fixed assets and are part of investment and innovation projects. Therefore, both personal funds

and borrowed funds are used for a single purpose. In the case of borrowed funds, the role of

investor is taken by the lending banks. Intangible investments are made when intangible assets

are created and are directed at enhancing human capital, scientific research, engineering design

projects, and the creation of new products and services.

With the advancement of science and technology, intellectual potential has become one of the

strongest drivers influencing global production. In the 20th century, investments in science, the

development of production, and human knowledge significantly increased. Therefore,

expenditures on scientific research, studies, science, education, and professional training are

growing as a share of global investments. In countries like the USA, Japan, and other developed

nations, the growth rate of private and foreign investments in science and research exceeds the

growth rate of investments in fixed assets.

This is because it is now widely recognized that a country's future is determined by its scientific

and intellectual potential. Entering the global market, developing marketing, providing accurate

and reliable information, using advanced information technology systems, having experienced

and skilled personnel, and joining the ranks of the world's most developed countries require

high-speed and high-quality development. Therefore, increasing the share of investments in

science, technology, education, and personnel retraining is necessary for rapid and sustainable

growth.

When attracting investments, the following aspects must be prioritized:

Ensuring the freedom and initiative of investment activity participants;

Granting investment status to material and intangible assets invested in specific sectors;

Creating the necessary legal and practical conditions for conducting investment activities.

There are five key requirements for attracting investments:

1.

The presence of strong and well-developed investment managers within the country;

2.

The country's products and services must be more competitive in global markets

compared to similar offerings elsewhere;

3.

The country must provide unique products or services not available elsewhere, occupying

a specific niche in the global market;

4.

There should be no obvious or potential legal barriers in the investment environment;

5.

The country must have a clear, long-term development strategy and plan.

Investment management is a set of methods and principles for implementing decisions related to

investment activities on a national scale. Investment management typically includes the

following stages: assessing past investment processes, calculating future capital investment

volumes, determining the form of investment input, selecting appropriate investment projects for

the national economy, analyzing expected investment risks and efficiency, and finally, executing

and monitoring the implementation of investment projects.

Investment management is essentially professional management of various financial instruments

and assets, technologies, and property to generate profit while meeting the needs and interests of

investors.


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In conclusion, the concept of attracting and managing investments in a country is based on

several key approaches:

Viewing investment activity as a selection process, involving the attraction and

justification of investment resources and the application of investment mechanisms to implement

investment activities;

Evaluating the investment attractiveness of the object to determine investment feasibility

and management strategies;

When selecting investment and management methods across various sectors, aligning the

interests of both the investor and the country is crucial;

In state-funded investment projects, the government and society should benefit from the

expected outcomes while also addressing social issues.

As a result of these approaches, the concept of attracting and managing investments can be

summarized by stating that each conceptual approach must contribute to economic development

and lay the foundation for future progress.

Financing investment projects from the state budget is generally carried out through targeted

programs and financial support mechanisms. Budgetary funds are allocated in the following

main forms: investments in the charter capital of existing or newly established organizations,

budget loans (including investment tax credits), subsidies, and guarantees.

Project financing often involves a wide range of creditors and the formation of consortiums.

Agent banks – large financial institutions – represent the interests of these groups. Sources of

financing include international financial markets, export credit agencies, financial, investment,

leasing, and insurance companies, long-term loans from the World Bank, International Finance

Corporation, European Bank for Reconstruction and Development, and leading international

investment banks.

The use of new methods to attract investments is increasing day by day. One of these is the use

of modern financial instruments. Attracting investments through such instruments has become

one of the key processes of the modern era.

REFERENCES

1.

Law of the Republic of Uzbekistan "On Investment Activity"

2.

Law of the Republic of Uzbekistan "On Foreign Investments"

3.

Law "On Measures to Guarantee and Protect the Rights of Foreign Investors"

4.

Tax

Code

of

the

Republic

of

Uzbekistan

Internet sources

http://old.uzbekenergo.uz/uz/news/archive/o-zbekenergo-dakda-bo-lib-o- tgan-matbuot-anjumani-

to-g-risida/ -

O‘zbekenergo aksiyadorlik jamiyatining rasmiy sayti.

http://www.toshet.uz/uz/content/faoliyat/muqobil_energiya_manbai/

Toshkent elektr tarmog‘i

korxonasining rasmiy sayti.

http://economics.unian.net/finance/-ekonomika-kitaya-s-nachala- goda-vyirosla-na-.html

http://m.proved-partner.ru/analytics/research/5-kak-izmenilasy-

investitsionnaya-

ppivlekatelynosty-rossii.html


References

Law of the Republic of Uzbekistan "On Investment Activity"

Law of the Republic of Uzbekistan "On Foreign Investments"

Law "On Measures to Guarantee and Protect the Rights of Foreign Investors"

Tax Code of the Republic of Uzbekistan

Internet sources

http://old.uzbekenergo.uz/uz/news/archive/o-zbekenergo-dakda-bo-lib-o- tgan-matbuot-anjumani-to-g-risida/ - O‘zbekenergo aksiyadorlik jamiyatining rasmiy sayti.

http://m.proved-partner.ru/analytics/research/5-kak-izmenilasy- investitsionnaya-ppivlekatelynosty-rossii.html