A delegation from IT Park convened negotiations with Binghalib Group, led by its CEO, Mohammed Binghalib. During the meeting with this UAE-based company, renowned for its expertise in electrical engineering, manufacturing, and trade, discussions focused on the establishment of an office in Uzbekistan and the relocation of a substantial portion of its business operations to the country.
Why is this important?
Established in 1982, Binghalib Group is a leading global provider of electrical engineering solutions, boasting an annual revenue of approximately $55.3 million and employing over 140 personnel. The company represents the interests of prominent OEM brands worldwide and has been actively expanding into sectors such as two-way wireless communication, building automation, and industrial automation.
Binghalib Group serves a significant number of clients in the UAE, where the high cost of labor presents a considerable challenge. In this regard, Uzbekistan, with its more affordable and skilled workforce, emerges as an attractive destination for business relocation.
Binghalib Group representatives highlighted Uzbekistan’s linguistic advantages, noting that the country’s youth demonstrate exceptional aptitude in acquiring foreign languages and achieving fluency. This capability enhances the prospects of developing a workforce with advanced English proficiency, a critical factor in serving clients in the MENA region.
One of the company’s strategic plans involves creating over 2,000 jobs in Uzbekistan over three to five years. This expansion would enable Binghalib Group to bolster its presence in global markets, particularly in the MENA region.
IT Park’s Support and Business Advantages
During the discussions, IT Park representatives underscored Uzbekistan’s favorable business environment. IT Park members benefit from exclusive support programs, including streamlined processes for startups and foreign investors. Unlike many countries in the MENA region, where bureaucratic hurdles persist even within Special Economic Zones (SEZs), Uzbekistan offers significantly more flexible conditions for conducting business.
It was further noted that non-member companies of IT Park may encounter longer timelines for banking transactions, including international fund transfers and other financial operations, which require additional procedures and time. In contrast, IT Park members benefit from a specialized infrastructure and simplified systems enabling expedited transaction processes. These features highlight the pivotal role of IT Park’s Ease of Doing Business initiative, which enhances Uzbekistan’s appeal to foreign companies.
Furthermore, Binghalib Group representatives acknowledged the advantages of state support and unique opportunities available to foreign investors in Uzbekistan. Mohammed Binghalib emphasized that the comprehensive preferences extended by Uzbekistan are unparalleled in the MENA region, even within jurisdictions with numerous SEZs. These conditions position Uzbekistan as an attractive destination for enterprises seeking to reduce operational costs, improve service quality, and access a pool of highly qualified personnel.
Prospects and Strategic Steps
The interest expressed by Binghalib Group underscores the effectiveness of Uzbekistan’s measures to establish itself as a global IT hub and to expand its export capabilities within the MENA region. IT Park reaffirmed its readiness to provide all necessary support for the seamless localization and growth of Binghalib Group’s operations in Uzbekistan. This partnership represents a pivotal milestone in strengthening Uzbekistan’s IT-enabled services (ITeS) ecosystem and fostering the development of the nation’s IT sector. It contributes to job creation and the improvement of economic conditions.