SOURCES AND METHODS OF FINANCING INVESTMENT ACTIVITIES IN THE REPUBLIC OF UZBEKISTAN

Аннотация

This article examines various methods and sources of financing investment activities, emphasizing the necessity of utilizing both domestic capital and foreign loans, as well as direct investments and all related sources, to implement investment policies in the country. Keywords:Investment, attracted financing sources, borrowed financing sources, credit, creditor, dividend. In our country, investment activities enable investors to increase their capital, create new business opportunities, or ensure economic growth. Investment activity involves the process of allocating financial resources or other assets to various projects, companies, or assets with the aim of generating income, profit, or capital growth in the future. The words of our President, Shavkat Mirziyoyev, “Our goal is to make Uzbekistan the most attractive country for investments,” reflect the extensive opportunities being created by the state to develop investmentactivities. Property and intellectual assets that generate returns or profits, i.e., investments, can take the followingforms: -Financial resources, targeted bankdeposits, shares, stocks, and othersecurities; - Movable and immovable property (buildings, structures, equipment, and other material assets); -Copyrights, know-how, property rights,and otherintellectual assets; -Rights to useland and othernatural resources, as well as property rights; -Other assets. In a market economy, investment activities are carried out by citizens, legal entities (enterprises, firms, joint-stock companies, and other property owners), and the state. When initiating investment activities, each property owner primarily pursues their own interests, aimingfor asingle goal: achieving profit and efficiency. Investment activities are divided intotwo main types: 1. Financial Investments: Investors allocate funds to company stocks, bonds, or other financial assets. Theseinvestments may involverisks but can yield highreturns. page1008 INTERNATIONAL JOURNAL OF ARTIFICIAL INTELLIGENCE ISSN:2692-5206,ImpactFactor:12,23 AmericanAcademicpublishers,volume05,issue05,2025 Journal: https://www.academicpublishers.org/journals/index.php/ijai 2.Real Investments: Investors fund production, technology, or infrastructure projects, such as buildinganew factory orinvesting in real estate. In a market economy, financing investment projects is carried out through various sources organized by investors, including attracting financial resources, obtaining loans, and issuing securities and bonds as stipulated by legislation. Generally, thesources offinancing forreal investment projects are categorized as follows: 1.Investor’sown financial resources; 2.Investor’sborrowed funds; 3.Financial resources attracted bythe investor; 4.Statebudget funds (including local budget funds); 5.Foreign investmentsand loans; 6.Non-traditional financing (syndicated lending, leasing, venture financing, etc.). Capitalfinancing sources can bedivided into two groups: a)Centralized Investments, which include: -Statebudget andextra-budgetary fund resources; -Foreign investments and loans under government guarantees within external debt limits. b)Decentralized Capital Investments, which include: - Enterprise funds, including those of joint ventures, foreign enterprises, and private enterprises, as well as funds of non-residents oftheRepublicof Uzbekistan; - Funds of state authorities and management bodies, loans from banks (including foreign banks); -Citizens’funds. From the perspective of attracting financial resources, two methods of financing investment projects are distinguished: financing based onexternal and internal sources. 1.Internal Investment Sources: - Companies and state organizations issue stocks and bonds to raise funds through the domesticmarket. This is widely used to develop smalland medium-sized businesses. - In Uzbekistan, investment loans and borrowings can be obtained through banks, primarily serving as afinancing source for production andinfrastructure projects. - State-allocated budget funds also serve as an internal investment source, financing state programs and projects. page1009 INTERNATIONAL JOURNAL OF ARTIFICIAL INTELLIGENCE ISSN:2692-5206,ImpactFactor:12,23 AmericanAcademicpublishers,volume05,issue05,2025 Journal: https://www.academicpublishers.org/journals/index.php/ijai External Financing Sources include special preferential state loans (from the State Property Committee, Employment Fund, Farmers and Dehkan Farms Fund, Microcreditbank’s special resources, etc.), commercial bank loans (Preferential Lending Special Fund), funds from issuingand selling securities, foreign credit lines, and others. Additionally, loans from international financial institutions such as the World Bank and the Asian Development Bank are designed to support investment activities, contributing to the country’s economic development. Investments can also be financed through Uzbekistan’s stock exchanges by selling or purchasing stocks and bonds. Various state-a