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INVESTMENT POLICY AND STRATEGY IN KYRGYZSTAN
The most detailed information about all aspects Investment policy of Kyrgyzstan mentioned in information part of Ministry of Finance of Kyrgyzstan
* Protecting Investors in Kyrgyz Republic ( Doing business report )
NB! Business opportunities in Kyrgyzstan and ► WHY INVEST TO KYRGYZSTANThe Kyrgyz investment climate remained sufficiently attractive, enhanced by the liberal tax, exchange and customs legislations, not to mention all the advantages associated with WTO membership. The government prioritizes the development of small and medium enterprises (SMEs), and is further improving the conditions for all businesses by decreasing the average tax burden.
In 2006, the country achieved considerable success in attracting foreign direct investments. FDI from CIS countries increased more than threefold to USD 157 million. An additional USD 178 million was attracted from other countries, such as Germany (15.9%) and United Kingdom (11.3%).
Large Kyrgyz enterprises draw substantial benefits from cooperation with foreign direct investors, who introduce advanced technologies, new equipment and quality operating standards to Kyrgyz businesses. Prime example of such international cooperation include the Kyrgyz-Canadian gold-mining company “Kumtor”, “Gazpromneft Asia”, ‘Kant cement-slate industrial complex”, “Interglass” glass production factory, cellular communications operators “Sky Mobile”, “Megacom”, “Fonex” and telephone operator ”SaimaTelecom”, as well as a host of others.Attractive Incentives for Foreign Businessmen and Investor:
Liberal Government Policy
Free currency exchange
WTO Membership
Low import duty - less than 10%
Free repatriation in foreign currency for profit, dividend, other forms of income
Private ownership of land
Protection of property rights
Equal treatment policy for foreign investors
Protection from expropriation
The number of trade relations of the Kyrgyz Republic with other countries has increased in recent years. So, today Kyrgyzstan has trade relations with 109 countries of world trade community. There is the progress in cooperation with these countries in many areas particularly, in export-import operations. Trade relationships with most of these countries were created within the framework of WTO, full member of which Kyrgyz Republic became on December 20, 1998 .
External trade regime of the Kyrgyz Republic is one of the most liberal among CIS countries. There are no private or state enterprises with exclusive rights or powers to influence the level or direction of imports and exports. Export and import licensing applies to only eight articles adopted in worldwide practice, including weaponry, explosives, drugs and virulent poisons, precious metals and works of art, etc. The volume of commodity circulation in the Republic keeps its level on about 1,6 billion US$.
The Kyrgyz Republic along with Kazakhstan , Tajikistan , Belarus and Russia , has a common system of payments, equal access to international economic organizations within the framework of the Eurasian Economic Union. Common borders and good trade relations with China have formed a huge potential for export.
On the world market, the Kyrgyz Republic acts as a supplier of electric power, gold, cotton fiber, articles made of wool and cotton, wood, leather materials, tobacco, antimony and mercury. It is a net importer of energy resources, oil products, natural gas, coal, fertilizers and other chemical products, machinery, vehicles and spare parts, and household appliances. Bowels of the Republic are consisted of large stocks of gold, tungsten, tin, antimony, mercury and others metals. Kyrgyzstan takes the third place in the world on manufacture of mercury and the tenth on sale of gold. Foreign business can invest the capital in development of a tourist infrastructure on unique lake "Issyk Kul", and also in creation of joint venture in agricultural sphere and techno parks.
After known March events of 2005, Kyrgyzstan has opened a new page in the contemporary history. New leaders of country have accepted a number of operative measures to achieve recovery of economy, emphasizing on growth of a private sector. The Government purposefully works above liquidation of any barrier interfering successful development of private business and creation of a favorable investment climate. In addition, fight against corruption and recovery of economy's industrial sector are defined as two principle national priorities. Given Kyrgyzstan 's geographical location with access to vast market of 2,5 billion consumers in Russia , China and India , it makes Kyrgyzstan a favorable and profitable destination for investm
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