Digitalization - The Times Of Central Asia

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Migration Legislation Digitalization visas Labour market Digitization Digital Nomads

Kyrgyzstan Offers Digital Nomad Status to Foreign Specialists

Kyrgyzstan’s President Sadyr Japarov has signed legislative amendments introducing the status of Digital Nomad for foreign citizens working in information and communication technologies (ICT), software development, creative industries, and related areas. Digital Nomads are exempt from mandatory registration at their place of domicile in Kyrgyzstan, can obtain a personal identification number (PIN), do not need to obtain permits for work, enjoy the right to engage in entrepreneurial activity as an individual entrepreneur or a legal entity, and are allowed to open bank accounts. According to the Ministry of Economy and Commerce, which spearheaded the amendments, this initiative aims to create favorable conditions for attracting digital nomads to Kyrgyzstan. It is expected to contribute to the development of innovative projects, the growth of high-tech industries, increased tax revenues, job creation, and tourism development. In neighboring Kazakhstan, the Ministry of Foreign Affairs announced that as of November 18, 2024, the country has enacted updated visa regulations to attract business immigrants, skilled professionals, and tourists. Kazakhstan is introducing a Digital Nomad Visa, a single-entry electronic or multiple-entry paper visa for IT specialists, allowing long-term residence. Additionally, the Neo Nomad Visa offers extended stays to “neo-nomads” who have a verified monthly income of at least $3,000. Applicants for the Neo Nomad Visa must provide health insurance and proof of a clean criminal record.

Digitalization MSMEs Regional integration small and medium businesses Turkic Investment Fund Women entrepreneurs Organization of Turkic States

Empowering Trade and Women Entrepreneurs: Kazakhstan’s Digital Leap for the Turkic States

The head of the Presidium of the National Association of Women Entrepreneurs of Kazakhstan (ASMAR), Lazzat Ramazanova, who currently chairs the Council of Women Entrepreneurs of Turkic States, has reported on the development of a single digital ecosystem for business in the five countries which form the Organization of Turkic States (OTS). This platform is expected to expand international trade with countries outside of the Organization. This year, Kazakhstan chairs the Council of Women Entrepreneurs of Turkic States, which operates under the OTS and includes five member countries: Kazakhstan, Kyrgyzstan, Azerbaijan, Turkey, and Uzbekistan. Three more countries - Hungary, Northern Cyprus, and Turkmenistan - are represented in the Organization with the status of observer states. One of the goals of Kazakhstan's chairing of the OTS was to strengthen business ties between Turkic states. To this end, the Turkic Business Hub initiative was implemented, an online platform that will become an important element of integration and cooperation in the region. Speaking at the close of the meeting in Astana, Lazzat Ramazanova told those in attendance: “Today, within the framework of the General Assembly of Women Entrepreneurs of the Turkic World, an ambitious initiative was put forward to create a unified digital platform for business. Kazakhstan was the initiator and implementer of this idea, as our country is now among the top 25 most digitized countries. The platform has already been developed, and in Kazakhstan, we are already working with our ministries on the integration of info-systems. Now, we will work with the governments of Turkic states so that the same integration takes place with their info-systems. In other words, the software has been created, and we are working to bring other countries into it.” The main advantage of a Turkic Business Hub is it ensures business security when choosing a partner in a given country. This is because when a user of the platform registers as a potential participant in trade relations, all information about them as a business entity is collected. Artificial intelligence automatically scans the fiscal (tax and customs) authorities and runs the business' credit history through the hub's integration with the databases of banks. The banks have their own interest in this system, since using it they can find clients and borrowers who have passed strict compliance checks. AI can also monitor the presence or absence of lawsuits from former partners of the entity that is attempting to register. “In the case of detection of negative information, the entity is denied registration, i.e., from there start, there will be no 'scam' companies or unscrupulous counter-parties on the platform," Ramazanova explained. "They will immediately be 'canceled' by the artificial intelligence based on the data from tax, customs, and other state services. But the most important thing is that in case of rejection, AI will send such the rejectee a complete summary of the reasons why they were denied registration, so the business will know what they need to correct to join the system. Once business entities that have no...

Security Digitalization Digital Technologies Artificial intelligence Public Security Digitization

AI Facial Recognition System Being Tested in Two Cities in Kazakhstan

Kazakhstan has launched a national video monitoring system powered by artificial intelligence technologies. The project, developed by the Ministry of Internal Affairs, the National Security Committee, and the Ministry of Digital Development, Innovation, and Aerospace Industry, aims to enhance surveillance capabilities across key locations in the country. The system is designed to recognize faces, detect abandoned objects, capture offenses, and identify vehicles by make, model, and color. Critical sites such as railway stations, airports, hotels, streets, intersections, and shopping malls are priority areas for implementation. During the World Nomad Games in Astana, the technology was reportedly instrumental in locating lost children and missing persons. Authorities also noted that the system helped detain 46 wanted individuals in Astana and 30 in Almaty. Proponents argue that these technologies could contribute to improving public safety and reducing crime. Kazakhstan’s initiative follows a broader global trend of integrating AI into “smart city” systems, similar to developments in China, Russia, and some European countries. Officials say the system will be expanded with additional cameras nationwide to increase monitoring coverage. To date, more than 1.3 million video cameras have been installed in Kazakhstan, with 310,000 of them connected to operational control centers and police duty stations. Advocates of the system highlight its potential to deter crime and bolster public security, although concerns about privacy and misuse of surveillance technology have been raised internationally. Worldwide, AI video surveillance systems are being adopted to improve law enforcement and public safety. In China, they are used for facial recognition to track criminals and prevent offenses. Russia has integrated AI into its video systems to detect potential threats, while in the UK, intelligent cameras are used for crowd management and event security. While supporters emphasize the benefits of such systems in enabling faster responses to incidents and reducing crime, the deployment of AI in surveillance has sparked ongoing debates over privacy, civil liberties, and the potential for misuse.

Government Digitalization Digital Technologies Artificial intelligence taxes

Kyrgyzstan’s High Technology Park Confirms Indefinite Preferential Tax Regime

Kyrgyzstan’s President Sadyr Japarov has signed amendments to the Law "On the High Technology Park of the Kyrgyz Republic," extending the Park’s preferential tax regime indefinitely. Established in 2011, the High Technology Park was designed to foster IT businesses by drastically reducing or eliminating tax burdens for companies exporting digital goods and services. Previously, the High Technology Park offered tax exemptions for export-oriented IT companies for a 15-year period, set to expire in 2026. Under the new amendments, this regime is now permanent. Currently, resident companies of the Park benefit from exemptions on sales tax, profit tax, and value-added tax (VAT). Employees of these companies enjoy a reduced income tax rate of 5%, while the social insurance tax is 12% of their average monthly wage. The amendments also grant the Park's supervisory board the authority to independently elect its chairperson, a change expected to enhance the Board's efficiency. This move significantly boosts the Park's appeal to both domestic and international IT businesses. Kyrgyzstan’s IT sector is among the country’s fastest-growing industries. In 2021, Kyrgyzstan established the Ministry of Digital Development, tasked with advancing e-government initiatives and expanding the range of government services available online.

statistics Science Digitalization Artificial intelligence Digital Technologies

Kazakhstan Leads Central Asia in AI Readiness

According to IMF data analyzed by Ranking.kz, Kazakhstan ranks as the leading Central Asian country in global artificial intelligence (AI) readiness, while Uzbekistan and Tajikistan are at the bottom of the regional standings. The AI readiness index, which covers 174 countries, evaluates factors such as digital infrastructure, human capital, technological innovation, and legal regulation. It draws on data from the World Bank, the International Labor Organization, and other sources. Kazakhstan ranks within the top 50 countries for AI readiness, holding 48th place with an index score of 0.55, just behind Russia, which ranks 47th. McKinsey & Company has noted Kazakhstan’s use of AI to enhance public services, particularly through geographic information systems and spatial data. For instance, Kazakhstan has employed a statistical model that integrates geographic, demographic, and economic data to assess infrastructure needs across 6,293 villages, identifying 3,500 villages with the highest potential to cover 90% of the rural population. This approach enables the government to deliver essential services and infrastructure more effectively to rural areas. Following Kazakhstan in 48th place, with a noticeable gap, is Kyrgyzstan (99th with 0.43). Tajikistan ranks 123rd with an index of 0.37, and neighboring Uzbekistan is in 131st place with an index of 0.35, placing it last among Central Asian and EAEU countries. Turkmenistan was not included in the IMF index.

Finance Digitalization Cryptocurrency Regulation National Bank economic Government

Kyrgyz Authorities Unhappy With The Dollar

The Kyrgyz Finance Ministry plans to set aside 20 billion KGS ($230m) to issue digital bonds and treasury bills. Kyrgyz Cabinet Chief Akylbek Japarov has said at a meeting with journalists that according to him, the central bank's monopoly on issuing money is ending. Japarov discussed the role of the U.S. dollar in the country's economy and emphasized that it has become a tool of political pressure. “We send payments, but they are delayed without explanation. Sometimes, the delays last up to three months. This hurts trade. If there is no money, there is no trade. I think a new toolkit will soon appear,” he stated. He said the BRICS organization is already working on alternative payment systems to support trade. Cryptocurrency, and any currency backed by the gold reserves of the countries that use it, can replace the dollar in international trade. “Now everyone who has a gadget can emit cryptocurrency into various cryptocurrencies. In Kyrgyzstan, we will work on this issue and have a crypto exchange,” Japarov noted. He noted that digital bonds and promissory notes issued by the Kyrgyz Finance Ministry will be backed by gold. Corresponding amendments to the legislation are already being submitted to Parliament for consideration. Earlier, the National Bank of Kyrgyzstan also announced the launch of a pilot project for the national digital currency, “digital som,” and the creation of a legal framework for it. The Ministry of Economy and Commerce of Kyrgyzstan also announced the creation of crypto banks that will work with virtual assets. “Given the rapid development of digital technologies and cryptocurrencies, creating a crypto bank represents an urgent need to integrate crypto assets into the country's traditional financial system. Cryptobank will ensure safe, regulated, and convenient interaction of citizens and businesses with cryptocurrencies”, noted the Ministry of Economy.