Investing - The Times Of Central Asia

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Investment

Kyrgyzstan’s New Investment Law Favors Large-Scale Investors

Kyrgyzstan has enacted a new investment law offering substantial benefits to major investors, both foreign and domestic. Under the Law “On Investments in the Kyrgyz Republic,” investors who commit at least $10 million and possess a strong international reputation and track record in large-scale projects may now sign individual investment agreements directly with the Cabinet of Ministers, according to the National Investment Agency under the President of the Kyrgyz Republic. These agreements grant investors access to a suite of incentives, including tax and customs benefits, visa support for key personnel, and assistance with selecting and registering land plots for investment projects. The initiative aims to boost foreign direct investment by attracting high-caliber investors. President Sadyr Japarov signed the law on August 14, 2025. It is intended to create a more transparent and competitive investment climate and strengthen institutional protections for businesses. The legislation defines the state’s investment policy principles, guarantees the protection of investor rights, and introduces mechanisms to safeguard those interests. It also aligns with the presidential decree “On the National Development Program of the Kyrgyz Republic until 2026,” which sets out key national targets: Average annual economic growth of 5% GDP per capita of at least $1,500 Unemployment rate reduced to 5% Annual foreign direct investment inflow of at least 13% of GDP With this legal framework, Kyrgyzstan aims to position itself as a stable, predictable partner for investors and as an emerging hub for investment in Central Asia.

Trans-Caspian Route

Kazakhstan Emphasizes Strategic Role of Trans-Caspian Route at Astana Forum

Kazakhstan is positioning the Trans-Caspian International Transport Route (TITR), also known as the Middle Corridor, as a cornerstone of sustainable logistics across Eurasia. Speaking at a panel session on May 29 during the Astana International Forum, Deputy Minister of Foreign Affairs, Alibek Kuantyrov outlined the country's ambitions to transform the route into a vital artery for regional connectivity. The session, co-organized with the Boao Forum for Asia, featured high-profile participants, including Boao Forum Chairman and former UN Secretary-General Ban Ki-moon. Kuantyrov highlighted that Kazakhstan boasts over 3,500 kilometers of strategic railway infrastructure linking China to Caspian Sea ports. In the coming years, annual cargo volumes along the TITR are projected to reach 10 million tons. “The TITR is not just a logistics route; it is an infrastructure of trust, efficiency, and growth,” Kuantyrov said. “Kazakhstan is committed to both physical and digital integration. We are already seeing tangible outcomes: in March 2024, a container train from Xi’an [China] reached Azerbaijan in just 11 days, including only three days traversing Kazakhstan.” This efficiency, Kuantyrov explained, was enabled by key infrastructure improvements such as the upgrade of the Dostyk-Moiynty railway section, development of the Khorgos logistics hub on the Kazakh-Chinese border, and the implementation of digital customs technologies. Kazakhstan is investing over $35 billion in infrastructure development, including new railways, the expansion of the Aktau and Kuryk ports, and the creation of a container hub in partnership with international investors. “Our objective is not merely transit,” Kuantyrov added. “Kazakhstan views the TITR as a foundation for industrial development and sustainable integration into global supply chains.” To further enhance east-west cargo flow, the country is constructing second tracks along the 836-kilometer Dostyk-Moiynty section. According to Kazakhstan Temir Zholy, the national railway operator, the additional tracks are set to open in June. These upgrades are expected to increase the line’s capacity fivefold from 12 to 60 train pairs per day.

law

New Kyrgyz Investment Zone to Operate Under English Law

On March 17, Kyrgyzstan's president Sadyr Japarov signed a decree titled "On Measures to Establish a Special Investment Territory with a Special Legal Regime in the Issyk-Kul Region and an Independent International Center for Dispute Resolution Using English Law". Boosting Investment Appeal The initiative aims to enhance Kyrgyzstan’s attractiveness to foreign investors by providing a more predictable and internationally recognized legal framework for business operations. The decree directs the Cabinet of Ministers to take the necessary steps for implementation, including the potential involvement of international consultants and legal experts in the development of the special investment zone and dispute resolution center. Adopting English Common Law for Dispute Resolution On March 11, Adylbek Kasymaliyev, Chairman of the Cabinet of Ministers, met with British Ambassador Nicholas Bowler and a group of international legal consultants to discuss adopting English common law principles for handling investment disputes in Kyrgyzstan. English common law, which is based on judicial precedents rather than codified statutes, is widely used in international commerce and financial centers such as London, Dubai, and Singapore. Supporters argue that its introduction in Kyrgyzstan could increase investor confidence by offering a more stable and predictable legal environment. Legal Experts Express Skepticism Despite the government’s enthusiasm, some legal experts remain skeptical about the feasibility of incorporating English common law elements into Kyrgyzstan’s legal system. Critics point to potential challenges, including compatibility with existing Kyrgyz laws, the need for specialized legal training, and whether the judiciary can effectively apply a mixed legal framework. The establishment of a special investment territory in Issyk-Kul and an independent dispute resolution center represents a bold step toward legal modernization in Kyrgyzstan. While the adoption of English common law principles could improve investor confidence, the success of the initiative will depend on effective implementation, legal harmonization, and investor reception.