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Investments

New Law Paves Way for Special Investment Zone in Kyrgyzstan

Kyrgyz President Sadyr Japarov has signed a new law establishing a special financial investment territory in the Issyk-Kul region. The legislation, titled “On the Special Financial Investment Territory ‘Tamchy’ with a Special Legal Regime and Status,” was approved by the Jogorku Kenesh (parliament) on June 19. The law codifies Japarov’s earlier presidential decree of March 17, which called for the creation of a special investment zone with its own legal framework and an independent international center for dispute resolution based on English law. Investment Zone with International Standards The Tamchy Special Financial Investment Territory is intended to attract both foreign and domestic investment, improve Kyrgyzstan’s overall investment climate, and boost key sectors such as manufacturing, tourism, wellness, and transport infrastructure. The zone will operate under a special legal regime that includes tax preferences and other incentives for investors. A key innovation is the establishment of an International Center for Dispute Resolution, which will resolve investment-related disputes under English common law, a legal system grounded in judicial precedent and widely used in global financial hubs like London, Dubai, and Singapore. Legal Certainty to Attract Investors By introducing English common law into its investment framework, Kyrgyzstan hopes to create a more transparent and investor-friendly legal environment. Supporters of the initiative argue that legal predictability is essential to building investor confidence and attracting long-term capital. The government has positioned the Tamchy zone as a cornerstone of its broader economic strategy. The aim is to stimulate socio-economic development, align with international financial and legal norms, and position Kyrgyzstan as a competitive investment destination in Central Asia.

Anti-Corruption

Bishkek Mayor Urges Investors to Avoid Corruption and Uphold Kyrgyz Law

Bishkek Mayor Aibek Junushaliyev has called on foreign investors to strictly comply with Kyrgyz legislation and avoid involvement in corrupt practices. His statement, published on the official city hall website, stresses the importance of lawful and transparent cooperation between government agencies and the business sector. “We are confident that only transparent and lawful interaction between government agencies and the business community can become the basis for the sustainable development of the capital and attract investment,” Junushaliyev stated. He affirmed that the mayor’s office remains open to dialogue, ready to support responsible investors, and committed to ensuring full transparency in transactions. However, he warned that any attempts to bypass the law through corrupt means would be met with firm opposition. Background: Deputy Mayor Arrested The mayor’s remarks follow the recent arrest of Bishkek Deputy Mayor Taalaibek Baigaziev by the State Committee for National Security. Baigaziev stands accused of soliciting a $35,000 bribe from a foreign company in exchange for lobbying efforts related to the capital’s thermal power plant reconstruction project. After partially failing to deliver on his promises, he was reportedly caught red-handed while returning a portion of the money. A criminal case has been opened against him. Ongoing Projects and Investment Environment In his statement, Junushaliyev highlighted major investment projects currently underway in Bishkek with foreign participation. These include the construction of a multifunctional residential and business complex on the site of the former hippodrome, a waste-to-energy incineration plant, and the modernization of the city’s sewage treatment facilities. He stressed that all these initiatives are being carried out strictly within the bounds of the law and should serve as a model for future investment. “The city administration will continue to adhere to a policy of openness, legality, and a firm stance against corruption,” he said. “If, during the implementation of a project, you encounter any unlawful actions by officials, such as extortion, coercion, or other forms of corruption, please report them immediately to the city hall’s anti-corruption department or law enforcement authorities.” According to the National Statistical Committee of Kyrgyzstan, foreign investment in Bishkek reached $525 million in 2024, a 50% increase compared to the previous year.

Industrial park

Kazakhstan to Launch New AQMOLA Industrial Zone to Attract Foreign and Domestic Investment

Kazakhstan marked the groundbreaking of a major industrial development on June 20 with a ceremony inaugurating the AQMOLA Industrial Zone in the Akmola region, near the capital city of Astana. Spanning nearly 1,000 hectares, the new industrial zone is designed to host production facilities for both domestic and international investors. Seven investment projects are already underway, backed by companies from China, Turkey, Singapore, and Kazakhstan. The initiative is expected to create over 4,500 new jobs. At the launch event, Akmola region Akim (Governor) Marat Akhmetzhanov underscored the strategic significance of the project. "The industrial zone will accommodate production facilities of leading companies from Kazakhstan and abroad. Concentrating production capacities in one location will have a multiplier effect on agriculture, processing, logistics, and other sectors, providing a boost to the region’s development," he stated. Key Investment Projects Among the cornerstone ventures is a deep wheat-processing complex by China’s Dalian Hesheng Holdings. The three-phase project, scheduled from 2025 to 2028, will produce sodium glutamate, gluten powder, and other high-demand products targeting markets in China, the Middle East, Southeast Asia, and Europe. Turkey’s YDA Group will construct an agrochemical complex for manufacturing fertilizers and pesticides. The Kazakh Institute of Oil and Gas plans to establish a liquefied natural gas production facility. Meanwhile, China’s Eagle Architecture Technology Co., Ltd. will build a diverse industrial plant to manufacture bitumen waterproof roofing materials, autoclaved aerated concrete blocks, polyvinyl chloride products, aluminum facades, stained glass, windows, and doors. The AQMOLA Industrial Zone represents a key step in Kazakhstan’s broader strategy to attract foreign direct investment and develop regional industrial hubs that contribute to national economic growth.

Economy

China and Russia Remain Kyrgyzstan’s Largest Foreign Investors

The National Statistical Committee of Kyrgyzstan has released updated figures on foreign direct investment (FDI), revealing that China and Russia remained the country’s largest investors in 2024. According to the data published on April 15, Kyrgyzstan received $872.6 million in FDI in 2024, marking an increase from $844.9 million in 2023. China accounted for 23.9% of total FDI, followed by Russia with 22.7%, Turkey (10.2%), Luxembourg (8.8%), Kazakhstan (5.7%), the Netherlands (4.9%), and Azerbaijan (3.4%). The remaining 20.4% came from a mix of other countries. Compared to the previous year, Kyrgyzstan saw increased investment from Azerbaijan, Luxembourg, Germany, Turkey, the Netherlands, and Russia, while inflows from the UK, UAE, Kazakhstan, and China declined. Sector Breakdown The manufacturing sector attracted the largest share of foreign investment, receiving 33.2% of total FDI. This was followed by the financial sector (20.6%), wholesale and retail trade (18.7%), the mining industry (11.3%), and geological exploration (8.3%). Sharp Rise in Overall Investment The total volume of investments in fixed assets from all sources in the first quarter of 2025 reached 56.8 billion Kyrgyz som, reflecting a 90.6% increase year-on-year. This marks a significant acceleration compared to the 63.9% growth recorded during the same period in 2024. Officials attribute the sharp rise primarily to a 2.1-fold increase in domestic financing, while the volume of foreign investment in fixed assets during the same period decreased by 1.5 times compared to the first quarter of 2024.