Kyrgyzstan’s Leading Investor: China Takes the Top Spot

In recent years, the Kyrgyz Republic has made great progress in improving the investment climate and creating favorable conditions for investors,according to the National Investment Agency under the President of Kyrgyzstan.

The inflow of foreign direct investment for the first 9 months of 2024 amounted to 746.9 million US dollars, which is 92.3 million US dollars more than the same period in 2023, when the volume of FDI amounted to 654.6 million US dollars, The Caspian Post reports, citing Kabar news agency.

This indicates an increase in the attractiveness of the Kyrgyz Republic for investors.

The People's Republic of China became the largest foreign investor, providing 29.7% of the total inflow (221.5 million US dollars). Next comes Russia - $192.8 million US dollars (25.8%), Turkiye - $71.3 million US dollars (9.6%), Kazakhstan $48.9 million US dollars (6.6%) and the Netherlands $33.1 million US dollars (4.4%).

This composition of investors indicates a continuation of the trend towards geographic diversification, while maintaining a strong role of both neighboring CIS countries and non-CIS countries.

In addition, in 2024, $456.6 million US dollars came from non-CIS countries (61.1% of the total FDI volume came), which indicates a high level of interest from international investors, as well as stabilization of investment activity.

The following have borne fruit for improving the investment climate:

- government policy;

- reforms for opening new industries;

- simplification of procedures for obtaining public services;

- increasing the transparency of the business environment;

- minimization of bureaucracy;

- providing tax incentives to new enterprises.

Investors are showing the greatest interest in the energy sector, especially in hydropower projects and renewable energy sources, such as solar and wind energy. The mining industry also accounts for a significant amount of investment, and the agro-industrial complex sector is characterized by high demand for environmentally friendly products. There is an active growth of interest in ecological and cultural tourism, which is actively developing due to the unique nature and history of Kyrgyzstan. There is also significant development in the IT sector, the construction of residential and commercial properties, as well as the implementation of infrastructure projects. Interest in the banking sector, microfinance and fintech companies is growing. This indicates diversification of the economy and the expansion of sectors for capital investment.