Tajikistan attracted $3.3 billion in foreign investments in the first six months of 2025 - a 59.4 per cent increase compared to the same period in 2024.
This marks an impressive year-on-year rise of $1.2 billion, signaling growing international interest in the Central Asian nation's economy, The Caspian Post informs via Tajik media.
Russia retained its position as Tajikistan’s leading investor, contributing $1.3 billion, which is 83 per cent more than during the same period last year.
The United Arab Emirates (UAE) climbed to second place, overtaking China, which had previously held that spot for several years. Despite the shift, China remains the largest source of direct foreign investment, having injected nearly $100 million in direct capital during the first half of 2025.
In contrast, investment from the US saw a significant decline - down 55 per cent to $51.8 million, a drop of $63.1 million from the same period in 2024.
While total foreign investment rose, direct investment fell 17 per cent year-on-year, totaling $144.7 million in the first half of 2025.
Sulton Rahimzoda, Chairman of the State Investment Committee, acknowledged the decline and cited several challenges:
“There are factors hindering the inflow of direct investment into Tajikistan. One of the main ones is low internet speed and a lack of sufficient air connectivity.”
He also emphasized geographic limitations:
“Tajikistan, unlike other countries in the region, lacks access to seaports and global markets. Weak logistics infrastructure increases the cost of domestic production.”
Rahimzoda noted that the country’s modest population of 10-10.5 million doesn’t represent a large consumer market. However, he remains optimistic:
“I believe our natural resources and young population will position Tajikistan as an attractive destination for investors in the near future.”
The capital city, Dushanbe, received the bulk of foreign investment - $2.9 billion, a 73 per cent increase over last year.
In stark contrast, the Gorno-Badakhshan Autonomous Region (GBAO) recorded zero foreign investment in the same period, down from $1.3 million in 2024.
On June 30, the government approved a long-term investment strategy through 2040, aimed at enhancing the investment climate, stimulating private sector growth, and fostering stronger public-private partnerships. The strategy specifically targets the attraction of foreign direct investment (FDI) as a key engine of sustainable economic development.
However, Tajikistan still faces hurdles that often deter potential investors, including high tax rates, bureaucratic red tape, regulatory interference, corruption, and unfair competition.
As the country moves forward with its 2040 strategy, improving these conditions will be vital to sustaining and expanding the recent surge in investment.
