Kyrgyz Republic seeks investment in the country

The president says the country’s economy not affected by sanctions on Russia

Dubai: The president of Kyrgyz Republic Almazbek Atambayev, who is on a visit to the UAE, has asked businessmen to invest in his country and said that the country provides liberal economic climate for investment.

“I hope the investment will begin to flow into the country. A business delegation from the UAE is expected to visit soon to explore opportunities. There is a lot to learn from here,” said Atambayev, who is the first head of the state of Kyrgyz Republic to visit the UAE.

The country outlined various opportunities for investors including the construction of a railroad network, mining of gold and aluminium, power generation, agricultural logistics, retail and tourism industry.

According to figures furnished by the Kyrgyz Republic consulate in Dubai, total trade between UAE and Kyrgyzstan is $227.8 million (Dh836.7 million) in 2013. The country’s export to UAE is $222.0 million and total imports from UAE are $5.8 million. It is set to open an embassy in Abu Dhabi next month to further cement ties with Gulf countries.

The President has been touring Gulf countries seeking investment. He was in Saudi Arabia last week and will be travelling to Qatar after wrapping up his visit in the UAE.

“We would like to work with our brothers in faith,” he said. “1,200 years ago, Arabs brought Islam to central Asia and we still keep that faith. I hope that Arab friends come to Kyrgyz just like their ancestors.”

A former country of the Soviet bloc, the country has closer economic ties with Russia. Atambayev said the recent sanctions on Russia over Ukraine crisis will not impact their country’s economy.

“We have about half a million people who work in Russia. Many of them send their part of income to Kyrgyzstan. It is possible that they would start sending less money but there is no direct impact on Kyrgyz economy from sanctions. Now the rouble is in decline and our currency exchange rate is almost equal.”

Kyrgyz Republic is also set to join the Eurasian Economic Union next year alongside Armenia, Belarus, Kazakhstan and Russia. When asked whether joining the union would increase the influence of Russia on Kyrgyz Republic, he said it is purely an economic union.

“We have only six million people. It is difficult to grow with such a small market,” he said. “By joining the union, we will be getting access to a market of 200 million people. I believe that our country benefits from the union as we have a liberal regime and low tax rates.”

The president said the country’s goal is to have a sustainable economy.

“We are building a parliamentary democracy. In terms of economy, we are not only working with Russia but also with China, which is our second largest partner, and the economy of China is steady.”

While addressing the business community at Dubai Chamber of Commerce and Industry, he said there is a good opportunity for investors in power generation and export to countries like Pakistan and India.

Tolkunbek Abdygylov, Chairman, National Bank of Kyrgyz Republic, spoke about three ways of investments in the financial sector in his country including the establishment commercial banks, providing finance and provision of services and products through Islamic banking.

He pointed at some of the lucrative investment projects including a railway line linking Russia and Kazakhstan with Kyrgyzstan, at a project value of $6.8 billion, a power plant worth $1.2 billion, and a tourist hotel, worth $52 million as well as several agricultural projects.