Untapped Potential in a Growing Economy
Kyrgyzstan represents a developing economy brimming with undiscovered potential. The country’s real sector is predominantly led by mining, offering investment opportunities of all sizes. From large-scale mining concessions accessible through government tenders to smaller ventures available through auctions or direct applications to regulatory bodies. The market is active for licensed projects in both exploration and production stages, supported by extensive geological expertise—a legacy from the extensive exploration efforts by the Soviet Union in Kyrgyzstan.

Diverse Investment Opportunities

• Agriculture stands out as a primary investment choice, attracting both local and international investors. The gap in financing at the grassroots level opens doors for significant profit margins across the product sales chain.
• Financial Services are witnessing robust growth, fueled by an increasing and entrepreneurial population. Services such as cross-border transfers, micro-credit, mortgage, commercial lending, and other financial products are seeing a steady rise.
• Tourism is emerging as a promising sector, with potential to become a key driver of the economy. While large-scale investments are yet to pour in, smaller investments are steadily developing the hospitality industry, introducing innovative travel products for international tourists.

Central Asian Investment Hub
Kyrgyzstan serves as a pivotal investment hub in Central Asia. Membership in the WTO and the Customs Union with Russia, Belarus, and Kazakhstan places Kyrgyzstan in a strategic position to benefit from both affiliations. Despite political upheavals, the country has maintained a commitment to liberal, investor-friendly legislation and an openness to international business.

Liberal Capital Market Framework
The most open and liberal capital market framework in Central Asia can be found here, characterized by the absence of exchange controls, a simple tax system, and the freedom for local companies and individuals to engage in international business transactions.

Developing Local Stock Market
Although the Kyrgyz stock market is currently small, efforts to enhance its liquidity and attractiveness to investors are underway. Recent measures aim to encourage large government-owned corporations to list a portion of their equity on the Kyrgyz Stock Exchange.

Advancing Islamic Finance
Kyrgyzstan is on its way to becoming a regional Islamic finance hub, with legislation in place for the issuance of various types of sukuk (learn more).

Innovative Investment Incentives
Recent Presidential Decrees have introduced innovative measures to invigorate the stock market, such as tax-free personal investment accounts and utilizing the national post office network to facilitate stock market investments.

Attractive Tax System
The tax system offers numerous incentives, including low profit and income tax rates with several exemptions, minimal VAT implications for investment transactions, and special conditions for leasing firms and certain Kyrgyz Stock Exchange trades.

Robust Securities Market Regulation
Investors benefit from strong regulatory protections, freedom to utilize the financial market infrastructure, compliance with international anti-money laundering standards, and tax exemptions on capital gains from trading in the prime section of the local stock exchanges.

Khan Teniri Capital works closely with Kyrgyz legislators to enhance the country’s appeal to international investors through improved legislation and guidelines.