Embassy of the Kyrgyz Republic
to the Swiss Confederation
Investing in Kyrgyzstan
COUNTRY PROFILE
THE KYRGYZ REPUBLIC
Basic data (2011)
 Area:
 Population:
 Average age:
 Life
expectancy:
 Official languages:
 Literacy level:
 Currency (code):
 GDP:
 GDP
per capita:
 GDP
growth:
 Public debt to GDP:
 Inflation
199 000 km²
5,5 mln people
27,6 years
68,8 years
Kyrgyz and Russian
99.3%
Som (KGS)
USD 5.5 billion
1 131 USD
5,7%
48%
5.7%
 FDI inflow
459 mln USD
 Structure of Economy (% to GDP):
Services (52%), Industry (24%), Agriculture (18%), Construction (6%)
New Economic Policy Strategy
Sustainable economic growth

Improvement of business and investment
climate through optimization of legislation and
economy deregulation

Optimization of state budget through efficient
management of expenditures and revenues

Implementation of 40 large scale national
projects to develop strategic sectors of economy.
Creation of the state owned Development Bank

Privatization. The Government plans to sell off its
assets in the following sectors: banking, energy, air
and railroad, telecommunications, oil and gas.
Reasons to Invest in Kyrgyzstan
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Convenient geographic
location in the heart of
Eurasia
Liberal, investment friendly
legislation with a broad range
of rights and guarantees
Liberal trade regime as a
WTO member state (1998)
Low and simple taxation
system
Competitive human capital
and affordable skillful
workforce
Strategic geographic location

Strategic location on the Silk Road between
Europe and Asia

Access to markets in Eurasia and China with
over 1 billion of customers.

A transit country with potential to become
transport, logistics and communication hub
Kyrgyzstan
Turkish Airlines uses “Manas” airport as a transit point
of the flight Istanbul-Ulanbator-Istanblul. The Lufthansa
has some plans to fly to South Asia via “Manas”.
Liberal legislation
Law “On investments in the Kyrgyz Republic” treats
equally both national and foreign investors. Investment
threshold was reduced to a level of $100,000

Bilateral treaties on mutual support, encouragement
and protection of investment (capital expenditure) with 27
countries including Switzerland
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New law “On licensing system in Kyrgyzstan”
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Kyrgyzstan was ranked # 70 in the World Bank report
“Doing business” for economic reforms
Liberal Trade and Taxation Regime

A member of the WTO (1998) and “Free Trade Zone
Treaty” with Russia and other FSU countries (2011)
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Trading with 123 countries with turnover equal to $5,
600 mln. in 2011. The main trade partners include
Russia (29%), Kazakhstan
(16.8%),
China
(14%), Switzerland (8%)

New Tax code stimulates business expansion. New
rates: Profit tax – 10%, Income tax – 10%, VAT 12% (no VAT is levied on the imported industrial
equipment by investors).
Liberal Trade and Taxation Regime

Treaties on avoidance of double taxation, including
with Switzerland (2002), with 21 countries

4 Free economic zones offer business privileges
for foreign investors: no duties on manufactured
goods, tax incentives, simple customs clearance and
licensing
Affordable educated and skillful workforce

One of the Kyrgyzstan’s assets is a human capital that
pushes forward development of the country
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Literacy rate is 99.3%
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Young people represent 30% of total labor force educated
in Kyrgyzstan and overseas

Competitive wages in comparison with other former USSR
countries. The average monthly salary in 2011 amounts to
$160 ($480 in Kazakhstan and $640 in Russia)
ATTRACTIVE SECTORS FOR INVESTMENT
Mining. Mineral resources suh as gold, coper, rare
metals.
Energy. Hydropower is 90% of the country's electricity
production and its total capacity is 142 billion kWh per year, of
which only 10% is used presently.
Garment industry. Over 110 thousand people are
employed in more than 130 companies.
Agriculture. More than 699 thousand people are
employed. No VAT on production and processing
Tourism. Mountain climbing, hunting, skiing,
snowboarding, rafting and fishing. Year long recreation
opportunities at Issyk-Kul Lake.
Naryn Province Investment Opportunities

Located in south east on the border with China on area of
44 thousand sq.km. 70% are mountains. Population – 265
thousand.
Mining projects include exploration of deposits of gold, iron,
aluminum, coal, wolfram, barites, lead.
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Hydroenergy projects include construction of small and
medium power generation plants on numerous mountain rivers
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Food processing projects include stock breeding and
construction of meat processing factory for domestic and foreign
markets
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Tourism on Silk Road route. Construction of ski resorts,
trekking bases.
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Invest in Kyrgyzstan with confidence!