Investment Climate of Kyrgyz Republic

Ministry of Economy and Antimonopoly Policy of Kyrgyz Republic

Geographical locationKyrgyzstan is an international transit center

I Capital City: Bishkek

I Official

Language: KyrgyzI Government: Unitary

Parliamentary Republic

I Area: 200 thsd km2

I Population: 5,5 mln.

I Currency: Som*

* (KGS 46.8 = USD1)

Ministry of Economy and Antimonopoly Policy of Kyrgyz

Republic

2011

Macroeconomic Indexes

5.7%

Growth GDP

5,7%

9%

2011

Unemployment Rate

Average Wage

Inflation

Growth GDP 5,7 %

GDP per capita 1130,7 $

FDI 515,1 млн. $

Inflation 5,7 %

Unemployment Rate 9,2 %

Average Wage 197 $ $ 191.6

Ministry of Economy and Antimonopoly Policy of Kyrgyz

Republic

Flow of InvestmentsМинистерство экономики и антимонопольной политики

Кыргызской Республики Geography of Investors

Flow of InvestmentsМинистерство экономики и антимонопольной политики

Кыргызской Республики

Canada

The United Kingdom

China

Germany

Other inter.organi.

Turkey

Australia

USA

Republic of Korea

Cyprus

Seychelles

United Arab Emirates

Pakistan

Switzerland

European Bank for RD

Hungary

(Britain)

Iran

Latvia

Austria

Afghanistan

Kuwait

India

Portugal

Israel

Other countries

0.0 5.0 10.0 15.0 20.0 25.0

21.59

10.86

9.20

5.70

3.06

2.72

2.11

1.80

1.48

1.43

1.04

1.01

0.76

0.73

0.66

0.52

0.51

0.47

0.46

0.38

0.28

0.25

0.25

0.23

0.23

0.93

Flow

of F

orei

gn D

irec

t Inv

estm

ent b

y co

untr

y be

twee

n 20

05 a

nd 2

011

(%, n

on-C

IS)2005 2006 2007 2008 2009 2010 2011

0.0

100.0

200.0

300.0

400.0

500.0

600.0

700.0

800.0

900.0

1000.0

210.31

335.59

436.82

866.20

660.95

666.09

849.21

Dynamics FDI between 2005 and 2011(mln.of USA $)

0.0200.0400.0600.0800.0

1000.01200.01400.01600.01800.0

0.0

0

0.2

2

10.1

2

0.0

2

1638.7

6

0.0

0

435.5

8

1.4

3

0.1

5

2.3

6

7.6

1

Flow FDI from CIS 2005-2011

(mln.of USA $)

External Trade (Export)

I Commodity Turnover 6507 mln. USDI Export 2240 mln. USD

■Gold

■Clothing and related

■Food

■Other

2011

Ministry of Economy and Antimonopoly Policy of Kyrgyz

Republic

Gold; Основной

Clothing; Основной

Food; Основной

Other; Основной

Energy 22,8%

Vehicles23,5%

Food16,4%

Chemicals13,5%

Forest8%

Light Industry

8,5%

Ferrous and nonferrous

metals7%

Internal Trade (Import)

I More than 100 trading partnersI WTO membership

I Commodity turnover 6075 mln. USDI Import 4261 mln. USD

2011

Ministry of Economy and Antimonopoly Policy of Kyrgyz

Republic

Mineral Resources

I Explored reserves of gold - 420 тонн

Lead Mercury Antimony UraniumRare-earth metals

I The Hydropower potential- 142 bln. кW/h per year

I Many kinds of construction materials

Ministry of Economy and Antimonopoly Policy of Kyrgyz

Republic

Registration of ownership

Investor protection

Execution of contracts

Hiring of labor

Metodology:

Project “Doing Business” explores business environment of 183 countries since 2004

Opening of Business

99 DB 2009

68DB

2010 41 DB 2011

Doing Business: Kyrgyz RepublicMinistry of Economy and

Antimonopoly Policy of Kyrgyz Republic

Legal Basis and PPP

Investment Legislation: • National Treatment• Free repatriation of capital• Access to international arbitration

Arrangements of PPP in sectors: • Vehicles and railroads;• Airports;• Schools and hospitals; • Water supply and etc.

Ministry of Economy and Antimonopoly Policy of Kyrgyz

Republic

I Value added tax (VAT) 12%I Profit Tax (PT) 10%I Income Tax (IT) 10%

I Retail Sales TaxI Restrictions on Capital OutflowsI Inheritance Tax

Tax Regulation

Type of Tax

Kyrgyz Republic

ChinaKazakhsta

nTajikistan Uzbekistan

VAT 12% 17% 12% 20% 20%

PT 10% 15-25% 10-20% 25-30% 9-35%

IT 10% 5-45% 10% 8-13% 10%

Ministry of Economy and Antimonopoly Policy of Kyrgyz

Republic

2011

I 197 USD Average Wage

Cheap and highly qualified labor force

I Market Culture

I High level of literacy

I Knowledge of IT technologies and foreign languages

Основной Основной Основной

Основной

Основной

Основной

Кыргызстан Казахстан Россия

Average wage in USD

Ministry of Economy and Antimonopoly Policy of Kyrgyz

Republic

Why KYRGYZ REPUBLIC ?

Geographical location

Rich mineral reserves

Neighborhood with major economies

Cheap and highly qualified labor force

Favorable investment environment

Liberal Tax Regime

Ministry of Economy and Antimonopoly Policy of Kyrgyz

Republic

Which sectors are attractive?

Agriculture

Development of mineral resources

Tourism

Ministry of Economy and Antimonopoly Policy of Kyrgyz

Republic

Which sectors are attractive?

ICT

Transportation and Logistics Light Industry

Ministry of Economy and Antimonopoly Policy of Kyrgyz

Republic

Thank you for you Attention!

Ministry of Economy and Antimonopoly Policy of Kyrgyz Republic(MEAP)

106, Chuy Avenue, Bishkek, Kyrgyzstanwww.mert.kg

Tel.: (+996) 312 62 05 35 (222)Fax: (+996) 312 66 18 37

mert@mert.kg

Ministry of Economy and Antimonopoly Policy of Kyrgyz

Republic