Kyrgyzstan's economic week

Several important events occurred in Kyrgyzstan last week.

One of the potential investors in the Kyrgyz economy are the Arab states. Since Almazbek Atambayev’s presidency, Kyrgyzstan is making attempts to attract private businesses and large companies from the countries of the Persian Gulf. Embassies of Kyrgyzstan were opened in a number of Gulf countries to boost economic relations, in particular, in Saudi Arabia, Kuwait, Qatar and recently in the United Arab Emirates. Although about 90% of all trade and economic relations accrue to the Emirates, the Embassy of Kyrgyzstan in Abu Dhabi has been opened recently, but the Consulate of Kyrgyzstan in Dubai had been operating very successfully. There is a direct air flight, which works in full. At the same time it is well known the great financial potential of other Gulf countries that can invest a lot of credit funds in case of meeting their requirements. Merely the Qatar Investment Fund has a potential of $ 800 billion. However, they are not yet represented in Kyrgyzstan.

Taking into account the enormous potential in the relations, the ambassadors of Kyrgyzstan in these countries do not stop trying to attract the Arab business to Kyrgyzstan and hold many meetings with local companies. Earlier this week, Kyrgyz Ambassador to Saudi Arabia Abdilatif Zhumabaev held a meeting in Riyadh with local entrepreneurs. More than 30 representatives of business circles from Saudi Arabia took part in it. The Embassy provided the business structures with the information on the legislation, investment and tourism opportunities of Kyrgyzstan and distributed booklets entitled «Kyrgyzstan: So much to discover», CD drives, brochures about the tourist attractiveness of Kyrgyzstan.

The businessmen of Saudi Arabia expressed interest in close cooperation with Kyrgyzstan in the field of trade and investment and said that they would necessarily consider potential projects for further investing in the economy of Kyrgyzstan.

Kyrgyz diplomats also actively work in the eastern direction. Ambassadors of Kyrgyzstan are especially active in China, Japan, South Korea and Malaysia. This week, Consul General of Kyrgyzstan in Guangzhou (China) Maksat Tentimishov held a meeting with the leadership of the Association of Garment Manufacturers in Guangdong Province. At the meeting, the sides discussed the possibilities of cooperation in the field of opening sewing enterprises in Kyrgyzstan. The Chinese were invited to open sewing enterprises for the production of fabrics and garments with further export to the market of the Eurasian Economic Union and within the framework of Kyrgyzstan’s GSP + status to the countries of the European Union.

Participants of the meeting of the Interparliamentary Commission for Cooperation between the Federal Assembly of Russia and the Kyrgyz Parliament, which was held in Moscow with the participation of representatives of the Eurasian Economic Commission (ECE) stressed that Kyrgyzstan gradually receives fruits from the membership in the EEU.

Rimma Kiseleva, Deputy Director of the Department for the Integration Development of ECE said that, the growth of the economy of Kyrgyzstan in 2016 was the highest among the countries of the EEU. According to her forecasts such rates of development should remain this year too. This is due to the fact that Kyrgyz business is gaining new opportunities in a single union market. Experts say that participation in the Eurasian integration project led Kyrgyzstan to a new level of trade and economic development: in January-February this year the volume of trade with the partners in the EEU grew by 7.5% and made $ 331 million. In addition, there are obvious benefits for ordinary citizens. Labor migrants from Kyrgyzstan received a simplified procedure of employment in the EEU countries and social rights guaranteed by the union’s law.

On the other hand, Prime Minister of Kyrgyz Republic Sooronbai Zheenbekov recently said that GDP growth in 2016 made 3.8%. And at the same time he stressed that Kyrgyzstan needs additional investment flows. One of the main tasks of the Kyrgyz Government is to increase production capacity. And for this it is necessary to strengthen the country's energy potential. After Kyrgyzstan’s accession to the EEU there is a real opportunity to receive tangible financial support from financial institutions of the union. This week, negotiations between the ECE and the Government of Kyrgyzstan is resulted in reaching agreement to allocate $ 110 million by the Eurasian Development Bank, which is planned to be used to update the second turbine at Kambarata hydropower plant -2.

Having chosen the course for integration with friendly countries, Kyrgyzstan is actively participating in a number of major projects. In particular, Bishkek shows great interest in participating in the China’s One Belt, One Road project on the Great Silk Road. To increase the involvement in this project, participating countries, primarily China, intend to create two Project Support Funds. According to the founders, the first Fund will be with a capital of $ 5 billion. The financial capacity of the second Fund will be only $ 300 million. It’s work will be aimed at creating electronic wholesale trade of the countries along the Great Silk Road. Kyrgyzstan plans to become one of their creators. They will be created to support countries in industrialization and infrastructure projects on the Great Silk Road. During the public discussion of the creation of the Funds, experts emphasized positive moments of Kyrgyzstan's participation in these projects. It is planned that one of the Funds will work in all EEU countries with further expansion of its geography.

China is a good example of expanding ties within the framework of economic cooperation. The Chinese shoe manufacturing corporation from Guangzhou, which showed interest in investing in Kyrgyzstan plans to open production in Kyrgyzstan. An agreement has already been reached on arranging the study tour for delegation of the Xinhaopan Group to Kyrgyzstan in July this year.

The economy of any country develops only under stable conditions. And the statement of the Ministry of Transport and Roads of the Kyrgyz Republic that it does not intend to terminate the contract with China’s Long High company, which is engaged in the construction of the Balykchy-Korumdu highway in Issyk-Kul region, is an example of the desire for stable production relations with foreign companies operating in the country.

In the regional context, after the lifting of international sanctions, Iran is becoming more active in Central Asia. Tehran, in particular, is interested in investing in Kyrgyzstan. Foreign Minister of this country Mohammad Zarif, who visited Kyrgyztan this week, expressed Iran's readiness to invest in the construction of small and large hydroelectric power stations in Kyrgyzstan. Iran is making every effort to enhance mutual cooperation in all areas. "In particular, we are ready to work in the construction of small and large hydropower plants, in construction, pharmaceuticals, new technologies and so on. I want to emphasize that there are no restrictions in cooperation with Kyrgyzstan," Zarif said.

The relations of the Land of the Rising Sun with countries of Central Asia have always been of general interest because of the enormous potential. On April 20, a meeting of the official delegation of Japan took place in Bishkek with head of the President’s Office of Kyrgyzstan Sapar Isakov. The meeting was held within the framework of the recently approved Taza Koom project. The meeting was prompted by a great desire of the Kyrgyz side to attract Japanese advanced technologies to the implementation of infrastructure projects, in particular, the Taza Koom project. In addition, the Japanese delegation held talks with representatives of relevant ministries and departments of Kyrgyzstan.

Kabar News Agency