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Embassy of the Kyrgyz Republic to the Swiss Confederation

Embassy of the Kyrgyz Republic to the Swiss Confederation. Investing in Kyrgyzstan. COUNTRY PROFILE THE KYRGYZ REPUBLIC . Basic data (2011). Area: 199 000 km ² Population: 5, 5 mln people Average age: 2 7 , 6 years Life expectancy: 6 8 , 8 years

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Embassy of the Kyrgyz Republic to the Swiss Confederation

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  1. Embassy of the Kyrgyz Republic to the Swiss Confederation Investing in Kyrgyzstan

  2. COUNTRY PROFILE THE KYRGYZ REPUBLIC Basic data (2011) • Area: 199 000 km² • Population: 5,5 mln people • Average age: 27,6 years • Life expectancy: 68,8 years • Official languages: Kyrgyz and Russian • Literacy level: 99.3% • Currency(code): Som (KGS) • GDP: USD 5.5 billion • GDP per capita: 1 131 USD • GDP growth:5,7% • Public debt to GDP: 48% • Inflation 5.7% • FDI inflow 459 mln USD • Structure of Economy (% to GDP): • Services (52%), Industry (24%), Agriculture (18%), Construction (6%)

  3. 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.

  4. Reasons to Invest in Kyrgyzstan • 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

  5. 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”.

  6. 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 • New law “On licensing system in Kyrgyzstan” • Kyrgyzstan was ranked # 70 in the World Bank report “Doing business” for economic reforms

  7. Liberal Trade and Taxation Regime • A member of the WTO (1998) and “Free Trade Zone Treaty” with Russia and other FSU countries (2011) • 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).

  8. 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

  9. Affordable educated and skillful workforce • One of the Kyrgyzstan’s assets is a human capital that pushes forward development of the country • Literacy rate is 99.3% • 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)

  10. ATTRACTIVE SECTORS FOR INVESTMENT Mining.Mineralresourcessuh as gold, coper, rare metals. Energy.Hydropower is 90% of the country'selectricity production and its total capacity is142 billionkWhperyear, of whichonly 10% isused presently. Garmentindustry.Over 110 thousand peopleareemployed in more than 130 companies. Agriculture.Morethan 699 thousandpeople are employed. No VAT onproductionandprocessing Tourism.Mountainclimbing, hunting, skiing, snowboarding, raftingandfishing. Year long recreation opportunities at Issyk-Kul Lake.

  11. 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. • Hydroenergy projects include construction of small and medium power generation plants on numerous mountain rivers • Food processing projects include stock breeding and construction of meat processing factory for domestic and foreign markets • Tourism on Silk Road route. Construction of ski resorts, trekking bases.

  12. Invest in Kyrgyzstan with confidence!

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