Kyrgyzstan - Foreign investment



In June 1991, the Kyrgyzstan parliament passed the Foreign Investment Law guiding the establishment of local enterprises with foreign shareholding as well as 100% foreign ownership. The law secures the right to repatriation of profits and allows foreign investment in all sectors of the economy except military production and certain forms of ownership in agriculture. Foreign buyers may acquire small enterprises being transferred from the state to the private sector directly on the open market; foreign participation in auctions or other forms of bidding for medium and large-scale enterprises requires special government permission. At present the government is attempting to attract overseas investors, particularly to the minerals, electronics, and agro-processing sectors of the economy. In 1995, the Foreign Investment Law was amended to expand foreign investment opportunities, to clarify investors' rights, and to remove or extend some time limits on certain aspects of foreign investment. Direct foreign investment that year amounted to about $800 million, and was rising at a slow but steady rate. Investments from Canada represented 45% of the total; these were concentrated primarily in gold mining (the largest single project being the $375 million development of the Kumtor gold field). Investments from Turkey comprised about 20% of the total; those from the US, 12%; and China, 10%. In 1998, foreign direct investment totaled $102 million, up from $83 million in 1997.

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