To date, the total Turkmenistan’s liability to foreign creditors does not exceed 5% of GDP. This was stated by Chairman of the Board, State Bank for Foreign Economic Affairs of Turkmenistan Rakhimberdy Jepbarov, speaking at the International Forum on Attracting Investments in the Energy Sector of Turkmenistan (TEIF 2024) in Paris.
Jepbarov also noted that the Government of Turkmenistan pursues a responsible and balanced policy in the field of attracting and serving foreign borrowing.
According to the head of the Foreign Economic Affairs Bank, Turkmenistan has no overdue debt on the foreign loans, which once again demonstrates the high reliability and creditworthiness of the country.
Jepbarov said that the fundamental factors that make Turkmenistan a reliable partner for foreign investors include a peaceful foreign policy and internal stability. These factors are also coupled by rich natural resources, a dynamically developing logistics and transport system, and an open door policy.
Turkmenistan has created favorable conditions for attracting foreign direct investment – in particular, it is an appropriate legal framework that is being continuously improved and ensures the protection of foreign investments. Also, the tax system for SMEs has been simplified.
In 2020, important amendments were made to the Law on Hydrocarbon Resources, which now covers not only the extraction, but also the processing of hydrocarbon raw materials. Thus, the oil and gas sector is becoming more attractive to foreign businesses.
As part of the ongoing efforts to digitalize the country’s economy, the principles of a “single window” are being adopted, which improves conditions for local and foreign investors.
Turkmenistan is open to the creation of joint investment companies with foreign financial institutions. As an example, Jepbarov cited the creation of a joint investment company with the Abu Dhabi Development Fund (ADFD) in 2021 by the State Bank for Foreign Economic Affairs. The target capital of the investment company amounted to $100 million.
Speaking about specific sectors and projects that stimulate economic growth in Turkmenistan, the Chairman of the TVEB Board noted that financing focuses on such sectors as industry, energy, transport and telecommunications infrastructure, private sector development, the creation of agro-industrial complexes, socially oriented projects in the field of health care and rational water use.
And of course, Turkmenistan financially supports green energy projects. Financing of a renewable energy project has been launched jointly with the Abu Dhabi Development Fund.
During Jepbarov’s speech, the following data on investment dynamics in the country were presented on the slides of his presentation:
Key foreign economic indicators as of December 31, 2023:
- GDP growth – 6.3%
- Foreign trade – $ 18.99 billion
- Exports – $ 11.43 billion
- Imports – $ 7.56 billion
- Foreign trade balance – $ 3.87 billion
Top Investors:
- Japan 41%
- Islamic Development Bank 24%
- Asian Development Bank 15%
- USA 7%
- Germany 4%
- China 3%
- Switzerland 3%
- Saudi Arabia, Italy and the UAE 3%
Breakdown of investments by economic sectors
- Oil and gas industry – 27%
- Power supply – 25%
- Chemical and Textile – 18%
- Transport and communications – 16%
- Agriculture – 8%
- Private sector – 5%
- Healthcare – 1%.
///nCa, 25 April 2024