2. Investment Climate

2.1. Legal Framework

The state investment policy is aimed at creating a favorable investment climate, stimulating the attraction of national and foreign investments, establishing equal and fair legal principles and guarantees for the protection of investments.

CLIMATE

Inflows of foreign direct investment by types of economic activity (2025)10

National Statistical Committee of the Kyrgyz Republic, Investments in the Kyrgyz Republic, Express Information as of June 10, 2026.

47.2%

18.8%

0.6%

8.9%

0.9%

5.6%

10.8% 3.9%

1.3%

2.0%

Manufacturing ($618.8 million)

Mining ($246.3 million)

Construction ($8.1 million)

Trade ($117 million)

Transport and logistics ($11.7 million)

IT and telecommunications ($73.6 million)

Finance and insurance ($142.2 million)

Professional, scientific and technical activities ($50.4 million)

Hotels and restaurants ($16.5 million)

Other activities ($25.5 million)

Total: $1.31 billion (2025)

2.2. Investment guarantees and protection

Legislation provides a system of legal guarantees and protection mechanisms for foreign investors. Key guarantees and protection mechanisms include, in particular:

• granting national treatment to foreign investors, which means that foreign investors under similar circumstances enjoy a regime no less favorable than that of national investors;

• the possibility of resolving investment disputes through international arbitration in the presence of an arbitration agreement and/or the relevant international treaty;

• the possibility of implementing large investment projects based on a contractual model, including investment agreements with the state;

• priority application of international treaties if they provide more favorable conditions for investors (while respecting the national interests of the state);

• inadmissibility of unjustified interference in the investor's economic activities;

• a broad approach to the definition of "investments" (capital, property, intellectual property, contractual rights, etc.);

• protection against illegal expropriation, including the obligation to pay proportional and timely compensation at market value;

• guarantees of access to information, freedom to carry out investment activities in accordance with the law;

• freedom to choose forms and methods of investing;

• the right to free transfer of income and capital.

2.3. Incentive Measures

Depending on the size and directions of investments, the investor may be granted the following incentive measures:

stabilization regime, tax, customs benefits, benefits on non-tax payments

accelerated depreciation of fixed assets

connection to engineering infrastructure and communications

provision of an investment visa

development and adoption of special rules and technical regulation requirements in case of their absence

provision of licenses, permits, and other documents

provision of rights to land plots, water bodies.

2.4. Investment Agreements

The Investment Law provides for the possibility of implementing investment projects based on investment agreements, which define the rights, obligations, and responsibilities of the parties, as well as the conditions for the implementation of the investment project.

In Kyrgyzstan, an investment agreement may be concluded:

• between the investor and state bodies or local self-government bodies;

• between the investor and the Cabinet of Ministers (in cases provided by law).

The choice of the party to the investment agreement depends on the volume of investments provided for by the project.

Investment agreements may be concluded following an open competition or through direct negotiations between the investor and the Cabinet of Ministers. Direct negotiations with the Cabinet of Ministers are applied if the volume of investments is from 1 billion soms (≈ 11.5 million USD), provided that the investor has confirmed experience of successful project implementation in a similar field of activity. The procedure and conditions for conducting direct negotiations are determined by the Cabinet of Ministers.

For projects with a smaller volume of investments, the parties to the investment agreement may be state bodies and local self-government bodies. Thus, local self-government bodies (except for city mayor’s offices) have the right to conclude investment agreements for projects with an investment volume from 1 million to 50 million soms, and two or more such bodies – for projects with an investment volume from 1 million to 200 million soms. City mayor’s offices, except for the cities of Bishkek and Osh, may act as a party to the agreement for projects costing from 1 million to 300 million soms, and with the participation of other local self-government bodies alongside them – from 1 million to 400 million soms. For projects with an investment volume from 1 million to 1 billion soms, the parties to the investment agreement may also be the local self-government bodies of the cities of Bishkek and Osh, as well as the relevant ministries and agencies of the Kyrgyz Republic.

Foreign direct investment by countries (2025)11

National Statistical Committee of the Kyrgyz Republic, Investments in the Kyrgyz Republic, Express information as of June 10, 2026.

Turkey India Cyprus UAE Netherlands Kazakhstan

China Uzbekistan United Kingdom Other countries Russian Federation

47.5%

1.2%

13.9%

3.7%

2.4%

9.3%

5.4%

9.1%

2.7%

3.4%

1.4%

2.5. Stabilization Regime

Subject to compliance with the conditions provided by law, investors may enter into a stabilization agreement for up to 10 years, which allows the application of the most favorable conditions for the implementation of the investment project in relation to taxes and non-tax payments. In the event of amendments to tax legislation or legislation on non-tax payments during the implementation of the investment project, the investor and/or the invested enterprise that has concluded the stabilization agreement shall have the right to continue applying the chosen most favorable conditions, as well as to use more favorable conditions if they are introduced after the conclusion of the agreement.

Key characteristics of the stabilization regime:

The right to use the stabilization regime is granted under the following conditions:

investment of at least 200 million soms (≈ 2.3 million USD) in the capital of the invested enterprise within 3 years from the date of signing the stabilization agreement;

for projects in the subsoil use sector – investment of at least 1 billion soms (≈ 11.5 million USD) within 5 years from the date of signing the stabilization agreement.

term of application –

up to 10 years; 2 3 4 5

applies to investment projects that meet established criteria;

applies to both the investor and the investee enterprise;

covers taxes (including value-added tax (VAT), excluding other indirect taxes) and non-tax payments (excluding payments for services provided by government authorities);

is retained in the event of a change in the shareholder or participant structure of the investor and/or the investee enterprise.

2.6. Bilateral Agreements on the Promotion

and Protection of Investments

The Kyrgyz Republic has concluded more than 30 bilateral agreements on the promotion and mutual protection of investments. 12 Such agreements generally provide for:

• fair and equitable treatment;

• free transfer of income and capital;

• protection against unlawful expropriation;

• access to international investment arbitration.

2.7. Resolution of Investment Disputes

Since 2022, the Kyrgyz Republic has been a party to the ICSID Convention13.

Investment disputes may be resolved:

• through negotiations and mediation;

• in the courts of the Kyrgyz Republic;

• in international arbitration in the presence of a relevant written agreement containing a valid arbitration clause, or if the dispute is referred to arbitration in accordance with international treaties of the Kyrgyz Republic.

UN Conference on Trade and Development (UNCTAD), Investment Policy Hub: https://investmentpolicy.unctad.org/international-investment-agreements/countries/113/kyrgyzstan Convention on the Settlement of Investment Disputes between States and Nationals of Other States dated March 18, 1965 (Washington).