Head of the Union of Economists of Turkmenistan, expert analyst CentralAsia.news Yuri Aronsky shared his views on attracting investment in the economy of Turkmenistan.
Improving the investment climate
The government of Turkmenistan intends to continue active efforts to improve the investment attractiveness of the national economy. In particular, this was discussed at a meeting of the Cabinet of Ministers, which was held on March 5, 2021. As a result, President of Turkmenistan Gurbanguly Berdimuhamedov gave instructions to examine the situation in the sphere of attraction of investments. Particular attention was instructed to pay to the construction and industrial sectors where the Turkmen government plans to attract as much foreign investment as possible.
On a systematic basis the authorities of Turkmenistan pay great attention to attracting investment in the Turkmen economy. This, in turn, will allow creating high-tech industries in the state that will not only saturate the domestic market with quality goods but will also allow increasing exports, not only increasing their volumes but also making them more diverse. The result of such transformations will be not only economic growth, but also an increase in the welfare of ordinary Turkmen citizens.
To date, the country is systematically working to improve the business environment. Also, the volume of documents required for reporting is being reduced and the legislative and legal framework is being restructured. As a result, the improved investment climate will allow increasing the volume of foreign investments directly attracted despite the economic crisis.
Development of the stock exchange
One of the significant steps in this direction was the creation of the Ashgabat Stock Exchange JSC in 2016, which currently has a significant potential to attract foreign capital investment and increase the efficiency of the stock market.
Successful projects involving foreign partners
Such work has already begun to bear fruit in the form of effective cooperation with foreign partners. Among them is the world's first plant for the production of liquid fuel from gas on an industrial scale, which was launched in 2019. The enterprise is located in the territory of the Akhal velayat. The material for the fuel is natural gas, the deposits of which in Turkmenistan are enormous.
The Garabogazkarbamid gas-chemical complex, which will be the largest enterprise of its kind in the Central Asian region, is also under construction in Mary province. Cement, metallurgical and gas-concrete production complexes, textile factories, as well as enterprises manufacturing equipment for the textile industry and a number of other various facilities are also being built in the country.
Investment attractiveness of the Turkmen business
In a competitive environment, companies need to work on the continuous development of end products, service, and internal business processes, adapting to dynamic changes in the market. Improvement of business needs regular investments for renewal of tangible assets, R&D, marketing. Attracting capital investments from the stock market obliges a company to take care of its image, honestly keep open accounts, and maintain business transparency.
Due to a number of global economic crises, the investment flow from global investors into the national economy has decreased to a certain extent. Thus, the issue of increasing the volume of attracted investments is extremely important. According to the expert, one of the key factors in solving these issues will be the access of Turkmen businesses to the stock exchange to raise capital from various sources.