TAJIKISTAN:

The New Investment and

Tourism Frontierby

Dr. Zavqizoda Zavqi Amin-First Deputy

Minister of Economic Development and

Trade

Brussels, March 8, 2018

Macroeconomic Stability-Key Condition for

Investment

2012 2013 2014 2015 2016 2017

77.4

6.7

6

6.9 7.1

5.85.1

6.1 6.1 6.16.7

0.5 0.5 0.5 0.5 0.5 0.5

GDP Growth (%)

Inflation (%)

BD/GDP Ratio (%)

Strategic Goals (NDS 2030)

Ensure energy security and efficient use of electricity

Exit from communication deadlock and turn Tajikistan into a transit country

Ensure food security and people’s access to good quality nutrition

Expand productive employment

Maintain 7-8% Economic Growth

GDP Increase 3 times

Export Concentration Index decrease on 3 key products from 83% down to58%

To raise Private Investment to GDP Ratio 5 times

Big Steps in Improvement of Investment and Business Climate

PPD Established: Consultative Council on

Improvement of Investment Climate under

the President of the Republic of Tajikistan

-Tajikistan Accession to WTO,

-Sovereign Credit Rating by Mody’s and S&P,

-500 mln $ Eurobonds successfully issued

Ratification of New York Convention

«On Recognition and Enforcement of Foreign

Arbitral Awards»

Ratification of Hague Convention (the

Apostille Convention) Abolishing the

Requirement of Legalization for Foreign

Public Documents

KEY INSTRUMENTS OF INVESTMENT COOPERATION

Concession

AgreementPublic-Private

Partnership

Investment

AgreementProduction

Sharing

Agreement

INVESTMENT INCENTIVES (1)

Import of technological equipment and materials in

manufacturing, agriculture, energy, medicine and

tourism sectors, also:

Procurement of development partners’

investments;

Cotton and aluminum processing;

Material for domestic production of school

uniform;

Poultry farms and production of animal food.

Rights of Investors

Investment Protection

Profit tax exemption

VAT and Custom

Duties Exemption

No restriction on

profit repatriation

Investment Incentives (2):

Free Economic Zones

ISHKOSHIM

FEZ

2011

25 years

200 hа

3

SOGD

FEZ

2008

25 years

320 hа

23

PYANJ

FEZ

2009

25 years

400 hа

12

DANGARA

FEZ

2011

50 years

521 hа

26

In FEZ Out of FEZ

2 taxes More than 10

taxes

0% IM-EX

duties and

VAT

5-18% IM-

EX duties

and VAT

Simple visa

regime

Regular visa

regime

1$ -rent per

m2 land

30- 50$ -rent

per m2 land

❖ Tajikistan supplies more than 60% of Central Asian water recourses ~15000 glaciers (area 11 146 km2, volume 845 km3) i.e. Fedchenko Glacier (area 156 km2, volume 94km3) Lake Sarez (lenth-70km, depth 500m, volume 17km3, 3263MASL)

❖ Huge Hydroelectricity potential – 527 bln. kWt/hr, only 5% is used Tajikistan ranks 8th in the world in terms of hydropower potential Tajikistan ranks 6th in the world in terms of Green Energy Production Unique HPP projects – Norak (3000mWt), Rogun (3600 mWt) Examples of PPP, BOT, BOO – Pamir Energy, Sangtuda 1 (670

mWt), Sangtuda 2 (220 mWt), TL 220 kW FEZ Dangara❖ Regional energy projects – CASA 1000 (TJ, KRG, AFG, PAK) $1,170

mln., TL 220 kW Sangtuda (TJ) – Pulikhumri (AFG)❖ Investment opportunities – at least 6 large HPPs – Shurab (850 mWt),

Nurabad - 1 (200 mWt), Nurabad 2 (160 mWt), Fondarya (135 mWt), Aini (160 mWt), Sanobod (200 mWt) and 7 small HPPs

Enormous Investment Opportunities in

Green Enegry & Water

Tajikistan – pure organic fruits and vegetables, to enjoy and appreciate.(less than 10% is exported)

Significant Investment Opportunities in Agriculture

❖ Only 4% of Gold Reserves of 250 tones is used;

❖ Huge reserves of precious, semiprecious stones and metals

❖ Mineral resources: Zinc, Silver, Mercury, Bismuth, Magnesium, Salt, Uranium etc.

❖ i.e. Konimansuri Kalon, one of the largest global silver/zinc/lead deposits (1 bln. tonnes of ore)

`

❖ Comparative advantage inproducing aluminum, textile,construction materials,housewear etc;

❖ SUE "Tajik AluminumCompany" (TALCO) - the onlyaluminum plant in CA, qualitymeets all world standards;

❖ Production of more than 40types of cable-wire products byLLC "Talco cable" since 2009.

Extended Investment Opportunities in Manufacturing and Mining

Aluminum, textile, cables etc.

Precious metals, minerals and mining

Excellent Investment Opportunities in

Pharmaceutics

• Only 3% of total demand is produced by 32

manufacturers of pharmaceutical products

• Remaining 97% of pharmaceutical products

are imported

• Wide range of herbs and natural ingredients

for producing pharmaceutical products

• Only 1% of 3500 species of plants was

studied

Tajikistan in International Rankings

WB Doing Business report 3 times recognized Tajikistan as a top-reformer country

(2010, 2011 and 2015)

British magazine Wanderlust 2017 enlisted Tajikistan among the top five countries with

simplified E-Visa system

• Global Information Technology Readiness Index -2016 ranked Tajikistan 7th out of 139 countries and evaluated Adult Literacy Rate of the country at 99,8%

WEF 2017 rated Tajikistan as the safest country in Central Asia, up by 27 positions

(from 76 to 49 out of 136 countries)

Global Spots 2014 awarded Tajikistan the top 10 best destinations to visit

Selected Achievements

PS provides 68% of employment

PS share in state budget revenue is 80%

# of SMEs over the last 7 years went up by 2.4 times

13

2007

2017

43

70

54

31 Private

sector share

in GDP

Poverty

level

Big International Companies in Tajikistan

TRANS TAJIK GAS PIPELINE

China Non Ferrous Gold (Pakrut)

Tourism: Why to visit Tajikistan?

2018 announced the Year of Tourism development & people’s crafts

Why to visit Tajikistan? ❖ Adventure and Eco Tourism - Extreme and

active holiday fans, alpinism, skiing and trekking in Pamir and Fann mountains will stay in your memory forever

Pamir – roof of the world (Somoni peak -7495 masl) Rare species: Marko Polo Sheep, Snow-Leopard,

Tibetan Lynx Spectacular lakes, rivers, glaciers and hot springs 200 trekking routes❖ Historical Tourism – Tajikistan has ancient and

historical heritage (1st millennium B.C., i.e. Int.Navruz Holiday)

❖ Recreational Tourism - Health care resorts based onmineral water, hot spring, radon steam, medical herbsand mineral mountain wax, famous for treatment ofvarious difficult diseases

Adventure and Eco Tourism

Recreational TourismGARM CHASHMA RESORT

Health care with Garm Chashma hot spring,famous for treatment of various difficultdiseases.

KHOJA OBI GARM RESORT

Balneoclimatic resort based on radonsteam emanation and hydropathicalfacilities at height of 1740-1960 m

SAFEDDARA SKI RESORT

True hidden gem in the remote mountainsof Tajikistan, at one of the rarest ski resortsin the world

Tajiks are by right proud of their national cuisine and consider it among the most attractive factors for the

development of tourism. Culinary art of Tajik people was formed for many centuries under the influence of richhistory.

Cuisine and Traditions

Tajik “Oshi Palav" and itssocial-cultural contextenlisted by the UNESCOIntangible Heritage

Unique Cuisine and Traditions International Navruz holidayincluded in the UNESCOIntangible Heritage List

160000183000

244000208000 213000

414000

2010 2011 2012 2013 2014 2015

Tourists arrival

Tourism in numbers…

109

146

Geography of tourists

2016 2017

Source: World Bank Data

Tajikistan in top 3 rapidly growing destinations in 2015 (UN World Travel Organization)

We Invite You

to Travel and

Invest in

Tajikistan!

According to UNESCO World Heritage Site

TAJIKISTAN IS A MUST SEE COUNTRY