DUSHANBE, July 25, 2016, Asia-Plus /Payrav Chorshanbiyev/ – Tajikistan attracted 6.663 billion U.S> dollars in foreign investments in 2007-2015, according to the State Committee on Investment and State-owned Property Management (GosKomInvest).
A totaled reportedly included 2.877 billion USD attracted in foreign direct investment (FDI), 3.785 billion USD of loans attracted by enterprises and organizations, and 1.8 billion USD of portfolio investment (portfolio investments include transactions in equity securities, such as common stock, and debt securities, such as banknotes, bonds, and debentures).
Over the first quarter of this year, Tajikistan reportedly attracted 221 million USD of foreign investments, including 120 million USD in FDI.
Meanwhile, Tajikistan plans to attract one billion U.S. dollars in foreign direct investment in the minerals sector in the coming three years.
A foreign direct investment is a controlling ownership in a business enterprise in one country by an entity based in another country. Broadly, foreign direct investment includes mergers and acquisitions, building new facilities, reinvesting profits earned from overseas operations and intra company loans. In a narrow sense, foreign direct investment refers just to building new facility, a lasting management interest (10 percent or more of voting stock) in an enterprise operating in an economy other than that of the investor. FDI is the sum of equity capital, other long-term capital, and short-term capital as shown the balance of payments. FDI usually involves participation in management, joint-venture, transfer of technology and expertise.
The investment may be made either “inorganically” by buying a company in the target country or “organically” by expanding operations of an existing business in that country.
