Two of Tajikistan’s five free economic zones (FEZs) account for nearly all industrial output, highlighting stark disparities in development across the country’s special economic zones.
According to the Agency for Statistics under the President of Tajikistan, enterprises operating in the country’s five FEZs produced 450.5 million somonis ($48.3 million) worth of industrial goods from January to August 2025, with over 95% of that output coming from the Sughd and Danghara free economic zones. Production in Sughd increased by 42.5% compared with the same period in 2024, while activity in other zones remained minimal.
FEZ Sughd
Located in Khujand, the capital of Sughd province, the 320-hectare Sughd zone hosts 44 registered companies, including 38 domestic firms and six joint ventures with Poland and Turkey. Between January and August 2025, 19 industrial enterprises produced goods valued at 368.4 million somonis, a 42.5% increase from 2024. Leading contributors include TT Tajprof LLC (241.2 million somonis), Afrang Plastic LLC (52.9 million somonis), and Asiapolitex LLC (13.7 million somonis).
The zone also provided paid services worth 2.4 million somonis and completed construction contracts valued at nearly 280,000 somonis. Established in May 2008 and launched in August 2009, the zone’s mandate is valid for 50 years.
FEZ Danghara
FEZ Danghara, covering 541.3 hectares in Khatlon province, operates 12 industrial enterprises with a total output of 67.4 million somonis. The top performers include Tajikistan Petroleum LLC (26.5 million somonis), Aufen LLC (14 million somonis), and Detyen Beton LLC (9.2 million somonis). While no construction projects were carried out, services worth s were provided. The zone was established by government decree in February 2009, with regulations approved in 2010.
FEZ Panj
FEZ Panj (401.6 hectares, Jayhun district in Khatlon province) registered six enterprises, but only On Daryo JSC produced goods (14.3 million somonis). Construction contracts totaling 1.44 million somonis were also executed. The zone was created by a government decree on August 30, 2019.
FEZ Kulob
In FEZ Kulob (309 hectares), two companies are registered, but only Tajik Almos LLC was active, producing 381,300 somonis worth of goods. However, construction contracts totaled 10.9 million somonis. This zone was established in August 2019.
FEZ Ishkashim
FEZ Ishkashim (200 hectares, GBAO) recorded no industrial production during the reporting period, limiting activity to construction works valued at 1.2 million somonis. The zone was established in February 2009.
Conclusion
Nearly two decades after the creation of the first free economic zones, only Sughd and Danghara have proven effective as platforms for industrial growth and investment. Meanwhile, Panj, Kulob, and Ishkashim remain in early infrastructure development or exist mostly on paper. Experts warn that without comprehensive business support and improved infrastructure, the potential of these zones may remain largely untapped.
The free economic zones provide preferential terms for economic, financial, trade, information, and other activities for investors. The FEZs offer incentives to investors, including preferences on taxation and customs procedures.
In the early 2000s, foreign direct investment has remained low because of political and economic instability, the poor domestic financial system, and Tajikistan’s geographic isolation. To attract foreign investment and technology, Tajikistan has offered to establish free economic zones in which firms receive advantages on taxes, fees, and customs. In 2004, the parliament passed a law on free economic zones. The zones offer customs and tax incentives to qualified investors.
By 2024 a total of 88 corporate residents have been registered with five FEZs operating in Tajikistan; only 33 of them (37.5 percent) were operational in 2023.
