DUSHANBE, September 25, 2014, Asia-Plus — Foreign investment in Tajikistan in January-June this year is estimated at nearly 520 million U.S. dollars, which is 178.2 percent of the January-June 2013 level, or 227.8 million U.S. dollars more, according to the Agency for Statistics under the President of Tajikistan.
This amount includes a foreign direct investment (FDI) that is estimated at some 170 million U.S. dollars over the report period, which was 86.4 percent (78.4 million U.S. dollars) more than in the same period last year.
Over the same six-month period, 285 enterprises and organizations with foreign capital have operated in the country.
In January-June 2014, China was the largest investor in Tajikistan’s economy – 44.4 percent (75.1 million USD). It is followed by Russia – 13.8 percent (23.3 million USD), the United Kingdom — 6.4 percent (10.8 million USD), the United States – 5.3 percent (8.9 million USD), Qatar – 2.8 percent (4.7 million USD), Iran – 1.4 percent (2.4 million USD), Switzerland – 1.2 percent (2 million USD), the United Arab Emirate (UAE) – 0.9 percent (1.5 million USD), India – 0.8 percent (1.4 million USD), an others.
Over the report period, foreign direct investments have flowed mainly into the following sectors: mining (38.4 percent); communications (20 percent); exploration work (16.9 percent); construction and repair work (5.4 percent); and so forth.
A foreign direct investment (FDI) is a controlling ownership in a business enterprise in one country by an entity based in another country. Foreign direct investment is distinguished from Portfolio Foreign Investment, a passive investment in the securities of another country such as public stocks and bonds, by the element of “control.” The origin of the investment does not impact the definition as an FDI, i.e. 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.
Broadly, foreign direct investment includes mergers and acquisitions, building new facilities, reinvesting profits earned from overseas operations and intra company loans.
