China leads in direct investment in Tajikistan’s economy, outrunning Russia.
“Over the first three months of this year, Chinese direct investments into Tajikistan have come to 76.6 million U.S. dollars (USD) — 58.2 percent of the overall total,” Fayziddin Qahhorzoda, the head of the State Committee on Investment and State-owned Property Management (GosKomInvest), told reporters in Dushanbe on July 31, noting that the findings for the second quarter have not yet been summed up.
According to him, Russia was the second largest foreign investor with 20.6 million USD (15.7 percent) over the first quarter of this year.
Russia, however, remains a core element of Tajikistan’s economic survival as long as hundreds of thousands of Tajik laborers earn their incomes there.
The top five investors of Tajikistan also include the Netherlands – 10 million USD (7.6 percent), Saudi Arabia – 6.9 million USD (5.2 percent), and the Philippines – 3.5 million USD (2.7 percent).
They are followed by partner countries such as the United Kingdom, the United States, Belgium, the United Arab Emirates (UAE), Switzerland and France.
Over the report period, foreign investments have gone mainly into the mining industry – 42.6 million USD, transportation and communications – 20.7 million USD, education – 3.5 million USD, and agriculture – 2.2 million USD, GosKomInvest tom manager said.
Over the same three-month period, foreign investments have also gone into the processing industry, financial sector, trade and construction, Qahhorzoda noted.
Over the first three months of this year, 131.5 million U.S. dollars have reportedly come into Tajikistan in foreign investments.
In January-March this year, the government of Tajikistan has reportedly approved two investment projects: 1) investment project on the Pakrut gold deposit (180 million USD); and 2) investment project with KM Muosir Limited Liability Company on construction of the explosive production enterprise within the Danghara Free Economic Zone (20 million USD).
A foreign direct investment (FDI) is an investment in the form of a controlling ownership in a business in one country by an entity based in another country. It is thus distinguished from foreign portfolio investment by a notion of direct control. The origin of the investment does not impact the definition as an FDI: 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.
