No other country's flag will appear there: Amangeldiev on land transfer to investors

Kyrgyzstan's government is clarifying its policy on leasing land to foreign investors, emphasizing that long-term leases do not equate to a transfer of ownership. First Deputy Chairman of the Cabinet of Ministers, Daniyar Amangeldiev, stated in an exclusive interview that the land remains the property of the republic, while investors gain usage rights tied to specific projects.

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Transferring lands to foreign investors on a long-term lease does not mean their sale or loss by Kyrgyzstan. The land remains the property of the republic, and the investor only gets the right to use the plot for the implementation of a specific project.

Amangeldiev explained that the possibility of leasing land to foreigners for up to 49 years has long been part of Kyrgyz legislation. He cited a glass factory in Tokmok, owned by a German citizen, as an example. Since foreign nationals cannot own land in Kyrgyzstan, the plot under the enterprise is leased to the owner on a long-term basis. He stressed that short lease terms deter significant investment, as projects requiring substantial capital, like a $100 million factory, need longer periods for investors to recoup their costs.

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A foreigner cannot own land in the Kyrgyz Republic, so the plot under the enterprise is leased to him for 49 years.

The official highlighted that such enterprises employ Kyrgyz citizens, contribute to the country's Gross Domestic Product (GDP), and generate tax revenue for the national budget. Amangeldiev noted that regional states compete for large investments, with Kazakhstan and Uzbekistan also offering incentives. Kyrgyzstan provides tax exemptions during construction and initial operational phases to attract investors, arguing that it's better to have a factory generating taxes than no factory at all.

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Short lease terms do not allow for attracting large investments. An entrepreneur investing around $100 million in a factory will not agree to work on a plot provided for only five years, as it is impossible to recoup the project within this period.

Addressing concerns about large-scale projects, such as the potential "Ala-Too Resort" tourist zone requiring significant land, Amangeldiev stated that effective management and international promotion are crucial. He believes specialized companies with international experience are needed, as even major domestic entrepreneurs might lack the resources or expertise for such infrastructure. The government intends to welcome investors from any country, prioritizing project implementation and economic benefits over nationality.

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If there is no factory at all, then there will be no taxes from it. Therefore, the state provides benefits so that an investor comes, builds an enterprise, creates jobs, and then starts paying taxes.