The former Prime Minister believes that this step will strengthen the trust of foreign investors in the economy of Kyrgyzstan.
Felix Kulov, the former Prime Minister of Kyrgyzstan, initiated the idea of creating a branch of the special financial and investment territory (SFIT) "Tamchy" in Bishkek, sharing his proposal on social media.
On February 20 of this year, a capsule was laid at Issyk-Kul for the future construction of the SFIT "Tamchy," which promises to become an important strategic project for the economic development of the country.
The new zone is expected to become:
- an international financial center;
- a magnet for global investments;
- a hub for fintech and IT innovations;
- a modern logistics hub connecting international trade flows.
By 2035, it is planned to build modern office and residential buildings, as well as tourist complexes with a total area of over 470,000 square meters.
The zone will be divided into three functional areas: business, logistics (adjacent to the airport), and recreational. The total area will exceed 100 hectares, which will allow for the creation of infrastructure, with the projected tourist flow reaching 90,000 people annually by 2035.
The main advantages of the project include:
- tax incentives for residents for up to 49 years;
- an international dispute resolution center operating under English law;
- free movement of capital with a flexible currency regime and 100% foreign participation;
- developed infrastructure with offices and tourist facilities;
- integration into global financial flows.
However, the full implementation of the SFIT "Tamchy" will take about 10 years. In this regard, Kulov believes it is advisable not to delay the launch of key investment mechanisms and to create a branch of the SFIT in Bishkek in the coming years.
He proposed the following model for the branch in the capital:
"The 'Bishkek International Investment Registration Center - branch of SFIT 'Tamchy' will be able to perform important financial and legal functions, such as:
1. Registration of foreign and domestic investors as residents of the investment center, with a guarantee of capital protection and special investment status.
The registration will be accompanied by a contribution to the investment fund, which finances the activities of the center, the judicial infrastructure, and attracts international specialists.
2. All investment disputes will be considered under English law with the participation of international judges and arbitrators.
For this, it is necessary to conclude intergovernmental agreements with a number of countries, especially with the UK and/or Singapore, UAE.
This model is already successfully applied in several countries. For example, the Dubai International Financial Centre in the UAE, with an English legal system and international judges, has become one of the largest financial hubs in the world.
In Singapore, international arbitration and independent commercial courts are actively used, providing a protected investment jurisdiction. The International Financial Centre "Astana" in Kazakhstan has been successfully operating since December 2015, using English law and having an international court.
Kulov reminded that he had already proposed creating a similar financial center in Bishkek in 2013 when he was working in the Jogorku Kenesh, but his initiative was not supported at that time.
He also explained why the branch should be opened specifically in Bishkek:
"Creating a branch in the capital will allow:
1. To launch investment mechanisms immediately, without waiting for the completion of the construction of the SFIT 'Tamchy';
2. To use Bishkek as a political, financial, and administrative center;
3. To attract international banks and investment funds;
4. To strengthen the trust of local investors;
5. To prepare the necessary legal issues before the completion of the construction of the SFIT 'Tamchy'.
Kulov noted that after some negative moments related to the policy of "kusturization," some local entrepreneurs moved their businesses abroad. However, the situation is now improving, and the creation of an international investment center with an independent judicial system could be an important signal for the return of capital to the country.
The former Prime Minister is confident that the branch can be established within a year if special legislation defining the legal regime and status of international arbitration is adopted.
"The financing of the branch will be carried out through registration fees from investors, arbitration fees, and service fees of the center.
The opening of the SFIT 'Tamchy' branch in Bishkek will significantly accelerate the launch of international investment mechanisms and strengthen Kyrgyzstan's reputation as a regional financial center in Central Asia.
With political will, this project could become a key tool for attracting investments to the country's economy in the coming years.
The concept, including the legal model and investor registration mechanism, can be presented if there is interest from government agencies," Kulov added.
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