Kyrgyz First Deputy PM to Asharq Al-Awsat: Riyadh, Bishkek Aim to Increase Cooperation in Green Economy

Saudi Arabia and Kyrgyzstan aim to boost their comprehensive partnership amid plans to increase economic, trade, and investment cooperation in infrastructure, renewable energy, hydroelectric power, wind energy, agricultural production technology, and green economy, said First Deputy Prime Minister of Kyrgyzstan Adylbek Kasymaliev.

He told Asharq Al-Awsat in Riyadh that he was confident that Saudi-Kyrgyz relations would develop and continue, noting that his country was looking forward to a better future.

The number of Saudi tourists visiting Kyrgyzstan will likely double next year to 8,000.

Kasymaliev noted that during his recent visit to Saudi Arabia, the meeting of the joint governmental committee supported cooperation and its prospects for the future, especially investment, economic, and trade opportunities and projects that can be implemented in collaboration with partners in the Kingdom.

Work in progress

The Kyrgyz economy needs investments, said the official, noting that the main issues discussed in Riyadh focused on cooperation in several areas, including energy, energy sustainability, green economy, and solar and wind energy.

Kyrgyzstan is rich in reserves of hydroelectric resources and has only exploited ten percent of this energy, said Kasymaliev.

He explained that Kyrgyzstan is full of agricultural potential with fertile land and abundant fresh and irrigation water in mountainous areas. He also addressed investment opportunities, tourism, ways to develop the field, and cooperation in the sector.

The country has great tourism potential with available technological capabilities for investment, modern technology, and the exchange of experiences.

According to Kasymaliev, the bilateral talks included developing cooperation in education, science, health, and culture and holding cultural events in the two countries.

He said they also agreed on cooperation in infrastructure and the implementation of projects, announcing that the delegation from Kyrgyzstan decided on a collaboration with the Saudi Fund for Development amid efforts underway to implement projects in Kyrgyzstan, such as road construction and housing.

"We have previously agreed to organize a Saudi working visit to Kyrgyzstan, headed by the Undersecretary of the Saudi Ministry of Investment and large Saudi companies, between Nov. 27 and 29, to explore opportunities closely and realize the bilateral economic cooperation," said Kasymaliev.

Exploring opportunities

The official indicated that the joint government committee in Riyadh would discuss energy and other fields of common interest to enhance cooperation and explore new opportunities, noting that a team was directed to study the investment opportunities in energy, minerals, tourism, and agriculture in the country over the next two days.

Kyrgyzstan launched a 60-day tourism visa waiver for Saudis, and there was a plan to develop the system to increase its duration.

Kasymaliev explained that the system has been operating since 2012, and Saudi citizens do not need a visa to enter Kyrgyzstan and can stay for two months.

The country saw an increase in Saudi tourists, prompting authorities to grant a two-month stay, and as for Saudi businessmen, Kyrgyzstan is considering increasing the visit visa duration as an incentive to launch their business and investments in the country.

Saudi tourists

Kasymaliev expected an increase in Saudi tourists during the current year, which is likely to double to 8,000 in light of the increasing number of visitors from other Gulf and Arab countries.

During the coronavirus pandemic, the number of Saudi tourists dropped to zero, but it later increased to 4,000 in 2021, said Kasymaliev.

According to the official data, the number of arrivals from Saudi Arabia included in the classification of the World Tourism Organization (WTO) reached 5,340 tourists during the first nine months of 2022 and 3,399 in 2021.

He explained that during the last five years, Kyrgyzstan received over 30,000 Saudi tourists, with 6,771 in 2019 and 9,994 in 2018.

On the Kyrgyz-Gulf level, he stated that over 12,000 tourists from the Gulf countries entered the country during the first nine months of 2022, including 595 Bahrainis, 2,076 Kuwaitis, 5,340 Saudis, and 4,146 Emiratis.

Economic boom

The official indicated that during the past eight months, the country witnessed a growth of 7 percent, namely in industry, a strong field that generates excellent income for the country.

He also highlighted other sectors, such as agriculture and services, that boast promising solar and wind energy developments.

"We are currently focusing on energy because of our vast reserves, especially hydroelectric energy," said Kasymaliev, adding that the country is developing the sector amid economic growth.

Kyrgyzstan partnered with South Korean and Turkish companies to invest in hydroelectric power, the cheapest type of electricity.

He indicated that many foreign companies invest in hydroelectric power stations, local companies, and the local private sector invest in small-scale hydroelectric power stations.

The government is focusing on building solar power stations and solar energy, said Kasymaliev, adding that Kyrgyzstan produced 15 billion kilowatt-hours per year, which attracted foreign investment in the sector.

Kumtor mine

Kyrgyzstan now wholly owns the Kumtor gold mine, and negotiations with the Canadian company were successful.

Kasymaliev explained that Kyrgyzstan agreed to resolve the deal peacefully, and before transferring ownership of the Kumtor mine, the Canadian company used to supply the treasury with $10 billion.

Last year the company gave Bishkek $125 million, but this year it provided the treasury with $300 million within ten months, and before the ownership was transferred, it provided $70 million in previous years.

Ukrainian crisis

Asked about the impact of the Russian-Ukrainian crisis on stability, the economy, and food supply globally, in Europe and Kyrgyzstan in particular, Kasymaliev stressed that it affected all global economies, including his country's.

All products and commodities saw a price increase, negatively impacting the economy, while customs revenues declined.

British finance minister Rachel Reeves, facing criticism for travelling to China during financial market turmoil at home, said on Saturday that "pragmatic and predictable" relations with Beijing would help boost economic growth and trade.

Under pressure from a sharp rise in British interest rates, Reeves defended her budget at the start of the two-day visit to China, where she is seeking to revive high-level economic and financial talks that have been frozen for nearly six years.

"The fiscal rules that I set out in my budget in October are non-negotiable, and growth is the number one mission of this government to make our country better off," Reeves told reporters at a Brompton bicycle shop in Beijing.

"That's why I'm in China to unlock tangible benefits for British businesses exporting and trading around the world to ensure that we have greater access to the second-largest economy in the world."

The rise in British government borrowing costs, due in part to a global bond selloff, prompted comparisons with the 2022 "mini-budget" crisis that forced then-Prime Minister Liz Truss out of Downing Street.

However, this week's market moves have been less sharp and there has so far been no evidence of the strain on institutional investors that forced the Bank of England into emergency bond purchases in 2022.

On trade, asked whether Britain would follow Washington and Brussels in imposing tariffs on Chinese electric vehicles, Reeves, who will be in Shanghai on Sunday, said: "We keep issues under review but we make decisions in our national interest."

British car manufacturers, "like Jaguar Land Rover, export substantially to Chinese markets, and we want to help them to grow."

After her bicycle shop visit, Reeves met Vice President Han Zheng, telling him it was "important to have open and frank dialogue in areas where we agree, but also in areas where we have different views."

'COMMON GROUND'

Her delegation, which includes Bank of England Governor Andrew Bailey, Standard Chartered Chairman Jose Vinals, and HSBC Chairman Mark Tucker, then met Chinese counterparts led by Vice Premier He Lifeng.

He urged British financial firms to expand renminbi services and promote deeper yuan internationalization, while inviting them to participate in green finance and the pension industry in China.

Reeves said she looked forward to China issuing its first overseas sovereign green bond in London this year.

Her visit follows a dialogue opened last year between Prime Minister Keir Starmer and President Xi Jinping, the first between the two countries' leaders since 2018.

Reeves told He that Russia's invasion of Ukraine, rising geopolitical tensions and climate change meant that they faced a much more challenging environment than when their predecessors last met.

"It is important to prevent economic leaps weakening our national security and economic resilience," she said, adding both she and He wanted to "find common ground" in this regard.

He said Beijing will work with London to ensure a fair, non-discriminatory business environment for each country's firms.

The approach adopted by Starmer's Labor government, elected in July, contrasts with that of the previous Conservative administration, which took a robust path to differences with China - particularly over human rights, Hong Kong and allegations of Chinese espionage.

Starmer has long described his desire to build a relationship with China that is "rooted in the UK's national interests" by boosting trade, a task that may become more difficult if US President-elect Donald Trump follows through on his threat to impose tariffs on all imports.

China is Britain's fourth-largest trading partner, accounting for goods and services trade worth almost 113 billion pounds ($138 billion).

Kyrgyz First Deputy PM to Asharq Al-Awsat: Riyadh, Bishkek Aim to Increase Cooperation in Green Economy