Tajik Investment Minister Sultan Rahimzadeh revealed ongoing efforts with Saudi Arabia to find mechanisms for implementing investment projects in the energy, industry and mining sectors in Tajikistan. He pointed to the signing of 14 agreements and memorandums of cooperation in the fields of economy, investment, science, education, air transport, youth, sports, security and combating crime.
Speaking to Asharq Al-Awsat from Riyadh, Rahimzadeh said: “There are currently 12 draft new agreements and MoUs for cooperation between the two countries that are ready to be signed. Moreover, 15 draft bilateral agreements are also being studied and are expected to be signed during the upcoming official visit of the Tajik President to the Kingdom.”
The minister noted that a Saudi-Tajik agreement on the encouragement and mutual protection of investments was an important legal basis for attracting Saudi investors to Tajikistan and protecting their rights and interests.
He stressed that his country was ready to engage in separate investment protection agreements with private sector companies, with the aim to invest in priority sectors.
He continued: “Saudi Arabia contributes to the implementation of infrastructure development projects in Tajikistan, through the Islamic Development Bank, the Saudi Fund for Development, and other international financial institutions, as the volume of Saudi Development Fund financing for development and infrastructure projects in the country reached about USD 270 million, based on soft loans.”
Close ties
Rahimzadeh emphasized the strong religious, cultural and historical ties that connect Saudi Arabia and Tajikistan and that go back centuries.
“Thanks to the political will of the leadership of the two countries, relations were strengthened and reached the highest level. We are currently working to raise the level of economic, trade and investment cooperation in implementation of the directives of the two leaderships,” he stated.
The minister stressed the importance of the joint governmental committee which he co-chairs with Saudi Minister of Investment Eng. Khaled Al-Falih.
Rahimzadeh added that the Tajik-Saudi Investment Forum, which was held for the first time in the city of Dushanbe in December 2022 on the sidelines of joint committee meetings, witnessed the signing of agreements to boost public-private sector partnerships in the field of bilateral investment.
“We are excited to align the activities of the Joint Committee for the Strategic Economic and Trade Partnership with the strategic goals of the national development of our two countries for the year 2030. We look forward to activating the works of the Joint Business Council, and holding periodic economic and investment forums for agricultural and industrial products,” he told Asharq Al-Awsat.
He pointed out that the volume of trade exchange was not proportionate to the extent of the capabilities and opportunities existing on both sides, which calls for raising the level of trade and removing obstacles and logistical problems.
The minister underlined his government’s efforts to encourage the Saudi public and private sectors to invest in Tajikistan’s projects in the sectors of renewable energy, mining, industry and agriculture, to ensure sustainable economic development.
“Developing cooperation in the field of tourism is beneficial to both sides,” he said, adding that the government exempted Saudis from entry visas, starting in early 2022, while the Tajik national carrier, Somon Air, launched in March 2023 direct flights between Dushanbe and Jeddah to bolster bilateral economic, commercial and tourism cooperation.
Gulf-Asian investment
Rahimzadeh said Riyadh hosted on May 29 the Investment Forum for the Gulf Cooperation Council (GCC) and Central Asian countries, within the framework of the Joint Action Plan for Strategic Dialogue and Cooperation between the two sides for the period 2023-2027.
“The outcomes of the forum will serve as a roadmap to activate economic, trade and investment cooperation between the two sides,” he remarked.
Regarding joint work between Tajikistan and the Gulf and Central Asian countries, between 2023 and 2027, Rahimzadeh said that strengthening multifaceted relations with GCC member states was one of the important directions of his country’s foreign policy.
He added: “We are ready to boost mutually beneficial cooperation in various fields of economy, trade, investment, culture and areas of common interest, within the framework of the joint action plan for the Gulf States and Central Asia for the years 2023-2027.”
Investment opportunities
Rahimzadeh stressed that his country has great potential in the field of hydroelectric energy, pointing to the building a number of stations with different capacities and developing the “green energy” sector in a comprehensive manner. He also referred to the establishment of joint projects to manufacture environmentally friendly agricultural products for export to Gulf markets.
He said his country has developed and modernized laws on investments, agreements, free economic zones, and public-private partnerships, taking into account the best practices in the field of law enforcement.
He revealed that in the countries of Central Asia, only Tajikistan had an investment agreement law, according to which the investor has the right to obtain additional incentives and privileges.
Rahimzadeh said: “We have introduced a complete tax exemption system, with the exception of social tax, income tax, and customs duties. Our free economic zones constitute a business platform ready to implement various projects and we are gradually getting closer to supporting the comprehensive business infrastructure.”
He added: “The government has also identified private sector development, entrepreneurship and investment in the national development strategy for the period up to 2030, as the main means of achieving national goals, and is constantly taking the necessary measures to create favorable conditions for business and investment activities.”
‘Green economy’ by 2037
Rahimzadeh stressed that his country will become a “green economy” by 2037, noted that among the strategic goals is the accelerated industrialization of the country, which will contribute to promoting sustainable development and creating job opportunities.
The minister also highlighted his country’s competitive advantages, such as transportation capabilities and the availability of a trained and relatively inexpensive workforce, with broad potential for tourism development.
He stressed that the government of Tajikistan attaches exceptional importance to continuing the process of institutional reforms to create a more favorable investment climate and improve the business environment.
