Photo: avesta.tj
In January–June of this year, Tajikistan’s economy received $3.3 billion in investments, up 59.4 percent from the same period last year. The top three countries investing in the Central Asian republic shifted: the UAE and the Virgin Islands surpassed China, while Russia remains the leader. The figures were reported by Asia-Plus, citing the State Committee on Investments and State Property Management.
During the reporting period, Russian investments in Tajikistan’s economy totaled $1.3 billion, compared with $716 million in the first half of 2024.
China also increased its investments—from $259 million to $309 million. Yet this was not enough for Beijing to remain in the top three, as two “competitors” showed stronger growth in the first six months of this year.
The UAE rose to second place with $448 million, compared with just over $116 million a year earlier. The Virgin Islands also outpaced China, showing the largest leap: from $66 million to $336 million.
However, if only direct investments are considered—those implying longer-term commitments and control over assets—the picture changes. Here, China leads with about $100 million (up from $86 million a year earlier). The rest of the top three also shifted: Russia dropped from $14 million to $10 million and slipped to third place, behind the United Kingdom, which rose from $5 million to $16 million.
Although Russia was also third last year, the second spot then firmly belonged to the United States with $51 million. Now, after sharply cutting its investments to $800,000, the U.S. has fallen to the bottom of the list.
Overall, direct investment in Tajikistan in the reporting period amounted to $144.7 million, 17 percent less than in January–June 2024.
Sulton Rahimzoda, chairman of the State Committee on Investments and State Property Management, explained that several factors complicate attracting direct investments, including slow internet speeds and a lack of sufficient air routes. He added that Tajikistan’s landlocked geography and difficult logistics raise production costs, while a population of 10–10.5 million does not constitute a large market.
Nevertheless, Rahimzoda noted that the decline in direct investment does not seriously affect the country’s economy, either in terms of GDP growth or exchange rate stability.
“Natural resources and a young population are the factors that in the near future may make Tajikistan an attractive country for investment,” he predicted.
The media outlet added that despite government efforts, foreign investors remain hesitant due to high taxes, bureaucracy, regulatory interference, corruption, and unfair competition.
