Felix Kulov believes that the new project will help strengthen investor confidence in Kyrgyzstan.
The former Prime Minister of Kyrgyzstan, Felix Kulov, has proposed the establishment of a branch of the special financial and investment territory (SFIT) "Tamchy" in Bishkek. He announced this on his social media.
On February 20 of this year, a capsule was laid for the construction of the SFIT "Tamchy" in the Issyk-Kul region, which experts believe will be one of the key steps for the economic development of the country.
The new zone is expected to become:
- an international financial center;
- a place for attracting global capital;
- a center for fintech and IT initiatives;
- a modern logistics hub for international trade and freight transportation.
It is planned that by 2035, modern office buildings, residential complexes, and tourist facilities with a total area of over 470,000 square meters will be built.
The financial territory will be divided into three zones: business, logistics (near the airport), and recreational. Infrastructure will be created on an area of over 100 hectares, with a projected tourist flow of up to 90,000 people per year by 2035.
Key aspects of the project include:
- tax incentives: exemption from taxes for up to 49 years for residents;
- an international dispute resolution center operating under English law;
- freedom of capital movement with a flexible currency regime and 100% foreign participation;
- developed infrastructure: offices, housing, and facilities for tourists;
- integration into international financial flows.
This is indeed a promising project; however, its full implementation will take about 10 years. Therefore, Kulov believes that there is no need to delay the launch of key investment mechanisms and proposes to open a branch of the SFIT "Tamchy" in Bishkek.
In Bishkek, the branch, named "Bishkek International Investment Registration Center - Branch of SFIT 'Tamchy'," could perform important financial and legal functions. In particular:
1. Foreign and domestic investors will be able to become residents of the center, receiving guarantees for capital protection with the issuance of a special investment status. Registration will be linked to a contribution to an investment fund, which will finance the operation of the center and maintain the judicial infrastructure.
2. All investment disputes will be considered based on English law with the involvement of international judges. For this, agreements need to be concluded with a number of countries, including the UK, Singapore, and the UAE.
This model operates successfully in other countries. For example, the UAE has the Dubai International Financial Centre, which uses English law and provides investor protection, making it one of the largest financial hubs in the world.
In Singapore, international arbitration and independent commercial courts are actively used, creating a protected investment jurisdiction. In Kazakhstan, the International Financial Centre "Astana" has been operating since 2015, using English law and attracting significant investments.
Felix Kulov reminded that a similar proposal to create a financial center in Bishkek was made back in 2013, but it did not receive support from the authorities at that time.
Kulov explained why the branch is important specifically in Bishkek and not in other regions:
1. The branch will allow for the immediate launch of investment mechanisms without waiting for the completion of the construction of SFIT "Tamchy."
2. Bishkek, as the political and financial center of the country, will be more attractive to international banks and investors.
3. This will strengthen the confidence of local investors.
4. The establishment of the branch will prepare the legal framework before the full completion of the construction of "Tamchy."
Kulov also noted that some local entrepreneurs have previously moved their businesses abroad due to dissatisfaction with the actions of the authorities. However, the situation is changing, and 500 complaints about illegal property seizures have been submitted to law enforcement agencies, which gives hope for improvement.
The creation of an international investment center with an independent judicial system will help return domestic capital and attract foreign business. Kulov is confident that the branch can be established within a year.
He proposes to adopt a special law on the branch, which will define the legal regime, the jurisdiction of English law, the status of international arbitration, and provide an administrative building.
Funding will come from registration fees, arbitration fees, and services of the center.
The establishment of the SFIT "Tamchy" branch in Bishkek will help accelerate the launch of international investment mechanisms and enhance Kyrgyzstan's reputation on the international stage, turning the country into a financial center of Central Asia.
With political will, the project can become an important tool for attracting investments into the country's economy in the coming years.
Kulov is also ready to present a more detailed concept, including the legal model and financial structure, if this interests the relevant state authorities.
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