The former prime minister is confident that this project will help increase trust in Kyrgyzstan from investors.
Felix Kulov, the former prime minister, proposed the initiative to create a branch of the special financial and investment territory (SFIT) "Tamchy" in Bishkek, which he announced on social media.
On February 20 of this year, a capsule was laid in the Issyk-Kul region to begin construction of this territory, which is considered a key step towards the economic progress of the Kyrgyz Republic.
The zone will focus on the following goals:
- creation of an international financial center;
- attracting global investments;
- developing fintech and IT initiatives;
- forming a modern logistics hub for international trade.
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 territory will be divided into three zones: business, logistics (near the airport), and recreational. It is expected that infrastructure capable of accommodating up to 90,000 tourists annually by 2035 will be created on an area of more than 100 hectares. Among the key advantages of the project:
- Tax benefits: residents are exempt from all taxes for up to 49 years.
- An international dispute resolution center operating under English law.
- Free movement of capital with a flexible currency regime and the possibility of 100% foreign participation.
- Developed infrastructure with offices, housing, and tourist facilities.
- Integration into international financial flows.
This is indeed a promising and strategically important initiative.
However, the full implementation of the SFIT "Tamchy" infrastructure will require significant time — approximately 10 years. In this regard, Kulov emphasizes the need for the rapid implementation of key investment mechanisms, proposing to open a branch of the SFIT "Tamchy" in Bishkek.
He suggested creating a branch in the capital named "Bishkek International Investment Registration Center - branch of SFIT 'Tamchy'," which will perform important financial and legal functions provided for the main territory.
1. Investors, both foreign and local, will be able to register as residents of the investment center and receive guarantees for the protection of their capital by obtaining a special investment status. Registration will be accompanied by a contribution to the investment fund, which will be directed to finance the center, maintain the judicial infrastructure, and attract international specialists.
2. All economic and investment disputes will be considered according to English law with the participation of international judges and arbitrators. For this purpose, it is planned to conclude intergovernmental agreements with a number of countries, including the UK, Singapore, and the UAE.
This approach has already proven effective in several countries. For example, the Dubai International Financial Centre in the UAE operates under the English legal system and employs international judges, ensuring complete protection for investors and making the center one of the largest financial hubs in the world.
In Singapore, international arbitration and independent commercial courts are actively used, offering a maximally protected investment jurisdiction. In neighboring Kazakhstan, the Astana International Financial Centre has been operating since December 2015, where English law is also applied and an international court with judges from the UK functions, which has attracted tens of billions of dollars in investments.
Felix Kulov reminded that back in 2013, during his work in the Jogorku Kenesh of the fifth convocation, he had already proposed creating a similar financial center in Bishkek. However, at that time, this initiative did not receive support from the country's leadership.
He also explained why the branch should be opened specifically in Bishkek, rather than in other regions.
"Creating a branch in the capital will allow:
1. To launch investment mechanisms now, without waiting for the completion of the construction of the SFIT 'Tamchy' in Issyk-Kul.
2. To use Bishkek as the political, financial, and administrative center of the country.
3. To attract international banks, investment funds, and fintech companies.
4. To strengthen the trust of local investors.
5. To prepare and work out all necessary legal and other issues before the completion of the construction of the SFIT 'Tamchy'.
It is also important to consider the aspect of trust: after a number of well-known excesses within the framework of the "Kusturization" policy, some domestic entrepreneurs decided to move their businesses abroad.
The situation is beginning to change. In particular, media reports indicate that more than 500 complaints related to illegal property seizures have been received by law enforcement agencies, and there is hope that these violations will be addressed. The creation of an international investment center with an independent judicial system based on English law could serve as a significant signal for the return of domestic capital and the attraction of foreign business.
The practical implementation of this initiative can be carried out in a short time, as the branch can be established in a maximum of one year," Kulov believes.
To this end, he proposes to adopt a special law on the branch of the SFIT in Bishkek, define the legal regime, jurisdiction of English law, status of international arbitration, and provide the center with an administrative building and an autonomous budget.
"Funding should be carried out from the registration fees of investors, arbitration fees, and service fees of the center.
The opening of the SFIT 'Tamchy' branch in Bishkek will accelerate the launch of international investment mechanisms, strengthen investor trust, and enhance the international image of Kyrgyzstan, turning the country into a financial center of Central Asia.
With political will, this project could become one of the main tools for attracting investments to the economy of the Kyrgyz Republic in the coming years.
A more detailed concept, including the legal model, structure of the international court, mechanism for registering investors, and financial model for the functioning of the center, can be presented additionally if there is interest from government agencies," Kulov added.
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