The State Bank for Foreign Economic Affairs of Turkmenistan

Partnership for development!

While on working visit to the United States of America, President Gurbanguly Berdimuhamedov took part in Turkmenistan – USA business forum. 

The meeting of the Head of the State with representatives of business circles of two countries is very important for further development of trade and economic partnership, opening of new spheres of joint efforts. It is also remarkable that it is held in the year of the 10th anniversary of the establishment of Turkmenistan – USA Business Council, which was founded by the initiative of Turkmen leader, which was proposed in New York’s Rockefeller Centre to the top management of hundreds of American companies and concerns. 

The President outlined key directions of large-scale reforms in Turkmenistan, especially on reformation of the economy, which provides stable high rates of development to the country. 

The speech of Turkmen leader was accompanied by the demonstration of video giving visual image of the dynamics of growth of the main branches of national economy of our country, its economic capabilities and big important regional projects that have been and continue to be implemented. 

Rich natural resources, favourable geographic location as well as steadfast ‘open door’ foreign policy stipulate the presence of serious perspectives for beneficial investments in Turkmenistan, the Head of the State said. 

One of the main goals of this policy to add new stimulus and impulse to intensification of national economy with long-term efficiency. In this aspect, the attraction of foreign investments to the country is top priority. 

Turkmenistan is very attractive in this aspect today. The study of the market made by independent experts showed that progressive reforms created the ground for rapid and qualitative social and economic growth of the country. 

Noting that Turkmenistan has the most optimal and harmonic conditions for expansion of international economic partnership in different spheres, President Gurbanguly Berdimuhamedov highlighted oil and gas sector, energy, transport and communication, agriculture, textile industry and sphere of high technologies among them. 

The state provides significant support to the investors in the form of tax, custom, visa, insurance and other benefits. The share of investments in production of the Gross Domestic Product grows, number of investment projects and joint ventures increases and volumes of foreign trades expands in the result, the Leader of the Nation continued. 

Despite negative tendencies in the world market, the dynamics of Turkmen economy shows positive direction. For example, macroeconomic indicators for nine months of the year confirmed stable development of all branches. In general, the growth rate of the GDP is expected on 6.2 percent level this year. Positive dynamics is observed in foreign trade as well. High growth rates of the investment development from all sources of financing were noted. 

Legal framework of Turkmenistan, which was brought in accordance with the standards of international law, plays big role in attraction of foreign investors, the Head of the State highlighted. Progressive laws in tax, investment, entrepreneurship spheres have been adopted in the country. According to these laws, foreign partners working in Turkmenistan have certain benefits and preferences, which creates favourable conditions for long-term investments and expansion of partnership. 

Actual measures have been taken for improvement of stability of financial system of Turkmenistan, first, by the unification of foreign currency exchange rate and strengthening of national currency. 

Attractiveness of Turkmen market is largely due to social and political stability, availability of powerful resource base and modern legal system, which guarantees the reliability of the investments. This is proven by published reports of the experts of International Monetary Fund, the World Bank and European Bank of Reconstruction and Development. 

These big international institutes forecast further steadfast growth of Turkmen economy, improvement of investment rating of the country. 

Speaking that diversification of the economy is the main objective of the reforms, President Gurbanguly Berdimuhamedov noted that growth of production volumes in goods manufacturing spheres is the decisive factor of the growth in this sphere. Stable growth of volumes of foreign investments, the most part of which is sent to industrial sector, is exemplary in this regard. 

In his speech, the Head of the State called United States of America as one of the most important trade and economic partners of Turkmenistan. Bilateral cooperation in this sphere develops gradually, the growth of trade turnover grows. It increased by 27 percent only for the first half of 2018. 

Investment activity develops rapidly. As for today, 156 projects with the participation of American companies to total amount of more than two and half billion US dollars. 

We see big perspectives in attraction of American investments and technologies to scientific based and innovative productions, like electronics, computer and logistic service, education sphere and improvement of qualification of personnel in Turkmenistan, the President said. 

The Head of the State invited American partners to study the opportunity of their participation in the projects of construction of modern infrastructure in Turkmenistan. 

Cooperation in the context of creation of interregional transport and transit corridors in East – West and South – North directions with entry to Asian, European and Middle East markets was highlighted as strategic direction in this sphere. 

The Head of the State also emphasized active development of maritime transportation, construction of Turkmenbashy International Seaport has been accomplished in the country. These days, this is powerful, multiprofile terminal with advanced equipment. It creates the most favourable conditions for entry to trade and material markets of near and Middle East and the states of Indian Ocean basin allowing considerably saving the distance and time of big cargo traffic. Turkmenbashy is one of the largest hub of continental significance. 

Use of logistic capabilities of this maritime hub can be attractive for American business circles, President Gurbanguly Berdimuhamedov said, having suggested American partners to take closer look at this direction of cooperation. 

The Head of the State named another big project that has strategic importance. This is construction of Turkmenistan – Afghanistan – Pakistan – India gas pipeline (TAPI), which was supported by international partners and big financial institutes. Undoubtedly, the project has huge perspectives opening new direction of energy routes. It will provide the fuel to such large and dynamically developing economies as Indian and Pakistani. In the future, it will give opportunity to entry other growing markets in Asian – Pacific region. 

The President of Turkmenistan made special mention that TAPI project is entered the phase of practical realization and American partners are able to access the opportunity of their participation in the project. 

Trade and investment activity in industry, agriculture, supply of aircrafts and equipment for national agricultural sector and water management were called as priority directions in development of relations with American business community. 

Good opportunities for American participation is seen in development of service sphere, especially in tourism sector of Turkmenistan, to which we pay special attention, the Head of the State said. 

The Head of the State also expressed the interest in cooperation in financial sphere, United States are largest financial centre of the world and we are interested in successful practice of establishment and operation of financial system of USA, banks, insurance companies, stock exchanges, the President noted. 

Economic strategy of Turkmenistan envisages staged growth of the share of private sector in the volume of the gross domestic product. 

It was mentioned that objectives of diversification of the economy of the country, its change to innovative way are quite interesting for American business community, which sees it as a good foundation for intensification of investment relations.

It was also said that it is important to switch from simple goods supplies to more complicated cooperation including service provision and training of personnel, formation of production and logistic chains for advertisement of new products. 

The fact that despite the world financial crisis Turkmenistan achieves high indicators of economic growth, which is good guarantee for activation of investment activity and development of big joint projects, was highly appreciated. 

The territory of Turkmenistan was important connecting link in development of commercial relations between the East and the West in the times of the Silk Road. Our country has the same function of transport intersection of transcontinental routes in new historical conditions. In this context, current forum will not only expand the opportunities for bilateral trade, economic and investment cooperation but also will serve as a contribution to development of international cooperation in bigger intercontinental scale. 

Therefore, trade and economic cooperation between Turkmenistan and USA enters new level in its development involving more and more companies and partners and continuing the dialog in traditional spheres and in new directions.