Tajikistan seeks UAE investments in hydropower, mining, tourism

Al Etihad

12-04-2025

12 Apr 2025 14:39
SARA ALZAABI (ABU DHABI)
With much of its investment potential still untapped, Tajikistan offers the UAE several opportunities across sectors, from renewable energy and mining to tourism and agriculture, a top official from the Central Asian country told Aletihad . 'Tajikistan is a developing country, and as an emerging economy, we need significant investment for our socio-economic development,' said Sulton Rahimzoda, Chairman of the State Committee on Investments and State Property Management of the Republic of Tajikistan. The country participated in the recently concluded AIM Congress, aiming to establish new networks and partnerships while presenting investment opportunities. With its huge hydropower potential Tajikistan rankes 8th in the world. Ninety-eight percent of its electricity comes from this renewable source — yet 95 per cent of its potential remains untapped.When it comes to utilising clean energy, it is sixth globally, Rahimzoda said. With more than 300 sunny days in a year, the country plans to build 1,500MW solar and wind developments in nearest 2-3 years.Tajikistan's strong green credentials are a distinguishing competitive advantage for investors, the senior official said.Since renewable hydropower generation accounts for 98 percent of Tajikistan's electricity, companies operating there can claim their products qualify under that green label, thereby attaining global competitiveness.In mining, Tajikistan ranks third after China and Russia in producing antimony and possesses the largest silver deposit in the world, Koni Mansuri Kalon (80,000 tonnes), the official said. Out of the 800 identified deposits, only 100 are in use. The country is already producing green-certified aluminium and copper and has 10 of the 12 most needed critical raw minerals to facilitate the green transition.Coupled with untapped solar, wind, and hydropower potential, as well as opportunities in organic agriculture, tourism, and digitalisation — all supported by clean energy — Tajikistan could be considered one of the most attractive investment destinations for sustainability. Tourism infrastructure is underdeveloped, thus offering significant investment opportunities. Tajikistan is exerting efforts to go digital, too. It launched an innovation agency in 2024 and plans to roll out e-services and smart cities. Other promising sectors include healthcare, education, finance, and transport.
Incentives for Investors Those investing in the country are entitled to a range of benefits, Rahimzoda said.'The government currently offers 240 incentives, including 110 tax and customs exemptions. We also provide investment agreements ratified by the parliament, which offer higher guarantees than even national legislation,' he said. "There are five free economic zones in Tajikistan. Investors operating within these zones are exempted from all taxes except social tax. These are strong incentives, tailored depending on the investment type and volume,' he added.
Notable UAE Projects The UAE is Tajikistan's seventh-largest investment partner, 'with about $700 million in total investment — although only $75 million is FDI', Rahimzoda said.Among the notable projects is an $11-million agreement with Sipar Group, he said. 'We are also working with Abu Dhabi Ports to bring them into our market.'Currently, 16 UAE companies operated in Tajikistan and more are welcome to join the country's economic journey, Rahimzoda said.
'Banks are key to building trust and making it easier for UAE investors to do business. If a UAE bank opens a branch in Tajikistan, investors will feel more confident and supported. We are very open to UAE banks establishing a presence here.'
Environment ChampionTajikistan has long championed water and climate issues on the global stage, and this year, it is hosting the International Conference on Glaciers' Preservation.To be held on May 29–31 in collaboration with the UN, the high-profile event aims to raise awareness about rapidly melting glaciers and push for concrete action to mitigate climate change. With the UAE as host country of COP-28 and Tajikistan as co-leader of the water agenda at COP28, Tajikistan hopes that arrangements will be made for an Emirati delegation to be part of the conference in Dushanbe.
'We hope the UAE becomes one of Tajikistan's key partners in trade, investment, and tackling global issues like water and climate. We are ready to cooperate and invite our UAE colleagues to join us in shaping a better future,' Rahimzoda said.