The second session of the Turkmenistan Investment Forum (TIF 2024), held in Ashgabat on September 10, focused on the pivotal role of public-private partnerships (PPPs) in driving economic growth. Nokerguly Atagulyev, Chairman of the Union of Industrialists and Entrepreneurs of Turkmenistan (UIET), outlined the country’s thriving entrepreneurial landscape and highlighted key PPP projects.
Here are the key points of his speech:
• Thanks to the constant support of the Government, the share of the private sector in GDP in Turkmenistan is increasing every year and has reached a level of more than 70 percent, excluding the fuel and energy sector.
• The Union of Industrialists and Entrepreneurs of Turkmenistan was established in 2008 on the initiative of the President of Turkmenistan and currently operates in such important areas of the Turkmen economy as the industrial sector, chemical, textile and food industries, production of building materials, agriculture, trade, transport and logistics.
• It is the largest non-governmental organization uniting about 29 thousand private entrepreneurs, small and medium-sized enterprises.
• About tax benefits: Turkmen entrepreneurs are not subject to value added tax, and the turnover tax for small and medium-sized enterprises and individuals is only 2%. Income tax for large businesses also remains below 8% of profits. Agricultural producers are exempt from all taxes in Turkmenistan.
• Land plots are provided for long-term and preferential use – agricultural plots are leased for a period of 99 years, and for the construction of industrial facilities – for 39 years.
• Turkmen entrepreneurs are successfully exporting products to approximately 50 countries worldwide.
• Currently, work is underway to create new industrial production zones on an area of 400 hectares near Ashgabat and 100 hectares in Mary province.
• The Arkadag Smart City, which includes about 340 facilities and structures with all engineering innovations, was built by Turkmen construction companies with the introduction of digital technologies and smart systems.
• In order to create an integrated transport infrastructure in the country and develop the transport potential of Turkmenistan, the members of the Union bagged such important and large investment projects as the construction of 600-km long Ashgabat-Turkmenabat high-speed highway. This expressway is operated by a private company.
• Cooperation between the state and the private sector in Turkmenistan contributes greatly to the implementation of socio-economic changes in the country. Representatives of the private sector of the economy are successfully exploring new areas of cooperation with the Government of Turkmenistan.
• Members of the UIET are actively involved in the privatization of state property. Advanced technologies are being introduced at privatized facilities, competitive products are being produced, and modern services are being provided.