Investment partnership is one of the key directions of the activity of the Bank of Foreign Economic Affairs
According to the order of President Gurbanguly Berdimuhamedov, Turkmenistan delegation made working visit to United Arab Emirates where the meetings with the Government of UAE as well as with the leaders of number of big energy companies, Abu Dhabi Development Fund and Dubai Centre of Development of Islamic Economy were held.
Perspectives of investment partnership were discussed among the main subjects at the negotiations on topical directions of the cooperation. Representatives of the Government and business circles of UAE expressed keen interest in the projects planned in our country and aimed at innovative development of the economy, further integration of Turkmenistan to international network of production, technology and trade relations.
Investment policy of President Gurbanguly Berdimuhamedov defined by topical objectives of the economy, industrial, scientific and technical progress of the country, is aimed at the improvement of the level of prosperity of people, quality of life and making of the conditions that would support to reveal of creative and spiritual potential of the society and every citizen. Formulating strategic priorities of the investment policy of the state, the President follows existing specific advantages of Turkmenistan in the world market expressed in the presence of colossal natural resources. Their industrial development and production of ready-made high technology goods became the main economic vector of the country.
Investments to innovative production allow giving the efficiency of the programmes of the development of vital branches and spheres of national economy and supporting domestic manufacturers, including the private ones, substituting successfully the import and expanding export capability by demanded goods that are the main sources of the country income.
These are the requirements that dictated structural change of production sector, its technical rearmament and integration to the world economic relations taking into account geopolitical location of our state.
Success of these reforms that became the basis of macroeconomic stability of Turkmenistan on the background of global financial crisis, steadiness of internal and foreign policy, well developed infrastructure and production resources stipulated the attractiveness of the country for direct foreign investments opening the access to modern technologies, which come together with innovative provision of the facilities and modernization of the industry.
Realization of large-scale investment programme for fundamental reformation of national economy and provision of economic wealth of Turkmenistan is one of the key directions in the activity of the State Bank for Foreign Economic Affairs that take care of the interests of our state in international financial markets and playing active role in realization of investment policy of President Gurbanguly Berdimuhamedov.
The bank gained unique experience of cooperation with various financial organizations in the sphere of attraction of foreign investments to national economy. 2017 was very successful in this aspect what is proven by another prestigious award – the Banker magazine of competent Financial Times publication (UK) named the State Bank for Foreign Economic Affairs as the best bank of Turkmenistan again for the 13th time.
In 2017, according to the results of the attraction of foreign investments to the economy of the country, the Bank for Foreign Economic Affairs exceeded 1.5 times the volumes of credits of 2016.
The list of the agreements signed for this period includes the agreements related to the financing of the supply of agricultural equipment, spares and consumables for the Ministry of Agriculture and Water Management of Turkmenistan with «Deere Credit Inc.» (USA), «Kommerzbank AG» (Germany), Memorandum of Understanding between the Government of Turkmenistan and «Global Projects Development Holding Co.» ( the Kingdom of Saudi Arabia).
The project realized by the Ministry of Communication of Turkmenistan is among the largest one, which is invested by foreign finances. It is aimed at the development of communication system, electronic and internet services in our country. Credit agreement with the Islamic Development Bank that gives 273 million dollars for 20 years for this project was signed in November of 2017.
At the same time, financial agreement with Saudi Development Fund on delivery of the pipes for the construction of TAPI gas line was made. The fact that the initiative in this case was from Saudi side is considered as the confidence of large foreign financial institute in the perspectivity of the projects and capabilities of our country.
On behalf of the Government, on December 20, 2017 the State Bank for Foreign Economic Affairs signed the Memorandum of Understanding with Abu Dhabi Development Fund on the financing of big investment projects of construction of different facilities in Turkmenistan.
For the last few years, the State Bank for Foreign Economic Affairs concluded many large investment agreements on the projects initiated by President Gurbanguly Berdimuhamedov. Financing of the construction of polypropylene and polyethylene plant in Kiyanly, carbamide plant in Garabogaz and industrial complex for gas processing and gasoline production in Ovadandepe are among them. Considerable means for establishment of these innovative facilities were allocated by Japanese Bank of International Cooperation and Korean Export and Import Bank what also indicates unconditional trust of these structures to Turkmenistan as to reliable and responsible partner.
The projects with the participation of Japanese bank, which were realized earlier, like construction of carbamide plant in Mary and sulphuric acid production facility supported the improvement of the reputation of our country. At present moment, another project in energy industry is under development together with Japanese investors. This is the construction of gas turbine power plant in Charjev etrap.
Stable economic and political situation in the country, legal guarantees and Government support are among the main factors of the growing attractiveness of Turkmenistan foreign investors. Such fundamental principles as support of country’s entering to the world economy system via the improvement of its export potential and level of industrialization, development of technological processes, establishment of social oriented market economy and improvement of life level of the population were taken into consideration during the development of integrated measures of stimulation of the investments to the economy of Turkmenistan in near future.
Besides, the State Bank for Foreign Economic Affairs of Turkmenistan establishes the Investment Fund of open type with the participation of foreign organizations for attraction of the investments to new projects in our country. Based on the results of international tender on the development of technical and economic specification and business plan, the contract with «Baker Tilly Rus Cоnsulting» (Russian Federation) was signed and related work started.
President Gurbanguly Berdimuhamedov highlights that together with the increment of the investment volumes, it is necessary to provide the improvement of the efficiency of their development, enhancing of the control of targeted use of the finances, improvement of regulatory base for attraction of foreign funds and reliable protection of the investments.