Kyrgyzstan
The Alpine Jewel of Central Asia
Kyrgyzstan strikes the delicate balance between tradition and transition, representing one of Central Asia’s most compelling investment narratives. This nation of 6.7 million people is intent on preserving its cultural heritage while embracing modernisation. Felt carpets shyrdak and ala-kiyiz are still made using 2,500-year-old techniques, eagle hunting is still practiced by semi-nomadic Kyrgyz communities, and Kok Boru, or goat polo, remains the national sport. Yet this is also an aspiring country where new roads are being built, crumbling Soviet-era infrastructure is being replaced, and digital transformation is accelerating.
“An aspiring country where new roads are being built, crumbling Soviet-era infrastructure is being replaced, and digital transformation is accelerating.”
The tourism sector exemplifies Kyrgyzstan’s emerging potential. Over 8.6 million visitors entered the country in 2024, generating approximately $1.2 billion in revenue and representing a 15% increase from pre-COVID levels. The sector now contributes 8.5% to GDP, with projections suggesting it could reach 12% by 2027. International tourist arrivals from Europe increased by 34% in 2024, while Chinese visitors grew by 28%, indicating a growing interest in the country’s natural beauty and cultural heritage. These trends also point to Kyrgyzstan’s emergence as the leading destination for adventure tourism in Central Asia, and, more broadly, reflect the country’s strategic positioning between major markets.
“The tourism sector exemplifies Kyrgyzstan’s emerging potential. Over 8.6 million visitors entered the country in 2024, generating approximately $1.2 billion in revenue.”
Infrastructure development is reshaping the investment landscape. The China-Kyrgyzstan-Uzbekistan railway project, with an estimated cost of $8 billion, promises to transform regional connectivity when completed by 2030. The North-South Highway, funded through the Belt and Road Initiative, will reduce transit times between Bishkek and Osh by 40%. These projects position Kyrgyzstan as a critical logistics hub connecting China, Central Asia, and Europe, with freight volumes expected to increase by 60% over the next decade. Kyrgyzstan’s role in regional supply chains is set for growth.
“Kyrgyzstan, a critical logistics hub connecting China, Central Asia, and Europe, with freight volumes expected to increase by 60% over the next decade.”
The country’s renewable energy potential is extraordinary. With theoretical hydropower capacity of 142.5 TWh annually and only 3% currently utilised, Kyrgyzstan offers massive opportunities for clean energy investment. Solar potential reaches 4.5-5.2 kWh/m² daily, while wind resources in the Tien Shan corridors could generate 1,500 MW. The government’s target of 20% renewable energy by 2030 has attracted $2.3 billion in committed investments from European and Asian developers. Tapping into this potential could not only meet domestic energy needs but also enable electricity exports to neighbouring countries amid growing regional demand.
The agriculture sector, contributing 14% to GDP, offers significant value-add opportunities. Kyrgyzstan produces 80% of Central Asia’s organic honey, with European exports growing 45% annually. The country’s pesticide-free mountain agriculture, combined with EU organic certification programs, positions it perfectly for premium European markets. Dried fruit exports alone generated $67 million in 2024, with potential to reach $200 million by 2028.
“The government’s target of 20% renewable energy by 2030 has attracted $2.3 billion in committed investments from European and Asian developers.”
Kyrgyzstan’s young, tech-savvy population presents a compelling demographic dividend. With 62% of the population under 30 and mobile internet penetration at 89%, the foundation for rapid digital transformation is already in place. In Bishkek, co-working spaces continue to crop up, supporting a growing number of start-ups and remote workers. Initiatives to improve IT education and online learning platforms are gaining momentum. The High Technology Park, headquartered in the capital, has attracted over 180 IT companies, generating $45 million in exports in 2024, a 65% increase from the previous year. National efforts such as the “Digital Kyrgyzstan 2030” programme aim to increase the IT sector’s GDP contribution from 2.1% to 8% by the end of the decade. With targeted government support and a youthful, digitally connected population, Kyrgyzstan is positioning itself as a focal point for IT innovation in the region.