Invest in Afghanistan

Afghanistan is “Open for Business”: From its supportive regulatory framework for its estimated multi-trillion dollar mineral and hydrocarbon sectors to the country’s new transport and energy-related investments, Afghanistan is fast becoming a highly business-friendly environment – regionally ranked 2nd in the World Bank’s Doing Business Index’s categories on establishing a business, taxes; 3rd on resolving insolvency; and 4th on contract enforcement – where investors can expect significant returns on investment.

At the same time, productivity is growing in key economic sectors due to sustained investments over the past decade in an increasingly educated and healthier Afghan population and the introduction of many business-friendly laws, including, for example, the country’s Tax Law, Company Law, Financial Management Law, Mining Law, and Investment Law, which allows for 100% foreign ownership of enterprises, easy repatriation of profits, and treats foreign investors in an identical fair manner as domestic investors.

Together, these steps have contributed to an average 10 percent annual growth and a four-fold increase in the country’s Gross Domestic Product over the past decade. For those companies and individuals who pursue new opportunities on the “ground floor”, large economic rewards can and are being reaped.

Investment Opportunities Abound in New and Traditional Economic Sectors: Besides the tremendous new growth opportunities mentioned above in the mineral and hydrocarbon sectors (estimated at between $1 and $3 trillion dollars), Afghan, regional, and even global investors are beginning to seize on to the high potential for increased productivity in a range of valuable export sectors, including agriculture (e.g., world class dried fruits, grapes, raisins, almonds, saffron, and pomegranates), financial services, information and communication technologies, and small-and-medium-sized industries (e.g cashmere, carpets, marble, steel, and construction). More than simply a historic transit site linking Asia’s major sub-regions, the Afghan people are creative producers of goods and services valued by markets by near and afar.

Afghanistan’s Economic Foundations are Solid, Buttressed by Strong Partnerships: The Delhi Investment Summit underscored four major attributes to doing business at the crossroads of Asia: i) Afghans are among the most industrious and resilient people; ii) the country's abundant natural resources, including water and natural gas, are accessible and profitable; iii) last May in Chicago and in July in Tokyo, the international community will recommit its sustained support for Afghanistan, including for foreign investments, throughout the Transition period (until 2014) and the Transformation Decade (2015-2024); and iv) through the South Asian Association for Regional Cooperation (SAARC), Central Asia Regional Economic Cooperation (CAREC) program, and other regional forums, the country is rapidly integrating economically with its neighbors – see next message.

Afghanistan’s Economic Future is Intertwined with the Region’s Economic Future: From rail, natural gas pipelines, and improved water resource management to efficient business registration and cold storage facilities, private investment spurred by public action will pave the way for Afghanistan's regional future as a trade and transit hub at the heart of Asia.

With the deepening of regional economic ties through the introduction of the Regional Economic Cooperation Conference for Afghanistan’s (RECCA) Regional Investment Projects and Policy Priorities, the Istanbul Process’ economic confidence-building measures, and the action programs of SAARC, CAREC, and other regional forums – as well as the adoption of international health, safety, and dispute settlement standards as Afghanistan aspires to become a full member of the World Trade Organization in the coming years – the country’s integration and cooperation vis-à-vis its neighbors will only grow.

Please find the following documents and links for more information.

Legislation (Find in the following links)