Kyrgyzstan is angling to set up a special economic zone near Lake Issyk-Kul intended to rival Kazakhstan’s Astana Hub and Uzbekistan’s IT Park in Tashkent.

At a meeting at the New Lines Institute in Washington, DC, on April 13, top officials from Kyrgyzstan’s Ministry of Economy and Commerce touted the Tamchy Special Financial Investment Territory as a “new Dubai,” a tax haven covering almost 6,000 hectares aiming to host a wide variety of services, from fintech to logistics. Construction on the complex began in February.

Once operational, Kyrgyz officials contend that Tamchy will offer a wider array of business options than the already operational Astana Hub or Tashkent IT Park. Like both the Astana and Tashkent initiatives, Tamchy will operate under a special legal regime based on English common law. Tamchy aims to create 10,000 jobs over the next decade and become a driver of investment and innovation for Kyrgyzstan.

Overall, Economy Minister Bakyt Sydykov identified four investment priority areas for Kyrgyzstan – manufacturing, energy/hydropower, trade/connectivity and tourism. He articulated an ambitious goal for the government of doubling per capita GDP by 2030, a seemingly reachable goal. Per capita GDP in 2025 was estimated at around $2,500. The World Bank calculated the country’s per capita GDP in 2021 at $1,350.

Sydykov maintained that the country’s signature hydropower project, the Kambarata-1 dam, was on track, adding that various multilateral development banks (MDBs), including the World Bank and Asian Development Bank (ADB), have expressed interest in financing what he estimated would be the dam’s $4bn construction price tag. He said MDBs viewed Kambarata-1 as a project of regional significance, given that Kyrgyzstan is working with Kazakhstan and Uzbekistan to make it a reality. 

Sydykov also insisted that the project would not disrupt Central Asia’s delicate water-energy nexus, under which regional states face tough choices in allocating dwindling water resources to accommodate competing needs for power generation, irrigation during the summer growing season and household needs of a rapidly increasing population. 

In relation to tourism, Kyrgyzstan and other regional states are grappling with an abrupt decline in tourism from Middle Eastern states, a byproduct of the ongoing turmoil in the Persian Gulf, Sydykov said. Looking toward the longer term, Kyrgyzstan is investing in developing tourism infrastructure including ski resorts with over 200 kilometres (124 miles) of trails, as well as summer vacation facilities.

This article first appeared on Eurasianet.