Economic Overview & Business Opportunities
Bound by Turkenistan, Uzbekistan, Tajikistan, and China, Afghanistan is a landlocked country in Central Asia with a long, narrow strip in the northeast (the Wakhan corridor). The strategic location of Afghanistan at the heart of the ancient Silk Route has been of significant importance since ancient times.
In fact, the strategic location has further cemented Afghanistan’s position as the trade hub that connects some of the fastest growing economies in the world like Central Asia, the Middle East, and China. In other words, the location makes Afghanistan a natural locus for an emerging regional network of trade routes and pipelines. The ease of competition and the potential for growth in Afghanistan have created the investment-friendly environment in the region. In 2016, Afghanistan became a member of the World Trade Organization. Afghanistan’s economic reflects that the country has achieved significant economic growth over the years with construction and agriculture as the key contributors to its economic expansion. As of now, trade is important to Afghanistan’s booming economy where the value of exports and imports equals to 53 percent of GDP.
Afghanistan embraces the welcome attitude to foreign investments. Here are some reasons why Afghanistan provides good investment opportunities.
- Strategic location – Afghanistan is no doubt a fast-growing market of strategic importance close to some of the largest and booming markets in the world. Its strategic location between the energy-rich republics of Central Asia and the major seaports in South Asia has positioned itself as a key transit route for Central Asian oil and gas to markets in South Asia as well as overseas.
- Good business environment – Afghanistan offers a pro-business environment with good legislation that benefits private investments.
- Rich in natural resources- Natural resources include energy minerals like oil, gas and coal as well as iron and copper deposits of world quality. Other than that, Afghanistan is blessed with a great variety of precious and semi-precious stones, which includes emerald, jade, amethyst, alabaster, berylo, lapsis, lazuli, tourmaline, ruby, quartz, and sapphire.
Many people view Afghanistan as the land bridge that links markets in the Middle East, Central and Southern Asia. In fact, Afghanistan has been benefitting economically from the transit routes on its surface since ancient times. If you are planning to venture into the Middle East or Central Asia, Afghanistan has lots to offer.
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