Historically, Afghanistan has been at the heart of major trading routes, among them, the fabled Silk Road, which is one of many that have served the region throughout the centuries. Over the past ten years, the Afghan people have steadily progressed towards peace and prosperity, and its economy has seen meteoric growth. Once again, Afghanistan is emerging as a central hub for trade as the economies of Central and South Asia continue to grow and become increasingly integrated into the global economy.
There are three main reason to invest in Afghanistan:
Afghanistan is a rapidly emerging market of strategic importance close to some of the largest and fastest-growing markets in the world. Afghanistan is strategically located between the energy-rich republics of Central Asia and the major seaports in South Asia providing a key transit route for central Asian oil and gas to markets in South Asia as well as overseas. Also, Afghanistan has access to markets of neighboring countries including important fast-growing markets such as China, India and Pakistan.
Afghanistan offers a pro-business environment with legislation favorable to private investments. The principles of a free market economy are incorporated in the new Constitution. Consequently, the President of Afghanistan has focused intensely on removing obstacles to private sector development.
Afghanistan is rich in natural resources. There are currently more than 1,400 identified mineral deposits in Afghanistan. These include energy minerals, such as oil, gas and coal, as well as iron and copper deposits of world quality. Furthermore, known precious and semi-precious stones in Afghanistan include emerald, jade, amethyst, alabaster, beryl, lapis lazuli, tourmaline, ruby, quartz, and sapphire. Finally, great opportunities for investments exist within the hydrocarbons industry.
Based on investment law, Afghanistan has adopted a pro-private sector and most liberal trade and investment regime. It allows for 100% foreign ownership of the company, indefinite carry forward and accelerated capital depreciation, flat 20% corporate tax, no restrictions on inwards/outward capital flow; no restriction on profit or other cash repatriation, no import duties on machinery, and 1% duty on raw and intermediate materials, intl dispute resolution/arbitration; OPIC and MIGA is there to guarantee foreign investors and no tariff on Afghan export to Europe and recipient of the USG and support of the international community related to trade and investment.