Foreign direct investments (FDI) in Kyrgyzstan in January-September 2016 fell by 16.6 percent on-year and amounted to US $535.3 million, the country’s National Statistical Committee said.

Most FDIs during the period (around 93 percent) went to the finance sector, insurance, geological exploration, processing industries, and enterprises providing electricity, gas, heat and air conditioning. While investments in the finance and insurance sectors grew 2.3-fold, they reduced 1.7-fold in geological exploration, by 21 percent in the processing industries, and by 19.7 percent in the enterprises providing electricity, gas, heat and air conditioning.

Among non-CIS countries, Kyrgyzstan’s largest investor was China, whose investments grew 8.1-fold. FDIs from Great Britain, Canada, and Turkey reduced significantly.

Investments from the CIS countries increased 1.5-fold, with the largest investors being Russia (twofold increase) and Kazakhstan (8.8-percent increase). Investments from Belarus significantly reduced during the period.

In 2015, Kyrgyzstan received FDI totaling $1.573 billion compared to $727 million in 2014.

Most FDI came from Russia ($515.488 million), China ($474.412 million), the UK ($189.508 million), Canada ($130.250 million), and Turkey ($111.112 million).

Among the economic sectors, most FDI in 2015 came to geological exploration — $261.9 million or 16.6 percent (mainly from Kazakhmys); processing sector — $564.7 million or 35.9 percent (Kumtor, cement plants); energy sector — $136.7 million or 8.7 percent (mainly from Gazprom); construction sector — $107 million or 6.8 percent (Bishkek Park); wholesale trade — $64.8 million or 4.1 percent (equipment imported from Belarus); and financial sector — $411.8 million or 26.2 percent (the US and Netherlands).

Compared with FDI, domestic investment tends toward stable growth in Kyrgyzstan, Economy Minister of Kyrgyzstan Arzybek Kojoshev said at the Bishkek Investment Forum 2016 (BIF) held on December 8 in Kyrgyzstan. Domestic investments come from local enterprises, organizations and the population, as well as from banks and the state budget.

Entrepreneurship is a source of domestic investment and the basis for the development of the Kyrgyz economy. SMEs account for 39% of Kyrgyzstan’s GDP, the minister said.