OECD has issued a report titled ‘Building a Competitive Investment Landscape in Turkmenistan.’
Here is the condensed version of its executive summary:
Turkmenistan has achieved strong economic growth since independence, but diversification remains essential for long-term resilience. The economy depends heavily on hydrocarbon exports and faces risks from fragmented global value chains and climate change. The capital-intensive extractives sector creates few jobs, so diversification into other sectors could generate more productive employment for the population.
Progress is visible: WTO accession efforts have accelerated, private sector activity is rising (evidenced by growing non-hydrocarbon exports and new business creation), and trade partnerships are expanding beyond China into Central Asia and further afield. State-led import substitution and export promotion policies have successfully boosted production in fertilisers, chemicals, agriculture and food processing. Attracting FDI into non-resource tradable sectors could accelerate this momentum, provided the business and investment climate continues to improve.
The full report is available here: https://www.oecd.org/en/publications/building-a-competitive-investment-landscape-in-turkmenistan_84f62768-en.html
A recent OECD survey of over 30 local private firms reveals cautious optimism. Positive steps include simpler business registration and tax payment procedures. However, challenges persist: excessive documentation, limited digitalisation, skills mismatches, high internet costs and infrastructure gaps, import-substitution barriers, and the de facto dual exchange rate, and currency convertibility restrictions.
To build on recent gains, Turkmenistan should further ease regulatory burdens, expand affordable internet access, strengthen competition policy and access to finance, introduce private-sector-led vocational training, advance digital customs and tax procedures, align SOE reporting with international standards, establish a fully independent Business Ombudsman office, and unify the exchange rate.
The country already attracts solid FDI into extractives but could diversify investment sources and sectors by creating a dedicated Investment Promotion Agency (IPA). An effective IPA would centralise promotion and facilitation functions, provide transparent information on opportunities, conduct investor outreach and aftercare, monitor performance, evaluate its own performance, and channel investor feedback into policy advocacy. It could also take on related mandates such as export promotion, special economic zones, or public-private partnerships. /// nCa, 28 November 2025