Legal Market Overview
One of the less affluent nations on the former Soviet Union, Tajikistan has recently been affected indirectly by many recent global events. In 2021, a disagreement over water led to the biggest conflicts on the border with Kyrgyzstan since the two countries gained independence. The Taliban’s takeover of neighbouring Afghanistan (home to more ethnic Tajiks than Tajikistan itself) led to security questions, as well as a flow of refugees, for which the government received assistance from the Russian-led Collective Security Treaty Organisation; the country also contributed to the CSTO’s week-long deployment of troops in neighbouring Kazakhstan, following unrest in January 2022 triggered by fuel protests, which was seen as having significance in the balance of power between allies of former president Nursultan Nazarbayev and his successor Kassym-Jomart Tokayev. Furthermore, the fallout of Russia’s invasion of Ukraine has hit hard remittances from expatriates in Russia, a key source of income for the country (29% of GDP in 2019), which does not have the same degree of mineral wealth as its Central Asian neighbours.
Firms in Tajikistan tend to focus on finance and tax, since much of the economy is reliant upon foreign investment. A number of investment banks have invested in developments in the country.