Ashgabat hosted three major events this spring that showcased the main achievements of Turkmenistan’s private sector and its growing role in enhancing the country’s economic potential. These included an exhibition marking the 18th anniversary of the Union of Industrialists and Entrepreneurs of Turkmenistan (UIET), a conference of UIET members, and the International Forum on Attracting Investment to the Private Sector titled “Investing in the Future of Turkmenistan.”
The exhibition presented a wide range of products manufactured by private enterprises-members of UIET. These included food products, light industry goods, electronics, construction materials, services and more. Participants in the conference discussed the role of the private sector in the economy, summarized the results of UIET’s 18 year work and identified priorities for the further development of Turkmenistan’s private businesses.
The IFT 2026 Investment Forum served as a platform to discuss strategic areas of the national economic development. The key topics of discussions included private sector development, public–private partnerships, agricultural and food security, investment in infrastructure and transport and digital transformation. Important macroeconomic indicators were presented at the forum, reflecting the dynamic growth rates of the main sectors of the national economy, including the steadily increasing role of the private sector.
As Deputy Chairman of the Cabinet of Ministers of Turkmenistan and Head of UIET Nokerguly Atagulyyev noted, the country’s GDP growth rate reached 6.3 percent in 2025. For 2026, the total capital investments from all sources are expected to exceed 41 billion manats, with around 32 percent of this amount (approximately 13.2 billion manats) coming from the private sector.
It was also reported that UIET currently accounts for over 29,000 members, who over the past 18 years have created more than 422,000 jobs. Notably, UIET membership has increased by 4,000 enterprises, compared to 2020.
The signing of a set of agreements aimed at long term industrial and technological cooperation was one of the key outcomes of the investment forum. These agreements will facilitate the introduction of modern technologies into production and expand Turkmenistan’s export potential.
As was emphasized at the forum, the dynamically growing agro industrial complex is one of the most promising areas for private sector development in Turkmenistan. In 2025 alone, output in this sector grew by 113.2 percent.
Thanks to government support and preferential lending, national agro holdings are already positioning themselves as potential leaders in Central Asia. As part of the agro industrial development strategy, construction of 188 new greenhouse complexes with a total area exceeding 1,790 hectares is underway. The sector also focuses on near term digital transformation, including the introduction of artificial intelligence in agronomy and creation of a network of large logistics hubs.
These achievements are a natural result of Turkmenistan’s recent policy aimed at expanding the non state sector of the economy. There can be identified key areas where private business already occupies leading positions. In trade, private entrepreneurs account for more than 93 percent; in construction – around 80 percent; in transport and communications – approximately 72 percent; and in agricultural production – about 70 percent.
State support plays a crucial role amid such rapid growth of the private sector. This includes tax exemptions for agricultural producers, low tax rates for small and medium sized enterprises and participation of private companies in large scale government programs.
In the agricultural sector, private enterprises traditionally specialize in the cultivation of grain crops, vegetables and melons, as well as in food production. The government’s import substitution policy stimulates the expansion of greenhouse farming, ensuring year round vegetable production, as well as the development of fruit processing and confectionery capacities. Private enterprises in this sector are actively increasing production volumes, enabling them not only to meet the needs of the domestic market but also expand exports to neighbouring countries and distant markets.
The private sector is also delivering impressive results in the production of construction materials. In 2025, cement output increased by 40.9 percent, bitumen by 26.4 percent and metal structures by 22.3 percent. Such strong dynamics are linked both to large scale housing and infrastructure construction within the country and the active involvement of private enterprises in modernizing existing facilities. (A more detailed overview of the development of the construction industry was published in the previous issue of our magazine.)
Turkmenistan is currently witnessing the active formation of an electronics manufacturing market, driven by the government’s designation of electronics as a priority area for private investment. Turkmen entrepreneurs have begun mastering the production of sophisticated technical equipment that was previously entirely imported.
Leaders of the national electronics industry are private enterprises that are members of UIET. They manufacture smart TVs with screen sizes from 32 to 65 inches, smartphones, tablets, laptops, LED lamps, street lighting systems, “smart” traffic lights, as well as SIM cards for mobile operators and bank cards.
Electronics production in Turkmenistan is developing under a model in which the state sets strategic priorities and guarantees demand, while private business assumes responsibility for operational management, investment and commercialization. In practice, virtually all electronics produced in the country are manufactured by private companies, with varying degrees of state participation in equity.
In the coming years, one can expect further expansion of the product assortment and the entry of Turkmen electronic brands into foreign markets.
In the textile industry of Turkmenistan, the state-owned enterprises continue to play a leading role. The main production capacities remain under the Ministry of Textile Industry, which oversees more than 70 enterprises. Nevertheless, the share of private businesses is growing rapidly in the segments of ready made garment production and small processing enterprises, whose products are also exported. At the same time, a new trend is gaining momentum. The state is encouraging the privatization of auxiliary production facilities and actively attracting private investments to modernize the textile industry and create new jobs.
The combination of government investment incentives, growing domestic demand and a policy of diversification creates a solid foundation for the further strengthening of the non state sector across the country’s economy.
The European Bank for Reconstruction and Development (EBRD) also plans to support the development of public–private partnership mechanisms in Turkmenistan. During the IFT 2026 forum, the EBRD confirmed its readiness to deepen bilateral cooperation with Ashgabat. Head of the EBRD Office in Turkmenistan Erik Livny noted that the bank views this format as one of the most effective tools for modernizing the national infrastructure and stimulating economic growth.
According to him, public–private partnerships offer international and local businesses unique opportunities for direct participation in the implementation of large scale government programs. This model enables efficient sharing of risks and resources between the state and the private sector. The introduction of such mechanisms facilitates the attraction of foreign investment and the adoption of advanced technologies in key sectors of the economy.
The implementation of joint projects under the auspices of the EBRD will allow private businesses to expand access to long term financing and significantly enhance their international competitiveness.