Screening of Foreign Investment in the Context of Turkmenistan's FDI (Foreign Direct Investment) Regime

Muminov F., VAROL A. E.

PUBLIC AND PRIVATE INTERNATIONAL LAW BULLETIN, vol.40, no.1, pp.417-435, 2020 (ESCI) identifier

  • Publication Type: Article / Article
  • Volume: 40 Issue: 1
  • Publication Date: 2020
  • Doi Number: 10.26650/ppil.2020.40.1.0025
  • Journal Indexes: Emerging Sources Citation Index (ESCI), TR DİZİN (ULAKBİM)
  • Page Numbers: pp.417-435
  • Keywords: Foreign investment, Admission requirement, Lack transparency and predictable legal environment
  • Anadolu University Affiliated: Yes


Since the fall of the USSR, Turkmenistan has made some progress in the development of its national economy and its ability to attract foreign investment. Although Turkmenistan is considered an attractive destination due to its rich natural resources, the country's FDI regime, including its admission procedures, lacks transparency and predictability. From the perspective of foreign investors, the host state's FDI regime plays a crucial role. Without considering a host state's FDI regime, foreign investors may be at risk of losing their investment due to lack of transparency or an unpredictable legal environment. Requirements related to the admission of foreign investment may differ between countries. Unlike most countries, which usually limit the scope of admission requirements (national security concerns), Turkmenistan's FDI regime imposes stricter requirements on foreign investors during the entry process. It is understandable that Turkmenistan may expect to maximize the benefit of foreign investment while minimizing its negative effects on the national economy. However, a lack of clear and transparent admission requirements leaves a large amount of discretion with various administrative bodies. This makes admission requirements unpredictable and dissuades foreign investors from investing in the host country. This article scrutinizes the admission requirements related to foreign investment in the entry stage in the Turkmenistan FDI regime.