Afghanistan: Investing

FDI in Figures

Statistics in relation to FDI are not available and/or not reliable. According to the UN (in the 2010 World Investment Report), the share of FDI in Afghanistan's GDP was 9% in 2009, most of it represented the public investments financed by international aid.

According to Afghan law, all foreign companies have the same investing opportunities as the domestic ones. However, the political violence, weak regulations regarding property protection, a substantial lack of skilled manpower, under-developed financial markets and insufficient infrastructures limit the potential attractiveness of the country.

More than half of FDI is concentrated in the construction sector and the rest is divided in equal parts among the industry and the services. Turkey is the largest investor, followed by the United States, China and the United Arab Emirates.

	Afghanistan	South Asia	الولايات المتحدة	Germany
Index of Investor Protection	1.0	5.0	8.3	5.0

Source: Doing Business

Note: The Greater the Index, the Higher the Level of Investor Protection.

Foreign Direct Investment	2008	2009	2010
FDI Inward Flow (million USD)	300	185	76
FDI Stock (million USD)	1,364.6	1,549.6	1,625.2
Number of Greenfield Investments***	2.0	6.0	-
FDI Inwards (in % of GFCF****)	8.3	5.3	-
FDI Stock (in % of GDP)	10.8	10.3	-

Source: UNCTAD - Last Available Data

Note: * The UNCTAD Inward FDI Performance Index is Based on a Ratio of the Country's Share in Global FDI Inflows and its Share in Global GDP. ** The UNCTAD Inward FDI Potential Index is Based on 12 Economic and Structural Variables Such as GDP, Foreign Trade, FDI, Infrastructures, Energy Use, R&D, Education, Country Risk. *** Green Field Investments Are a Form of Foreign Direct Investment Where a Parent Company Starts a New Venture in a Foreign Country By Constructing New Operational Facilities From the Ground Up. **** Gross Fixed Capital Formation (GFCF) Measures the Value of Additions to Fixed Assets Purchased By Business, Government and Households Less Disposals of Fixed Assets Sold Off or Scrapped.

Tax Rates

Sales Tax: 2% - 5%
Company Tax: Exempted
Withholding Taxes: Dividends 20%, Interests 0%, Royalties 5%.
Bilateral Agreement: Afghanistan and Egypt are not bound by a double taxation agreement.
Social Security Contributions Paid By Employers: None

Investment Opportunities

Tenders, Projects and Public Procurement: Asian Developement Bank, Proposed Projects in Asia
DgMarket, Tenders Worldwide
Setting Up a Company: Consult Doing Business Website, to know about procedures to start a Business in Afghanistan.
Useful Resources: The Afghan Investment Support Agency (AISA)
Egyptian Mission in Afghanistan
Road 15, Wazir Akbar Khan,
Kabul
Phone: 61122- 20542 -22461
Fax: 00930202104064
Contact the mission via Email.
Embassy of Afghanistan in Egypt
59 El-Orouba Street
Cairo
Phone: (+20-2) 417 7236
Fax: (+20-2) 417 7238
Contact the Afghan Embassy in Cairo via Email

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