OREANDA-NEWS. February 02, 2010. Entrepreneurship development as an integral element of market economy is a priority of the strategy for Turkmenistan’s social and economic development. With every passing day Turkmen entrepreneurs are more actively involved in implementing the reforms programmes launched in the country.

A new stage of development of entrepreneurship in the country is marked by the resolutions recently signed by the Turkmen leader on construction of facilities for the domestic business organisations. In accordance with these documents the Business Centre of the Union of Manufacturers and Entrepreneurs of Turkmenistan and the Gul Zaman Fashion and Flower House of the Gul Zaman business partnership will be built in the capital.

The construction projects will be implemented by the domestic private companies – the business partnerships Ak Tam Gurlusik ve Senagat Harytlar Kombinaty and Nur gurlusik. It should be noted that construction will be financed by the Turkmen business companies.

The high-rise Business Centre of the Union of Manufacturers and Entrepreneurs of Turkmenistan will adorn Ashgabat In two years. The architectural design of the high-rise administrative building and four-storey buildings symmetrically adjoining it will blend well with the ensemble of buildings constructed in this part of the city. The draft design of the business complex with the usable area of about 30,000 square metres harmoniously combines the achievements and trends in modern architecture and the national decorative traditions.

The main building will house the administrative offices of the Union of Manufacturers and Entrepreneurs of Turkmenistan, the banking institutions and offices of the companies – the members of the Union of Manufacturers and Entrepreneurs. The business school, public service establishments and supermarkets, which will sell domestically produced goods, will occupy the adjacent buildings. According to architects and designers, the Business Centre will have colour illumination. The green area will encircle the building. Thus, the new business complex will become the heart of the business life of domestic entrepreneurs and an architectural landmark of modern Ashgabat.

The Union of Manufacturers and Entrepreneurs of Turkmenistan was established about two years ago. The turning point in this process was the enlarged meeting of the Cabinet of Ministers of Turkmenistan in March 2008 that focused on the issues relating to encouraging business initiatives in the country. Before this meeting Turkmen private producers had conducted the commodity exhibition. At that time the President of Turkmenistan issued the resolutions defining the modern vector of private sector development in the country and aimed promoting business initiatives and providing support for entities engaged in entrepreneurial activities. In accordance with these documents the Union of Manufacturers and Entrepreneurs of Turkmenistan was established, and the regulations on the procedure for soft loans given by the authorized banks for investment projects presented by private enterprises, entrepreneurs, farmers associations and tenant farmers – agricultural producers.

Addressing the first session of the Mejlis of IV convocation last January President of Turkmenistan Gurbanguly Berdimuhamedov noted that by initiating the large-scale economic reforms, the success of which contributed directly to the wellbeing and prosperity of the Turkmen people, the Government attached particular attention to the balanced development of all sectors of the economy as well as encouragement of entrepreneurship. The Turkmen leader said that the state support for the private sector stipulated for a variety of tax benefits and credit advantages to entrepreneurs, all kinds of organizational and technical assistance, improvement of existing and drafting new laws encouraging entrepreneurial activity of domestic and foreign companies.

Consistency and steadiness of the state policy in this field is confirmed by the attention given to the encouragement of private sector development in the country at the meeting of the Cabinet of Ministers that reviewed the results achieved in 2009 and specified the social and economic development priorities in the new 2010 year in compliance with the ongoing reforms and changes. Analyzing Turkmenistan’s social and economic progress achieved in the past year the President noted in particular that the effective measures had been taken to support and further stimulate business and entrepreneurial activity that was a result of a new approach to the economic and social policies in market conditions.

The implementation of this large-scale project became possible through the state support aimed at encouraging business initiatives. Intensification of the activity in the private sector of the national economy, enhancement of its investment potential and efficiency in construction industry as well testify to the success of this strategy. The Business Centre will become a symbol of the rise of entrepreneurial activity in the country and replenish this list of the domestic construction companies that have proved their competence in practice. The list of the projects completed by the domestic construction companies includes sports facilities, shopping centres, apartment houses. They acted as the general contractors for construction of several apartment houses in Ashgabat and Abadan.

The fact that the construction sector has a leading position in the scope of activity of Turkmen entrepreneurs is natural. In recent years Turkmenistan has turned into a huge construction site: modern industrial and social infrastructure is rapidly developed in the country that sets new serious tasks to the sector.

Along with construction of various facilities in the capital and large cities of the country domestic contractors actively contribute to implementing the National Programme on the improvement of the social and living conditions in rural areas. The private companies build schools, kindergartens, sports facilities – the broad range of social and administrative buildings, construct apartment houses under the mortgage programme throughout the country.

Wide involvement of domestic private companies in implementing the urban development strategy is an aspect of the Turkmen leader’s concept of encouragement of entrepreneurial activity in the country. A result of this approach is a consistent increase in the private sector percentage share in the GDP. Today, the substantial investment potential of the private sector ensures employment to a larger extent, rise in income of citizens and strengthening of the so-called middle class.

The achievements of Turkmen entrepreneurs, strengthening of their role in the national economy are vividly illustrated by their participation in the exhibitions arranged in Turkmenistan and abroad. These include the specialized exhibitions arranged by the Union of Manufacturers and Entrepreneurs of Turkmenistan. Thus, in 2009 the exposition showcasing the achievements of medium and small businesses of Turkmenistan at the Expiation Centre, the programme of which included the business forum, brought together 125 private companies and firms and entrepreneurs.

Turkmen entrepreneurs inspired with the substantial support of the leader of the Turkmen state have stood upon firm ground and gained confidence in their strength, as they say. In recent years the private sector has considerably expanded on the domestic market. Quite recently the fields of activities of Turkmen entrepreneurs have been limited to small-scale commerce, restaurant business, handicrafts. The firm tendency to more active involvement of private businesses in the real sector of the economy has become apparent today. Entrepreneurs produce a broad range of products from food products to textiles, from building materials and consumer goods.

The accomplishments of private businesses in such important sphere as production of foodstuff and achievement of a plenty of food products in the country are evident. The products manufactured by the private companies such as Hasar, Misgar, Payhas, Bereketli, Oyukly are known well among domestic consumers and is always in high demand. Customers are satisfied with the quality and relatively low price of cooked meats, dairy products, confectionery. The best means domestically produced – this motto is followed by almost all private firms operating in the food industry. We must say that they maintain their reputation.

Private businesses being confident in the future invest their earnings in production, build new plants, buy modern equipment, respond keenly to the current market situation and successfully try their wings in new industries. The most striking illustration is one of the events of the year 2009 of significant importance for the national economy is putting the Gush toplumy poultry complex into operation. President of Turkmenistan Gurbanguly Berdimuhamedov attended the opening ceremony.

In our country it is the first poultry complex with complete cycle including six stock poultry houses, incubator, nine broiler shops, agricultural lands, feed mills, protein factory that makes the enterprise waste-free. Its products are in high demand among on the domestic market. The capacity of this private specialized farm is a specialized 3,000 tons of chicken meat and 4 million eggs per year.

The Turkmen leader emphasized that the Government would continue to provide overall assistance and support for small and medium businesses, which played a prominent role in developing the national economy. Thus, in accordance with long-term social and economic development programmes, by 2020 the private sector percentage share in the GDP must increase from 40 to 70 percent. The fulfillment of this important task requires intensification of entrepreneurial activity, in particular an increase in production volume in the private sector that is to meet the demand in basic commodities on the domestic market. In this regard emphasis is put on construction of large-scale agro-industrial complexes in the outskirts of the capital and velayat centres and industrial zones for producing food products.

The substantial measures taken to develop the agro-industry sector and increase industrial output include crediting investment projects presented by private enterprises, entrepreneurs, farmers associations and tenant farmers – agricultural producers by the authorized banks. As a result, the rise of entrepreneurial activity in the country.

That is evidenced by the Resolution of the President of Turkmenistan on construction of the Business Centre in Ashgabat, which will become a visible symbol of the rapidly developing private sector of the economy. The growing scale and diversity of the domestic business activity vividly prove the effectiveness of the task-oriented measures taken in the country to encourage and provide support for the private sector of the economy.