Kyrgyzstan’s silicon mountain is a beacon of innovation in Central Asia

By Dr. Anna Zhang, Alpenfort Future Technologies Fund

At Alpenfort Future Technologies Fund, our mission is to identify and nurture high-growth companies, particularly in dynamic emerging markets. For years, our gaze has been fixed on Central Asia, a region brimming with untapped potential and a rapidly evolving technological landscape. It is with immense satisfaction that we observe the remarkable success story unfolding in Kyrgyzstan, spearheaded by the High Technologies Park (HTP).

The HTP has truly become Kyrgyzstan’s “Silicon Mountain.” It’s a vibrant ecosystem that has, against all odds, fostered a thriving tech sector, attracting both local talent and international attention. This isn’t merely about establishing a few tech companies; it’s about building an entirely new economic pillar for the nation.

The High Technologies Park (HTP) is a special economic zone that was established in 2011 with a clear mission: to create a favorable legal and tax environment to attract investment and foster the growth of the IT sector. It’s often referred to as a “virtual port” because it facilitates the seamless movement of ideas, people, and technologies, linking Kyrgyzstan’s talent with the global market. The park’s early days saw modest growth, with the first three resident companies joining in 2013, reaching 13 by the end of 2015.

A core component of the HTP’s success is its exceptional tax regime, which was initially set for a 15-year period but has now been made indefinite, providing long-term stability for businesses and signalling the Kyrgyzstan is serious about supporting its digital future. This regime offers significant tax relief, making it a highly attractive destination for IT companies. HTP residents are exempt from several key taxes, including Corporate Income Tax, Value-Added Tax (VAT), and Sales Tax.

In addition, the park offers reduced rates for other contributions. Employees of HTP companies pay a personal income tax rate of just 5%, a significant reduction from the standard rate. The social contributions for employees are also capped at 12% of their average monthly salary. To maintain this favorable environment, resident companies are required to pay a 1% contribution of their revenue to the Park. A crucial requirement for HTP residency is that at least 80% of a company’s revenue must be derived from the export of IT services and products, ensuring the park is a genuine engine for international trade and not just a domestic tax haven.

The HTP’s strategic approach has paid off. Its growth has been nothing short of explosive. The number of resident companies has soared, from over 300 in late 2022 to 477 companies as of 2024.

The financial metrics are even more compelling. In 2024, HTP residents’ revenue reached 11.4 billion soms (approximately $128 million USD), with a staggering 94% of that coming from exports. This represents a phenomenal 46% growth compared to the previous year’s revenue of 7.8 billion soms. This rapid expansion in exports demonstrates the HTP’s global reach, with products and services now being sold to over 60 countries across the United States, Europe, Asia, and Africa.

This success is directly tied to job creation. In 2024, the HTP created 2,859 jobs, an 18% increase from 2023, showcasing its role as a vital source of high-skill employment in the country.

The driving force behind much of this success is undoubtedly Aziz Abakirov, the visionary head of the High Technologies Park. His dedication and strategic leadership have been instrumental in creating an environment where innovation can flourish. Abakirov’s commitment to fostering a supportive community, coupled with his keen understanding of global tech trends, has been pivotal in attracting and retaining top-tier talent.

Our confidence in this growth story was recently solidified by Alpenfort’s acquisition of Big Data PLC, a public Kyrgyz company specializing in cutting-edge algorithmic trading infrastructure. The company is a resident of the High Technologies Park since 2024. Big Data, with its innovative solutions and robust talent pool, perfectly embodies the kind of high-potential enterprise we seek, and this acquisition is a testament to the sophistication and maturity of the companies emerging from the HTP ecosystem. We believe Big Data PLC is poised for significant global impact, and we are thrilled to support their journey.

The HTP’s model—combining tax incentives, a skilled workforce, and strong leadership—serves as an exemplary blueprint for other developing nations looking to cultivate their own tech sectors. We at Alpenfort are not just investors; we are partners in this exciting journey. We look forward to continuing our collaboration with the innovative companies within the HTP and witnessing Kyrgyzstan solidify its position as a true technology hub in Central Asia. The future, for Kyrgyzstan’s Silicon Mountain, is undeniably bright.