This study covers 4 areas - economy and policy, natural resources and industry, infrastructure, and law and institutions - to analyze FDI attractiveness of the 5 Central Asian countries.
According to our analysis, investment attractiveness of each Central Asian country can be summarized as follows. First, in terms of economic and policy factors for attracting FDI, Kazakhstan has the highest attractiveness by virtue of economic scale and income level; but the other 4 countries are much less so. As for potential for economic development, Uzbekistan is the most attractive because of its population, with the largest population among the Central Asian republics. In the area of policy, Kazakhstan and Kyrgyzstan are more attractive than the other 3 countries because of their openness to the international society and fewer regulations that can constrain activities and investment of foreign companies. In political stability, Kazakhstan and Turkmenistan score comparatively well; whereas Kyrgyzstan, Tajikistan, and Uzbekistan do not. In government effectiveness, Kazakhstan has the best indicators while those for the other 4 countries are low.
But overall, the Central Asian region made up of those 5 countries is not a very attractive choice as an investment destination presently, due to a relatively small population and low income level compared to other regions. However, investment for entry into this new market has to be considered in the context of a larger regional market, the CIS, rather than just the individual countries in Central Asia. Even though Central Asia is a small market, it should be noted that 4 countries have recently posted steady economic growth, which is expected to last into the foreseeable future. Kyrgystan is the outstanding exception, as it has which has recently undergone a political crisis.
Second, in terms of natural resources and industry, Kazakhstan and Uzbekistan have higher FDI attractiveness because of their energy, mineral resources, and relatively robust agricultural sectors;  Turkmenistan also has potential due to its abundant natural gas reserves. Attractiveness of Kyrgyzstan will increase if its rare earth deposits are exploited and developed actively. As for the industrial sector, Kazakhstan, Turkmenistan, and Uzbekistan have higher attractiveness for establishment of fixed capital.
Third, there is the problem of Central Asia having insufficient infrastructure in general. However, as Kazakhstan and Uzbekistan are competitive in air transport; Kazakhstan and Kyrgyzstan has higher attractiveness in distribution; Kazakhstan and Uzbekistan have high wire or wireless distribution rate; and Kazakhstan has the highest internet penetration rate; all in relative terms.
Fourth, in terms of law and institutions, the legal process for establishing corporations is the simplest in Kyrgyzstan and Tajikistan, while the country requiring the highest number of documents / certifications is Turkmenistan. Meanwhile, setting up businesses in Uzbekistan takes the longest in terms of the time required. As for real estate, 4 countries except Kazakhstan do not recognize ownership of land by foreign corporations and foreigners. In connection, lease, rent, and loan by credit are not recognized in Uzbekistan and Turkmenistan, making them the least attractive in this area.
The conclusions of our analysis reveal that Kazakhstan is the most attractive, followed by (in order) Uzbekistan, Turkmenistan, Kyrgyzstan, and Tajikistan. Turkmenistan is presently implementing a policy of openness to the world as well as vigorous policies to attract investment, which has had an important effect in increasing the country’s investment attractiveness. Completion of a gas pipeline to China also positively influenced its investment attractiveness. On the other hand, there is severe political confusion in Kyrgyzstan, which decreases its FDI attractiveness.
In analyzing Central Asia’s attractiveness for investment, the changing political and economical environment must be considered. Because politics in this region exert significant influence upon the economy, changes in the domestic and external environment have direct (or at least indirect) effects on foreign investment. Recent improvement in inter-country economic exchange among 5 Central Asian countries along with CIS countries is one of the most important factors in increasing investment attractiveness of the region. Through promotion of international economic cooperation, 5 countries in Central Asia can reform their weak economic system and enhance their political transparency necessary for improving FDI conditions.
Therefore, Korea has to observe and research continuously and monitor constantly the changing relations between Central Asia and other countries. Only then would Korea be able to focus on investment into strategic industries of Central Asia. Korea also has to consider an export strategy to Russia, CIS, Middle East, and Europe from Central Asia when integration of this region has been achieved.
Despite weaknesses in FDI conditions in the 5 Central Asian countries, they are potentially highly attractive for FDI in terms of rapid economic growth, abundant energy and resources, integration possibility for integration of the regional economy, and mid-to-long term economic development strategies of each country. Therefore, if the Korean government and enterprises can enter Central Asia with a deeper understanding about the strengths and weaknesses of the region, along with detailed  information about each country, prospects for investment would be bright indeed.