ISLAMIC REPUBLIC OF AFGHANISTAN

Quick facts Location: within

South and Central Asia

Capital and largest city: Kabul

Religion: Islamic Population: 30.6

million Currency: Afghani

GDP: $35.1 billion GDP per capita:

$1,150 Unemployment:

8.5% Inflation (CPI): 7.4% FDI Inflow: $69.3

million Public Debt: 6.1% of

GDP

Political aspects Ashraf Ghani Ahmadzai is Afghanistan’s new

president after three months of political disputes between Ghani and Abdullah Abdullah, the former Afghan Foreign Minister.

The two agreed to form a unity government in which the President Ghani, who won the election according to Afghanistan’s Independent Election Commission, has to share the power with Abdullah, who was named Chief Executive Officer.

Ashraf Ghani Ahmadzai Abdullah Abdullah

International Organization Membership Group of 77 (G77) International Bank for

Reconstruction and Development (IBRD)

International Development Association (IDA)

International Monetary Fund (IMF)

International Telecommunication Union (ITU)

Organization for Security and Cooperation in Europe (OSCE)

United Nations (UN) United Nations

Conference on Trade and Development (UNCTAD)

United Nations Educational, Scientific, and Cultural Organization (UNESCO)

World Trade Organization (WTO)

SOCIAL ETIQUETTE,

CUSTOMS AND PROTOCOL

I. Meeting and Greeting

The handshake is the most common form of greeting

Women and men will never shake hands and they don’t speak directly to one another

Eye contact should also be avoided between men and women

II. Mixing between genders

In professional situations such as in businesses or universities, males and females may be co-workers

Foreign females must learn to read the rules and live by them.

If a man speaks to a woman directly in a social context, he is dishonouring her

Women must always dress properly to avoid unwanted attention

On the other hand foreign men should note that it is inappropriate to initiate social conversation with a woman

Men and women should never be alone in the same room. If this happens you should ensure a door is left open.

Men and women should never touch one another under any circumstances.

III. Gift giving etiquette

First rule of gift giving is to never give alcohol.

The first time you go to someone's house for tea, it is appropriate to bring a small gift.

If you are invited to lunch or dinner, bring fruits, sweets or pastries. Make sure the box is wrapped nicely.

When bringing a gift be subtle in how it is given. Do not immediately give the present but rather discreetly place it near the door or where you sit down.

IV. Dining Etiquette

Always remove your shoes at the door if visiting a home.

If eating at someone's home, you will be seated on the floor.

Food is generally served in common and everyone will share from the same dish.

Do not eat with the left hand.

Always pass and receive things using your right hand too.

Food is eaten with the hands. Food is usually scooped up into a ball at the edge of the fingers, then eaten.

Leave food on your plate otherwise it will keep getting filled up again.

BUSINESS ETIQUETTE,

CUSTOMS AND PROTOCOL

II. What to wear

Men should wear conservative suits and shoes.

If working in the countryside in a non-commercial capacity then wearing the traditional Afghan dress (long shirt and trousers) is best.

Women must always dress modestly and conservatively. The general rule is to show as little flesh from the neck downwards.

If working in business, women should wear knee-length, loose fitting business skirts with loose fitting professional trousers underneath. Wearing headscarf is advisable.

III. Business Meetings

Business is very personal in Afghanistan. If you have not already invested some quality time in getting to know your associates, then you must use initial meetings to establish trust.

Do not be surprised or offended if during meetings people walk in and out of a room or phone calls are taken.

If the meeting involves a group of people it will be led by the leader who will set the agenda, the content, and the pace of the activities.

Meetings are usually held to communicate information and decisions that have already been taken rather than a forum for discussion and brain storming.

Meeting schedules are not well structured. Start times as well as the points of discussion are all flexible.

Honour and shame should always be considered. Always express yourself in a way that is not direct or pins blame on someone. Never make accusations to anyone.

IV. Negotiating

Negotiating can be a tricky, frustrating but often an enjoyable affair if approached correctly.

Always make sure you negotiate with the most senior person possible as they are the decision makers.

There is always a stronger/weaker party. Always start wildly high in negotiations and very slowly work your way down, always explaining why you are dropping in price but at the same time explaining the damage it is doing to you.

Always appeal to their sense of fairness and justice and use the fact that you are looking to build a strong relationship.

If monetary matters do not work then try pushing the idea that a deal with you will bring prestige, honour and respect.

WHY INVEST IN AFGHANISTAN?

.

1. Afghanistan is an emerging market of strategic importance close to some of the largest and fastest-growing markets in the world.

Afghanistan is strategically located between the energy-rich republics of Central Asia and the major seaports in South Asia providing a key transit route for Central Asian oil and gas to markets in South Asia as well as overseas.

Also Afghanistan has natural access to markets of China, India and Pakistan.

2. Afghanistan offers a pro-business minded environment with legislation favorable to private investments.

The principles of a market economy are incorporated in the Constitution of Afghanistan. Considering the National Development Strategy, the growth of the private sector is a cornerstone of Afghan politics.

3. Afghanistan is rich in natural resources.

In Afghanistan there are currently more than 1.400 identified mineral deposits. These include energy minerals such as oil, gas and coal as well as iron and copper deposits of world quality.

Furthermore, the country has been blessed with a great variety of precious and semi-precious stones, including emerald, jade, amethyst, ruby, quartz and sapphire.

AFGHANISTAN INVESTMENT

PRIORITY SECTORS

1. Agriculture

Agriculture remains fundamental to the livelihood in Afghanistan, generating one third of the country’s GDP and supporting nearly 80 per cent of its people.

One industry related to the agricultural sector is packaging, which provides great opportunities for investors.

Processing is another great investment opportunity. Due to the growing markets for fruits and vegetables, the potential for processed agricultural products is enormous, including snack foods, fruit concentrates as well as fresh fruit jams.

2. Construction materials

Currently, this is one of the fastest growing sectors in the country. That’s why, the demand for construction materials is rising rapidly in Afghanistan, making the market more attractive for foreign investors.

3. Telecommunication

Core telecommunication service providers supply the Afghan market already in a sufficient manner with increased competition and price pressures.

While there are still opportunities for mobile service providers, the other supply and service areas of the telecommunication sector represent a far more virgin market.

4. Transport and Logistics

The country’s large and growing market for transportation and logistics services presents a ground floor opportunity for new providers.

Early investors report modest start-up costs and

low overheads, and even smaller operators are moving large volumes of freight.

Investments in the transportation and logistics sector are vital to the overall economic development

DO’S AND DON’TS IN AFGHAN

CULTURE

Do greet everyone when entering a room. Shake hands with the men, but not with a woman unless she extends her hand first.

Do eat with your right hand as much as possible.

Do dress modestly.

Do read about the country's history, culture, and people before you come, as this will be treated as a sign of respect for Afghanistan.

Don't show impatience if your interlocutor isn’t giving you direct answers.

Afghans like to elaborate and want to be clear in communicating.

Don't panic. Afghanistan’s government can be bureaucratic. It may take you several days to get a simple authorization signed. Keep in mind that Afghanistan’s government is undergoing a reform process.

Don’t drink alcohol in front of an Afghan.

THANK YOU!

ALİ REZA HAKİMİ