Afghanistan Investment Support Agency (AISA) raised concerns on Tuesday over a drop in investment in the country, saying that 48 percent of investors closed their businesses last year and a further 30 percent of companies are on the verge of collapse.
“Afghan investors have invested at least $10 billion USD in United Arab Emirates. This shows that local investors have transferred their capital to Dubai and other cities related to the UAE over the past [few] years,” said investment promotion director at AISA, Ahmad Walid Majidiyar.
He added that businessmen have asked government several times to stop capital flight but Kabul has not paid attention to their demands.
Analysts meanwhile said there are some reasons behind capital flight and a drop in investment in Afghanistan – which includes a lack of economic infrastructure, bureaucracy and corruption in government offices.
“There are several reasons that impede investment in Afghanistan. The main reason is that there is no infrastructure here for businessmen therefore they lose interest in investing in the country,” said university lecturer Sayed Mohammad Tingar.
This comes after reports recently indicated that at least 40 percent of Afghan youth are looking for jobs.