In a bid to invigorate Afghanistan's economy, the Afghan government has introduced a new policy allowing foreign investors to obtain legal residence for a duration ranging from one year to ten years, contingent on their investments in the country. This initiative aims to enhance foreign capital inflows, which have been dismally low in recent years. Recent statistics show that foreign direct investment (FDI) in Afghanistan was only $20.6 million in 2021, a stark decline from levels prior to 2018, highlighting the challenges the country faces in attracting investment since the political changes in 2021.

Despite the ongoing low levels of FDI, Abdul Salam Akhundzadeh, spokesperson for the Afghan Ministry of Commerce and Industry, noted that the ministry has approved investment licenses for over 150 foreign investors over the past year. He emphasized interest from companies based in China, Russia, the United States, and various Arab nations, signifying a potential but cautious optimism regarding Afghanistan's investment climate. The government is reportedly working to create a more supportive investment environment and streamline processes for foreign investors to facilitate new investment opportunities.

The implications of this residence grant initiative are significant as it signals the Afghan government's recognition of the desperate need to revitalize the economy through foreign investments. If successful, it may mark a turning point in Afghanistan's economic landscape, helping the country recover from years of isolation and financial turmoil. However, the effectiveness of this policy will largely depend on the government's ability to ensure political stability and improve the overall investment atmosphere, as foreign investors remain wary amidst the country's ongoing challenges.