Published
03/24/2025, 13:29A premium view of the mountains of Kyrgyzstan is opening up on the ninth floor of the new business center in the most eco-friendly area of Bishkek. This prestigious location is home to the office of Freedom Broker — a subsidiary of the American holding company Freedom Holding Corp., whose shares are listed on the NASDAQ stock exchange, with a market capitalization nearing 8 billion USD.
The entry of Freedom Broker into the Kyrgyz market is not just an office opening, it is a significant event for the entire financial ecosystem of the country. The company, with international experience in 22 countries, plans to implement advanced investment solutions and expand the local market's capabilities. Akchabar spoke with Medet Nazaraliev, the General Director of Freedom Broker in Kyrgyzstan to discuss the changes this will bring to the financial sector of the Republic. His name is well-known in the professional community; since 2020, he has led the Kyrgyz Stock Exchange, and his market experience exceeds 14 years.
Medet Nazaraliev's expertise in attracting investments, ESG agenda, business process automation, strategic planning and engagement with government structures makes him a logical choice to lead the firm as it begins to expand its presence in our country.
— While working at the Kyrgyz Stock Exchange, I always understood that the real drivers of the market are brokers — strong players capable of attracting capital, expanding instruments and offering investors new opportunities. That’s why I always engaged with international brokerage firms, encouraging them to enter our market. The more strong players there are, the faster the ecosystem develops.
When Freedom Broker decided to expand its presence in Kyrgyzstan, it was a natural continuation of the work I had been doing at the stock exchange. The company believed in the potential of the local market, recognized the support from the government, stability and growth prospects. Upon joining Freedom Broker, I viewed the market from a different perspective — and saw opportunities that were not as obvious before.
Now, in my new role, my task is not just to develop the brokerage organization but to continue facilitating the growth of the entire stock market of the Republic. I am confident that I can bring even more benefits to the industry by leveraging my accumulated experience.
— Freedom began its operations in Kyrgyzstan in 2017-2018. Previously, the office in Bishkek was part of the Almaty representative office, and the company did not engage in brokerage activities in the Kyrgyz stock market. The main objective at that time was educational work: enhancing financial literacy, training and promoting investment instruments among local investors.
With the growth of trading volumes on the Kyrgyz Stock Exchange, increasing interest from investors and active support from the government of Kyrgyzstan, the decision was made to expand the company in the local market. This decision is also driven by the stable political and economic situation in the Republic, which creates favorable conditions for conducting business.
The American holding company Freedom Holding Corp., of which we are a subsidiary, operates in 22 countries, with 204 offices worldwide, including Kazakhstan, Uzbekistan, Tajikistan, Turkey, as well as offices in Europe and America. This global reach enables the firm to effectively integrate international standards and expertise into its business.
In Kyrgyzstan, the company plans to become one of the largest brokers in the market. Increasing the team and entering the market as a full-fledged brokerage organization will allow for a broader range of services, including working with government securities, attracting investments through the issuance of securities and servicing retail clients across the country.
— Currently, around 80 licensed brokerage firms operate in Kyrgyzstan. Although not all of them actively engage with the local stock exchange, there are enough participants to create a healthy competitive environment.
For the current players, this is more of an opportunity to improve the quality of their services and enhance customer service rather than a cause for concern. The market is currently in a development stage, and a quality human capital is already being established.
If companies can adapt and enhance their offerings, they will be able to carve out their niche. So, despite the emergence of a new major player, the market will continue to develop, and competition will drive improvement.
— Our goal is to provide the citizens of Kyrgyzstan with access to global financial markets through modern digital platforms. We offer investment tools for securities that operate according to international standards.
It is important to note that there are always risks associated with the stock market. We always communicate this to our clients because successful investments require market analysis and an assessment of potential threats. We hold a license for brokerage activities and trust management of investment assets. We are also currently testing a mobile application for Kyrgyzstan, which will be available for download soon.
Overall, thanks to our modern technological solutions, we have the capacity to reach all regions of the country.
— Currently, we only offer classic financial instruments — stocks and bonds. At this time, cryptocurrencies are not part of our product lineup, although we are considering the possibility of expanding in that direction in the future.
As for limitations, we do not have a minimum amount required to start investing. We strive to make investments accessible to everyone. Even with an amount as low as $50, one can begin investing in securities, making the market accessible to a wide audience.
— In fact, the testing phase is nearly complete, and we will launch the application for users in Kyrgyzstan very soon. It is important that we are creating a localized version of the app that will be adapted to the conditions and requirements of the local market.
We are also working to ensure that Kyrgyz citizens can invest not only in international assets but also in the securities of local companies. To this end, we are currently actively integrating with the Kyrgyz Stock Exchange.
— Safety is our top priority. All transactions are conducted through secure channels, and multi-level authentication is used to confirm transactions, including SMS verification. We understand that the protection of data and funds is a key aspect of trust in brokerage platforms.
Additionally, our holding company is under the supervision of the American regulator, which provides an extra layer of protection for our clients. We actively invest in cybersecurity measures and are committed to ensuring the maximum safety of our users.
Throughout our operations, we have not encountered any serious incidents related to cyberattacks. However, we are always prepared for such challenges and continue to enhance our security systems.
— Of course, we would be pleased to get involved in the implementation of large-scale government projects, such as IPOs of companies with state participation. However, we are actually looking at almost all sectors of the economy. We have a particular interest in the financial sector, manufacturing and construction.
First and foremost, we focus on those industries where alternative investments are needed through the issuance of bonds and stocks. We analyze which firms are already issuing bonds — primarily microfinance organizations, manufacturing, banks and enterprises in the banking sector.
Local brokerage firms have played a significant role here, actively working with businesses and assisting them in entering the stock market.
We also plan to explore new sectors that require significant investments and are ready to support local organizations in attracting them. In the near term, our priority is to attract investments for our partners. In this regard, we are open to discussing with each client the volume and currency of the required investments, as we have a broad client base of investors. This opens up good opportunities for the rapid placement of securities of Kyrgyz companies.
— Currently, there are certain gaps that limit the inflow of foreign investments. First, there is a lack of awareness among foreign investors about our market. Second, there were previously no convenient services, such as mobile applications for purchasing our securities. Third, as a former head of the stock exchange, I can say that liquidity in the secondary market remains quite low. And low liquidity makes the market less attractive to investors.
The situation is now changing. Thanks to the Freedom Broker app, foreign investors have access to convenient tools, including mobile applications with real-time stock quotes. We also plan to act as market makers for certain securities to ensure there are always buy and sell orders on the stock exchange, thereby maintaining liquidity. This will increase trust in our market. At the same time, we will conduct analysis on local companies so that investors have a complete picture of the market situation.
Additionally, we are working to ensure that our companies issue securities not only in the national currency but also in foreign currencies, which will further increase interest from international investors.
Of course, this will take time. I do not expect an immediate influx of foreign investors, as they always carefully assess their risks. However, our goal is to create a favorable investment environment that will make the market more attractive.
— Our plans include the implementation of all digital products and their adaptation to local conditions. We are actively working to ensure that the securities of local companies are accessible through our app. In the future, we aim to provide the opportunity to issue and place securities not only for large corporations but also for small and medium enterprises.
The ecosystem of Freedom Holding Corp. includes various financial and technological sectors. For example, organizations such as Freedom Bank, Freedom Telecom, Freedom Insurance, Freedom Pay and others are represented globally.
In the future, we aim to create a comprehensive digital ecosystem in Kyrgyzstan that will provide citizens with access to various financial products. Overall, we want to set a new standard for the operations of brokerage firms in the Republic and become a driver for the development of the stock market.
— Thank you for the opportunity to share about our work.