Abdulhamid Hamid Al-Kba

Turkmenistan is not leaping suddenly into a digital economy. It is advancing step by step, beginning with legislation. The draft law on electronic commerce currently under preparation is more than a new legal text. It is an attempt to regulate what has already started growing on the ground. A government statement issued following a Cabinet meeting chaired by President Serdar Berdimuhamedov highlighted this direction. Speaker of the Mejlis Dunyagozel Gulmanova briefed the president on ongoing legislative work, noting that parliament is drafting the Law of Turkmenistan “On Electronic Commerce,” alongside amendments to several other laws. What appears administrative on the surface carries clear economic significance in a country seeking to diversify its tools.

The importance of the decision is direct. Regulating e-commerce means establishing rules that protect both consumers and sellers, define responsibilities, and link transactions to the formal banking system. Without this framework, growth remains uneven and limited. The law also forms part of broader efforts to strengthen national legislation and support Turkmenistan’s accession to international legal instruments. This creates space for technical cooperation with partners such as the International Trade Centre and the United Nations Development Programme. The shared aim is a clearer and more stable environment for digital transactions.

The draft is not isolated. It forms an integral part of the Concept for the Development of the Digital Economy for 2026–2028, which prioritizes e-government, digital services and innovative technologies. According to Central Bank of Turkmenistan data, more than one thousand retail outlets (around 1,043) were connected to the national e-commerce system through banks by early 2026. The number rose to 1,075 by April. Roughly 69 percent of these points are concentrated in Ashgabat. Non-cash payments through the e-commerce system grew by nearly 84 percent in 2025, reaching approximately 2.63 billion Turkmen manats (about 750 million US dollars) by early December 2025, up from 1.44 billion manats a year earlier.

Here the real analysis begins. An 84 percent increase tells a tangible growth story. People are using cards and online payments more frequently. Small businesses are finding easier ways to reach customers. Consumers gain greater convenience. Yet the more important question remains open: Can Turkmenistan transform this growth in electronic payments into a genuine, integrated e-commerce market?There is a fundamental difference between the two. Electronic payments mean that the financial transaction has become digital. Full e-commerce requires a broader ecosystem: reliable platforms, efficient logistics, clear consumer protection, data management, digital marketing, and effective dispute-resolution mechanisms. The new law can serve as the bridge between these stages if it succeeds in unifying the rules and encouraging more participants to enter the market.

The current figures show that a foundation exists. Rapid growth from a low base is natural in emerging digital markets. At present, however, the expansion remains more closely tied to the digitisation of payments than to the creation of a self-standing e-commerce system. The strong concentration in the capital reinforces this point. Other regions are advancing more slowly. Expanding digital infrastructure, wider coverage and improved digital literacy will be essential to sustain momentum. These are areas the national programme itself identifies as priorities.

For small and medium-sized enterprises, the forthcoming law may reduce legal uncertainty while complementing wider access to digital banking and financing mechanisms. For consumers, it promises greater clarity on rights and guarantees. Success will not be measured solely by the adoption of the text, but by its ability to turn today’s numbers into tangible daily economic activity beyond the capital as well.

In conclusion, the draft Law on Electronic Commerce is a practical and realistic step. It reflects a desire to organise what is already growing and to link it to a broader digital-economy framework. In the coming months, as legislative work continues, it will become clearer whether this reform will remain largely at the level of regulating payments or whether it will genuinely open the door to a deeper and more integrated e-commerce system. The numbers have begun to tell the story. The law will help determine how that story is completed.


*Abdulhamid Hamid Al-Kba- Opinion writer specializing in Central Asian and Azerbaijani affairs