Karachay-Cherkessia is located on the Northern slope of the greater Caucasus, to the West it borders with Krasnodar Krai in the North, Stavropol Krai, in the East with the Kabardino-Balkarian Republic, to the South, along the Main Caucasian ridge, Georgia and Abkhazia.

The Karachay-Cherkess Republic is an industrial and agrarian republic. In the north, chemical production, mechanical engineering and light industry are more developed. In the south, mining and woodworking industries and animal husbandry are more typical.

Road transport is an important link in the socio-economic sphere of the Republic and forms the basis of the transport system. The share of road transport in the republic accounts for up to 60 % of all transported cargo and 80 % of passenger transportation.

The dominant economic activities of the region are:

— agriculture;
— industry;
— construction;
— trade;
— healthcare;
— education.

The investment policy of the region is carried out by achieving the goals and objectives aimed at implementing measures to create a favorable investment climate, to support and develop priority sectors of the economy, small and medium-sized businesses, which should ultimately affect the improvement of the quality of life of the population of the Karachay-Cherkess Republic.

The region is improving the existing mechanisms and organizing comprehensive work covering all levels of government and management, as well as systematically promoting the development of business initiatives and investment.