President Gurbanbuly Berdymukhamedov said on state television this weekend that his decision was aimed at giving both parties an equal chance in the December election.
A business-oriented political party created a year ago is likely to end the Democratic Party's two-decade-long monopoly in parliament. But it is unlikely to lead to substantive democratization in the authoritarian ex-Soviet state.
Both parties support Berdymukhamedov, who runs the energy-rich Central Asian country with an iron fist.