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Digital Development

Kazakhstan to Host ITU Acceleration Centre as It Expands Regional Digital Ambitions

Kazakhstan and the International Telecommunication Union (ITU) have agreed to establish an ITU Acceleration Centre in Kazakhstan to promote artificial intelligence, GovTech, and digital skills across Central Asia. The agreement was reached during a meeting in Geneva between Kazakhstan’s Deputy Prime Minister and Minister of Artificial Intelligence and Digital Development, Zhaslan Madiyev, and ITU Secretary-General Doreen Bogdan-Martin. The ITU, a specialized agency of the United Nations founded in 1865, develops global telecommunications standards, coordinates radio-frequency spectrum use, and promotes cooperation in information and communication technologies. It has 193 member states. According to Kazakhstan’s Ministry of Artificial Intelligence and Digital Development, the new center will serve as a regional hub for digital transformation. Its priorities will include building artificial intelligence expertise, strengthening digital skills, supporting GovTech adoption, and helping narrow the digital divide across Central Asia. “We are pleased that our cooperation with the International Telecommunication Union is producing concrete practical results. We see this center as an important platform for digital innovation, AI skills development, capacity building, and regional cooperation,” Madiyev said. During the meeting, Madiyev was also named one of the founding members of the ITU’s AI for Good Global Commission. AI for Good, launched by the ITU in 2017, promotes the use of artificial intelligence to address social and economic challenges. The agreement comes as Kazakhstan continues to expand its digital infrastructure and position itself as a regional technology hub. The government has launched a series of initiatives aimed at attracting international investment in artificial intelligence, cloud computing, and data infrastructure. Earlier, The Times of Central Asia reported that SuperX was considering building a 1-gigawatt AI data center in Kazakhstan. Kazakhstan has also joined OpenAI’s “Education for Countries” initiative, which supports the integration of artificial intelligence into national education systems. In addition, the government has established an AI Fund, backed by the National Bank of Kazakhstan, to finance strategic digital projects, research, and AI education programs. The center adds another international component to Kazakhstan’s digital development strategy and supports Astana’s effort to position the country as a regional hub for artificial intelligence, GovTech, and digital skills.

New Air Route

Direct Flights Between Tashkent and Lake Issyk-Kul Launched

Kyrgyzstan’s state-owned Asman Airlines will launch a seasonal direct service between Tashkent and Lake Issyk-Kul on July 8, expanding transport links between Kyrgyzstan and Uzbekistan during the peak summer tourism season. The route is being introduced in partnership with Uzbek tour operator Malva Tour and is intended to make travel to Kyrgyzstan’s largest resort area more convenient for visitors from Uzbekistan. Flights will operate once a week, every Wednesday, arriving at Issyk-Kul International Airport in the village of Tamchy on the lake’s northern shore. The journey will take approximately one hour and 20 minutes. Round-trip fares start at $160, according to Asman Airlines. Lake Issyk-Kul, one of Central Asia’s most popular summer destinations, attracts visitors from across the region with its mountain scenery, beaches, and resort infrastructure. The new route is expected to strengthen tourism ties between the neighboring countries by reducing travel time and improving direct access to the lake. Uzbekistan remains Kyrgyzstan’s largest source of international visitors, accounting for more than 40% of all inbound foreign tourists each year. Visa-free travel, close geographic proximity, and relatively affordable holiday costs have made Kyrgyzstan a popular destination for Uzbek travelers. The launch of the new route reflects broader efforts by Central Asian countries to improve regional connectivity and capitalize on growing cross-border tourism as travel demand continues to recover.

New Tashkent Airport

Uzbekistan Signs Contract for New Tashkent Airport, Construction to Run Through 2030

On June 17, 2026, on the sidelines of the 5th Tashkent International Investment Forum, Uzbekistan Airports and a consortium of investors led by Saudi Arabia’s Vision Invest signed a public-private partnership agreement to build and operate a new international airport in the Tashkent region. The project began with a ceremonial groundbreaking in October 2025, attended by President Shavkat Mirziyoyev. The June agreement is a practical next step: the project now has a signed contract, defined investor shares, and an approved construction schedule. The international consortium will handle construction and operation of the airport. Vision Invest holds 45%. Japan’s Sojitz Corporation holds 30%, and South Korea’s Incheon International Airport Corporation holds 15%. The remaining 10% belongs to state-owned Uzbekistan Airports. Under the agreement, the private partner will manage the airport for 35 years, until around 2065. The private investors are responsible for the passenger terminal and forecourt area. The state remains responsible for building and operating the airfield infrastructure, including runways and taxiways. Construction was formally authorized by Presidential Resolution No. 353, dated November 25, 2025. The new airport will be located in the Urtachirchik and Kuyichirchik districts of the Tashkent region, on a 1,310-hectare site. The first phase includes two 4-kilometer runways and a 208,000-square-meter passenger terminal. It also includes 98 aircraft parking stands, a fuel complex, and a modern air traffic control tower. Construction is scheduled from 2026 to 2030, with commissioning planned for late 2030. At full capacity, the airport will be able to handle up to 20 million passengers and process 129,000 tons of cargo per year. It will support up to 30 takeoffs and landings per hour and accommodate 62 aircraft at once. In the longer term, the terminal will be four times larger than Tashkent’s current airport and able to serve up to 46 million passengers a year. It will be supported by more than 40 jet bridges and 160 aircraft stands. The project is driven by passenger growth that the current airport can no longer accommodate. Over the past eight years, passenger traffic in Tashkent has tripled to 9 million a year and is expected to reach 24 million by 2040. The existing airport is designed for just 11 million passengers and sits within city limits, making expansion impossible. The current airport is projected to reach full capacity by 2029, after which it is expected to close once the new facility opens. The new airport will form part of a larger transport hub. The complex will connect directly to the Tashkent-Samarkand toll highway and to routes serving Andijan and Bostanliq. A dedicated high-speed rail station will be built on site, and shuttle services will link Tashkent with the new location. The first phase is estimated at $2.5 billion and is expected to attract about $3 billion in foreign direct investment. The airport has also been presented as the first in Central Asia built according to “green” construction principles. Preparatory work before the signing included environmental and social impact assessments in line with the requirements...

Fuel Shortage

Uzbekistan Faces Fuel Shortage Pressure as Imports Rise

Central Asia is facing a new wave of tension in the market for fuels and lubricants. Shortages of gasoline, diesel fuel, and jet fuel have affected the entire region to varying degrees, but the situation is developing differently in each country. For Kyrgyzstan and Tajikistan, the problem is one of direct import dependence. Kazakhstan and Uzbekistan, which have their own production and refining capacity, are in a more stable position. However, rapidly growing domestic demand is increasingly tying them to imports. The Times of Central Asia previously reported that Kazakhstan is tightening domestic controls, building up reserves ahead of refinery maintenance, and considering fuel imports from China to protect its own market. Kyrgyzstan, meanwhile, has appealed to Azerbaijan, Belarus, Kazakhstan, Russia, Turkmenistan, and Uzbekistan for help in securing fuel supplies, as shortages inside Russia are placing additional pressure on the local fuel market. Uzbekistan’s refining system includes the Bukhara and Fergana oil refineries, the Altyaryk unit of the Fergana refinery, and the modern Uzbekistan GTL complex, which produces synthetic liquid fuels from natural gas. The system produces gasoline, diesel, jet fuel, oils, naphtha, bitumen, and liquefied gas. From January through May 2026, Uzbekistan imported 642 million liters of gasoline worth $373 million. Import volume was 84% higher than in the same period last year, while import value rose by 85%. Imports now cover nearly half of domestic demand. Domestic gasoline production during the five-month period totaled 502,200 tons, equivalent to about 670 million to 678 million liters. Output has declined in recent years, falling from 1.33 million tons in 2023 to 1.2 million tons in 2025. The pressure has also reached the domestic fuel exchange. In late June, AI-92 gasoline prices in Uzbekistan hit a record high, with one ton selling for 13.919 million soums. Since the start of June, prices have risen by about 11% to 12%. The steepest increase came in the first 10 days of the month. Supply on the exchange then fell sharply, from up to 7,700 tons in the first half of June to 1,600 to 2,400 tons in the second half. The price rise has already begun to affect retail fuel costs, especially in Tashkent. One reason for the imbalance was Uzbekistan’s phased reduction of AI-80 gasoline under an environmental reform. In May, Odil Temirov, deputy chairman of Uzbekneftegaz’s board for refining, said the Bukhara Oil Refinery would begin switching from AI-80 to AI-91 and AI-92 in November and December, with a full phase-out of AI-80 from the start of 2025. He said AI-80 accounted for 85% of output at the refinery, while AI-92 made up the remaining 15%, and that this ratio would begin to change in November. Demand quickly shifted toward AI-92 and AI-95, but domestic production has not yet adapted to the new consumption pattern. Additional pressure came from events in Russia, which remains one of the key suppliers of gasoline, refinery feedstock, and aviation fuel. Reduced output at Russian refineries, caused by repairs and the aftermath of attacks on energy...

Tamchy Special Financial Investment Territory

Kyrgyzstan Launches Tamchy Financial Zone to Attract Foreign Capital

Kyrgyzstan officially inaugurated the Tamchy Special Financial Investment Territory (SFIT) on July 3 on the northern shore of Lake Issyk-Kul, marking the launch of a new investment zone designed to attract foreign capital and position the country as a regional financial and business hub. Located near the village of Tamchy and close to Issyk-Kul International Airport, the SFIT operates under a separate legal framework aimed at attracting domestic and international investment, improving Kyrgyzstan's investment climate, and supporting growth in manufacturing, tourism, wellness services, and transport infrastructure. The zone also features an independent international dispute resolution center operating under English common law. The Tamchy SFIT covers approximately 6,000 hectares. Companies registered within the zone will operate under English common law, benefit from a zero-tax regime for 49 years, and be allowed to repatriate 100% of their profits. Speaking at the opening ceremony, President Sadyr Japarov expressed confidence that the Tamchy SFIT would become a regional and global investment platform. "According to forecasts, the project will gradually gain momentum, and by 2035, more than 3,900 resident companies are expected to operate in this investment territory, creating over 10,000 new jobs," the president said. Japarov also pointed to the project’s economic impact. "When companies enter the financial investment territory, they bring new orders for builders, suppliers, transport companies, hotels, restaurants, service organizations, farmers, and entrepreneurs. Thus, this project provides jobs for our people, new opportunities for businesses, and new sources of economic growth for the state," he said. The president said the zone’s legal and regulatory framework draws on the experience of several leading international financial centers. He named Dubai and Singapore, and also cited Luxembourg. "We've adopted proven models from these countries' experience and sought to combine them with the national advantages of the Kyrgyz Republic, the unique location of Lake Issyk-Kul, and our human potential," Japarov said. A central feature of the new investment zone is its independent International Center for Dispute Resolution operating under English law. "This important step will significantly enhance trust in the project and make the SFIT's legal framework one of its key competitive advantages," the president said. Japarov also stressed that economic development in the zone would not come at the expense of the environment. "The development of the Tamchy special territory will be carried out with full consideration of the lake's conservation requirements and its unique natural environment. Issyk-Kul is a natural gem, our national treasure, and a symbol of the country. Whatever projects are implemented in the Tamchy special territory, they will be carried out only in compliance with environmental requirements and under strict oversight," he said. During the ceremony, the president presented certificates to the first five resident companies representing the UAE, Hong Kong, Switzerland, Kazakhstan, and South Korea. The organizers also announced registration fees and licensing costs for companies operating in the zone. Company registration within SFIT will cost a minimum of $525, while registration of investment funds starts at $975. According to the organizers, businesses operating within SFIT will be able to...

Lithium

Kazakhstan Lithium Processing Method Tested on Low-Grade Ore

Kazakh scientists say they have tested a method for recovering lithium from low-grade ore, a development that fits into the country’s wider effort to build a role in critical minerals processing. The Ministry of Industry and Construction described the work as an innovative technology for processing lithium-bearing aluminosilicate ores. These ores contain lithium, but in relatively low concentrations, meaning the challenge is not only mining the metal, but separating it economically. Lithium is used in rechargeable batteries, including for electric vehicles and energy storage systems. Demand for lithium and other critical minerals has risen with the expansion of clean-energy technologies, while governments are paying closer attention to where these materials are mined and processed. The United Nations has warned that rising demand for energy-transition minerals brings risks, including environmental damage and unequal distribution of benefits, if extraction and processing are not properly managed. The Kazakh announcement centers on carbothermic smelting, a high-temperature process that uses carbon to help separate useful components from ore. According to the ministry, the method allows lithium to be concentrated in slag in a chemically active form, making it easier to process further into lithium salts. Feruza Berdikulova, the project leader, said the process produces a concentrate containing 12-14% lithium oxide, whereas conventional methods usually produce concentrate with no more than 5-6% lithium oxide. The ministry said the process has other potential advantages, including reduced use of aggressive sulfuric acid solutions, potentially lower production costs, and less environmental impact. These claims are potentially significant, but they should be treated with some caution. The ministry statement does not say whether the process has been tested beyond laboratory or pilot conditions, nor does it provide precise details on cost or scalability. Kazakhstan has large mineral resources and a long-established mining sector, but building a competitive lithium industry would require more than laboratory results. Financing to ensure reliable processing at scale remains one of the biggest challenges. The work was carried out by the National Center for Complex Processing of Mineral Raw Materials, a state research body that includes several mining and metallurgical institutes and laboratories, among them a rare metals laboratory. Kazakhstan has been trying to present itself as a future supplier of critical minerals at a time when the global market is looking for alternatives to concentrated supply chains. The Times of Central Asia previously reported that new geological surveys at the Kuirektykol rare earth deposit in the Karaganda region had raised estimates of commercially viable rare earth elements to 28.2 million tons, up from an initial estimate of 20 million tons. The country is also preparing to open an internationally accredited rare earth metals laboratory in Astana, under the National Geological Service, with certification from RCI Inspection and PARAGON. The facility is intended to improve Kazakhstan’s ability to test and certify critical minerals for international markets. The lithium processing announcement should be read in that context. It is not proof that Kazakhstan is about to become a major lithium producer. It is, however, another sign that...