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Foreign Investment

Kazakhstan Courts Global Investment with Critical Minerals and Green Energy Push

Since gaining independence, Kazakhstan has established itself as a reliable global supplier of raw materials. Today, the country's economic structure is evolving as it positions itself as a high-added-value hub for industrial production. These developments are closely tied to Kazakhstan’s transition to a green economy and its role in global supply chains for critical minerals. Creating a Favorable Investment Climate Kazakhstan has taken significant steps to create a transparent, predictable investment environment and enhance its business competitiveness. Among these measures is the introduction of investment agreements that guarantee legislative stability for up to 25 years for large projects exceeding $60 million. The legal framework has also undergone reforms, procurement procedures have been modernized, and judicial reforms have created separate cassation courts and redefined the Supreme Court’s role. These reforms have drawn the attention of international investors and rating agencies. In 2024, Moody’s upgraded Kazakhstan’s long-term credit rating to the highest level in the country's history, citing macroeconomic stability and policy predictability. In the first nine months of 2025, GDP grew by 6.3%, while investment in fixed capital rose by 13.5% to reach $26 billion. Moody’s analysts also highlighted Kazakhstan’s stronger economic outlook compared to other hydrocarbon-exporting nations, attributing this to ongoing reforms that enhance the country’s competitiveness. One key driver is the rapid development of the transport and logistics sector, particularly through the Trans-Caspian International Trade Route, also known as the Middle Corridor. This corridor is attracting foreign investors across a range of non-oil sectors, including automotive, pharmaceuticals, food production, and construction materials. Kazakhstan is also home to the Astana International Financial Centre (AIFC), a platform that operates under English common law. The AIFC offers tax exemptions, simplified labor regulations, and digital arbitration. It currently ranks first in Eastern Europe and Central Asia in the Global Financial Centres Index. More than 4,200 companies from 80 countries, including over 60 American firms, are registered with the AIFC. Strategic Projects Take Shape Kazakhstan’s diversification strategy and focus on critical minerals were prominently showcased during the 8th Kazakhstan Global Investment Roundtable (KGIR-2025), held in Astana in October. The event attracted over 1,000 participants from 55 countries, resulting in the signing of 49 agreements worth $7.5 billion. A key session focused on critical minerals and the energy transition, signaling the country’s long-term growth trajectory. Among the highlights was a meeting between the government and Mohammad Vahid Sheikhzadeh Najjar, CEO of FakoorSanat Tehran Engineering Co., to explore cooperation in mining and metallurgy, including new technologies for processing mineral raw materials. Sheikhzadeh Najjar noted that the global market for critical minerals, currently valued at $328 billion, is expected to double by 2032. He emphasized that Kazakhstan is well-positioned to lead this growth. Environmental initiatives, such as a project to process 55 billion tons of mining waste, offer additional economic potential. Meanwhile, Chinese investor Zhang Jintao, founder of Chengdu Sepmem Energy, proposed a long-term plan to develop an LNG cluster in Kazakhstan. The project envisions a nationwide network of LNG plants and supporting infrastructure to reduce emissions...

Electric Vehicles

Wheels of Influence: China’s Electric Vehicle Push in Central Asia

As domestic competition intensifies and protectionist barriers rise in Western markets, Chinese electric vehicle (EV) manufacturers are increasingly looking outward. One region emerging as a key destination is Central Asia, where China’s green tech ambitions align with local efforts to modernize and decarbonize transport systems. From affordable passenger cars aimed at private drivers to electric buses transforming public transit, Chinese EVs are quietly gaining traction across Kazakhstan, Uzbekistan, Kyrgyzstan, and Tajikistan. Companies like Yutong are supplying e-buses for urban mobility, while fleets of electric taxis are beginning to appear in Dushanbe’s streets. This growing presence is more than just commercial - it signals a deeper shift in China’s regional engagement strategy, using clean technology as a vehicle for influence in a strategically contested space. There is an upward trend in the import of electric vehicles from China to Central Asia, particularly in Kazakhstan and Uzbekistan. In 2024, Uzbekistan imported over 24,000 EVs, with Chinese manufacturers accounting for a staggering 99.5% of all imports. This marked an increase of more than 8,000 units compared to 2023 - nearly a 1.5-fold growth in just one year. A similar surge is visible in Kazakhstan. In 2023, the country imported around 6,875 Chinese EVs, but by 2024, although official figures are yet to be released, industry reports indicate a 36-fold increase in the sales of Chinese EVs year-on-year. Drivers of Import: Policy and Perception The surge in EV imports into Central Asia is driven by a convergence of motivations from both China and the region’s domestic policies. On the supply side, the rapid influx of Chinese EVs reflects a blend of strategic export redirection by Chinese automakers and receptive policy environments in the region. Faced with mounting trade restrictions and increasing regulatory pressure in Western markets, Chinese EV producers are pivoting toward emerging economies to safeguard growth. Central Asia has become a promising destination due to its untapped consumer base. On the demand side, Central Asian governments are enacting supportive policies to accelerate the green transition, making EV imports more accessible. For example, Uzbekistan has removed both excise taxes and customs duties on imported electric vehicles, while Kazakhstan and Kyrgyzstan benefit from a Eurasian Economic Union ruling that extends duty-free EV imports until the end of 2025, creating a favorable environment for consumers and fleet operators. In addition to these policy frameworks, a growing positive perception of Chinese EVs has emerged across the region. Chinese manufacturers are seen as offering a combination of affordability and quality, a crucial advantage in price-sensitive markets like Central Asia. For consumers and taxi fleet operators, the appeal goes beyond the sticker price - electric vehicles are significantly cheaper to operate. Unlike gasoline-powered cars that require frequent oil changes and filter maintenance, EVs offer lower long-term operating costs, making them a practical and economically attractive choice. Beyond Exports: Assembling a Local Presence However, China’s electric vehicle expansion in Central Asia goes beyond exports - it increasingly involves local production through joint ventures and assembly plants. In Uzbekistan, the state-owned...

Sports

Real Madrid to Play Kairat in Almaty in UEFA Champions League

Almaty’s Kairat will face European giants, including 15-time champions Real Madrid, in the UEFA Champions League group stage, marking a historic milestone for the Kazakh club. Kairat has never before reached this phase of the competition. Earlier this summer, the club became only the second team from Kazakhstan, after Astana, to qualify for the group stage by overcoming four rounds of qualifiers. Prior to the August 28 draw, head coach Rafael Urazbakhtin expressed a wish to be grouped with Real Madrid, Barcelona, or Liverpool. The draw delivered on one of those wishes: Kairat will now face Real Madrid, the most decorated club in European football history. Also in their group are Inter Milan, three-time Champions League winners, and Arsenal, a top English club with 13 domestic league titles but still seeking their first Champions League crown. Kairat's group stage schedule includes away matches against Sporting Lisbon and Copenhagen, while they will host Belgium’s Club Brugge, Greece’s Olympiacos, and Cyprus’s Pafos in Almaty. The group stage will be played between late September 2025 and the end of January 2026. “We are delighted to be playing Real Madrid. It's not often that such a club comes to Kazakhstan,” said Urazbakhtin. He acknowledged the disparity in skill levels but emphasized the importance of home support and maximizing their advantage in Almaty. A total of 36 clubs are competing in this season’s group stage. Each team plays eight matches, four home and four away, against different opponents. The top eight teams overall will advance directly to the playoffs, while clubs ranked 9th to 24th will enter a playoff round in February 2026 to fight for the remaining spots in the round of 16. As previously reported by The Times of Central Asia, Kairat earned their Champions League berth after a dramatic penalty shootout win over Celtic, with reserve goalkeeper Temirlan Anarbekov playing a decisive role in the victory.

Pharmaceuticals

Uzbekistan’s Pharma Pivot: Strategic Gains or Growing Dependence on China

Since 2016, Uzbekistan has steadily deepened its partnership with China across multiple sectors. Energy, infrastructure, agriculture, and the digital economy have long been the pillars of this cooperation. Yet recent discussions showed that the pharmaceutical sector will be another critical area for cooperation in the long term. Much like renewable energy and critical minerals, the pharmaceutical sector is now viewed in Tashkent as a strategic domain where Chinese expertise and investment could accelerate development and add value to the domestic economy. The Compelling Logic of Partnership China's strength lies in its ability to produce high-quality, affordable medicines and distribute them globally at scale. For Uzbekistan - whose growing population and rising demand for advanced healthcare have placed pressure on its system - this makes China a natural partner. At present, the Uzbek pharmaceutical market remains heavily import-dependent: by the end of 2024, imported drugs accounted for 87% of retail sales in monetary terms and 63% in physical volume. This reliance not only exposes vulnerabilities but also highlights the untapped potential for local production. Recognizing this, Tashkent has moved to create favorable conditions for investment. The country has established specialized pharmaceutical Special Economic Zones (SEZ) such as Parkent-Pharm and Andijan-Pharm. These SEZs offer investors an attractive package of incentives, from exemptions on customs duties and VAT for raw materials and equipment, to a 20% preference in government procurement for local products. Such regulatory incentives, combined with a growing domestic market, have already begun to draw interest from Chinese pharmaceutical firms. Strategic Priorities Recently, Uzbekistan has signed a series of memorandums of understanding with Chinese firms such as Zhendong Health Industry, Guojo Medical Technology, and Langtian Pharma Group, signaling a stronger bilateral focus on the pharmaceutical sector. These agreements align closely with Uzbekistan’s strategic goal of building a robust domestic pharmaceutical industry with an emphasis on access to capital and technology, localization, and human capital development. One of Uzbekistan’s key priorities is securing access to capital and expertise. Without investment and collaboration with experienced companies, the state cannot establish modern laboratories and production facilities. In this regard, the Uzbek company, Ozwell, has signed an MoU with Zhendong Health Industry Group to jointly implement a modern pharmaceutical laboratory. The partnership involves a total investment of $9.5 million, with $4.5 million allocated toward creating a world-class laboratory facility and $5 million designated for establishing and scaling up a production complex. This agreement reflects Tashkent’s desire to tap into Chinese technical knowledge and experience, while simultaneously building domestic capacity and developing local talent in the long term. Another critical priority is the localization of drug production. By reducing dependency on imports, Uzbekistan is aiming to strengthen supply chain resilience, meet domestic demand, and create new opportunities for regional exports. In this regard, the MoU established with Langtian Pharma Group and Guojo Medical Technology is designed to investigate opportunities for domestic production while promoting technological collaboration and knowledge transfer within the pharmaceutical industry. The final priority is the development of human capital. In this regard, Uzbekistan...

Osaka Expo 2025

Bold Pavilions, Big Statements: Central Asia at Osaka Expo 2025

On a sweltering August day, The Times of Central Asia arrived at the Osaka Expo 2025. The theme, "Designing Future Society for Our Lives," set the stage for a carnival of new ideas and technology. Pavilions buzzed with invention, each one a world of its own. Central Asia turned heads - with all five countries represented - with vibrant stalls, bustling booths, and grand castle-like showpieces that drew crowds from every corner. [caption id="attachment_35420" align="aligncenter" width="2560"] Kazakhstan Pavilion; image: TCA, Stephen M. Bland[/caption] Kazakhstan’s pavilion presents the theme “Born Bold” in the “Connecting Lives” zone, alongside South Korea, Germany, Luxembourg, Nepal, Azerbaijan, Iran, Monaco, and Türkiye. At its heart rises the shanyrak, the sacred crown of the yurt, once a symbol of roots and now a beacon of unity, mirroring the Expo’s spirit of innovation and shared horizons. The story begins with the essence of the Kazakh people. Generations, history, culture, and traditions unfold from the Kazakh Khanate and the vast steppe to Abai’s poetry and the nation’s sporting heroes. It is a narrative of memory and strength, where the past is not closed, but carried forward as a living value. [video width="1280" height="720" mp4="https://timesca.com/wp-content/uploads/2025/08/KZ1-REMOVE-AUDIO-Videobolt.net_.mp4"][/video] From history, the focus shifts to unity. Every guest becomes part of the experience as their face is woven into a digital mosaic, a vivid symbol of belonging. Interactive technologies present Kazakhstan as a country where diversity does not divide but connects. From past to present, the spotlight then falls on a Kazakhstan that is inventive and future-ready. Visitors explore the country’s energy transition, green initiatives, digitalization, and work in artificial intelligence, alongside its rise as an investment hub. [caption id="attachment_35413" align="aligncenter" width="2560"] Prolonging life - ALEM at the EXPO; image: TCA, Stephen M. Bland[/caption] The final chapter places pride and place on the groundbreaking ALEM (Astana Life Ex-situ Machine) developed by Kazakh scientists. Created by the Heart Center Foundation, it is already redefining the possibilities of transplantation. The window for organ transplants is short, from just a few hours for a heart or lungs to more than a day for a kidney. ALEM changes the game. By replicating the body’s internal conditions, it can keep a donor heart alive for 24 hours, opening new possibilities. Only a few models currently exist, including the one on display in the pavilion. [caption id="attachment_35414" align="aligncenter" width="2560"] The Turkmenistan Pavilion; image: TCA, Stephen M. Bland[/caption] The Turkmenistan Pavilion dazzles with three lavish floors beneath an iconic, rounded-triangular ceiling that symbolizes circulation, sustainability, and the flow of life. On the ground level, an epic immersive video left the Japanese audience gasping as it honored Turkmenistan’s great men, legendary horses, and loyal dogs, while women appeared only in fleeting roles. [video width="1280" height="720" mp4="https://timesca.com/wp-content/uploads/2025/08/TK1.mp4"][/video] The second-floor shifts to the present, celebrating modern achievements, from the smart city of Arkadag to advances in industry, finance, and science. The space unfolds as an eclectic mix of books, jewelry, rugs, and even everyday objects like bottles of oil. At its center, a glowing...

Agricultural Export

Kazakhstan Grain Exports Surge to Iran, Azerbaijan, and Central Asia

Kazakhstan exported 12.4 million tons of grain and flour between September 2024 and July 2025, marking a 34% increase from the same period in 2023-2024, when exports totaled 9.3 million tons, according to the Ministry of Agriculture. Kazakhstan recorded substantial export growth to key regional markets. Shipments to Uzbekistan rose by 28.2%, from 3.384 million to 4.338 million tons, while exports to Tajikistan grew by 39.2%, reaching 1.446 million tons. Deliveries to Kyrgyzstan more than doubled, increasing 2.5 times from 156,000 to 398,000 tons. Exports to Iran surged nearly 17-fold, jumping from 56,000 to 974,000 tons, and shipments to Azerbaijan skyrocketed 120-fold, from just 6,000 to 723,000 tons. A major milestone of the 2024-2025 export season was the diversification of export destinations. For the first time, Kazakh grain reached Belgium, Poland, Portugal, Norway, and the United Kingdom. Additionally, Kazakhstan exported approximately 60,000 tons of wheat to Morocco and 15,000 tons to Vietnam. Grain exports to Azerbaijan, Georgia, and Turkey resumed after a five-year hiatus, and shipments of durum wheat to Italy saw significant growth. The increased volumes highlight the growing competitiveness of Kazakh grain on the international market and reinforce Kazakhstan’s standing as one of the world’s leading grain exporters.