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Logistic Hub

$100 Million Kyrgyzstan Logistics Center Planned Near China Border

Kyrgyzstan plans to establish a logistics center near its border with China, with up to $100 million in investment to be attracted for the project. The center would help connect Chinese freight with routes through Uzbekistan and Afghanistan toward Pakistan, giving landlocked Kyrgyzstan another possible route to South Asian ports. On September 10, Kyrgyzstan’s National Investment Agency and local company Textile Trans signed a memorandum on establishing the Sary-Tash international transport and logistics center. The project also includes plans for a textile manufacturing cluster. Sary-Tash is located in the Alay Valley in southern Osh Region, around 70 kilometers from the Irkeshtam border crossing with China. It sits on the Osh-Sary-Tash-Irkeshtam road and at a junction with routes toward Tajikistan. The planned center is intended to handle cargo moving along the China-Kyrgyzstan-Uzbekistan-Afghanistan route, with possible onward access to Pakistan. It would include warehouse and transshipment facilities, along with customs services and a digital system for monitoring cargo. The Osh-Sary-Tash-Irkeshtam corridor is also included in Kyrgyzstan’s draft Logistics Framework Map for 2026–2030, which was released for public consultation in August. The plan also covers the China-Kyrgyzstan-Uzbekistan railway, which is being built along a separate route through Torugart, Arpa, Makmal, and Jalal-Abad. The Sary-Tash project comes as Bishkek looks for shorter trade routes to South Asia. On September 2, during Pakistani Prime Minister Shehbaz Sharif’s visit, Kyrgyzstan and Pakistan signed a Transit Trade Agreement. The agreement is intended to make trade and transit between the two countries easier. Kyrgyzstan has identified the Pakistani ports of Karachi, Port Qasim, and Gwadar as possible gateways to international markets. Trade between the two countries remains limited. During talks with Kyrgyz President Sadyr Japarov, Sharif said the two sides wanted to raise annual bilateral trade from about $16 million to $200 million within two years. Kyrgyzstan and Pakistan do not share a border. One possible route runs through Uzbekistan and Afghanistan, while another passes through China. Bishkek tested the China route in April 2026. A truck traveled about 3,300 kilometers from Bishkek through the Torugart crossing into China, then continued via Kashgar and the Karakoram Highway before crossing the Khunjerab Pass into Pakistan and reaching Karachi. That route bypasses Afghanistan and gives Kyrgyzstan direct road access to Pakistan’s seaports. Sary-Tash lies on a different road toward China, near Irkeshtam. The planned logistics center would allow goods to be stored and transferred there before continuing along regional transport routes. The announced $100 million is not secured financing. The memorandum says the project aims to attract investment of up to that amount. No construction timetable or opening date has been announced.

Banking

Uzbekistan Pitches Decades of Tax Breaks to Financial Firms

Uzbekistan is offering qualifying financial firms nearly half a century of tax exemptions to set up in Tashkent. The goal is to attract private capital into an economy where state-owned banks still control most banking assets. On September 10, President Shavkat Mirziyoyev appointed his daughter, Saida Mirziyoyeva, to head the planned Tashkent International Financial Centre, Reuters reported. She has led the presidential administration since 2025. Mirziyoyev announced the project at June’s Tashkent International Investment Forum, promising free capital movement alongside tax incentives. Its legal framework would draw on English common law principles, as is the case with Kazakhstan’s Astana International Financial Centre. Who Gets the Tax Breaks? Under the founding law, qualifying participants would receive income and social tax exemptions on financial services income until January 1, 2076. Eligibility requires an actual economic presence in the center and compliance with its rules. The income incentives exclude members of multinational groups with annual revenues of at least €750 million in two of the preceding four fiscal years. Those firms face a domestic top-up tax. The offer is therefore less generous for large multinational groups. A global bank would need a commercial reason to enter Uzbekistan beyond the prospect of a lower tax bill. Most of the foreign businesses operating in Uzbekistan are already concentrated in Tashkent. Almost 63% of the country’s foreign-invested enterprises were based in the capital as of June 1, 2026. Financial firms entering the city would therefore have an existing customer base to pursue, although the numbers alone reveal little about demand for particular services. The domestic banking market does offer scope for competition. In its 2026 assessment, the IMF reported that nine state-owned commercial banks accounted for 63% of banking assets. It also noted delays in privatizing two large banks and urged the authorities to withdraw directed and preferential lending. The center could attract private lenders and help more Uzbek businesses obtain loans. However, simply moving existing deals there to reduce tax bills would do little to expand access to credit. Astana’s Head Start Kazakhstan has operated its financial center since 2018. Its AIFC Court sits outside the national judicial system and uses procedures based on English common law. Businesses can also agree to bring disputes there even when those disputes originate outside the center. The court works directly with Kazakhstan’s authorities to enforce its judgments, and says its first ruling resulted in full payment through private bailiffs. That gives prospective users a concrete example of how a commercial judgment can lead to the recovery of a debt. Uzbekistan’s law likewise provides for an independent commercial court and nationwide recognition of its final judgments. It requires judgments to be published within 30 days, subject to limited confidentiality protections. For lenders, that could reduce uncertainty about committing money to an unfamiliar market. Tashkent would still need to establish a record of decisions and enforcement comparable to the experience available in Astana. The law allows 12 months to adopt essential operating rules, extendable by six months. Activation then requires...

Construction

Tajikistan Plans to Build Central Asia’s Tallest Building

Construction has begun in Tajikistan on what authorities say will be the tallest building in Central Asia, part of a massive development involving international design and engineering firms that is expected to alter Dushanbe’s skyline. The planned 77-floor Dushanbe Tower will be in a complex in the Shohmansur district of the capital that includes five high-rise towers and office, entertainment, and residential areas, according to Tajikistan’s presidential office. It said more than 2,000 local construction workers will be involved in the Dushanbe Mall project, which is slated for completion within five years. “In general, this will be the tallest structure in the region,” the presidency said. While the official statement used the term “structure,” it’s possible that the Dushanbe Tower would not be taller than several other structures, including telecommunications towers, in the region. However, it would be the tallest conventional building if its height projections are borne out. The presidency said the height of the Dushanbe Tower will be 340 meters. Amir Holding, a Dushanbe-based real estate development group leading the Dushanbe Mall project, notes a height of 359 meters on its website. RMJM, a global network of architects and other professionals that was founded in Scotland, says it is designing the skyscraper and that it will be 400 meters high. Completed in 2022, the 311-meter Abu Dhabi Plaza in Astana, Kazakhstan, is currently the tallest building in Central Asia. TAS International Group, a construction company within Amir Holding, is involved in the project. In a statement, the parent company described the development as “a landmark urban intervention addressing the city's shortage of high-quality residential, commercial, hospitality and retail infrastructure,” but did not disclose the project’s cost. “Positioned within a rapidly growing market, it responds to increasing demand for premium real estate and establishes the foundation for Dushanbe's first central business district,” the developer said. The project includes a lake and extensive green space, according to designers. The Dushanbe Tower will be “immersed” in the park, offering “a new blueprint for sustainable urbanism in Central Asia,” according to RMJM. It said the goal is to make “greenery an integral, authentic part of the urban experience.” Companies from Uzbekistan are also contributing to the Dushanbe Mall project, showing that “Central Asian countries are working together not only in politics and trade, but also on major construction and infrastructure projects,” said MTRK, Uzbekistan’s state broadcaster. The Shohmansur district, where the project is being built, is in the Gissar Valley. Dushanbe is in an earthquake-prone region, and a LinkedIn recruitment post for an engineer on the Dushanbe Tower project says the job involves advanced analysis of seismic loads in what it describes as a “9-ball zone.” Dushanbe already has a shopping center called Dushanbe Mall or City Plaza, which opened in 2016 and is not connected to the new project. President Emomali Rahmon and his son, Dushanbe Mayor Rustam Emomali, laid the foundation stone for the new project on September 3.

Astana Finance Days 2026

From Transit to Capital: What Investors Were Looking for in Kazakhstan at Astana Finance Days

On the second day of Astana Finance Days, Kazakhstan was trying to answer the question that follows almost every discussion about new railways, power plants, data centers, and factories: where will the money come from? International banks, asset managers, and stock exchanges gathered in Astana, and the conversation quickly reached a point – foreign capital is interested in the country, but its domestic stock market remains too small for many large investors. From Transit to Transactions The title of the first major discussion of the second day – “From Transit to Transactions” – neatly captured the idea. Kazakhstan already earns money from its position between China and Europe and is investing billions in railways, ports, and energy infrastructure. Now Astana wants financial transactions to move alongside the freight, and some of that capital to remain in the country. The Astana International Financial Centre (AIFC), where the forum is being held, was created partly for that purpose. It is a separate financial jurisdiction within Kazakhstan, with its own regulator, court, and legal framework based on the principles of English common law. According to the center, by June 2026 its platform had helped attract $25.3 billion in investment to Kazakhstan, while the number of registered companies had exceeded 5,800. But the presence of international companies does not necessarily mean they are ready to invest. Jad Ellawn, Managing Partner for the Middle East at Brookfield, one of the world’s largest alternative asset managers, began with three conditions. “The fundamental principles for an investor looking to enter a country consist of three components. First is having the proper legislation. Second is respect for capital: a country needs to demonstrate that capital is important to it not only domestically, but beyond its borders. Third is scalability,” he said. “In addition to energy resources, Kazakhstan has many other natural resources, and your country is the ninth-largest country in the world. This means you have many potential industries that you could develop, unlike the Gulf.” Yilmaz Kocagoz of Goldman Sachs, one of the largest U.S. investment banks, looked at Kazakhstan through the lens of manufacturing and infrastructure. “For Kazakhstan to diversify its economy beyond commodities, it needs to develop manufacturing and infrastructure,” he said. Kocagoz also pointed to Kazakhstan’s relatively low government debt burden. For an investor, that means a smaller share of the country’s future revenues is already committed to servicing a large public debt. Nurlan Zhakupov, the CEO of Kazakhstan’s sovereign wealth fund Samruk-Kazyna, put a price tag on the country’s investment program: more than 100 projects worth $105 billion. “We see demand from local businesses and enormous interest from foreign partners. We are also seeing growing consumption of electricity and natural gas, as well as demand for the transportation of electricity, oil, gas, and petroleum products,” Zhakupov said. He ended with an invitation: “Overall, Kazakhstan currently has a good business climate, and now is a good time to enter the Kazakh economy.” The next discussion in the same building helped explain why that does...

Middle Corridor

Middle Corridor Freight Grows, but Eastbound Cargo Lags

Container traffic is growing along the Middle Corridor from China and Central Asia toward Europe, but the route is far less busy in the opposite direction. In the first eight months of 2026, about 80% of container traffic moved westward and only 20% eastward. Operators are now looking for goods in Europe and Türkiye that can be shipped back across the Caspian Sea and Kazakhstan toward Central Asia and China. Container traffic totaled 53,574 TEU along the Trans-Caspian International Transport Route, also known as the Middle Corridor, in January–August. One TEU is equivalent to a standard 20-foot container. During the same period last year, the figure was 48,326 TEU, meaning traffic increased by 11%. But the flows were highly uneven. According to ADY Express, 42,642 TEU moved from east to west, compared with just 10,932 TEU in the opposite direction – a ratio of almost four to one. Interest in the route increased sharply after 2022, when companies began looking for additional ways to move goods between China and Europe without transiting Russia. Over the past several years, participants in the Middle Corridor have focused on increasing shipments from China. New train services have been introduced, while countries along the route have invested in railways, terminals, and Caspian ports. Chinese freight has grown, but there is still not enough cargo for the return journey. For transport operators, the issue comes down to finances. Once containers reach Europe, they need to be used again or repositioned. If there is cargo for the return journey, the equipment generates revenue in both directions. Without it, operators can face the cost of moving empty equipment. The 80%-to-20% split, however, does not establish how many containers actually make the return journey without cargo. Railway companies themselves are now acknowledging the shortage of eastbound cargo. “For this, backhaul freight is necessary,” Emil Mammadov, Adviser to the Chairman of Azerbaijan Railways, said at the Black Sea and Caspian Freight Forum 2026 in Baku. According to Mammadov, attracting cargo from Europe would help increase freight volumes, optimize transportation costs, and allow at least some containers to be returned to their countries of origin. Until now, the route has been promoted more actively in China, Kazakhstan, Azerbaijan, Georgia, and Türkiye. European companies have received less attention. Railway operators are now looking for customers at the western end of the corridor as well. A shipment from Türkiye showed what such a return journey could look like. In May, KTZ Express and Pasifik Eurasia dispatched a train from Izmir to China carrying household refrigerators. Fifty 40-foot containers crossed the Caspian Sea, traveled through Kazakhstan, and continued into China via the Altynkol border station. For now, such shipments remain limited. The Chinese side continues to push for more westbound traffic. On September 9, Azerbaijan Railways held talks with Shanghai International Port Group and Lianyungang Port on expanding shipments of Chinese goods through Kazakhstan, across the Caspian, and through Azerbaijan toward Europe. ADY Express also reported that 265 container block trains operated along...

Cryptocurrency

Uzbekistan Tests HUMO Stablecoin for Everyday Payments

Uzbekistan has begun its first experiment using a privately issued stablecoin called HUMO to pay for everyday goods and services. A stablecoin is a digital token designed to keep a fixed value, rather than rise and fall sharply like Bitcoin. One HUMO will be pegged to one Uzbek soum, with the tokens backed by government securities. The name may cause some confusion because HUMO is also the name of an Uzbek payment system. The token is not a bank card or a central bank digital currency and is separate from that payment system. HUMO Digital, a private company, is listed by the National Agency for Perspective Projects (NAPP) as the stablecoin’s issuer. The project is being conducted under the joint supervision of the Central Bank and NAPP. Until now, crypto assets could not legally be used to pay directly for goods and services in Uzbekistan. The Central Bank and NAPP have decided to test an exception under a special regulatory regime. On September 2, HUMO Digital was registered to take part in the experiment. The project will test the issuance, circulation, and redemption of HUMO, as well as its use to pay for goods and services. More than 20 companies are prepared to accept the tokens during the pilot. Asterium, which is licensed as a crypto exchange, crypto depository, and crypto shop, is also participating in the project. Each HUMO issued is to be backed by Uzbek government securities. In practice, that means HUMO Digital will hold government debt as collateral behind the tokens it issues. The Central Bank will monitor whether there are enough assets backing the tokens and whether those assets are safely held. It will also assess whether payments and consumers are adequately protected, along with any effects that wider use of HUMO could have on inflation, monetary policy, and financial stability. The experiment is initially planned for 12 months. It can be extended, although the project cannot last more than three years in total. The results will help regulators decide how such digital financial instruments should be regulated in the future. The choice of the soum sets the Uzbek project apart from most of the global stablecoin market. Neighboring Kazakhstan is also exploring a potential stablecoin, although its proposed structure has not been disclosed. Nearly all major stablecoins are pegged to the U.S. dollar. According to the Bank for International Settlements (BIS), approximately 98% of stablecoin value is denominated in dollars. The best-known examples are Tether (USDT) and USD Coin (USDC). In effect, they allow users to hold and transfer something closely tied to the value of the dollar at any time and across borders. For countries with their own currencies, that convenience can create a problem. If people increasingly save or pay in dollar-backed tokens instead of the local currency, the local currency can lose ground. The BIS warns that widespread stablecoin adoption in emerging economies could accelerate what it calls digital dollarization and make it harder for central banks to manage their economies. Tashkent...