Features - The Times Of Central Asia

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Digital Technologies

Kazakhstan Advances Digital Transformation with U.S. Partnerships

Kazakhstan, Central Asia’s largest economy, is rapidly positioning itself as a regional leader in digital transformation. Increasingly, United States partners no longer view Kazakhstan solely as a source of natural resources. Instead, future cooperation is expected to expand into digital technologies and artificial intelligence (AI). Advances in Digitalization In October, Kazakhstan reaffirmed its digital ambitions with a major technological breakthrough. Kaspi, the country’s leading fintech firm and a systemically important bank, launched Kaspi Alaqan, a palm-based payment system that requires no phone, card, or internet connection. The service will debut in December 2025 through dedicated ATMs in Almaty before expanding nationwide. Analysts say the innovation puts Kaspi on par with Amazon One and China’s WeChat, highlighting Kazakhstan’s readiness to adopt cutting-edge global technologies. Traditionally associated with oil, gas, and uranium, Kazakhstan is now investing heavily in becoming Central Asia’s digital hub, an evolution that presents strategic opportunities for the U.S. Partnerships in digital governance, AI, and innovation ecosystems align closely with Washington vision for expanded cooperation in Eurasia. According to the United Nations, Kazakhstan ranked 24th globally in digital development as of June 2025, placing in the top 10 for online public services. Services such as school enrollment, vehicle registration, and passport issuance have been fully digitized, requiring minimal citizen effort. In some cases, the process is faster than in many Western countries. Kazakhstan’s government aims to double its GDP to $450 billion by 2029, a target that will require more than a 2.5-fold increase in investment. Digital technologies are central to this strategy. To manage this transformation, a new Investment Board was established in October 2025 to oversee large-scale projects and determine economic priorities. In September, the Mazhilis (lower house of parliament) passed a landmark law on artificial intelligence. Deputies highlighted fairness, transparency, and the protection of personal data as key legal principles. The newly launched National Artificial Intelligence Platform hosts over 100 AI agents that support e-government functions and expand access to technology. Additionally, in July, Kazakhstan introduced a supercomputer powered by NVIDIA H200 GPUs. With performance reaching 2 exaflops (FP8), it is the most powerful computing system in Central Asia. Startups, universities, and research centers now have access to this infrastructure. The language models KazLLM and Alem LLM have also been introduced, capable of generating content in Kazakh, Russian, English, and Turkish. For the U.S., Kazakhstan’s AI ecosystem offers a valuable partner for collaborative research, ethical framework development, and State Department–supported initiatives using AI for sustainable development. Investing in the Future U.S.–Kazakhstan cooperation in digital innovation is already accelerating. In September, Amazon announced a $200 million investment in Kazakhstan’s internet infrastructure. A distribution agreement with Kazakhtelecom will bring Amazon’s Kuiper satellite network to the republic, improving connectivity and driving economic growth. Additionally, 24 startups from Central Eurasia have joined U.S. accelerator programs such as AlchemistX and Silicon Valley Residency. These initiatives, launched in September in Palo Alto, connect regional teams with U.S. venture capital and technology ecosystems. Kazakhstan is also advancing blockchain infrastructure. Astana recently launched the...

C5+1 Summit

U.S. Secretary of State Marco Rubio Plans Visit to Central Asia in 2026

U.S. Secretary of State Marco Rubio announced on Wednesday his intention to visit all five Central Asian countries in 2026. Rubio made the statement during a meeting with the foreign ministers of Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan. The visit is part of a broader diplomatic initiative by U.S. President Donald Trump's administration to strengthen ties with the resource-rich region. Today, the presidents of the five Central Asian republics, Kassym-Jomart Tokayev (Kazakhstan), Sadyr Japarov (Kyrgyzstan), Emomali Rahmon (Tajikistan), Serdar Berdimuhamedov (Turkmenistan), and Shavkat Mirziyoyev (Uzbekistan), are scheduled to meet with President Trump in Washington. The summit is expected to focus on cooperation in the extraction of rare earth elements and other natural resources in Central Asia. Rubio emphasized the alignment of U.S. and Central Asian interests in promoting responsible and sustainable development of the extractive sector. “You are seeking to use the resources that God has blessed your countries with to create responsible development and diversify your economies,” he said at a reception hosted by the State Department. “I personally intend to visit in the coming year. All five [countries], so I know it would probably be a week-long trip. So we’ve got to work on that and make that happen together.” U.S. Deputy Secretary of State Christopher Landau stated that the invitation extended to Central Asian leaders is part of President Trump’s personal initiative to deepen engagement with the region. He highlighted broad opportunities for cooperation in business, investment, and strategic partnerships. Also speaking at the reception, Republican Senator James Risch said he intends to introduce legislation to repeal the Jackson-Vanik amendment, a Cold War-era law that restricts U.S. trade with non-market economies.

U.S.-Kazakhstan Relations

Kazakhstan Strengthens Role as U.S. Key Trade Partner in Central Asia

Kazakhstan has emerged as the United States’ primary economic partner in Central Asia, accounting for the vast majority of regional exports to the U.S. and serving as the leading destination for American imports, according to Finprom.kz. While Central Asia’s share of total U.S. trade remains small, Kazakhstan’s role within the region is increasingly dominant. Kazakhstan Accounts for Over 96% of Central Asia’s U.S. Exports In 2024, Kazakhstan was responsible for 96.7% of Central Asia’s exports to the United States, totaling approximately $2.4 billion out of a regional total of $2.5 billion. Uzbekistan, the next largest exporter, contributed just $44.4 million. The trend is similar for U.S. goods entering the region. Kazakhstan imported $1.1 billion worth of U.S. goods in 2024, or 62.3% of all American exports to Central Asia. Uzbekistan followed with $380.8 million, while Turkmenistan and Tajikistan imported $82.2 million and $56.8 million, respectively. Despite this strong bilateral exchange, Central Asia remains a small player in U.S. global trade. In 2024, the U.S. recorded $3.27 trillion in goods imports and $2.06 trillion in exports, according to U.S. Census Bureau data. Even so, U.S.–Kazakhstan trade has grown meaningfully in recent years. Between 2019 and 2024, the U.S. share of Kazakhstan’s total trade rose from 2.3% to around 3%. Bilateral trade peaked in 2024 at $4.2 billion, the highest level in six years, with U.S. exports to Kazakhstan accounting for 53.2% of the total. Trade Growth and 2025 Downturn That growth slowed sharply in 2025. From January to August, total trade between the two countries fell to $2.1 billion, a 25.8% drop compared to the same period in 2024. Kazakhstan’s exports to the U.S. accounted for much of the decline, falling to $749.7 million in the first nine months of the year - about half the level recorded the previous year. Oil and oil products saw the steepest drop, falling 3.5 times to $269.1 million. Exports of uranium, silver, ferroalloys, tantalum, and titanium also declined, though these remain important categories. By contrast, U.S. exports to Kazakhstan remained relatively stable. Goods shipments fell just 4.8% year-on-year, totaling approximately $1.7 billion from January through September. U.S. exports to Kazakhstan continue to consist primarily of high-value manufactured goods, including vehicles, aircraft, agricultural machinery, computers, telecommunications equipment, and medical devices. Pharmaceuticals stood out in 2025, with American shipments of medicines and vaccines more than doubling to $249.3 million in the first nine months of the year. Investment and Business Cooperation Deepen Alongside trade, investment, and business cooperation between the two countries is also deepening. According to the Kazakh Prime Minister’s office, more than 600 companies with U.S. capital were operating in the country as of late 2025 – a large increase over the previous year. The number of Kazakh-American joint ventures rose by 5.6% over the same period. U.S. companies are active in a range of sectors, including IT, manufacturing, education, consulting, and trade. While the United States is not among Kazakhstan’s top trading partners by volume, the relationship is seen as strategically important. Amid...

Middle Powers

Which Central Asian States Qualify as Middle Powers in 2025?

As global power shifts toward multipolarity, Central Asia’s states are emerging as active regional players. This article assesses which of the five republics—Kazakhstan, Uzbekistan, Turkmenistan, Kyrgyzstan, and Tajikistan—qualify as middle powers in 2025, based on economic strength, diplomatic reach, strategic capacity, and governance. Kazakhstan stands as the region’s only consolidated middle power, balancing fiscal stability, institutional reform, and multi-vector diplomacy. Uzbekistan is a rising aspirant, propelled by reforms but still reliant on external financing and centralized authority. The remaining states remain constrained by dependence and limited institutional depth. Together, they reflect a region increasingly capable of shaping, rather than merely absorbing, global and regional change. A comparative analysis of five Central Asian republics shows how far each has advanced toward this status. 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This article assesses which of the five republics—Kazakhstan, Uzbekistan, Turkmenistan, Kyrgyzstan, and Tajikistan—qualify as middle powers in 2025, based on economic strength, diplomatic reach, strategic capacity, and governance. Kazakhstan stands as the region’s only consolidated middle power, balancing fiscal stability, institutional reform, and multi-vector diplomacy. Uzbekistan is a rising aspirant, propelled by reforms but still reliant on external financing and centralized authority. The remaining states remain constrained by dependence and limited institutional depth. Together, they reflect a region increasingly capable of shaping, rather than merely absorbing, global and regional change. A comparative analysis of five Central Asian republics shows how far each has advanced toward this status. Economic Power Economic autonomy is a defining attribute of middle-power capability, enabling states to project influence, sustain policy independence, and finance external engagement. In Central Asia, dependence on Official Development Assistance (ODA) and remittances often reflects constrained fiscal capacity and limited domestic capital formation, while diversified, resilient economies underpin strategic autonomy. Key indicators—GDP per capita, credit ratings, debt sustainability, and export diversification—illuminate the region’s economic hierarchy. Kazakhstan stands as Central Asia’s only consolidated economic middle power. Resource-backed growth, a prudent fiscal regime, and a sovereign wealth fund (the National Fund of Kazakhstan) have anchored macroeconomic stability. With a “BBB” credit rating or equivalent from major agencies, Kazakhstan demonstrates sound debt management and policy credibility. Ongoing diversification efforts under the new economic policies—from renewables to financial modernization—aim to reduce hydrocarbon dependence and deepen integration into global supply chains. Its role as a trans-Caspian logistics hub enhances both strategic and commercial influence. Uzbekistan, by contrast, is an emerging frontier market propelled by post-2017 reforms in currency liberalization, taxation, and state-enterprise restructuring. Rapid GDP growth and expanding private-sector activity mark its trajectory toward fiscal autonomy, though continued ODA inflows averaging around $1.1 billion to 1.3 billion annually, primarily from the Asian Development Bank (ADB), the World Bank, and bilateral partners such as Japan, the United States, and the European Union, highlight its residual dependence on external concessional financing. To achieve genuine middle power status, Uzbekistan must roughly double its real economic output over the next decade, a scale of growth aligned with the shift...

Podcast

Pannier and Hillard’s Spotlight on Central Asia @ The Times of Central Asia – New Episode Now Available

As Managing Editor of The Times of Central Asia, I’m delighted that, in partnership with the Oxus Society for Central Asian Affairs, from October 19, we are the home of the Spotlight on Central Asia podcast. Chaired by seasoned broadcasters Bruce Pannier of RFE/RL’s long-running Majlis podcast and Michael Hillard of The Red Line, each fortnightly instalment will take you on a deep dive into the latest news, developments, security issues, and social trends across an increasingly pivotal region. In the new episode, available from Sunday, November 2, the team will take a deep dive into what is happening with Central Asian-Azerbaijani relations. In recent years, ties between the countries of Central Asia and Azerbaijan have grown much stronger. There are many good reasons for this and for believing this partnership will continue to expand. Join us to learn more.

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...