Kazakhstan Business & Economy - The Times Of Central Asia

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China

Kazakhstan Turns to China and Hong Kong for Deals, Yuan Debt, and Market Access

Kazakhstan has opened a new phase in its economic ties with China, with a large package of Hong Kong and mainland Chinese agreements arriving alongside Kazakhstan’s first sovereign borrowing in China’s domestic bond market. The two steps show Astana is moving beyond trade growth into finance, listings, yuan debt, and China-linked capital for infrastructure and industry. On June 2, Deputy Prime Minister and Minister of National Economy Serik Zhumangarin met a delegation of about 70 business representatives from Hong Kong and mainland China. Kazakhstan’s government said the group included 40 Hong Kong companies and 30 mainland Chinese companies working in finance, logistics, technology, energy, industry, and professional services. The visit produced four intergovernmental memoranda and 42 commercial agreements. Together, they covered aviation, finance, trade, innovation, technology, the digital economy, and green development. Hong Kong’s government gave a separate count, saying its business delegation had so far concluded 43 memoranda and agreements in Kazakhstan. The same statement said Hong Kong and Kazakhstan would move ahead with exploratory talks on a comprehensive double-taxation agreement and an investment promotion and protection agreement. A Hong Kong airline plans to launch direct flights to Almaty in the first quarter of 2027, which would add a practical link to the new finance and trade agenda. Officials discussed bond issuance, yuan funding, listings by Kazakh companies in Hong Kong, joint investment funds, and large investment projects. Baiterek National Managing Holding signed cooperation documents with Bank of China (Hong Kong), Invest Hong Kong, and Standard Chartered Hong Kong. Hong Kong Exchanges and Clearing Limited, which operates the Hong Kong Stock Exchange, also signed two memoranda in Kazakhstan, including one with the Astana International Exchange. The two exchanges plan to work on cross-border listings of shares and debt securities. The agreements came days after Kazakhstan completed its debut sovereign panda bond, a renminbi-denominated instrument sold in mainland China by a foreign issuer. The Finance Ministry raised 3.4 billion yuan (about $500 million) through three-year sovereign bonds. The bonds carried a 1.9% yield, and demand exceeded supply by two times. The issue was listed on the Beijing Financial Assets Exchange and the Astana International Exchange. The sovereign issue followed earlier yuan deals by state-linked Kazakh issuers. Development Bank of Kazakhstan placed 2 billion yuan in three-year yuan-denominated Eurobonds in September 2025, the first such issue in Central Asia. KazMunayGas raised 1.25 billion yuan in October through a five-year offshore yuan-denominated bond. Samruk-Kazyna, Kazakhstan’s sovereign wealth fund, closed the order book for 3 billion yuan in debut panda bonds in April 2026. Together with the sovereign bond, those issues total 9.65 billion yuan. The figures cover more than central-government borrowing. The National Bank of Kazakhstan defines external debt as liabilities of residents to non-residents. It includes debt obligations of both the public and private sectors. A country breakdown drawn from National Bank data shows Kazakhstan’s external debt to Chinese creditors rose to $12.87 billion at the start of 2026, up from $9.29 billion at the end of 2024. The new panda...

Brain Institute

Kazakhstan Opens Central Asia’s First Brain Research Institute

Kazakhstan has opened Central Asia’s first specialized Brain Institute, a new research and education center focused on neuroscience, brain health, and artificial intelligence-assisted medical research, officials said. The institute was launched at Al-Farabi Kazakh National University (KazNU) in Almaty and is the first facility of its kind in Kazakhstan and the wider Central Asian region. The center builds on KazNU’s Cognitive Neuroscience Center, established in 2018, and is intended to expand research into brain development, neurological disorders, cognition, and multilingualism, while training a new generation of neuroscience specialists. Research at the institute will use advanced equipment, including a 3-Tesla magnetic resonance imaging scanner, high-density electroencephalography systems, functional near-infrared spectroscopy technology, and AI and big data analytics tools. Led by Professor Almira Kustubayeva, the institute brings together laboratories specializing in cognitive, behavioral, and computational neuroscience, as well as neurolinguistics. Its research areas will include brain development, neurodegenerative diseases, decision-making, emotional regulation, and the neurological aspects of multilingualism. Scientists at the institute also plan to develop new diagnostic and predictive biomarkers that could improve the detection and treatment of neurological and cognitive disorders. The opening coincided with the 80th anniversary of Kazakhstan’s National Academy of Sciences (NAS) and is part of the government’s push to develop the country’s scientific and technological capacity. Speaking at the launch ceremony, KazNU rector Zhanseit Tuimebayev said the development of science and innovation had been identified as a national priority by President Kassym-Jomart Tokayev. NAS president Akylbek Kurishbayev described the project as an example of cooperation between academic and scientific institutions aimed at developing Kazakhstan’s research base. Kazakhstan has increased investment in scientific research and medical innovation in recent years. Earlier this year, researchers at the Kazakh Research Institute of Processing and Food Industry announced work on an antioxidant dietary supplement intended to help prevent cancer and cardiovascular disease. Last year, surgeons from Kazakhstan carried out Uzbekistan’s first robot-assisted joint replacement procedures using the MAKO robotic surgical platform. President Tokayev has also announced plans to establish two science cities in Almaty and Kurchatov as part of efforts to develop nuclear energy, nuclear medicine, and advanced scientific research.

Agricultural Exports

Kazakhstan’s Agricultural Exports to Iran Nearly Double in 2025

Kazakhstan’s agricultural exports to Iran nearly doubled in 2025, driven by a sharp increase in grain shipments, Agriculture Minister Aidarbek Saparov said during talks with Iranian Minister of Industry, Mine and Trade Seyyed Mohammad Atabak. According to Kazakhstan’s Agriculture Ministry, agricultural trade between the two countries rose 55.8% year-on-year to $342 million in 2025, accounting for 79% of total bilateral trade. Exports of Kazakhstan's agricultural products increased 97% to $238.5 million. Grain exports more than doubled to 1.1 million metric tons, valued at $225.3 million, Saparov said. “Kazakhstan attaches special importance to expanding cooperation with Iran in the agricultural sector. Our markets complement each other, as demonstrated by the steady growth in bilateral agricultural trade,” he said. The ministers discussed prospects for expanding trade in agricultural products, investment cooperation, and the development of joint projects in the agro-industrial sector. Particular attention was given to increasing Kazakhstan's exports of grain, beef, and lamb that meet international veterinary and halal standards. The two sides also highlighted the potential for expanding supplies of vegetable oils and other food products to the Iranian market. Atabak said Iran was interested in expanding economic ties with Kazakhstan, including through increased agricultural trade, improved transport links, and joint processing projects. “Kazakhstan is an important partner for Iran in the region. We are interested in increasing bilateral trade, expanding agricultural supplies, developing logistics routes, and implementing joint projects in processing and agro-industrial cooperation,” he said. Saparov also invited Iranian investors to participate in projects involving agricultural production and value-added processing, including grain and oilseed processing facilities. The growth in agricultural trade comes despite disruptions to some bilateral projects earlier this year. In April, Kazakhstan’s Deputy Foreign Minister Arman Issetov said several joint projects with Iran had been suspended because of military hostilities there. Trade ties have nevertheless continued to expand. In May, Kazakhstan's vegetable oil producers launched pilot shipments of rapeseed and sunflower oil to Iran via the Caspian Sea, opening a new export route for the sector. Kazakhstan and Iran have set an ambitious target of increasing bilateral trade to $1 billion in the coming years, with plans to double that figure over the longer term, following agreements reached during Iranian President Masoud Pezeshkian’s visit to Astana last year.

Caspian Region

Why the Caspian Is Becoming Eurasia’s New Energy Crossroads

Russia’s war in Ukraine and instability in the Middle East are accelerating the emergence of a new Eurasian energy architecture, with the Caspian region increasingly at its center. In international politics, moments when several global crises simultaneously create opportunities for new centers of influence are rare. Today, a vast area stretching from Central Asia to the South Caucasus is experiencing just such a moment. Russia’s invasion of Ukraine has fundamentally reshaped Europe’s approach to energy security. Tensions in the Middle East have also raised questions about the reliability of traditional energy supply routes. Meanwhile, the global energy transition is driving demand for both clean-energy sources and alternative transport corridors. Against this backdrop, the Caspian region is no longer viewed as a peripheral economic space. It is increasingly emerging as a critical hub in Eurasia’s evolving energy system. Baku Energy Week 2026 shows how far this shift has come, highlighting Azerbaijan’s transformation from a traditional oil and gas producer into a strategic connector linking Central Asia, Türkiye, Europe, the United States, and the Middle East. One of the forum’s most significant political signals came in the form of a message from U.S. President Donald Trump to participants. His remarks went beyond a routine diplomatic greeting and reflected a broader shift toward a more pragmatic view of global energy policy. Trump described the United States as a strong supporter of Azerbaijan’s oil and gas industry and said the U.S.-Azerbaijan energy partnership would become more important in the years ahead. For much of the past decade, Western energy strategies appeared increasingly focused on rapid decarbonization and climate objectives. However, rising energy prices, Europe’s energy crisis, and growing global electricity demand have prompted policymakers to reassess those priorities. Trump openly reaffirmed support for the oil and gas sector and emphasized that the United States remains a long-standing energy partner of Azerbaijan. More importantly, Washington appears to recognize Baku’s strategic role in global energy security. The Trump administration increasingly views energy security as an element of geopolitical competition and is prepared to support projects that diversify supplies of hydrocarbons and critical raw materials. Speaking at the opening of Baku Energy Week, Azerbaijani President Ilham Aliyev said Trump’s policies had helped return energy policy to “normality.” Aliyev also noted that the oil and gas industry had faced sustained pressure from advocates of a rapid energy transition. It was therefore no coincidence that Azerbaijan signed a series of agreements during the forum with major American companies, including Chevron, JPMorgan, Oracle, and Comstock Resources. Particularly noteworthy was a cooperation agreement covering critical minerals and rare earth elements. For Washington, access to these resources is increasingly a matter not only of energy policy but also of technological and national security amid intensifying competition with China. In effect, Washington is beginning to view Azerbaijan as an important platform in a changing Eurasian energy map. While Washington is signaling renewed political backing, Turkish President Recep Tayyip Erdoğan remains one of the principal architects of the region’s practical integration. Over the past...

Pharmaceuticals

Investment in Kazakhstan’s Pharmaceutical Manufacturing More Than Triples in Three Years

Investment in Kazakhstan’s pharmaceutical and medical device manufacturing sector reached $142.8 million in 2025, more than three times the level recorded in 2023, according to the country’s Ministry of Health. At a recent ministry board meeting, First Vice Minister of Healthcare Timur Sultangaziyev said Kazakhstan continues to show strong growth in attracting investment into pharmaceutical production. According to Sultangaziyev, gross investment inflows into the sector totaled $46.9 million in 2023 before nearly doubling to $91.3 million in 2024. Growth continued in 2025, with investment reaching $142.8 million. “These investments are being directed toward the modernization of production facilities, capacity expansion, and the localization of pharmaceutical and medical device manufacturing,” Sultangaziyev said. “This reflects growing investor confidence in Kazakhstan’s pharmaceutical industry and demonstrates the effectiveness of government support measures.” The expansion of domestic production has gradually increased the market share of locally manufactured products. In value terms, domestic pharmaceutical and medical device producers accounted for 14.4% of Kazakhstan’s market in 2023, 15.1% in 2024, and 15% in 2025. The Ministry of Health noted that the introduction of a nationwide pharmaceutical labeling and traceability system in July 2024 has provided a clearer picture of market activity. According to ministry data, domestic manufacturers account for 39.8% of the market by volume, indicating a significant presence of local companies in terms of units sold. In 2025, products manufactured in Kazakhstan represented 32% of purchases made by the country’s state-run Unified Distributor, a figure that officials say reflects the growth of local production and strengthens the country’s pharmaceutical security. The ministry said efforts to increase the share of domestically produced medicines and medical devices will continue under Kazakhstan’s Healthcare Development Concept through 2029, alongside broader measures aimed at ensuring reliable access to pharmaceuticals. The government also recently approved an agreement between the Ministry of Health and Steppe Pharmaceuticals to build a full-cycle biopharmaceutical manufacturing complex in the Alatau Special Economic Zone in the Almaty Region. The project is expected to attract approximately $67 million in investment. The facility will manufacture 20 pharmaceutical products, including treatments for cancer and rare diseases, as well as advanced immunobiological medicines. The plant is scheduled to begin operations in 2031, reach full production capacity in 2032, and complete its transition to full-cycle manufacturing across key product lines by 2034. The investment growth comes as Kazakhstan seeks to develop its healthcare and biotechnology sectors. As previously reported by The Times of Central Asia, researchers in Kazakhstan recently developed a medical exoskeleton designed to aid stroke rehabilitation, while the Ministry of Health is expanding the use of artificial intelligence technologies to improve the early detection of strokes, cancer, among other serious diseases.

Astana LRT

Astana LRT Carries One Million Passengers in First Two Weeks, Mayor Says

Astana Mayor Zhenis Kassymbek has announced that the city’s newly launched light rail transit (LRT) system, which connects the capital’s international airport with Nurly Zhol railway station, carried one million passengers during its first two weeks of operation. The elevated rail project, designed to bypass traffic congestion on city roads, was launched in 2011. Authorities initially planned to complete construction by 2017, in time for the international EXPO exhibition hosted by Astana. However, the project was suspended in 2013 amid rising costs, and a subsequent attempt to revive it two years later also failed to move forward. In 2019, authorities in Kazakhstan opened a criminal investigation into allegations of cost inflation and the embezzlement of public funds allocated to the project. Former Astana LRT chief Talgat Ardan and former deputy mayor Kanat Sultanbekov were accused of embezzling nearly 30 billion tenge, or approximately $79 million at the exchange rate at the time. In May 2023, both men were sentenced in absentia to seven years in prison. Despite the controversy, city authorities ultimately decided to complete the project, arguing that dismantling the partially built infrastructure would cost nearly as much as finishing construction. In May 2026, the first LRT line linking the airport and Nurly Zhol railway station officially entered service. One of the main concerns raised by critics was whether residents would embrace the new transport system, particularly given its higher fare. A single LRT trip costs 200 tenge ($0.41), compared with 110 tenge ($0.23) for a bus ride. However, Kassymbek said the system’s early performance had exceeded expectations. “Since the launch of the LRT, passenger traffic has reached one million passengers in just two weeks,” Kassymbek wrote on Instagram. “Daily ridership now stands at approximately 65,000-75,000 passengers. These figures demonstrate strong demand for the city’s new rail transit system among both residents and visitors. I thank all passengers for actively using the LRT, for their trust in the new transport system, and for their responsible attitude toward the infrastructure.” Each LRT train can carry up to 600 passengers. Fifteen driverless trains currently operate on the 22.4-kilometer line, with an additional four trains held in reserve. The system includes 18 stations and a maintenance depot. A full end-to-end journey takes approximately 40 minutes, with trains operating at average speeds of 50-60 kilometers per hour. Service intervals range from five to six minutes. Planning is also underway for the second phase of the network, which would run from Astana-1 railway station, the city’s older rail terminal, through the Zhagalau residential district on Astana’s western outskirts and onward to Kosshy, a fast-growing satellite city south of the capital. The proposed extension would span 26.5 kilometers and include 20 stations. As previously reported by The Times of Central Asia, former LRT project chief Talgat Ardan was detained in Turkey in May last year. However, he has yet to be extradited to Kazakhstan. According to officials in Kazakhstan, the delay stems from the absence of specific deadlines for processing extradition requests under the legal...