Kazakhstan Business & Economy - The Times Of Central Asia

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Economic Cooperation

Kazakhstan’s Parliament Approves Regulations for the Central Asia International Industrial Cooperation Center with Uzbekistan

On February 5, the Mazhilis, the lower house of Kazakhstan’s parliament, approved an agreement between the governments of Kazakhstan and Uzbekistan on regulations for the Central Asia International Center for Industrial Cooperation. According to Kazakhstan’s Ministry of Trade and Integration, the industrial center will be built along the border of the two countries, near the Gulistan checkpoint in Uzbekistan and the Atameken checkpoint in Kazakhstan. The complex will include: Industrial production facilities Warehouses Transport infrastructure The center aims to: Accelerate cargo transportation Reduce logistics costs Streamline supply chains Lower product costs for consumers Enhance industrial cooperation between Kazakhstan and Uzbekistan as part of the North-South corridor Kazakhstan’s Minister of Trade and Integration, Arman Shakkaliyev, informed parliament that the industrial center will cover 100 hectares, with 50 hectares on each country’s side. Part of the center will receive regional industrial zone status. Construction is expected to be completed by the fourth quarter of 2026, with an official opening planned for the first half of 2027. Uzbekistan is one of Kazakhstan’s largest economic and trading partners, and both countries aim to increase bilateral trade to $10 billion annually in the medium term.

Transport

Unmanned ‘Aero Taxi’ Planned to Launch in Kazakhstan Next Year

Kazakhstan plans to introduce an unmanned aero taxi service by 2026, following the example of South Korea, Minister of Transportation Marat Karabayev has announced. He outlined the project's timeline and potential routes. First Route and Project Details According to Karabayev, there are currently no legal restrictions preventing the launch of aeromobile services in Kazakhstan. "The first stage will involve a route from Almaty to the town of Alatau. We are in discussions with Kazakh entrepreneurs, and a pilot launch is planned for 2026. These will be silent, hydrogen-fueled helicopters capable of carrying five passengers. One Kazakhstani company has already expressed interest in developing the aeromobility sector," he said. He noted that similar technologies are being actively developed in South Korea and the United States, and Kazakhstan is studying their potential implementation. "We are currently assessing how this technology can be adapted for our country," Karabayev added. Regulatory Framework and International Experience The minister also mentioned that the Ministry of Digital Development, Innovation, and Aerospace Industry has proposed studying international regulatory practices for such vehicles. "We will review this proposal. As unmanned vehicles become more common in Kazakhstan, we will develop the necessary legislative framework," he assured. However, Karabayev clarified that no amendments are currently being considered regarding liability for accidents involving unmanned vehicles. Global Developments in Aero Taxi Technology Unmanned aero taxis are already being tested and partially deployed in several countries. In the UAE, the Chinese company EHang has conducted pilot flights in Dubai, while in China, EHang has obtained certification for commercial operations. Meanwhile, South Korea is also conducting trials of air taxi services.

Oil

Kazakhstan to Offset Oil Overproduction in 2024

Kazakhstan has pledged to compensate for excess oil production in 2024, reaffirming its commitment to the OPEC+ agreements. At the 58th meeting of the Joint Ministerial Monitoring Committee, Kazakh representatives confirmed the country's readiness to take necessary measures in 2025 and 2026 to meet its obligations under the OPEC+ framework. "Despite increased production this year due to the expansion of the Tengiz field, Kazakhstan remains committed to the OPEC+ agreement and will engage in negotiations with partners in accordance with international law," the Ministry of Energy stated. OPEC+ Efforts to Stabilize the Market The February 3 meeting marked the first OPEC+ gathering of 2025. Participating ministers emphasized that voluntary production cuts, implemented by several member states in December 2024, have contributed to oil market stability. Previously, on December 5, 2024, OPEC+ agreed to extend voluntary oil production limits of 2.2 million barrels per day (bpd) for the first quarter of 2025. The decision was made in response to a seasonal slowdown in demand during the winter months. A gradual easing of restrictions is expected to continue until September 2026. The next OPEC+ monitoring committee meeting is scheduled for April 5.

Telecommunications

Kazakhstan Plans to Ban Starlink and Other Satellite Communication Systems Face Backlash

Kazakhstan is considering a ban on the import of Starlink and other satellite communication devices, a move that has sparked opposition from experts and the public. In December 2024, authorities proposed a draft regulation prohibiting the import of satellite communication equipment from major manufacturers, including Thuraya, Iridium, Inmarsat, and Starlink. The proposal quickly ignited public debate on the Open ABO portal, with most commentators opposing the measure. Following a wave of criticism, the draft was sent for revision. National Security Concerns The ban would apply to satellite phones and terminals commonly used by emergency services, maritime fleets, and travelers in areas lacking traditional communication networks. The Ministry of Digital Development defends the restriction as a national security measure, citing Article 23 of Kazakhstan’s Law on National Security. The law prohibits the operation of foreign-controlled communication networks within the country. Authorities have suggested requiring local oversight of satellite devices. Industry and Legal Concerns Industry representatives and legal experts, however, have raised strong objections. Safety Risks: Alexey Korchagin, a representative of satellite communications partner ZHARYQ LLP, warns that restricting satellite communication could jeopardize lives. He argues that alternatives such as Eutelsat-OneWeb and Amazon Kuiper cannot fully replace Thuraya, Iridium, and Inmarsat, as their functionality differs. Unlike bulky VSAT terminals, mobile satellite phones are compact, easy to use, and designed for emergencies. Control Over Information: Lawyer Yelzhan Kabyshev sees the ban as part of a broader effort to control information flows. He points to previous cyber-control measures, including security certificates and data interception policies. He also questions the transparency of the decision-making process, particularly after the January 2022 unrest, which led to criminal cases against top National Security Committee officials. A Growing Black Market: Experts argue that the ban will not eliminate security risks, as the devices could still be smuggled into the country. Korchagin warns that such restrictions could fuel the "gray" market, making it harder to regulate and potentially increasing security threats. Alternative Solutions Instead of an outright ban, experts recommend cooperation with satellite operators to ensure regulatory oversight without compromising essential communication services. Meanwhile, Kazakhstan is working to expand internet access in remote areas. In 2024, a pilot project connected nearly 2,000 rural schools to Starlink satellite internet. The Ministry of Digital Economy has stated that the ban will not affect these connections, though the long-term future of the project after 2026 remains uncertain.

China’s AgiBot to Produce Robots in Kazakhstan

Chinese robotics company AgiBot plans to establish a joint venture in Kazakhstan to manufacture and deploy robots at industrial facilities across the country. The company also aims to introduce artificial intelligence (AI) solutions as part of its expansion strategy. An agreement of intent was signed between AgiBot and Kazakhstan’s Ministry of Digital Development, Innovation, and Aerospace Industry during the Digital Almaty 2025 forum. Qazaqstan Investment Corporation JSC, a private equity fund founded in 2007 to support private equity and venture capital development, will also participate in the project. To implement the initiative, AgiBot has partnered with EWPartners, a private investment firm specializing in cross-border collaborations with leading Chinese industrial companies. AgiBot, founded in February 2023, focuses on the development and production of general-purpose humanoid robots for industrial and domestic use. Kazakhstan is the first country in the region where AgiBot plans to localize production and expand exports. As part of the partnership, the company is expected to launch a “data factory” for training robots and robotic systems. Qazaqstan Investment Corporation and EWPartners will contribute to financing this project. Additionally, a joint R&D center and an exhibition of AgiBot prototypes are set to be established at the Alem AI International Center for Artificial Intelligence. AgiBot also intends to collaborate with Kazakhstani universities to develop joint research projects and train students in robot assembly. “Partnership with an advanced company like AgiBot is an important milestone in the history of Kazakhstan’s robotics industry. I would especially like to highlight that this agreement includes the localization of robot production in Kazakhstan. This will not only help launch a facility in one of the most promising branches of mechanical engineering but also strengthen local expertise and create a domestic center of competence in robotics,” said Zhaslan Madiev, Kazakhstan’s Minister of Digital Development, Innovation, and Aerospace Industry. As previously reported by The Times of Central Asia, Kazakhstan exports IT products and services to 95 countries. With AgiBot’s involvement, the country may soon add robot exports to its growing digital economy.

International Transport

Prospects for the Development of Kazakhstan’s Maritime Trade Gateways

A container hub will be built in the Aktau seaport. The maritime harbor is expected to become a center for cargo consolidation and distribution, facilitating Kazakhstan’s deeper integration into the global trade and transport system. How will this impact port operations, regional development, and the global supply chain through the Caspian Sea? The project in Aktau will primarily allow for the formation of a container park on its territory, serving Kazakhstan, Caspian region countries, and Central Asia. It will provide a full range of services, including container transshipment and warehousing. The hub’s construction marks a new phase in the port’s development, establishing it as a major logistical center. The hub can become not only a component of Kazakhstan’s transportation system, but a key link in the regional and global transport chain. For this project, investment has been secured from Lianyungang Port Group Co. Ltd., which operates one of China’s largest ports, with a corresponding agreement having been signed with the company. Growth Projections and Capacity Expansion According to many industry experts, Kazakhstan needs to actively develop container cargo transport. Currently, the country’s containerization level is quite low, standing at only about 7%. As Abay Turikpenbayev, Chairman of the Board of the Aktau International Sea Commercial Port public company, explained to TCA, oil and containers are ideal cargo for the harbor due to their swift transport, quick unloading, and rapid railcar turnaround. “It’s a different matter when bulk cargo arrives at the port. Bulk materials take longer to unload and congest the port infrastructure, preventing the acceptance and accumulation of a large number of railcars. The use of containers allows for an increased cargo flow,” Turikpenbayev stated. According to Turikpenbayev, unloading bulk cargo takes 2-3 days, and an additional 2-3 days is required for loading. In contrast, container unloading and processing take less than 24 hours. According to World Bank estimates, by 2030, cargo volumes transported via the Trans-Caspian International Transport Route through the Caspian Sea will reach 11 million tons. The new container hub is expected to help handle these volumes and attract additional cargo flows, increasing the port’s container transshipment capacity to 140,000 TEUs per year. Addressing the Caspian Sea Water Level Decline A critical issue that deserves attention is the declining water levels in the Caspian Sea. According to the Caspian Sea Hydrometeorological Research Department of RSE Kazhydromet, since 2006, the level of the Caspian Sea has dropped by approximately two meters. This decline has significantly affected navigation in the region. To address this, dredging work is planned in the Aktau port this year. Turikpenbayev stated that around 1.6 million cubic meters of heavy sediment will be removed from the harbor’s waters. “The dredged material will be used to create new territories and extend the port area southward. This will allow the port’s land area to expand from 60 to 100 hectares in the future,” Turikpenbayev explained. In addition to the construction of the container hub, further port expansion plans include building an additional berth for bulk cargo,...