Page 101 – The Times Of Central Asia

30 Sep 2025

Central Asia, Business & Economy, Kazakhstan, Kazakhstan Business & Economy

Almaty Named as the Most Expensive City in Central Asia

September 30, 2025
By Vagit Ismailov

Analysts at Finprom.kz, citing the latest Numbeo report on global cost-of-living data, have identified Almaty as the most expensive city in Central Asia.

Global Leaders and Regional Rankings

Numbeo’s index is based on user-submitted data on the cost of food, transportation, utilities, and housing, benchmarked against New York City, which is assigned a baseline score of 100 (excluding rent). Scores above 100 indicate higher living costs than New York.

Swiss cities once again dominated the top of the list. Zurich (112.5), Geneva (111.4), Basel (110.7), Lausanne (110.5), Lugano (108.4), and Bern (103.4) all surpassed New York, which came in seventh. Rounding out the global top ten were Reykjavik (96.2), Honolulu (94.4), and San Francisco (90.7).

Almaty ranked 346th globally, with a score of 29.4, while Kazakhstan’s capital, Astana, placed 366th at 26.5. Astana’s cost of living aligns closely with Bishkek (26.8) and Tashkent (26.2).

While the cost-of-living index measures expenses, Numbeo’s Purchasing Power Index reflects how well local wages cover those costs.

Astana rose to 59.4 (up from 45.3 in 2020), and Almaty reached 55.9 (up from 36.3). Both cities now surpass their regional peers: Tashkent (49.3) and Bishkek (40.4).

While Kazakhstan remains significantly more affordable than many developed countries, a factor that may appeal to tourists, the lower cost indexes also reflect modest local income levels. Nonetheless, the improved purchasing power in Astana and Almaty signals a positive economic trend, positioning them ahead of neighboring capitals.

30 Sep 2025

Home, Uzbekistan, Uzbekistan Features, Business & Economy, Uzbekistan Business & Economy, Features

Climbing the Value Chain: Uzbekistan’s Textile Transformation Through Chinese Investment

October 2, 2025
By Yunis Sharifli

As relations between China and Uzbekistan deepen, cooperation is no longer confined to the traditional pillars of energy and infrastructure. The partnership has begun to branch into new and diverse areas, adding layers of complexity and opportunity to their bilateral ties.

Emerging sectors such as pharmaceuticals and waste-to-energy are gaining traction, signaling a shift toward a more multidimensional relationship. At the same time, the textile industry has become an increasingly important bridge between the two countries, offering fresh avenues for collaboration.

Recent agreements highlight this momentum. In the upstream segment of Uzbekistan’s textile sector, China Hi-Tech Holding has committed to a major investment in synthetic fiber and viscose yarn production. This move is particularly significant for Uzbekistan, as it reduces reliance on cotton and secures inputs essential for modern mixed-fabric production.

Midstream, cooperation is expanding as well. An agreement between Uzbekistan and China’s Fong Group to develop dyeing and finishing facilities for mixed fabrics underscores the practical steps being taken to create a more integrated textile supply chain. These developments also reflect a broader trend of growing Chinese interest in Uzbekistan’s domestic market and its strategic location at the crossroads of the Middle East and Europe.

With its young population and export potential, Uzbekistan is increasingly attractive to Chinese textile companies. The Red Dragonfly Group’s plan to establish a manufacturing base in Uzbekistan by 2026 is a clear example of how Chinese firms see the country not only as a production hub but as a gateway to wider regional markets.

One of the main reasons Uzbekistan is emerging as a crucial destination for Chinese companies is the shifting incentive structure that encourages the relocation of manufacturing capacity abroad. Rising labor costs in China, particularly in the labor-intensive textile sector, are placing companies under pressure amid fierce domestic competition.

In contrast, Uzbekistan offers an appealing alternative where the average monthly wage for a skilled worker is around 200–400 dollars, and energy costs are just 0.04 dollars per kilowatt-hour. Together, these factors significantly lower production costs and make the country highly attractive for firms seeking to maintain competitiveness.

Equally important are Uzbekistan’s proactive regulatory policies, which create a favorable business climate for foreign investors. The government has relied heavily on Special Economic Zones and Small Industrial Zones and offers tiered incentive packages that reward higher commitments. Investors contributing between 3 and 5 million dollars receive three years of income tax holidays, while investments of 5 to 15 million dollars are rewarded with a five-year exemption. Those exceeding 15 million dollars benefit from an unprecedented ten-year tax holiday.

Moreover, starting in September 2025, the social tax rate for textile companies and clusters will be cut to 1% for three years. At the same time, imports of blended fabrics and raw materials for the leather and sericulture industries will be exempt from customs duties. These measures provide Chinese companies with tangible cost advantages that rival opportunities in Southeast Asia.

Another powerful driver is geopolitics. Growing trade tensions between China and the West, particularly the threat of new EU and U.S. tariffs, are prompting Chinese manufacturers to diversify their production networks. In this context, Uzbekistan holds a distinct advantage thanks to its status under the EU’s Generalized Scheme of Preferences Plus. This framework allows around 66% of Uzbek exports to enter European markets duty-free.

For Chinese companies, the incentive is clear. By combining their capital, technology, and management expertise with Uzbek-based production, they can rebrand outputs as being of Uzbek origin. This provides a critical tariff arbitrage opportunity and enables Chinese firms to bypass restrictions that apply to goods exported directly from China.

The growing interest of Chinese textile companies in Uzbekistan also aligns with the state’s own objectives and generates tangible benefits. This cooperation is consistent with the Uzbekistan 2030 Strategy, which prioritizes moving away from raw cotton and yarn exports toward value-added textile production and aims to double textile exports to $7 billion by 2030.

In this regard, investments in synthetic fiber and viscose yarn production will help Uzbekistan climb up the value chain. Moreover, the expanding presence of Chinese companies can open new export opportunities to the Middle East and the EU, while also creating access to the vast Chinese market, thus contributing to long-term export diversification.

However, alongside these benefits, the growing role of Chinese firms also carries risks for Uzbekistan. While Chinese companies are willing to relocate labor-intensive segments of the textile industry, they are far less inclined to transfer technology-driven processes. In this context, Beijing is expected to relocate partial manufacturing to Uzbekistan, while retaining critical intermediate production technologies in order to safeguard its own competitiveness.

As a result, Chinese investment is likely to help Uzbekistan build basic and mid-level capacities (yarns, fabrics, dyeing, some leather finishing, and selected final goods), but the cutting-edge, high-value-added segments – such as advanced fabrics, sustainable innovations, and branded products – will remain concentrated in China.

While this dynamic can support Uzbekistan’s transition from a raw material exporter to a more diversified producer, it also risks locking the country into the role of a basic and mid-level producer. Furthermore, this model could deepen Uzbekistan’s dependence on China, as further integration into the value chain will increase Tashkent’s need to import critical intermediates and technologies from its Chinese partners.

In this regard, Uzbekistan’s deepening textile partnership with China is a double-edged sword. On one hand, it offers capital, markets, and the chance to climb the value chain beyond raw cotton exports. On the other hand, it risks cementing Uzbekistan’s role as a mid-tier producer dependent on Chinese technology and intermediates.

The challenge for Tashkent will be to welcome Chinese investment while pushing for greater technology transfer and local capacity-building. How Uzbekistan manages this balance will determine whether today’s influx of Chinese textile firms becomes a stepping stone toward genuine industrial upgrading or another cycle of dependency dressed in new clothes.

30 Sep 2025

Home, Kazakhstan Local Politics, Local Politics, Kazakhstan, Features, Kazakhstan Featurees

After New York, a Shake-Up in Astana: Tokayev Resets His Foreign Policy Team

October 1, 2025
By Vagit Ismailov

At the end of last week, the most talked-about news in Kazakhstan was the latest reshuffle in the upper echelons of government. Just one day after returning from New York, where he participated in the UN General Assembly, President Kassym-Jomart Tokayev began issuing personnel decrees resulting in the dismissals and appointments of high-level foreign and trade policy officials.

Murat Nurtleu left his position of Deputy Prime Minister and Minister of Foreign Affairs and was reassigned as Assistant to the President for International Investment and Trade Cooperation. Nurtleu navigated a turbulent regional environment marked by the Russia–Ukraine war, which destabilized trade routes and supply chains, and emphasized building broader alliances with China while balancing ties with Russia, the U.S., and other partners. In his new post, the president has tasked Nurtleu with advancing Kazakhstan’s foreign investment and trade cooperation, refocusing his mandate squarely on securing economic gains from diplomacy.

Yermek Kosherbayev was appointed as the incoming Foreign Minister. He was most recently Deputy Prime Minister and is a career diplomat and administrator, having also held senior posts in the Foreign Affairs and Agriculture ministries. President Tokayev has tasked him with reinforcing a balanced foreign policy, expanding economic diplomacy, deepening multilateral engagement, and strengthening the protection of citizens abroad.

The former Assistant to the President for International Affairs, Yerzhan Kazykhan, was reappointed as Kazakhstan’s Permanent Representative to the UN in Geneva. A seasoned diplomat and ex–foreign minister, Kazykhan coordinated Tokayev’s international outreach with the U.S., EU, and OSCE. His posting to Geneva – where debates on human rights, trade, and security are shaped – signals Astana’s trust in a heavyweight envoy. He succeeds Yerlan Alimbayev, who has been in the post since 2022.

Yerzhan Ashikbayev was recalled as Ambassador to the United States after more than four years in Washington. His tenure was defined by efforts to deepen political and economic ties, including advancing the U.S.–Kazakhstan Enhanced Strategic Partnership Dialogue, supporting the first C5+1 leaders’ summit and Critical Minerals Dialogue, and expanding cooperation through the U.S.–Kazakhstan Strategic Energy Dialogue.

Beyond the personnel changes themselves, observers quickly began parsing what the reshuffle reveals about Tokayev’s foreign policy priorities. As is customary in Kazakhstan, no official comments were offered on the reshuffle in Akorda. Nevertheless, speculation quickly spread across social media, with journalists and bloggers debating the implications throughout the weekend.

Political scientist Gaziz Abishev framed Murat Nurtleu’s reassignment as shifting him from foreign policy towards the execution of the investment–trade agenda. Abishev noted that the “additional responsibilities for working with the investment bloc… which Nurtleu held as deputy prime minister, will go with him to the Presidential Administration,” narrowing his focus to delivery rather than strategy. This interpretation was later reinforced in more formal terms by the Presidential Administration’s spokesman, who explained that in his new post, Nurtleu “will develop contacts with representatives of foreign states at the highest level, as well as heads of major foreign companies, in order to accelerate the promotion of international investment and trade cooperation.”

Analyst Andrei Chebotarev suggested that Ashikbayev’s removal as U.S. ambassador likely reflected a need to “reset relations with Washington.” He pointed to Uzbekistan’s recent success in securing both a major deal and an in-person meeting between President Shavkat Mirziyoyev and Donald Trump as a possible spur for Tokayev. By contrast, speculation in Kazakhstan held that Tokayev had managed only a phone call with the U.S. president.

Economic matters also drew attention, particularly Kazakhstan’s $4.2 billion locomotive agreement with U.S. firm Wabtec. Framed as a long-term package of new locomotives and maintenance services, the deal was nonetheless criticized for unclear profitability, with Wabtec itself acknowledging risks that could affect costs and returns.

Late on Monday evening, however, Tokayev’s press secretary Ruslan Zheldibay dismissed speculation, describing the reshuffle as routine. “This is a normal personnel rotation. The goal is to enhance the effectiveness of work in the most important areas of government activity,” he wrote on Telegram. Zheldibay also published photos of a “standing meeting” between Trump and Tokayev on the sidelines of the UN General Assembly in New York, countering earlier reports that contact was limited to a phone call.

Image: Ruslan Zheldibay

Historically, Tokayev has used major senior personnel changes as a tool to recalibrate policy when he judged the moment to be pressing. In September 2023, Tokayev responded to water shortages, transport bottlenecks, and failures in culture and sports by creating a Ministry of Water Resources and Irrigation, re-establishing the Transport Ministry, and reorganizing the Culture and Sports portfolios with new leadership. In February 2024, amid persistent inflation and stalled infrastructure improvements, he dismissed the entire cabinet and appointed a new government.

The latest moves differ, however, in that they target foreign policy rather than domestic governance, and come amid visible efforts to align more closely with Washington. It is also noteworthy that the foreign policy reshuffle follows other signals from Astana that it is seeking alignment with the U.S. administration. Earlier this month, Tokayev wrote to Trump to address bilateral trade frictions, offering to engage in “constructive dialogue” on issues such as U.S. tariffs on Kazakh exports. That outreach culminated in the earlier Wabtec deal, quickly framed in Washington as a victory for Trump’s “America First” policy and credited with creating 11,000 jobs in Pennsylvania – a decisive swing state.

Following an appearance by Trump at the UN General Assembly, which was marred by mishaps including a stalled escalator and technical malfunctions, Tokayev echoed Trump’s sharp criticism of the United Nations. Taken together, these moves amount to a coordinated push to strengthen ties with the United States and secure traction with the Trump administration.

Like Trump, Tokayev has shown little hesitation in dismissing officials when he sees fit. The reshuffle underscores his determination to pivot toward economic diplomacy and closer engagement with Washington. With its vast natural resources, expanding business opportunities for foreign investors, and sheer GDP weight, Kazakhstan stands out in Central Asia. The open question is whether these moves will translate into Kazakhstan becoming a true priority for U.S. policymakers, or simply leave it competing for attention in an increasingly crowded diplomatic field.

29 Sep 2025

Home, Life & Culture, Kazakhstan Life & Culture, Kazakhstan, Features, Kazakhstan Featurees

Almaty Gears Up to Host Real Madrid’s Galácticos

September 30, 2025
By Joe Luc Barnes

Football fans across Kazakhstan are preparing for arguably the biggest sporting occasion in the country’s history on Tuesday. Kairat Almaty play their first ever home Champions League game against the mighty Real Madrid at the Almaty Central Stadium.

The arrival of Madrid’s Galácticos has electrified the city, with fans camping outside the Intercontinental Hotel in Almaty just to catch a glimpse of the visiting superstars.

Kairat lost their first match 4-1 to Sporting Lisbon, a scoreline that the management felt didn’t do justice to a spirited performance. “The team lost focus for about five minutes, conceding three goals, but never gave up and scored a goal in the Champions League – the first in our club’s history. That experience is valuable,” Kairat Boranbaev, the club’s president, told The Times of Central Asia at the club’s training complex this week.

“We understand that the Champions League has the 36 best teams in Europe, so the level is extremely high. We don’t stress about the result; the team gains huge experience.” Boranbaev said, proudly adding that six Kairat academy products played in the match.

Kairat Almaty President, Kairat Boranbaev; image: TCA, Joe Luc Barnes

A Ten-Year Journey

The fifty-nine-year-old president and business magnate is not surprised his club has reached the higher echelons of European football. “This strategic work was built more than ten years ago, and we have been moving toward it all these years. I think it’s a natural result, a systematic effort by our club.”

Boranbaev says that when he took over the club’s presidency in 2012, the facilities were well below par. Kairat is traditionally Kazakhstan’s most storied club, their famed black-and-yellow jerseys representing all-Kazakhstan in the Soviet Top League in the communist years. But they had fallen on hard times in the independence era, even splitting into two rival clubs for a time.

“When we arrived, there was only one burned-down base from Soviet times,” Boranbaev told TCA. “We started developing, learning what football really is. Today, all the infrastructure is established, youth player development is in place, and the coaching staff training is organized. That’s why the results we’ve achieved today are the outcome of years of stable, professional management.”

Kairat Almaty’s third qualifying round tie against Slovan Bratislava; image: TCA, Joe Luc Barnes

Nurturing Youth

Kairat differs from other Kazakh teams in the emphasis they place on their academy. While clubs such as FK Astana and Aktobe often import talent rather than investing in grassroots football, Kairat aims to develop its own.

The club’s most famous academy product is seventeen-year-old Dastan Satpaev, who will move to London side Chelsea upon turning eighteen. But during TCA’s tour of the stadium complex, we bump into the club’s newest teenage star, Sherhan Kalmurza, the eighteen-year-old goalkeeper who has been catapulted into the first XI due to injuries to other senior players. “He’s become famous,” booms Boranbaev. “He now has 40,000 Instagram followers after just two games!”

Kairat’s president notes that while the club respects the experience of foreign players – which includes Belarus’ Valeriy Gromyko and Portuguese forward Jorginho – the club’s priority is its academy, which caters to children from the age of six, with thirteen branches across the city. From fourteen onwards, prospective starlets live in boarding schools by the club’s academy.

Training facility in Besagash, on the outskirts of Almaty; image: TCA, Joe Luc Barnes

The Visit of the Galácticos

The arrival of the world’s most famous football team is perhaps a bigger prize than victory itself. Fans are struggling to contain their excitement. Rauan Mutair, 24, part of a group of fans that runs Kairat Makhabbatim, an Instagram page dedicated to the club, tells of his excitement when he saw that Kairat would be playing against Real Madrid. “My heart started racing,” he told The Times of Central Asia. “The Champions League is a great school and a grand stage; it’s a historic opportunity for the players and the city.”

Mutair went to his first game over a decade ago and was enchanted by the energy of the stadium: “The black-and-yellow sea, the sound of the drums captured me instantly. That feeling has never faded,” he said fondly.

Fans sing in both Russian and Kazakh, which reflects the city’s cosmopolitan history. It’s not unusual to hear “Алма-Ата, столица мира” (Alma-Ata, capital of the world) sung in Russian, followed by “Алға, Қайрат!” (Forward, Kairat!) ringing out in Kazakh from the terraces in the city’s Central Stadium.

Mutair promises that for the visit of Madrid, the supporters will pull out all the stops in support of their side. He promises a large banner (or tifo), drums, and call-and-response chants between different parts of the stadium.

The question, of course, is who will be in the stadium to see the big game. The visit of Madrid has opened some old wounds about inequality in the city. Fans who watched the four qualifying matches for the competition paid as little as 1,500 tenge ($2.80) for tickets in some cases. For the visit of Real Madrid, the minimum price for a ticket will be 75,000 Tenge, or $140.

But perhaps this should be expected. Stars do not often visit Central Asia. The biggest touring Western stars tend to be musicians – 2025 has seen Robbie Williams, the Backstreet Boys, and Jennifer Lopez. The minimum prices for these events were 50,000 tenge ($90) for the Backstreet Boys, and slightly under that for J-Lo. But, whilst these are all big names, they were at the top of their game around two decades ago. Real Madrid brings that rare cachet: world-class performers who are at their peak right now.

This means that the 20,000 or so tickets available for one of the biggest sporting events of Kazakhstan’s history are seeing stratospheric demand. On September 23^rd, when the tickets went on sale, online retailer Ticketon reported over a million simultaneous users in the queue for tickets.

“We understand that Champions League group-stage matches are different from qualifiers,” said Boranbaev. “Our season ticket holders get priority to buy their seats. We aim to make tickets accessible to all. One problem is scalpers, but we will limit to two tickets per person to prevent resale.”

These scalpers have nevertheless been doing a roaring trade in Telegram groups, with some “VIP” tickets going for 430,000 tenge ($783), or the price of the monthly rental of an average two-bedroom apartment in the city center.

Flights from the capital Astana to Almaty have spiked on the Tuesday before the game, and on Wednesday morning for the return trip, suggesting that wealthy Kazakhs from across the country are flying in.

The idea of money and power buying their way past ordinary people is perhaps embodied by the club president himself. Boranbaev, whose daughter Alima married the former president’s grandson, leveraged his ties to the ruling family to build influence in oil, gas, real estate, and retail. At one point, he was the 14^th most influential individual in Kazakhstan. However, after the protests of Bloody January, which saw Nazarbayev’s star fall, he was imprisoned for embezzlement after being convicted of stealing $30 million from a gas contract. However, he struck a deal with the state to hand over major assets and funds, and was released from prison in November 2023.

His phoenix-like return to grace rankles with many city residents who see that just as a man can buy his way out of the justice system, the rich can buy their way into football matches.

Boranbaev told The Times of Central Asia that he had been in discussions with Almaty’s mayor about creating a fan zone for the game, but these promises have come to nothing.

Kairat Almaty hosting FK Aktobe at the Almaty Central Stadium; image: TCA, Joe Luc Barnes

Spending Spree

Spent wisely, however, the windfall from this game has the potential to develop the club. Plans are afoot for a new stadium, and Mutair would like to see improved sports science and an even better academy.

For now, though, fans are focused on the present, and Mutair is even holding out hope for an unlikely upset.

“We’ll enjoy the game as a large-scale celebration, but on the pitch it’s about pragmatism: discipline, resilience under pressure, capitalizing on set pieces. Even a single goal would be historic.”

29 Sep 2025

Home, Life & Culture, Kazakhstan Life & Culture, Kazakhstan

New York Film Academy Opens First Central Asian Campus in Kazakhstan

September 30, 2025
By Sergey Kwan

The New York Film Academy (NYFA) has opened its first campus in Central Asia, marking a significant milestone for the region’s creative industries. The official launch took place on September 27 in Kaskelen, a town located 20 kilometers from Almaty.

Situated within the Creative Industries Park of Energy University, the new campus spans more than 1,000 square meters. It features professional sound stages, editing and recording studios, lecture halls, dressing rooms, and specialized classrooms for acting. According to NYFA, the facilities are designed to support the full cycle of film production from concept development to shooting and post-production.

NYFA Kazakhstan will welcome its first cohort in autumn 2025, offering five of its most sought-after programs: filmmaking, screenwriting, acting for film, game design, and 3D animation and visual effects. Courses will be taught by faculty from NYFA’s U.S. campuses, bringing international expertise directly to Kazakhstan.

Speaking at the opening ceremony, NYFA President and CEO Michael Young emphasized the broader cultural significance of the project: “We are proud that the New York Film Academy has opened in Kazakhstan. This is not just an educational project, but a platform that brings together the region’s talent and introduces them to the global film industry.”

Officials stated that the campus is expected to become a regional hub for cultivating creative professionals, providing access to world-class film education without the need to study abroad.

29 Sep 2025

Central Asia, Kyrgyzstan, Business & Economy, Kyrgyzstan Business & Economy

Kyrgyzstan Moves to Develop Local Lithium Battery Production

September 29, 2025
By Sergey Kwan

On September 26, the Kyrgyz Ministry of Economy and Commerce signed a memorandum of cooperation with Russian state atomic energy corporation Rosatom, Energy Solutions Kyrgyzstan LLC, and Elbrus Construction Company LLC to explore the development of lithium battery and energy storage system production in Kyrgyzstan.

According to the ministry, the agreement outlines joint efforts to analyze the domestic lithium battery market, prepare proposals for localized production, and implement projects focused on energy storage solutions within the country.

The initiative is expected to attract high-tech investment, generate new jobs, and contribute to Kyrgyzstan’s energy independence. It also supports the development of clean and sustainable energy technologies.

The project is particularly relevant as the number of imported electric vehicles (EVs) in Kyrgyzstan continues to rise, alongside government plans to localize EV assembly. The initiative aligns with the country’s broader strategy to promote eco-friendly transport options and reduce air pollution, especially in urban areas such as Bishkek.

In a related development, the Ministry of Economy and Commerce signed a memorandum of understanding in June with South Korean companies EVSIS, NGS, and the Korea Automobile Environment Association. That agreement focuses on expanding EV charging infrastructure in Bishkek.

As The Times of Central Asia previously reported, South Korean stakeholders also plan to launch production of EV charging stations in Kyrgyzstan. The project aims to establish a local manufacturing facility and develop a nationwide charging network across major cities and regions.