• KGS/USD = 0.01143 -0%
  • KZT/USD = 0.00192 -0%
  • TJS/USD = 0.10820 0.19%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28575 0%
  • KGS/USD = 0.01143 -0%
  • KZT/USD = 0.00192 -0%
  • TJS/USD = 0.10820 0.19%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28575 0%
  • KGS/USD = 0.01143 -0%
  • KZT/USD = 0.00192 -0%
  • TJS/USD = 0.10820 0.19%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28575 0%
  • KGS/USD = 0.01143 -0%
  • KZT/USD = 0.00192 -0%
  • TJS/USD = 0.10820 0.19%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28575 0%
  • KGS/USD = 0.01143 -0%
  • KZT/USD = 0.00192 -0%
  • TJS/USD = 0.10820 0.19%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28575 0%
  • KGS/USD = 0.01143 -0%
  • KZT/USD = 0.00192 -0%
  • TJS/USD = 0.10820 0.19%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28575 0%
  • KGS/USD = 0.01143 -0%
  • KZT/USD = 0.00192 -0%
  • TJS/USD = 0.10820 0.19%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28575 0%
  • KGS/USD = 0.01143 -0%
  • KZT/USD = 0.00192 -0%
  • TJS/USD = 0.10820 0.19%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28575 0%
13 December 2025

Kyrgyzstan Sees Continued Growth in Foreign Direct Investment

Kyrgyzstan continues to show steady growth in attracting foreign direct investment (FDI), with figures exceeding pre-pandemic levels. According to the National Statistical Committee, FDI reached over $1 billion in 2024, and the positive momentum has continued into 2025.

In the first quarter of 2025, Kyrgyzstan attracted $288.3 million in direct investment, up 44% compared to the same period in 2024. The National Statistical Committee categorizes investments as coming from either Commonwealth of Independent States (CIS) countries or non-CIS countries, with volumes from both sources remaining roughly comparable.

Among non-CIS nations, China maintained its position as Kyrgyzstan’s largest investor, contributing $66.3 million during the first quarter. Among CIS countries, Russia led with $56 million, while Kazakhstan remained a key regional partner with nearly $50 million invested from January to March 2025. Other CIS countries contributed considerably smaller amounts.

Turkey also continues to play a significant role, investing $62 million in Kyrgyzstan’s production sector. Other notable contributors include the Netherlands, with $23.8 million.

Uzbekistan demonstrated marked growth, following the signing of a bilateral agreement on the demarcation of certain border areas and water resources. Uzbek investments reached more than $5 million in the first quarter of 2025, up sharply from $237,000 in all of 2024.

India likewise recorded a surge in investment, increasing from $91,000 in 2024 to $1.9 million in the first three months of 2025, an almost 2,000% rise.

Bishkek remains the country’s most attractive destination for foreign investment, drawing more than $525 million in 2024. The Chui region ranks second, driven by the expansion of factories and processing enterprises with foreign participation.

The manufacturing sector continues to be the primary target for foreign investment, followed by financial intermediation and insurance. Additional capital is flowing into mineral extraction, trade, and equipment repair.

Kyrgyz Car Owners Receive $200,000 in Insurance Payouts Since Start of 2025

Since the beginning of 2025, car owners in Kyrgyzstan have received approximately $200,000 in insurance payouts under the country’s compulsory motor insurance (CMI) program, according to the State Insurance Organization (SIO).

The rise in payouts has been matched by growing coverage of motor insurance, particularly after fines were introduced for individuals without insurance policies on July 1, 2025. The fine is set at $35, while the cost of an annual policy ranges from $20 to $50, depending on engine size and the number of insured persons.

For legal entities and foreign nationals, the cost of an annual policy is $150. Compulsory insurance for these groups has been in effect since April 1, 2023. Additionally, insurance is now mandatory when re-registering or purchasing a vehicle, as part of the phased implementation of universal motor insurance in Kyrgyzstan.

According to the SIO, 38,345 individuals purchased policies in the first month following the introduction of penalties. Between January 1 and July 28, 2025, a total of 266,465 vehicles were insured through the SIO.

The organization told The Times of Central Asia that many citizens had voluntarily obtained insurance before the penalties were introduced, reflecting a growing culture of legal compliance and personal responsibility among car owners.

During the reporting period, the SIO registered 190 insurance claims. The largest payout in 2025 was $3,500, which was divided between two parties involved in a traffic accident.

Insurers report that the sector is prepared to handle further growth in claims.

The SIO was initially capitalized with $12 million from the state budget. Its authorized capital has since been increased at least twice. Additionally, all state institutions are required to insure their assets through the SIO.

Alongside the state-run insurer, 14 private insurance companies operate in the Kyrgyz market, contributing to a competitive environment.

As previously reported by The Times of Central Asia, the SIO’s financial model includes a fund reservation mechanism for insurance payouts, ensuring the organization’s ability to meet its obligations even amid a rise in accident claims.

While some experts caution that the market could face saturation in the coming years, the short-term outlook for the industry remains one of steady growth.

Kazakhstan to Launch Agricultural Marketplace for Businesses

Kazakhstan’s Ministry of Trade and Integration is developing a domestic digital platform aimed at streamlining the purchase of agricultural products, reducing their cost, and enhancing government oversight of the agricultural sector.

Speaking at a government meeting on August 5, Minister of Trade and Integration Arman Shakkaliev said a pilot project is currently underway to introduce a nationwide information system for tracking goods, implemented in partnership with the national telecom operator, Kazakhtelecom JSC. The goal is to ensure a transparent and accessible supply of socially important food products to the population.

“This project aggregates real-time data on the stock and volume of such goods, based on invoices across the supply chain,” Shakkaliev stated. “Using this system, we are creating an innovative agri-marketplace that will provide digital connectivity between producers, retail chains, and government agencies, eliminating intermediaries and opaque schemes.”

The ministry is also preparing to launch a domestic B2B platform to facilitate wholesale imports, primarily from China, and support small and medium-sized enterprises. Plans include the introduction of digital tools, streamlined procedures, and integration with suppliers via direct channels, including JD.com and Alibaba. Full implementation will require removing technical certification barriers with the Chinese side.

According to Shakkaliev, over 25 million fiscal receipts are generated daily in Kazakhstan. In response, the ministry will launch a dedicated module to monitor trade markups by analyzing electronic invoices and cash register receipts. “The system will enable monitoring of purchase and retail prices, identifying price anomalies, assessing markup levels by category, region, and supplier, and detecting potential shortages in a timely manner,” he explained.

Further digital initiatives include expanding Kazakhstan’s product labeling system. By the end of 2025, motor oils will be subject to digital labeling, followed by beer in February 2026, light industry goods in March, and jewelry by December. From 2027, biologically active supplements (BAS) will also be included.

Shakkaliev said these reforms are expected to boost trade volumes, reduce the shadow economy, and increase labor productivity in the retail sector.

As previously reported by The Times of Central Asia, Kazakhstan launched a domestic online marketplace, Teez, in December 2024, offering next-day delivery and opening pick-up points in 24 cities across the country.

Kyrgyzstan Eases Licensing Rules to Expand Private School Sector

The Kyrgyz government is taking steps to simplify the licensing process for private schools in response to a growing shortage of student places in the country’s public education system, particularly in urban centers such as Bishkek and Osh.

On August 4, Chairman of the Cabinet of Ministers Adylbek Kasymaliyev announced a reform initiative aimed at easing regulatory requirements for licensing private institutions offering primary education. The goal, he stated, is to expand access to quality education and alleviate pressure on the overburdened public school network.

Kasymaliyev noted that rapid population growth has led to severe overcrowding in schools in major cities, where students are often taught in three shifts instead of the standard two, negatively affecting learning outcomes.

“Addressing the shortage of school places is a key priority for the government,” Kasymaliyev said. While new public schools are under construction, he emphasized that the private sector plays an important role in meeting rising demand.

Kyrgyzstan currently has 219 private schools, with 108 located in Bishkek and 54 in Osh. In 2024, 33 licenses were issued to private education providers, and 21 more have been granted since the beginning of 2025.

“We see strong interest from the private sector in the education field, particularly in large cities,” Kasymaliyev said. “Creating real opportunities for opening high-quality private schools is one of our tasks.”

The reform is part of a broader initiative to improve educational access and quality amid demographic expansion and urbanization.

Class sizes in Bishkek far exceed recommended limits, according to educators. “The average class size in Bishkek is 36 to 45 students, while the sanitary norm is up to 35,” a deputy director of a public school in the capital told The Times of Central Asia. “In some popular schools, the number exceeds 50.”

Uzbek Trade Delegation Visits U.S. to Promote “Made in Uzbekistan” Exports

From July 23 to 29, a delegation from Uzbekistan’s Ministry of Investment, Industry and Trade (MIIT) visited the United States to promote Uzbek-produced goods, expand export channels, and strengthen bilateral trade ties, according to the ministry’s press service.

As part of the mission, 25 Uzbek textile companies showcased their products under the national “Made in Uzbekistan” brand at three major trade exhibitions in New York: Texworld NYC, Apparel Sourcing USA, and Home Textiles Sourcing Expo. Delegates met with industry leaders and trade associations, including Bunzl plc, Levi Strauss & Co., PVH Corp., GIII Apparel Group, Kontoor Brands, American Eagle Outfitters, Tapestry Inc., Macy’s, the American Apparel & Footwear Association (AAFA), and the United States Fashion Industry Association (USFIA), to discuss integrating Uzbek brands into U.S. sourcing channels.

In Washington, ministry representatives met with the U.S. Department of Commerce to explore opportunities for enhancing trade, reducing regulatory barriers, and increasing investment cooperation.

They also engaged with the Commercial Law Development Program (CLDP) under the Commerce Department, agreeing to organize webinars and seminars aimed at helping Uzbek firms meet U.S. certification and packaging standards. A separate meeting with the U.S. Department of Agriculture and the U.S. Cotton Association addressed expanding Uzbekistan’s access to the GSM-102 export credit guarantee program, increasing credit limits, and launching a “Made from U.S. Cotton” initiative. The proposed initiative would allow processed Uzbek goods made from American cotton to carry the label in international markets.

The delegation also explored ways to deepen investment cooperation with U.S. industry associations and develop mechanisms to integrate more Uzbek products into American retail and sourcing ecosystems.

As previously reported by The Times of Central Asia, on April 30, U.S. Labor Secretary Lori Chavez-DeRemer announced the termination of more than $38 million in foreign aid programs during a cabinet meeting at the White House. This included funding for a labor rights initiative in Uzbekistan’s cotton sector. The program, launched in 2022 and scheduled to run through 2026, aimed to improve labor conditions and prevent forced labor. It received $2 million in its first year, with $1 million earmarked for 2025.

The Rise of Regionalism in Central Asia: From Divisions to Dialogue

In recent years, Central Asia has undergone a remarkable transformation — from a region historically marked by political divisions and competing national interests, to one increasingly characterised by cooperation and dialogue. Today, Central Asian countries are exploring the idea of strategic autonomy and greater regional solidarity, not as an abstract ambition, but as a practical response to the shared challenges and opportunities they have.

A key institutional vehicle for this evolving cooperation is the Consultative Meeting of Central Asian Leaders. Unlike formal international summits, this forum allows for open and informal dialogue between heads of state. It is valued precisely because it enables leaders to discuss sensitive regional matters candidly, without the constraints of protocol. The momentum for regional cooperation is clearly growing, and this forum has become a symbol of Central Asia’s desire to take its future into its own hands.

Beyond this, the countries of Central Asia cooperate through platforms such as the Shanghai Cooperation Organization (SCO) and the Organisation of Turkic States, both of which offer multilateral mechanisms for addressing regional security, economic integration, and cultural exchange. Importantly, what was once a region of competing national agendas is now evolving into a space of shared strategic vision, including coordinated positions in international forums such as the United Nations.

Additionally, in recent years, the foreign policies of Central Asian countries have demonstrated more and more coordination and regional alignment, especially in their engagement with external partners. This shift is reflected in the emergence of multilateral dialogue formats between Central Asia and key global actors. Notably, the European Union–Central Asia Summit, most recently held in Samarkand in 2025, underlined a shared commitment to regional connectivity, sustainable development, and mutual security.

Similar formats have been institutionalised with other global players, such as the C5+1 format with the United States, focusing on green transition, economic reforms, and regional security. Germany has also advanced a Central Asia–Germany high-level dialogue, including the “Berlin Initiative,” aimed at promoting green energy, vocational training, and the rule of law. Meanwhile, Italy has launched its Central Asia + Italy format as part of its strategy to diversify partnerships in Eurasia and promote economic diplomacy.

These platforms reflect a common approach, where Central Asian countries are increasingly choosing to engage as a bloc, rather than solely through bilateral channels. This enhances their negotiating capacity, visibility, and strategic coherence on the global stage. While each country maintains its sovereignty and specific foreign policy priorities, there is a growing recognition that regional solidarity amplifies voices and leverage in an increasingly complex geopolitical landscape.

This shift aligns with the broader regional identity-building efforts under the Consultative Meetings of Central Asian Leaders, and reflects a pragmatic understanding that shared challenges — such as water management, climate adaptation, and migration — are better addressed collectively and in concert with international partners.

Common regional challenges also drive this growing convergence. Climate change, water scarcity, and labor migration are issues that transcend borders. One of the most pressing concerns is the region’s vulnerability due to the presence of millions of Central Asian migrant workers in Russia, which creates economic, political, and even social fragilities. Similarly, security threats stemming from terrorism, extremism, and instability in neighboring Afghanistan demand a coordinated regional response.

In this regard, Uzbekistan has taken a leading role in advocating for constructive engagement with Afghanistan. Rather than treating Afghanistan solely as a security threat, Uzbekistan emphasises its potential as a partner in regional development. Tashkent continues to promote infrastructure and connectivity projects that include Afghanistan and actively engages with global stakeholders to avoid repeating past mistakes that led to isolation and instability. These efforts are crucial for countering radicalisation and preventing the spread of extremism across the region.

Another major regional concern is demographic pressure, particularly in Uzbekistan, where over 60% of the population is under the age of 30. This youth bulge presents both opportunities and challenges. Uzbekistan aims to provide higher education access to 50% of young people by 2030, a bold and necessary goal. However, such educational expansion must be matched by meaningful employment opportunities. To this end, Uzbekistan has established a specialised migration agency to facilitate the organised deployment of skilled labour abroad, including in cooperation with the European Union. Agreements with countries like Germany are already in place, and more are expected to follow.

All these initiatives — whether in education, migration, energy, or security — are being pursued in parallel and in partnership with regional peers. The increasing alignment of foreign policy priorities, the absence of interstate tensions, and the habit of consultation signal that Central Asia is developing a new regional identity based on strategic autonomy, mutual respect, and proactive cooperation.

While the concept of a formal “political union” remains premature, the foundations for deeper regional integration are being laid. As long as this cooperative spirit persists, the Central Asian region will continue to gain agency and resilience amid a turbulent geopolitical landscape.

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The views expressed in this article are those of the author and do not necessarily reflect the official policy or position of the publication, its affiliates, or any other organizations mentioned.