• KGS/USD = 0.01144 0%
  • KZT/USD = 0.00212 0%
  • TJS/USD = 0.10432 -0.29%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28571 0.28%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00212 0%
  • TJS/USD = 0.10432 -0.29%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28571 0.28%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00212 0%
  • TJS/USD = 0.10432 -0.29%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28571 0.28%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00212 0%
  • TJS/USD = 0.10432 -0.29%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28571 0.28%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00212 0%
  • TJS/USD = 0.10432 -0.29%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28571 0.28%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00212 0%
  • TJS/USD = 0.10432 -0.29%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28571 0.28%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00212 0%
  • TJS/USD = 0.10432 -0.29%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28571 0.28%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00212 0%
  • TJS/USD = 0.10432 -0.29%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28571 0.28%

Uzbekistan Targets $50 Billion in Investment with Financial Reforms

Uzbekistan is preparing to introduce Islamic finance services nationwide, with the first offerings expected in 2027. Under the country’s updated “Uzbekistan 2030” development strategy, at least three commercial banks are expected to provide Sharia-compliant financial services by the end of the decade, marking a significant shift in the structure of the banking sector.

Against this backdrop, President Shavkat Mirziyoyev was briefed on March 25 on a broader set of initiatives aimed at strengthening the country’s investment climate. These include plans to establish the Tashkent International Financial Center, launch an International Center for Digital Technologies, and gradually introduce Islamic finance mechanisms.

The presentation comes as Uzbekistan seeks to position itself more competitively in the global economy amid rising geopolitical uncertainty and intensifying competition for foreign investment. Officials said the country’s natural resources, economic potential, and ongoing reforms create favorable conditions for attracting international companies exploring new markets.

Mirziyoyev stressed the need to act swiftly to capitalize on emerging opportunities, noting that attracting foreign investors requires modern infrastructure, a transparent business environment, and legal systems aligned with international standards. Uzbekistan aims to attract more than $50 billion in investment this year.

A central component of the strategy is the Tashkent International Financial Center, which is expected to serve as a platform for new investment flows and long-term economic growth. By 2030, it is projected to attract an additional $20-25 billion, contribute up to 1% of annual GDP growth, and create as many as 15,000 highly skilled jobs.

The center will operate under a special legal regime incorporating elements of the common law system of England and Wales, while allowing its governing bodies to adopt independent regulations. Plans include the establishment of a Tashkent International Commercial Court and an International Arbitration Center to handle disputes. Investors are expected to benefit from tax incentives, simplified visa procedures, and the ability to freely move and repatriate capital, alongside access to modern financial instruments, including digital assets.

In parallel, Uzbekistan is developing the International Center for Digital Technologies under the Enterprise Uzbekistan brand. The center will function under a special legal framework expected to remain in place until 2100. Within a regulatory sandbox, companies will be able to test new technologies, pay salaries in foreign currency, and operate under international labor and data standards.

The digital center will focus on artificial intelligence, data processing, research and development, and startup support. By 2030, it is expected to attract up to 1,000 companies, create more than 300,000 jobs, and generate export revenues of up to $5 billion. Several major international technology firms have already expressed interest in the initiative.

The introduction of Islamic finance is another key pillar of the reform agenda. The proposed system includes instruments such as murabaha, mudarabah, musharakah, and Islamic leasing, all designed to comply with national legislation. Tax measures are also under consideration, including exemptions on certain transactions and investment income.

To oversee the sector, an Islamic Finance Council will be established under the Central Bank, with similar bodies to be created within participating banks. These councils will be responsible for setting standards, reviewing contracts, and ensuring compliance.

Initial steps are expected this year, with at least one commercial bank planning to introduce Islamic “window” operations. Between 2026 and 2030, two fully fledged Islamic banks are expected to be established. Officials estimate that these measures could attract an additional $1 billion in investment and deposits.

Kyrgyzstan Seeks Chinese Cooperation to Develop EV Charging Infrastructure

Kyrgyzstan is seeking to collaborate with Chinese companies to develop electric vehicle (EV) charging infrastructure as part of efforts to modernize its energy sector and promote sustainable transport.

On March 25, Energy Minister Taalaibek Ibrayev visited China, where he held a series of meetings with energy and technology companies involved in EV infrastructure development.

During the visit, Ibrayev toured a manufacturing facility operated by ShuiFa Group and signed a memorandum of understanding between the Kyrgyz Ministry of Energy and the company. The agreement involves cooperation in energy infrastructure, including the development of EV charging stations and energy storage systems. Officials said the memorandum represents a step toward modernizing Kyrgyzstan’s energy sector and supporting sustainable transport.

Ibrayev also met with representatives of NUCL New Energy Technology (GD) Ltd to discuss potential cooperation on EV charging infrastructure and the introduction of modern technologies. The company expressed readiness to work with Kyrgyz authorities.

In addition, talks were held with Zhejiang Anfu New Energy Technology Co., Ltd. regarding the possible supply of equipment and the localization of production in Kyrgyzstan

These initiatives align with the government’s broader strategy to promote environmentally friendly transport and reduce air pollution in Bishkek and other major cities.

The number of electric vehicles in Kyrgyzstan has been rising steadily. According to First Deputy Prime Minister Daniyar Amangeldiev, more than 200 electric vehicles are imported into the country daily under a value-added tax (VAT) exemption scheme.

As a member of the Eurasian Economic Union (EAEU), Kyrgyzstan also benefits from an annual quota allowing the duty-free import of up to 15,000 electric vehicles.

Despite this growth, EVs still account for a small share of the country’s total vehicle fleet.

According to the Ministry of Natural Resources, Ecology, and Technical Supervision, Kyrgyzstan had more than 1.9 million registered vehicles as of early 2026, a 13% increase compared with 2024. Of these, 972,000 run on gasoline, 339,000 on diesel, 56,900 on gas, and 37,000 are hybrids. Electric vehicles make up about 0.8% of the total, or approximately 15,200 vehicles.

Kyrgyzstan Earned Almost $1.1 Billion from Tourism in 2025

Kyrgyzstan’s tourism industry continued to expand in 2025, remaining an important contributor to the country’s economic growth.

According to the National Statistical Committee, revenue from foreign visitors reached $1.098 billion in 2025, up from $1.016 billion in 2024.

Tourism accounted for 3.8% of GDP, compared to 3.6% the previous year. At the same time, Kyrgyz citizens spent $564 million on travel abroad.

As of January 1, 2026, the country had 148,100 registered tourism-related businesses. Revenue from passenger transportation serving tourists across all modes of transport totaled nearly 17.3 billion soms (approximately $197 million), compared to 16.9 billion soms in 2024.

Kyrgyzstan’s main tourist attractions include Lake Issyk-Kul and its mountain ski resorts, with the largest and most popular located in Karakol.

In recent years, more than 95% of foreign tourists have come from neighboring Central Asian countries and Russia.

According to the Tourism Development Fund, most visitors arrive from Uzbekistan, followed by Kazakhstan and Russia. At the same time, the number of tourists from Arab and European countries, as well as from China, India, and the United States, has been steadily increasing.

Uzbekistan and Tajikistan Launch 10 Joint Projects During Rahmon’s State Visit

Uzbekistan’s President Shavkat Mirziyoyev welcomed his Tajik counterpart Emomali Rahmon to Tashkent on March 26 for a state visit marked by high-level talks, and the launch of joint economic projects.

Talks between the presidents followed, first in a one-on-one format and then during the inaugural meeting of the Supreme Interstate Council, a new platform aimed at deepening bilateral cooperation. Mirziyoyev described the visit as a landmark in bilateral relations, noting that the council would elevate cooperation and provide a mechanism for implementing joint initiatives.

Both sides highlighted the increasing frequency of contacts between government institutions, parliaments, and agencies. In the lead-up to the visit, a series of events took place, including an intergovernmental commission meeting, an industrial exhibition, and forums involving regional leaders, academics, and youth. Uzbekistan also hosted Days of Tajik Culture and Cinema.

During the discussions, Mirziyoyev and Rahmon reviewed opportunities to expand cooperation across key sectors, including trade, industry, transport, and water and energy security. Bilateral trade approached $1 billion last year, driven largely by the exchange of finished goods.

The two countries aim to double this figure to $2 billion by 2030. Planned measures include accelerating the establishment of the Oybek-Fotekhobod border trade center, introducing digital certification systems and “E-Permit” mechanisms, and modernizing border infrastructure. The sides also agreed to adopt an industrial cooperation program covering mining, energy, agriculture, construction, and manufacturing.

Following the council meeting, Mirziyoyev and Rahmon attended a ceremony to launch 10 joint projects. These include new enterprises producing furniture and leather goods, expanded household appliance manufacturing, textile production facilities in Tajikistan, and construction projects in Tashkent. Additional initiatives include food processing plants in Uzbekistan’s Fergana region, dairy production in the city of Andijan, and facilities for making fruit juice and metal briquettes in the country’s Surkhandarya region.

A ceremony was also held to name a street in New Tashkent after Dushanbe, underscoring symbolic ties between the two capitals.

The visit also featured the opening of a new building for Tajikistan’s embassy in Tashkent. The complex includes administrative offices, a consular section, a residence for the ambassador, and housing for diplomatic staff and their families.

Cultural diplomacy formed another key part of the visit. Mirziyoyev and Rahmon attended a joint concert at the International Forums Palace featuring performers from both countries, with a program highlighting shared cultural heritage and longstanding ties between the Uzbek and Tajik peoples.

The leaders also discussed regional and international issues, reaffirming their commitment to continued dialogue and cooperation within Central Asia. They agreed to strengthen coordination on security matters and expand interregional ties, as well as humanitarian, educational, and scientific exchanges.

Given the presence of large diaspora communities in both countries, a proposal was put forward to adopt a five-year program aimed at strengthening cultural and humanitarian connections.

At the conclusion of the visit, both sides agreed to develop a comprehensive roadmap to ensure implementation of the agreements reached, signaling continued efforts to expand cooperation across political, economic, and cultural spheres.

Kazakhstan–Kashagan Dispute Heads to International Arbitration

Kazakhstan’s Vice Minister of Justice, Daniel Vaisov, announced that the country’s claims over the removal of sulfur storage limits at the Kashagan field, operated by North Caspian Operating Company N.V. (NCOC), will be heard under the International Centre for Settlement of Investment Disputes framework, which is headquartered in Washington.

NCOC includes Shell, TotalEnergies, Eni, ExxonMobil, CNPC, Inpex, and KazMunayGas.

In March 2023, an inspection of the Kashagan consortium by Kazakhstan’s environmental authorities identified violations of environmental legislation, including the excessive storage of sulfur volumes exceeding permitted limits. The resulting claim was valued at around $5 billion, according to the authorities. A court of first instance in Kazakhstan ruled in favor of the environmental authorities, according to Vaisov.

Six of the seven NCOC participants, excluding KazMunayGas, challenged the ruling in a Kazakh court in March this year. At the same time, the foreign investors initiated international arbitration proceedings.

“This claim was filed under bilateral international agreements: the agreement between the Republic of Kazakhstan and the Republic of France, and the agreement between the Republic of Kazakhstan and the Kingdom of the Netherlands,” Vaisov said during a briefing.

The Ministry of Justice, Ministry of Ecology, and Ministry of Energy are jointly handling the case.

Kazakhstan has been steadily tightening its position in major energy projects, seeking a larger share of revenues from fields developed under production-sharing agreements signed in the 1990s. Disputes over Kashagan and Karachaganak reflect broader efforts to rebalance terms with foreign investors as production stabilizes and fiscal pressures grow. The outcome of these cases could reshape how Central Asia’s largest economy manages foreign participation in its energy sector.

A separate dispute concerning project costs, reportedly exceeding $100 billion, is being handled under the framework of the Production Sharing Agreement (PSA), in line with government policy, Vaisov said.

Kazakhstan maintains that under the current terms, participating oil companies receive up to 98% of revenue from oil production at Kashagan, leaving the state with comparatively limited income in the form of royalties. Astana’s claim related to this issue has been reported at approximately $160 billion.

“As far as I know, an interim decision has been made regarding Karachaganak. Further work is currently underway,” Vaisov said.

In January 2026, an international arbitration tribunal ruled in favor of Kazakhstan in its dispute with shareholders in the Karachaganak Oil and Gas Projects, Eni, Shell, Chevron, and Lukoil. Compensation for the shareholders’ unjustified reimbursement of expenses has yet to be determined, but experts estimate it at between $2 billion and $4 billion.

Vaisov also noted that Kazakhstan has been reducing the cost of arbitration proceedings involving foreign investors.

“The Ministry of Justice has managed to reduce spending on these matters each year. Since 2021, costs have been reduced by nearly threefold. At the same time, the Republic of Kazakhstan engages leading law firms for these proceedings, as contracting companies do the same,” he said.

Kazakhstan Expands Aviation Hub with Focus on U.S. and Long-Haul Flights

Kazakhstan is preparing for an audit by the U.S. Federal Aviation Administration (FAA) that would allow the country to launch direct flights to the United States. To achieve this, the government must demonstrate the reliability of its aviation regulatory system, the presence of an independent and effective oversight body, and transparent airline certification procedures.

The country is also planning to acquire modern long-haul aircraft and has begun construction of its first maintenance center to service them. The Times of Central Asia spoke with representatives of Kazakhstan’s aviation industry about the progress of these efforts, when direct flights to North America may begin, and what challenges remain.

As part of efforts to expand international routes and strengthen Kazakhstan’s position as an aviation hub between Europe and Asia, Bauyrzhan Umiraliyev, head of the Aviation Safety Department at the Civil Aviation Committee, said the national carrier Air Astana plans to purchase 15 Boeing 787 Dreamliner aircraft, with deliveries scheduled between 2026 and 2035.

“This is a strategically important decision that can significantly boost civil aviation, the economy, and the country’s international standing,” an aviation authority representative told The Times of Central Asia. “Long-haul aircraft will allow airlines to launch direct flights to destinations in North America, Europe, Asia, and Australia that were previously inaccessible or required layovers.”

The aircraft will also enhance Kazakhstan’s attractiveness as a transit hub and tourist destination, while enabling airlines to compete internationally through improved efficiency, pricing, and service quality.

The purchase of these aircraft, previously delayed twice since 2025 due to production backlogs at Boeing, is expected to open new opportunities for Kazakhstan’s aviation sector, particularly following the anticipated attainment of Category 1 (CAT-1) safety status, confirming compliance with international aviation standards.

CAT-1: The Path to the U.S.

In 2024, Kazakhstan’s aviation authorities and the FAA signed an agreement to conduct a technical assessment under the International Aviation Safety Assessment (IASA) program.

According to Aslan Satzhanov, Acting Executive Director of the Aviation Administration of Kazakhstan, the assessment identified areas requiring improvement in flight safety oversight.

“We are currently working on amendments to regulatory acts to implement modern safety procedures and standardize processes, with technical support from FAA experts,” Satzhanov said.

In parallel, experts from the U.S. Transportation Security Administration have conducted preliminary assessments of airport security under the Export Control and Border Security Program.

The first visit, in October 2021, resulted in a generally positive evaluation of Kazakhstan’s aviation security framework. A follow-up visit in August 2022 focused on screening procedures for passengers, baggage, and cargo at Astana Airport.

“The capital’s airport received a positive assessment, and the coordinated work of aviation security personnel was noted,” Satzhanov said.

According to preliminary information, the full IASA audit may take place after long-haul aircraft enter service and relevant infrastructure is fully prepared; though, it should be noted that Kazakhstan does not control the timing of the IASA audit.

Industry Awaits New Aircraft

Preparations for launching new international routes, including previously announced flights to New York and Tokyo, are already underway. According to Satzhanov, flights to Tokyo may begin in the second half of 2026, while New York routes are expected no earlier than early 2027.

These timelines depend directly on the delivery and operational readiness of new aircraft.

Kazakhstan’s airlines are also planning broader route expansion. SCAT Airlines aims to launch flights to destinations including Tel Aviv, Shanghai, Guangzhou, Larnaca, Dalaman, and Salalah. Meanwhile, the Air Astana Group is considering routes to Tokyo, Samarkand, Xi’an, Urumqi, and Riyadh.

“At the same time, long-haul aircraft may also be deployed on existing routes to increase capacity and improve efficiency,” Satzhanov added.

Staffing Challenges and Foreign Pilots

Training personnel for such a large-scale expansion remains a critical challenge. Under agreements with Boeing, initial training for pilots and technical staff is provided by the manufacturer.

In the first phase, foreign instructors train local specialists, who then pass on their knowledge to other staff. This approach is intended to build domestic expertise over time.

Air Astana has already begun training engineers for the Boeing 787 at international centers, and plans to transition to in-house training programs. The airline is also developing partnerships with local aviation institutions.

However, industry representatives acknowledge that foreign pilots will be required in the short term due to a shortage of locally certified specialists qualified to operate the new aircraft.

MRO Development

In late February, SCAT Airlines, in partnership with Boeing, launched construction of a major Maintenance, Repair, and Overhaul (MRO) center in Shymkent.

According to aviation officials, the project represents a key milestone in developing Kazakhstan’s aviation infrastructure. The facility will provide a full cycle of aircraft maintenance services and reduce reliance on foreign providers.

The complex will cover more than 45,000 square meters, with additional apron space exceeding six hectares. It will include at least 15 specialized facilities, such as engine repair shops, avionics laboratories, and aircraft painting and interior modification units.

Construction is scheduled for completion in November 2027.

Initially, the center will service Boeing 737 aircraft, which make up the majority of SCAT’s fleet. Plans are in place to expand capabilities to wide-body aircraft, including the Boeing 777, by 2030.

The facility is also expected to attract foreign airlines, strengthening Kazakhstan’s role as a regional aviation hub.

Regional Competition

Kazakhstan’s major airports, including Astana, Almaty, Aktau, Atyrau, and Shymkent, already meet International Civil Aviation Organization standards and are capable of handling long-haul aircraft.

However, competition is intensifying. Uzbekistan has also secured agreements to acquire 22 Boeing aircraft for long-haul operations, positioning itself as a rival regional hub.

Outlook

Kazakhstan’s aviation ambitions reflect a broader strategy to position itself as a key transit hub between Asia and Europe. Achieving this will require sustained investment in infrastructure, workforce development, regulatory improvements, and international cooperation.

If successfully implemented, these measures could strengthen Kazakhstan’s regional position, drive economic growth, and enhance its global connectivity.