• KGS/USD = 0.01144 0%
  • KZT/USD = 0.00194 -0%
  • TJS/USD = 0.10896 -0%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28571 0.28%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00194 -0%
  • TJS/USD = 0.10896 -0%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28571 0.28%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00194 -0%
  • TJS/USD = 0.10896 -0%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28571 0.28%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00194 -0%
  • TJS/USD = 0.10896 -0%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28571 0.28%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00194 -0%
  • TJS/USD = 0.10896 -0%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28571 0.28%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00194 -0%
  • TJS/USD = 0.10896 -0%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28571 0.28%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00194 -0%
  • TJS/USD = 0.10896 -0%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28571 0.28%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00194 -0%
  • TJS/USD = 0.10896 -0%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28571 0.28%
09 December 2025

Artificial Intelligence Joins Board of Directors at Samruk-Kazyna

For the first time in Central Asia, a neural network has been appointed to the board of directors of a major state fund. The SKAI system (Samruk-Kazyna Artificial Intelligence), developed around a domestic language model, now holds voting rights on the board of the Samruk-Kazyna National Wealth Fund.

A Digital Voice in Governance

SKAI was officially introduced in Astana at the Digital Bridge 2025 international forum. The system is described by the fund as the first AI-powered and independent board member in the region with decision-making powers.

According to Samruk-Kazyna, SKAI analyzes internal and external regulations, board decisions dating back to 2008, and other corporate documentation. Its deployment is expected to improve “transparency and the quality of corporate governance” by enabling more data-driven decisions.

Nurlan Zhakupov, Chairman of the Management Board of Samruk-Kazyna, hailed the development as a “quantum leap.”

“Technology and people are beginning to make decisions together. Digitalization is moving beyond processes; it’s becoming part of leadership philosophy,” he said.

Security and Supercomputing

Cybersecurity was a top priority in SKAI’s development. It operates within a closed network on the Al Farabium supercomputer, owned by Kazakhtelecom, a portfolio company of the fund.

Kazakhstan’s most powerful supercomputing resources, built with NVIDIA hardware, are being used to support the system. SKAI runs on Alem LLM, a large language model trained on Kazakh data, allowing it to process sensitive documents domestically without information being transmitted abroad.

SKAI is expected to participate in upcoming board meetings as part of Samruk-Kazyna’s broader digital transformation agenda.

AI at the Heart of National Strategy

The initiative aligns with Kazakhstan’s national digital transformation strategy. Speaking at the Digital Bridge 2025 forum, President Kassym-Jomart Tokayev reiterated the goal of becoming a fully digital nation within three years.

“We have set a clear objective: Kazakhstan must become a truly digital nation within three years. This is an ambitious task,” Tokayev said.

He also reaffirmed Kazakhstan’s intent to engage in global AI governance efforts under the United Nations and welcomed China’s initiative to establish an international organization for AI cooperation.

Institutions and Infrastructure

In 2025, Kazakhstan launched the Ministry of Artificial Intelligence and Digital Development, as well as the region’s first AI Council. The government is also preparing legislation, including a dedicated Artificial Intelligence Law and a Digital Code, which will form the foundation for AI governance in education, healthcare, and the economy.

Tokayev announced the establishment of Kazakhstan’s first AI-focused university and the Alem.ai International Center for Artificial Intelligence. He described the center as a “historic step” intended to become a platform for ethical AI development and a core institution within Central Asia’s emerging tech ecosystem.

“Alem.ai will be a place where artificial intelligence technologies are implemented efficiently and ethically,” the president said.

Established in 2008, Samruk-Kazyna manages national assets and spearheads economic modernization. The Government of Kazakhstan remains its sole shareholder. The fund’s Chairman of the Board of Directors is Prime Minister Olzhas Bektenov, and the Chairman of the Management Board is Nurlan Zhakupov. Samruk-Kazyna’s total assets are valued at approximately $81 billion.

Government Securities Drive Growth on Kyrgyz Stock Exchange

The trading volume of government securities on the Kyrgyz Stock Exchange (KSE) has nearly doubled in 2025. From January to August, turnover from treasury bonds and treasury bills reached $64.3 million, almost twice the figure for the same period in 2024. Despite this increase, government securities still account for a relatively small share of total market activity.

According to local brokers, the market for government securities in Kyrgyzstan remains in its formative stages but is showing steady progress. Analysts attribute the growth to increased government focus on capital markets and active public outreach aimed at building trust in both sovereign and corporate instruments.

“The fact that the state is entering the stock market and that the president publicly encourages investment, while legislative changes are being made to improve market regulation, all this has a positive impact on the development of the financial sector,” said Meerim Askarbekova, director of the financial company Senti, in an interview with The Times of Central Asia. “It builds confidence in the Kyrgyz stock market. The effect is not yet visible in numbers, but the authorities have set a strong direction for growth. Even foreign brokers and financiers have started to talk about the Kyrgyz market.”

Askarbekova added that a decade ago, Kyrgyz financial professionals had limited visibility abroad and the stock exchange was undervalued domestically. Today, with greater government engagement, the KSE is attracting international attention and rising interest from local investors.

Between January and August 2025, the KSE recorded 1,711 transactions totaling $1.8 billion, compared to 1,200 transactions worth $1.07 billion over the same period in 2024. The share of government securities in total trading volume rose from 2.7% to 3.4% year-on-year.

KSE data shows that the primary buyers of treasury securities are large corporations and financial institutions. Notably, commercial banks now hold one-third of Kyrgyzstan’s domestic public debt.

A major catalyst for market growth was the 2023 law mandating all state-owned enterprises to list their securities on the KSE. The Ministry of Finance led the way, setting a precedent for other public entities.

Reform momentum continued in June 2025, when the government introduced new measures to boost stock market participation. Companies can now submit listing documents electronically, a green bond issuance framework has been established, and foreign issuers have been granted access to the exchange. These steps are expected to enhance cross-border investment and improve overall market liquidity.

Kazakhstan Seizes $16.7 Million in Virtual Assets in Crypto Crackdown

Kazakhstan has shut down 130 illegal cryptocurrency exchanges suspected of laundering criminal proceeds, seizing virtual assets worth $16.7 million, Deputy Chairman of the Financial Monitoring Agency (AFM) Kairat Bizhanov announced during a recent government meeting.

Under Kazakh law, only crypto exchanges licensed by the Astana Financial Services Authority (AFSA) and integrated with local banks are permitted to operate. These licenses are granted under the Law on Digital Assets. Platforms operating without such authorization are deemed illegal.

“The activities of 130 unlicensed crypto exchanges involved in laundering criminal proceeds have been terminated this year. Virtual assets worth $16.7 million were seized,” Bizhanov said.

Targeting Cash-Out Schemes

The AFM is also intensifying efforts to combat illegal cash-out operations. According to Bizhanov, 81 shadow groups with a combined turnover of 24 billion KZT (over $43 million) were uncovered in 2024. He emphasized that ATMs remain a critical vulnerability.

“Despite the measures taken, the volume of cash withdrawals continues to grow. A total of 13.2 trillion KZT ($24.1 billion) has already been withdrawn, one trillion more than last year. The main risk is the ability to carry out anonymous transactions without identifying the sender or recipient. These operations are often conducted using bank cards issued to nominal owners,” he said.

To curb these practices, the AFM and the National Bank of Kazakhstan have introduced new regulations. Card top-ups exceeding 500,000 KZT ($913) now require the input of an individual identification number (IIN) and confirmation via mobile applications. Since January 1, banks have also been required to retain ATM camera footage for at least 180 days. Authorities plan to expand biometric identification, including facial and fingerprint recognition for all cash transactions.

New Rules to Curb Shell Companies

In cooperation with the Ministry of Justice and the Ministry of Artificial Intelligence, the AFM has drafted amendments to tighten business registration protocols. “The main focus is on verifying company founders and executives based on risk criteria,” Bizhanov noted, pointing to a surge in fictitious companies used for money laundering and financial fraud.

Over the past three years, tax authorities have annulled the registration of 3,600 shell firms linked to 30,000 fraudulent transactions totaling 280 billion KZT ($511 million).

As The Times of Central Asia previously reported, Kazakhstan is positioning itself as a regional leader in blockchain innovation, aiming to become Central Asia’s hub for digital asset regulation and blockchain development.

Kazakhstan’s Finance Ministry Cracks Down on Widespread Tax Evasion Among Small Businesses

Kazakhstan’s Ministry of Finance has identified more than 260,000 entrepreneurs suspected of underreporting taxable income, Finance Minister Madi Takiyev said during a recent government meeting.

According to Takiyev, in 2024, around 17,000 cash registers across the country failed to issue any receipts, while 260,000 taxpayers consistently reported either a single daily transaction or identical revenue amounts. However, enforcement efforts appear to be paying off, with 70,000 businesses now issuing receipts properly.

The minister noted that tax evasion schemes remain widespread, including the mass registration of multiple companies at the same address. Currently, around 20,000 firms are registered at 3,576 locations, collectively owing over 60 billion KZT ($110 million) in unpaid taxes.

Takiyev reported that the shadow economy declined slightly in 2024, accounting for 16.7% of GDP, a marginal improvement from the previous year. He highlighted notable progress in trade, education, and agriculture, supported by new digital tools such as Smart Data Finance, which uses artificial intelligence to detect tax evasion. The system currently integrates data from 74 sources, with 30 more expected to be added by the end of the year.

Biometric identification has also played a role in strengthening compliance, helping authorities block fake invoices worth over 33 billion KZT ($60 million). Meanwhile, the E-Tamga system has processed 250 million electronic invoices and 500 million payments, potentially adding up to 100 billion KZT ($182 million) in annual tax revenue.

To combat illicit trade, the authorities seized more than 1 million liters of alcohol, 6.6 million cigarette packs, and 37,000 tons of petroleum products in 2024, preventing estimated tax losses of over 7 billion KZT ($12.7 million).

As The Times of Central Asia previously reported, Kazakhstan’s new Tax Code, raising the value-added tax (VAT) from 12% to 16%, is set to take effect in 2025.

Gabala 2025: What the Turkic World Will Discuss Amid Global Turbulence

On October 7, leaders of the Organization of Turkic States (OTS) will gather in Gabala, Azerbaijan, for the 12th summit under the theme “Regional Peace and Security.” At first glance, it may look like another routine engagement. Yet against the backdrop of overlapping global crises, the forum is increasingly a test of the OTS’s maturity and relevance.

The summit unfolds amid a turbulent international landscape. Afghanistan continues to cast a shadow over Central Asia: economic volatility, migration risks, and the activity of extremist groups remain sources of concern for OTS members. The ongoing war in Ukraine, meanwhile, is reshaping Eurasian transit routes, placing the bloc’s states in delicate positions between East and West. At the same time, violence in the Middle East is adding to the pressures on Turkey’s already complex foreign policy environment.

The Middle Corridor at the Center

A key theme in Gabala will be the advancement of the Middle Corridor, formally known as the Trans-Caspian International Transport Route. This east–west route connects China with Europe via Kazakhstan, the Caspian ports of Aktau and Kuryk, Azerbaijan, Georgia, and Turkey. Investments are moving forward across the chain: Kazakhstan is expanding port and rail capacity, Azerbaijan is modernizing the Port of Baku in Alat, Georgia is upgrading its railway hubs, and Turkey is reinforcing the Baku–Kars line.

Once a logistical project, the corridor is evolving into a strategic framework that ties together economic, environmental, and security considerations. Customs harmonization, digital tracking systems, and sustainability standards are now discussed as much as cargo volumes.

Security, Coordination, and Soft Power

Security will also be on the table, though framed in practical rather than military terms. Issues such as counter-terrorism cooperation, cyber resilience, disaster response, and the safety of emerging transit corridors are likely to feature. In this sense, security is increasingly seen as the foundation for trade and investment rather than a standalone agenda.

Beyond infrastructure, OTS continues to develop soft power tools. Educational exchanges, cultural cooperation, green energy initiatives, and water management projects are part of efforts to build intra-regional trust. The recently inaugurated UN Regional Center for the SDGs in Almaty provides another anchor, aligning the Turkic bloc with global sustainability frameworks.

A Turning Point for the Turkic Council?

Founded in 2009 primarily as a cultural and humanitarian forum, the OTS is now edging toward a broader role. By coordinating infrastructure projects, harmonizing regulations, and cautiously addressing security concerns, it is positioning itself as a relevant player in Eurasian affairs.

Much will depend on whether Gabala produces more than communiqués. Concrete steps on the Middle Corridor, digital customs corridors, joint water initiatives, or disaster coordination could demonstrate that the OTS is maturing into a platform for practical solutions. While major breakthroughs are unlikely, even incremental progress would signal that the Turkic Council is becoming a pillar of regional stability and integration.

Kyrgyzstan Snap Election: Democracy on Edge or Politics as Usual?

On September 25, Kyrgyzstan’s parliament voted to dissolve itself, clearing the way for snap elections. As previously reported by The Times of Central Asia, deputies approved the dissolution by an 84–0 vote, with five abstentions and one absence. The election will now take place on November 30, under revised electoral rules. The new system divides the country into 30 constituencies, each of which elects three deputies, at least one of whom must be a woman.

Lawmakers justified the move by pointing to the costs and logistical burdens of overlapping parliamentary and presidential campaigns, arguing that holding parliamentary elections a year early would streamline preparations and reduce the administrative strain. Critics, however, have suggested the real motivation is political, noting that pro-government blocs stand to benefit from locking in deputies under the new majoritarian system by mobilizing local administrative resources, especially after years of pressure on opposition groups and independent media.

“Regarding the early elections, I fully support this decision,” Eldar Turatbek, founder of the Legalize political party, told The Times of Central Asia. “There is no point in waiting another year until the end of the 7th convocation’s term, especially when you consider that after the 2020 revolution, most deputies spent a year in temporary status anyway. In essence, they have already ‘worked off’ their five-year term.”

Japarov’s Centralization of Power

The dissolution also fits into a broader cycle of political reshuffles across the region. Both Kyrgyzstan and Kazakhstan have undergone rapid personnel and institutional changes in recent months, with Bishkek’s early vote reflecting President Sadyr Japarov’s emphasis on electoral timing, and, analysts argue, designs to cement his grip on power.

The step arrives in a political environment that has grown markedly more centralized since Japarov’s rise during the turmoil of 2020. New restrictions on online media and internet traffic have narrowed the space for civil society, measures the government frames as necessary to restore order and promote national values. Rights advocates, however, warn of democratic backsliding in a country once seen as the most pluralistic in Central Asia.

Opposition journalist Bolot Temirov offered a blunt assessment as to the reasons why the authorities are holding early parliamentary elections. “In recent years, the president’s entourage and the head of the State Committee for National Security have acquired money, and now want to show off their deputy badges,” he told TCA. “Kamchybek Tashiyev will try to get as many of his people into parliament as possible to strengthen his position in the confrontation with Sadyr Japarov and his team. Mandates have long since become a commodity, and parliamentary seats are for sale.”

International IDEA has recorded a decline in civil liberties and checks on executive authority under the current administration, and Kyrgyzstan’s trajectory makes this moment especially significant. The country has experienced three revolutions since independence – in 2005, 2010, and 2020 – each triggered by discontent over corruption, contested elections, and concentrated presidential power. These upheavals reshaped institutions but also entrenched a cycle of volatility that continues to cast a shadow over politics today.

Economic Strains and Sanctions Pressures

The political stakes are amplified by economics. Growth has been buoyed by transit trade and gold output, but the World Bank still classifies Kyrgyzstan as highly vulnerable to external shocks. Remittances are central to household incomes, with migration data showing transfers equal to nearly a quarter of GDP.

Most Kyrgyz migrants work in Russia, making the domestic economy sensitive to regulatory changes or downturns there. The banking sector has also come under strain, with Japarov recently denouncing what he called “politicized sanctions” after several Kyrgyz banks were targeted over alleged links to Russia. U.S. and UK sanctions on Kyrgyz banks illustrate how difficult foreign policy choices reverberate through the domestic economy.

Against this backdrop, lawmakers’ argument that separating electoral cycles will reduce costs is both fiscally defensible and politically convenient, but it does not address deeper structural risks.

Regionally, the snap election also follows a period of shifting dynamics. Earlier this year, Kyrgyzstan and Tajikistan signed a treaty to complete border demarcation, easing a longstanding flashpoint that had periodically erupted into violence. Uzbekistan has also been involved in border frictions, with Tashkent confirming its troops acted lawfully in the shooting of two Kyrgyz citizens on August 31, underscoring how sensitive frontier issues remain even amid new regional agreements on demarcation.

Democracy on the Line?

Whether the vote proves a genuine stress test for Kyrgyz democracy or merely a routine adjustment will hinge on two issues. The first is whether the campaign permits real competition, despite recent legal changes that have constrained opposition figures and independent media. The second is whether the new electoral system delivers accountability: in theory, territorial three-member districts could make deputies more responsive to local communities, but in practice, outcomes may be shaped more by administrative leverage and unequal media access.

Political analyst Bakyt Baketaev argues that the scheduling burden was a major factor behind the dissolution, likening the parliamentary and presidential elections to manty “sticking together in a steamer,” and warning that the Central Election Commission would struggle to handle overlapping campaigns. While the presidential vote is officially slated for January 2027, critics contend that campaign preparations would have collided with parliamentary contests if they had been held later.

“The deputies explain everything in a childishly simple way,” Baketaev told TCA. “But many are tormented by the question: could there be something more behind this dissolution? Of course! This is Kyrgyzstan. Here, even a skullcap can hide constitutional reform. In reality, the early dissolution of parliament is not a conspiracy, a cunning plan, or an alien attack. It is a pragmatic step in the spirit of ‘better now than a revolution later.’ Politics in our country is like a TV series: one season ends, another begins. The main thing is not to lose your sense of humor.”

For Japarov and his allies, including powerful security chief Kamchybek Tashiyev, success would mean a more compliant parliament and calmer governance ahead of the next presidential election, which has been rescheduled for January 24, 2027, in line with constitutional amendments. Critics argue, however, that the redistribution of influence within the ruling elite – with Tashiyev keen to place loyalists in parliament – could entrench an imbalance of power and further marginalize opposition voices.

Why this matters beyond Bishkek is clear. Kyrgyzstan has long been seen as an outlier in Central Asia, cycling through upheavals but preserving a degree of contestation rare in the region, and how this vote is conducted will indicate whether that endures. The country’s reliance on remittances and transit also makes political stability a public good, since uncertainty could curtail investment and create household-level shocks. At the same time, regional and global partners are watching for cues: a tightly managed election followed by a compliant legislature could point to deeper reliance on Moscow, while a competitive campaign would signal lingering room for a more balanced foreign policy.

At this stage, the economy is growing but remains vulnerable, with remittances critical to stability. What remains uncertain is whether the campaign will widen political space or narrow it further.

According to the Central Election Commission, more than 50 self-nominated candidates have filed to run so far, while three parties – Kyrk Uuz, Legalize, and Yntymak – have submitted notices of intent to nominate, with registration open until November 10.