Mutual Direct Investments Among Central Asian Countries Growing

Mutual Direct Investments Among Central Asian Countries Growing On December 19th, the Eurasian Development Bank (EDB) said it is continuing its series of EDB Monitoring of Mutual Investments (MMI) publications. The MMI encompasses a database of investment projects, containing detailed information on mutual direct investments in Eurasia, covering Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan, the Kyrgyz Republic, Moldova, Russia, Tajikistan, Turkmenistan, Uzbekistan, and Ukraine. EDB analysts observe that the Eurasian countries’ FDI stock reached U$48.8 billion in mid-2023, following a 5.4% increase in 2022, and with continued growth in 2023. Kazakhstan reinforced its status as the regional leader in terms of inward mutual direct investment stock, with a share of 27.2% as of June 2023 against 26.6% in 2021, followed by Uzbekistan (19.8%), Belarus (12.0%), Russia (9.8%), and Azerbaijan (8.7%). EDB researchers highlighted that FDI stock within Central Asia totaled U$1.1 billion by the end of 1H 2023, marking a 1.8-fold increase compared to 2016. The key areas of mutual capital investments are extractive industries, manufacturing, and financial services. The leading domestic investors in the region are Kazakhstan and Uzbekistan. In the medium term, uncertainties may persist in the dynamics of Eurasia’s mutual investments. EDB analysts note the following factors that will shape medium-term trends in mutual investments: The “neighborhood effect” - the share of Eurasian Economic Union countries in Eurasia’s mutual investments will continue to grow; Dynamic growth in manufacturing. Commencement of production of higher added value products in the countries of the region will be the main driver of growth; and Greater attractiveness of the transport and logistics sector due to shifts in commodity flows and Central Asian countries’ focus on developing dry ports, logistics hubs, and distribution centers.

Kazakhstan’s Exports to Organization of Islamic Cooperation Countries Reaches $8.4 Billion

The Minister of Trade and Integration of Kazakhstan, Arman Shakkaliyev addressed the 39th meeting of the Standing Committee of the Organization of Islamic Cooperation on Economic and Trade Cooperation (COMSEC) in Istanbul. The official opening ceremony of the event took place on December 4th with the participation of Turkish President Recep Tayyip Erdogan. The Organization of Islamic Cooperation (OIC) is the largest official Muslim governmental international organization, uniting 57 countries. Today, OIC countries comprise more than a quarter of the world's population - 1.7 billion people on four continents - Asia, Africa, Europe, and South America. Over the past three years, total trade turnover between member states has increased from $3.7 trillion to $4.5 trillion. During the meeting, ministers from the participating countries discussed further efforts to strengthen cooperation, including in trade and agriculture. Kazakhstan is actively seeking to make a significant contribution to food security. Over the past five years, the country has doubled its volume of agricultural products and exports them to more than 80 countries, working in this direction with OIC members. “OIC countries are among the active trade and economic partners of Kazakhstan,” said Shakkaliev, addressing a report on improving the potential for trade with OIC member states. “Our trade turnover for the first nine months of 2023 amounted to $12.5 billion. Exports of Kazakhstani products to the OIC countries account for more than half of the total trade turnover - $8.4 billion. We need to combine the efforts of all members of the Organization in the development of transport and logistics infrastructure, and expansion of investment cooperation.”