Construction - The Times Of Central Asia

Viewing results 1 - 6 of 88

Economic Growth

Kazakhstan’s GDP Growth Tops 4% in First Half of 2026 Despite Lower Oil Output

Kazakhstan’s economy expanded by 4.1% in the first half of 2026, driven primarily by strong growth in non-oil sectors despite a decline in crude oil production, according to the Ministry of National Economy, citing data from the Bureau of National Statistics. Economic growth accelerated from 3.7% recorded during the first five months of the year, while manufacturing continued to outperform the broader economy. According to the ministry, real GDP growth reached 4.1% in January-June, even as oil production fell 8.4% compared with the same period last year. “The non-oil sector remains the main driver of growth, expanding by more than 5% during the first half of the year,” the ministry said. “More than 80% of GDP growth came from manufacturing, construction, trade, and transport.” Construction remained the fastest-growing sector, with output increasing 15.2% year on year. Kazakhstan commissioned 8.5 million square meters of housing during the first six months of the year, 6.7% more than during the same period in 2025. Manufacturing output expanded 9.8% during the first half of the year. Total manufacturing production reached $34.1 billion, surpassing mining output of approximately $33.6 billion. Although growth slowed in metallurgy, which accounts for more than 40% of Kazakhstan’s manufacturing sector, other industries posted strong gains. Production of fabricated metal products increased 39.9%, automobile manufacturing rose 31.6%, pharmaceutical output grew 43.6%, chemicals expanded 20.7%, rubber and plastic products increased 21.8%, construction materials rose 14.1%, and food production climbed 14.7%. Other sectors also maintained positive momentum. Trade expanded 5.7%, agriculture grew 4.4%, telecommunications services increased 4.3%, and transport and logistics services rose 7.1%. Growth in transport was supported by a 14% increase in auxiliary transport services, while rail freight volumes rose 4.9% and road freight transportation increased 11.4%. Investment activity also remained robust. Investment in fixed capital increased 9.6% compared with the first half of 2025. The strongest gains were recorded in information and communications, where investment more than doubled, electricity supply at 61.4%, manufacturing at 33.3%, agriculture at 24.6%, and transport at 11.6%. “The dynamic development of non-resource sectors and strong investment activity continue to provide a solid foundation for Kazakhstan’s economic growth,” the ministry said. As previously reported by The Times of Central Asia, Kazakhstan’s GDP could reach $320 billion by the end of 2026, up from $306 billion a year earlier. S&P Global Ratings projects GDP growth of 4.1% in 2026, down from 6.5% in 2025. Kazakhstan’s National Development Plan through 2029 sets a GDP growth target of 6.2% for 2026.

Economic Growth

Why Strong Economic Growth in Central Asia Masks Underlying Risks

Central Asian countries are significantly outperforming the global average in GDP growth, largely due to differing economic models across the region. However, rapid expansion does not remove deep structural vulnerabilities. As early as March, data showed that the combined economies of Central Asian countries grew by nearly 7% in 2025 compared to the previous year. The World Bank estimates regional growth at 6.2%, while the Eurasian Development Bank (EDB) places it at 6.6%. These calculations include Kazakhstan, Uzbekistan, Kyrgyzstan, and Tajikistan; Turkmenistan is excluded due to limited statistical transparency. By comparison, growth rates in advanced economies are much lower. The EDB expects around 1.6% growth in the U.S. and approximately 1.1% in the eurozone in 2026, while China’s economy is projected to expand by about 4.6%. Nevertheless, experts note that the region’s economic outlook remains complicated by high inflation, income inequality, and continued dependence on external factors. Investment activity and domestic demand have been the key drivers of growth, according to the EDB. Kazakhstan recorded its highest growth in 13 years (6.5%), with industry leading the expansion: mining grew by 9.4% and manufacturing by 6.4%. In 2026, the non-resource sector is expected to play a greater role. Kyrgyzstan has led the region in GDP growth for the third consecutive year: GDP grew by 11.1% in 2025 and by 9% in January 2026. In Uzbekistan, GDP increased by 7.7% in 2025 (up from 6.7% a year earlier), supported by investment, trade, services, and construction. Tajikistan’s GDP rose by 8.4% in 2025, matching the previous year’s performance. Growth continues to be driven by expanding industrial production and strong domestic demand. Early 2026 data suggest this momentum is holding. Uzbekistan’s Record In April, the World Bank highlighted Uzbekistan’s resilience to external challenges and strong growth dynamics. According to its updated report, the country’s 2025 GDP growth was revised upward by 1.5 percentage points to 7.7%. The outlook is 6.4% for 2026 and 6.7% for 2027. Key drivers include high global gold prices, investment inflows, expanded lending, and ongoing structural reforms. Rising household incomes have also played an important role, supported by remittances, which increased by 37% last year to reach $18.9 billion. By the end of 2025, Uzbekistan ranked among the fastest-growing economies in developing countries in Europe and Central Asia, alongside Kyrgyzstan and Tajikistan. The region as a whole is experiencing its highest growth rates in 14 years. At the same time, analysts point to persistent structural constraints, including a large public sector and the dominance of state-owned enterprises, which hinder private sector development. External risks, including geopolitical instability and potential disruptions in energy and fertilizer supplies, remain significant. In 2025, Uzbekistan’s GDP exceeded €133 billion, compared to approximately €56 billion nine years earlier. Over the same period, GDP per capita rose from about €1,750 to around €3,220, nearly doubling average income levels. Investment in fixed capital increased by more than 15% year-on-year in 2025, while export value grew by over 33%. Persistently high global gold prices played a major role: export...

Film Industry

Construction Begins in Kazakhstan on a World-Class Film Studio for a Movie Starring Jackie Chan

A project has been launched in Kazakhstan’s Almaty region that could significantly transform the local film industry. Construction has begun in the city of Kaskelen on the “Dala Stage” film studio project, which is positioned as a world-class facility and is being developed with the participation of international partners. According to local authorities, one of the most notable moments at the project’s groundbreaking ceremony was the delivery of a time capsule from Jackie Chan, which was transported by helicopter. The capsule was received by director Robert Koon, who is set to work on the first production at the new site, Armor of God 4: Ultimatum. “The film industry is developing rapidly, requiring increasingly large-scale solutions and advanced technologies. This new project will allow local professionals to compete at a global level,” said Almaty Region Akim Marat Sultangaziev. Producer Li Chiu Wa conveyed greetings from Jackie Chan and said the project is progressing quickly. He said that just six months ago it was still at the discussion stage, but construction has already begun. The key parameters of the future facility have already been outlined. The total site will cover 15 hectares, with built-up space of 3,000 square meters. The project extends beyond the construction of a film studio and is intended to support the development of the national film industry, including training specialists and attracting investment.

Tajik-Afghan Border

China to Fund Construction of Nine Border Facilities in Tajikistan Near Afghanistan

China will finance the construction of nine border facilities in Tajikistan’s frontier regions with Afghanistan, according to a project approved by Tajik lawmakers earlier this month. The plan was reviewed and adopted during a March 4 session of the Majlisi Namoyandagon, the lower house of Tajikistan’s parliament, Asia-Plus reported. The construction project, valued at more than 550 million Tajikistani somoni (approximately $57,425,000), will be fully funded by the Chinese government. In turn, Tajikistan will exempt the project from taxes, customs duties, and other mandatory payments. According to Muradali Rajabzoda, first deputy chairman of Tajikistan’s State Committee for National Security, the initiative is intended to strengthen the logistical and technical capabilities of the country’s border forces. Speaking during the parliamentary session, Rajabzoda said the project would be implemented in three phases, with exchange letters already signed to launch the second stage. The total construction area of the facilities is expected to reach 17,109 square meters. Rajabzoda said the Chinese government would provide the financing “on a grant basis,” meaning the funds will not need to be repaid. Although authorities have not disclosed the precise locations of the planned installations, they confirmed that the facilities will be built in Tajikistan’s border regions with Afghanistan. According to Bahriddin Ziyoi, a member of the parliamentary committee on law enforcement, defense, and security, the Chinese side will also carry out research and design work related to the project. In addition to financing construction, China is expected to supply equipment, building materials, and engineering specialists. Chinese engineers will travel to Tajikistan to install and configure technical systems at the sites. The project will also include office and residential furnishings, computers, and other equipment necessary for operating the facilities. Infrastructure development will form another component of the plan. China will assist in building access roads to the border facilities and installing water supply, drainage systems, and electricity connections. Funding from Beijing is expected to begin after internal procedures in China are completed. Tajik authorities say the exchange letters governing the project were approved by the government in November 2025 and later submitted to parliament following consultations with relevant ministries and agencies. Officials also stated that the documents underwent an anti-corruption review and no risks were identified. The new facilities follow earlier cooperation between the two countries. According to Tajik security officials, 12 border installations were constructed in 2017-2018 in Tajikistan’s frontier areas with Afghanistan with financial support from China. Security cooperation between the two countries has previously drawn international attention. In 2024, the British newspaper The Telegraph reported that China had built a secret military base in Tajikistan, citing satellite imagery and describing a facility in mountainous terrain where Chinese and Tajik forces allegedly conducted joint exercises. Tajik authorities have repeatedly rejected those claims. The Ministry of Foreign Affairs has stated that reports about a Chinese military base on Tajik territory “do not correspond to reality,” adding that the issue has not been part of bilateral discussions between the two countries. China and Tajikistan have expanded security...

SCAT Airlines

Largest Aircraft Maintenance Center in Central Asia Under Construction in Kazakhstan

Kazakhstan’s SCAT Airlines, in partnership with Boeing, has begun construction of a new maintenance, repair, and overhaul (MRO) center in Shymkent. The facility is expected to become the largest aircraft maintenance complex in Kazakhstan and across Central Asia. The capsule-laying ceremony, held on February 27, was attended by Shymkent Mayor Gabit Syzdykbekov, Deputy Transport Minister Talgat Lastayev, and Boeing Vice President of Sales and Marketing for Eurasia, India, and South Asia Paul Righi. According to the Ministry of Transport, the center will specialize in servicing Boeing aircraft, including the Boeing 737 (Classic, NG, and MAX), Boeing 757 and 767 models, as well as the Boeing 777 widebody aircraft. The facility will occupy 10 hectares, with engineering and technical infrastructure covering 45,000 square meters. The aircraft parking area alone will span more than six hectares. The project is intended to establish a modern, internationally certified repair and maintenance base capable of servicing not only domestic carriers but also foreign airlines, thereby expanding Kazakhstan’s technical expertise and aviation services export potential. Kazakhstan’s civil aviation sector continues to demonstrate steady growth. According to the Ministry of Transport, in 2025 the country’s airports handled 31.8 million passengers, compared to 29.7 million in 2024. Cargo traffic reached 173,300 tons, up from 170,900 tons the previous year. Deputy Minister Talgat Lastayev stated that the growth in traffic has been accompanied by systematic efforts to strengthen safety oversight. Kazakhstan’s compliance with international aviation safety standards reached 95.7%, significantly exceeding global and regional averages and placing the country among the world’s top 20 performers in this category. Lastayev also noted that KazMunayGas-Aero LLP, a jet fuel supply subsidiary of the national oil and gas company KazMunayGas, has been granted direct access to airport infrastructure and has begun providing direct “into-plane” refueling services. This has reduced the average cost of jet fuel at Kazakh airports. According to the ministry, direct refueling without intermediaries has lowered jet fuel prices to below $1,000 per ton, compared to $1,200-$1,300 per ton in other countries. The new refueling mechanism was introduced on the instructions of the President of Kazakhstan to support the development of international air hubs by ensuring stable supplies of competitively priced aviation fuel. Officials say it is expected to improve the reliability of fuel supply for airlines and reinforce the country’s role as a key transit hub.

Environment

Environmental Damage Assessed at Ritz-Carlton Tashkent Construction Site

More than a dozen valuable trees have been cut down at the construction site of the Ritz-Carlton Tashkent in central Tashkent, according to Rasul Kusherbayev, adviser to the chairman of Uzbekistan’s Ecology and Climate Change Committee. Kusherbayev stated that the trees were removed from an area adjacent to the National Park in Tashkent. According to preliminary information, the felling was carried out in violation of the existing moratorium on cutting valuable tree species. He added that authorities are still determining whether additional trees were cut at the site. The land plot was reportedly allocated to Azerbaijani investors for the project. Kusherbayev also said that representatives of the construction company opposed attempts to film the tree cutting at the location. The project is being implemented by PD Estates, a joint venture linked to Azerbaijan’s Pasha Holding. The company is constructing a five-star, 150-room hotel under the The Ritz-Carlton Hotel Company brand, with an estimated investment of $200 million. In connection with the case, official documentation has been completed, and environmental damage has been assessed at 351,230,000 Uzbek sum (approximately $29,000). According to Uzbekistan’s Unified State Register of Enterprises and Organizations, PD Estates was registered in November 2023. The company has an authorized capital of 251.3 billion Uzbek sum (approximately $20.6 million) and specializes in construction project development. Its founders are Pasha Development, which holds a 99% stake, and Pasha Holding, which owns the remaining 1%. The company is headed by Baris Battal. The Ritz-Carlton is a luxury hospitality brand and a subsidiary of Marriott International, headquartered in Maryland, United States. It operates more than 90 hotels worldwide. According to the publication Uzdiplomat, in August 2024 Uzbekistan and Azerbaijan agreed to implement seven joint projects worth a total of $520 million. Under that framework, Pasha Development planned to build a $200 million Ritz-Carlton hotel and premium residential complex in Tashkent’s Chilanzar district. On February 29, 2024, President Shavkat Mirziyoyev signed a law strengthening penalties for illegal tree cutting. The amendments significantly increased fines for unlawful felling, introduced a mandatory requirement to plant new saplings in areas where trees have been removed, and extended financial liability to legal entities. Previously, only individuals and officials were subject to penalties. Under the new provisions, companies found guilty of illegally cutting valuable tree and shrub species face fines ranging from 100 to 300 times the base calculation amount, equivalent to approximately 34 million to 102 million Uzbek sum (about $2,800 to $8,400).