Digitization - The Times Of Central Asia

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Opinion: Kazakhstan Bets Big on AI to Power Local and Global Growth

A bold vision for Kazakhstan’s future In his recent State of the Nation address, the President of Kazakhstan articulated a bold and ambitious future for the country. He presented a new vision, central to which was the announcement of artificial intelligence adoption and digitization as new national priorities, positioning them as essential for the country’s economic modernization and long-term competitiveness. The speech marked a significant moment for the government. Historically, much of its policy focus has been on managing risk and navigating regulatory uncertainty. Now, the administration is pivoting to focus instead on high-growth, innovation-led initiatives to build a more competitive and resilient Kazakhstan that can thrive in a rapidly changing global economy. In his address, President Tokayev announced the creation of the Ministry of Artificial Intelligence and Digital Development. Its initial mandate is to develop the Digital Code, a comprehensive framework that will set out how every sector of the economy, from finance and energy to education and healthcare, will integrate AI and digital tools in a structured and sustainable way. Leapfrogging into the digital economy Kazakhstan is embracing leapfrog innovation to harness tools such as AI and blockchain technologies to help accelerate economic growth and diversify its economy. This bet will ensure that the nation remains competitive for generations to come in a digital-led global landscape where technology leadership increasingly defines prosperity. Central to the project’s long-term success is the evolution of Kazakhstan’s educational system, and the country has recently approved its first national framework for integrating AI into its curriculum, signaling a major shift toward future-ready learning. This initiative covers areas including ethics, legal regulation, personal data protection, and academic integrity. Kazakhstan is now one of the first countries to adopt its own national approach in this field, having drawn on the recommendations of UNESCO, OECD, and the EU’s work to ensure global best practices. Building tomorrow’s AI leaders today From the 2025–2026 academic year, AI is being integrated throughout the curriculum with the aim of converting classrooms into technology-literate talent pipelines. Students will benefit from new online courses, while teachers will be supported with professional development programs (with over 11,000 teachers already trained and more to follow). Globally, the adoption of AI in education is surging. According to AllAboutAI, in 2025, 86% of students worldwide use AI in their studies, and half of all teachers will leverage AI for lesson planning. The market for AI in education is projected to reach over $2.7 trillion by 2033, having been valued at $177 billion in 2023. With nearly 30% of Kazakhstan’s population under the age of 15 and a median age of just 29, the country is well placed to transform its students into a new generation of professionals ready to contribute to the country’s technological evolution and global competitiveness. Universities such as the Astana IT University (AITU), International Information Technology University, and the Kazakh-British Technical University, all part of the NNEF ecosystem, are at the forefront of integrating AI across their curricula, ensuring that students gain the skills they need for the digital economy and innovation-driven...

Energy

Kazakhstan’s Two Futures on Display at Energy and Digital Forums in Astana

As the temperatures in Astana dipped below zero this week, the capital played host to two international gatherings that offered sharply contrasting visions of Kazakhstan’s future. On one bank of the Ishim River, industry veterans and government officials gathered for Kazakhstan Energy Week in the cavernous halls of the Independence Palace. Just across town, the Astana Digital Bridge forum drew swarms of young entrepreneurs and tech enthusiasts to the gleaming Expo Center. The Old Guard Assembles Energy Week opened at 10 a.m. sharp on Thursday, October 2nd. Beneath gold-and-jade ceilings, chandeliers clinging to them like stalactites, padded white leather chairs were lined up neatly on stage. They were filled by some of the oil industries leading lights; dark suits were de rigueur. Over lunch, a string quartet performed Gardel’s Por Una Cabeza, while the final evening saw delegates invited to see Verdi’s Rigoletto at Astana’s ostentatious opera house. The format was carefully stage managed. Executives delivered their speeches like lecturers at a school assembly, with the audience listening politely. Questions from the floor were not invited. There was a certain quiet bullishness amongst those present – the air of an industry that had been written off, but far from ready to concede relevance. Oil and gas continue to provide 35% of GDP and 75% of exports, despite talk of an energy transition. “We expected a tailing off in demand on a global level, and this has not happened,” said Richard Howe, Executive Vice President of Shell’s Exploration and Production division during a panel of energy executives. Beside him, Askhat Khassenov, Chairman of the Board at KazMunayGas, was a little more smug – “It looks like oil and gas are going to be around for a lot longer than some had anticipated,” he said. Nevertheless, regular attendees at Kazakhstan’s annual energy shindig noted that the event was notably quieter than in previous years. Russians were absent, and Europeans few and far between. Delegations from neighboring Central Asian and Middle Eastern states padded out the numbers, perhaps reflecting countries in a similar situation. The audience skewed heavily male and middle-aged. While a side event titled “Women in Oil” took place in a nearby hall, the real worry was generational. Both Howe of Shell and Bakhodirjon Sidikov of Uzbekneftegas admitted that talent – or the lack of it – was their biggest challenge. Concerns about the lack of top scientists have also been taken up at the highest level. “Today, 90% of university graduates have bachelor's degrees. Meanwhile, the proportion of PhD holders is less than 1%,” President Kassym-Jomart Tokayev said earlier this week. “Therefore, it is necessary to increase the number of grants for doctoral studies, with preference given to technical specialties.” If the message of Energy Week was that Kazakhstan’s present still runs on oil and gas, it was also clear the sector is worried about who will run it tomorrow. [caption id="attachment_37005" align="aligncenter" width="355"] Image: Joe Luc Barnes, TCA[/caption] New Kazakhstan For the future talent, you only had to drive...

International transport

Containerization: A Game-Changer in Global Logistics

The current trajectory of freight transport highlights the growing scale of global containerization and its significant potential for expansion. Containerization could offer a more efficient solution for transporting bulk cargo for Kazakhstan, a major exporter of raw materials. However, to realize this potential, the country must address a range of internal and external challenges. Container shipping enables door-to-door delivery with minimal risk of damage and faster handling, making it a reliable mode of transport both domestically and internationally. Its advantages include increased transport efficiency, safety, and cost savings. As such, containerized cargo transport, or “containerization”, is becoming increasingly relevant both in Kazakhstan and around the world. Despite its global prominence, containerization in Kazakhstan remains underdeveloped. Satjan Ablaliyev, Deputy Minister of Transport of the Republic of Kazakhstan, said in an interview with The Times of Central Asia, containerized freight made up only 6.73% of the country’s total cargo turnover in 2024. Domestic container traffic was just 0.16%. Yet, container shipping significantly reduces the time and costs associated with loading and unloading across various transport modes, such as sea, rail, and road, while also protecting cargo from damage and theft, simplifying paperwork, and minimizing transport costs. This also helps avoid delays caused by shortages of freight wagons, which is particularly relevant in Kazakhstan during peak seasons such as meeting winter heating needs or harvest time. Global experience has shown that container transport is suitable even for bulk, liquid, and perishable goods. Several factors are currently hindering the development of containerization in Kazakhstan: Insufficient number of railway stations equipped to receive and handle container cargo; Higher tariffs for container transportation compared to traditional wagon-based freight; Limited and uneven access to infrastructure and resources for market participants. To address these issues, Kazakhstan needs to expand its transport infrastructure and reform its tariff and regulatory policies. Corridors of the future The bulk of Kazakhstan’s container traffic comes from transit. According to national rail operator Kazakhstan Temir Zholy (KTZ), the volume of transit cargo in 2024 reached 27.5 million tons, with container transit alone growing by 59%, hitting 1.4 million TEUs. Kazakhstan is betting on the development of overland multimodal transit across its territory. Recent global events such as the COVID-19 pandemic, disruptions in global supply chains due to geopolitical tensions, and increased attacks on shipping in the Red Sea have exposed the vulnerability of maritime trade routes (e.g., the Suez Canal, which handles about 30% of global container traffic). These challenges have prompted major container operators to rapidly reroute maritime shipping and explore alternative land-based transit corridors. As land routes gain importance, competition among transit countries is intensifying. Many are now investing in infrastructure along international transport corridors to facilitate multimodal logistics. Ablaliyev pointed out that these factors have made Kazakhstan an increasingly attractive route for containerized cargo. Between 2020 and 2024, Kazakhstan’s container traffic rose from 876,000 TEUs to 1.395 million TEUs. In the first five months of 2025 alone, the figure reached 565,400 TEUs. To further grow transit container flows, Kazakhstan is investing...

Digital Development

The Battle for Control Over Central Asia’s Digital Future

Central Asia is digitalizing quickly. Governments across the region have invested in smart cities, 5G, and AI-powered platforms. Kazakhstan ranks 24th in the world in global e-government indexes, and in Tashkent and Bishkek, young, tech-savvy populations are pushing for innovation. But such progress is not without risks. A new report from the German Marshall Fund (GMF), a Washington-based think tank, outlines how Central Asia is becoming ever more reliant on Chinese and Russian technology. These two countries, the report argues, are using digital tools not just to supply infrastructure but to shape how governments in the region manage data, surveillance, and speech. Beijing and Moscow’s tech exports act as snares, tying customers into their own economies. “Central Asian governments are aware of these challenges,” Dylan Welch, the author of the report and a China analyst at the GMF, told The Times of Central Asia. But he notes that it can be difficult to convince policymakers to prioritize the dangers of such overexposure. “For the national leaders, their imperative is to deliver economic growth because they have these young, dynamic populations that need jobs… if they don't deliver on that, then they're in for a long period of instability at home,” he said. This makes Chinese and Russian offers to develop their digital industries extremely tempting. An Entrenched Presence The report coincides with a flurry of Russian and Chinese engagement in the region. Over the weekend, Kazakhstan announced that between them, Beijing and Moscow will be responsible for delivering a new generation of nuclear reactors to the country, currently leaving French and Korean alternatives out in the cold. Then came this week’s visit of Chinese President Xi Jinping to Astana for a summit with the five Central Asian leaders. On the digital front, one notable announcement from this summit included a plan to develop an Artificial Intelligence Cooperation Center in Kyrgyzstan. China has used the term “Digital Silk Road” to describe its investments in Central Asia, and it has built much of the physical infrastructure behind the region’s digitization drive. For its part, Russia has exported its software, legal models and surveillance practices. Taken together, these systems are helping local governments tighten control over digital life. “This strategic integration makes it more difficult for regional states to diversify in the future, even though many continue to pursue multi-vector foreign policies aimed at balancing global partnerships,” Yunis Sharifli, Non-Resident Fellow at the China-Global South Project, told TCA. Where the Vulnerabilities Lie The report uses a “technology stack” framework to explain the problem. This framework looks at five layers: network infrastructure, data storage, consumer devices, digital platforms, and government policies. Across these layers, it argues, Central Asia is exposed to Chinese and Russian influence. Take Kazakhstan. It may be the most advanced digital economy in the region, but most of its internet traffic still passes through Russia. Telecom firms across the region are also required to install a Russian-made surveillance technology known as SORM (System for Operative Investigative Activities), which can intercept internet...

Digitization

Digitizing Central Asia: Interview with Ainura Umaeva, Thought Leader in Communications and Media

This week The Times of Central Asia will be attending the CAMCA Regional Forum, which this year is being held in Ulaanbaatar, Mongolia. The CAMCA network is a collection of professionals and policymakers dedicated to developing Eurasia by sharing ideas, knowledge and inspiration; its name stands for Central Asia, Mongolia, the Caucasus and Afghanistan. Ahead of the Forum, The Times of Central Asia spoke with Ainura Umaeva, the Owner and CEO of TIDAM Communications Agency in Almaty -- and a leader in strategic communications and advisory -- about what the CAMCA program means for the Eurasian communications and digital industries, and what the future might hold for women doing business in Central Asia. TCA: What condition do you feel the digital and information spaces are currently in – in Kazakhstan, and elsewhere in the Eurasia region? AU: Kazakhstan has made remarkable progress in digitalizing public services and fintech. For many of us, it’s now second nature to access government or commercial services instantly through a smartphone. This level of convenience has become so embedded in our daily lives that we often take it for granted. However, when we look deeper, we notice a different reality. Despite this visible digital infrastructure, there’s a significant lack of digital literacy — especially in the private sector. Many businesses are still not leveraging the full potential of digital technologies, including AI, data analytics, or automation. While we appear digitally advanced on the surface, in practice the digital transformation often remains quite superficial. The real challenge now is to deepen that transformation — to build not only user-facing digital tools but also internal digital capacity and data culture. In what areas do you think CAMCA initiatives can help them improve? One of the greatest strengths of CAMCA is its ability to bridge regional fragmentation. Although the CAMCA region is often perceived by the outside world as a cohesive bloc, internally we remain deeply segmented — informationally, economically, and culturally. Many countries in the region lack awareness of one another’s realities, opportunities, and success stories. Several years ago, I worked with a client on a cross-regional study, and it became clear to me how little we actually know about our neighbors. This informational disconnect leads to missed opportunities for collaboration and shared growth. Initiatives like the CAMCA Forum are essential because they foster not just dialogue, but a sense of common regional identity. Paradoxically, it often takes an external initiative to help us better recognize how much we share. Being born and raised in Kazakhstan, with roots in the Caucasus, I constantly reflect on the contrast between the two regions. Despite its political and linguistic diversity, the Caucasus is often perceived — and perceives itself — as more cohesive than Central Asia. In our region, we are still discovering our collective identity. You’re speaking in a session dedicated to women’s networks. How will women’s authority in Eurasian business look in 10 years compared to now? In our work with the She Business Women Community — a...

Digitalization

Kazakhstan Tops Central Asia in Global E-Governance Rankings

Kazakhstan has risen to 24th place out of 193 countries in the 2024 UN E-Government Development Index, up from 28th in 2022. This achievement reaffirms Kazakhstan’s position as the regional leader in e-governance, surpassing its Central Asian neighbors. Globally, Denmark, Estonia, and Singapore secured the top three spots. Legislative Advances in Digital Transformation To further bolster its digital transformation, President Kassym-Jomart Tokayev signed a landmark law on July 5, focusing on digitizing statistics and improving data management systems. This legislation is set to reduce statistical reporting requirements by 40-50% through amendments to various laws concerning state control, statistics, and data management. Regional Comparisons Other Central Asian countries also demonstrated progress in e-governance, albeit at different rates: • Uzbekistan rose to 63rd place from 69th, exceeding the 2025 targets outlined in its “Digital Uzbekistan 2030” strategy, according to Minister of Digital Technologies Sherzod Shermatov. • Kyrgyzstan improved to 78th place from 81st. • Tajikistan made significant strides, climbing from 141st to 123rd place. • Turkmenistan, however, experienced a decline, dropping to 145th place from 137th in 2022.