Eurasian Development Bank (EDB) - The Times Of Central Asia

Viewing results 1 - 6 of 42

New Report Predicts Surge in Islamic Finance Across Central Asia

A new report co-published by the Eurasian Development Bank (EDB), the Islamic Development Bank Institute, and the London Stock Exchange Group forecasts robust growth for Islamic finance in Central Asia. Titled “The Future of Islamic Finance in Central Asia,” the report was unveiled at the 2025 Annual Meetings of the Islamic Development Bank Group in Algiers, Algeria. The study offers a comprehensive overview of the Islamic finance landscape across Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan. While Sharia-compliant financing remains a relatively recent addition to the global financial system, having developed over the past three decades, it is becoming an increasingly significant component in the sustainable development strategies of Central Asian economies. All five governments are reportedly prioritizing the expansion of Islamic finance. As of early 2024, the region is home to 18 Islamic banks and 14 non-bank financial institutions, including Islamic banking windows. The sector also features takaful (Islamic insurance) operators, microfinance institutions, Ijara (leasing) companies, and emerging Islamic FinTech ventures such as digital banks and wealth management platforms. Total Islamic finance assets in Central Asia stood at $699 million at the start of 2024. According to the Islamic Finance Development Report 2024, Kazakhstan ranked 19th globally in terms of Islamic finance development, above the global average, and leads the regional market. Projections in the report anticipate substantial growth. Islamic banking assets in Central Asia are expected to rise to $2.5 billion by 2028 and $6.3 billion by 2033. Kazakhstan is forecasted to remain the regional leader, followed closely by Uzbekistan, buoyed by favorable demographics, economic momentum, and the depth of national banking sectors. The sukuk (Islamic bond) market is also poised for rapid expansion. Baseline forecasts suggest sukuk issuance could reach $2.05 billion by 2028 and $5.6 billion by 2033. EDB Chairman Nikolai Podguzov highlighted the bank’s commitment to fostering this growth: “The further development of Islamic finance in Central Asia will expand financial inclusion and connect local businesses to the global Islamic market, contributing to regional economic growth. With the Islamic Development Bank Group’s support, the EDB has initiated the creation of an Islamic Window to finance projects in compliance with Sharia principles.” He added that key investment priorities will include energy, transport, social infrastructure, food security, and industry.

Eurasian Development Bank (EDB) Water Conservation Report

EDB Chief Economist Outlines Central Asia’s Water Challenges and Proposes Solutions

Evgeny Vinokurov, Vice-Chairman and Chief Economist of the Eurasian Development Bank (EDB), presented a sobering assessment of Central Asia’s water and energy challenges at the Annual Meetings of the Association of Development Financing Institutions in Asia and the Pacific (ADFIAP) on April 23. The event, held in Muscat, Oman, featured a plenary session dedicated to sustainable water management and practical strategies for addressing mounting environmental pressures in the region. Shrinking Glaciers and Growing Demand Vinokurov unveiled findings from the EDB’s think tank research, which paint a stark picture: Central Asia’s glaciers have shrunk by 30% over the past 50 years, while water demand continues to rise. Despite this, much of the region's water infrastructure remains outdated and inefficient, resulting in a loss of 40-55% of available water. Additionally, 10 million people in Central Asia still lack access to safe drinking water. Without targeted intervention, annual water scarcity could reach 5-12 cubic kilometers by 2028. National Commitments and Regional Coordination The EDB report emphasized water conservation as a critical pillar in the region’s response to these challenges. Several countries are already pursuing large-scale water-saving initiatives: Kazakhstan plans to expand water-saving irrigation technologies to 150,000 hectares per year by 2030. Uzbekistan has committed to saving 15 billion cubic meters of water. Kyrgyzstan aims to construct 106 new reservoirs to secure water supply. “Central Asia’s water crisis cannot be solved in isolation,” said Vinokurov. “Our research provides a roadmap for efficiency, investment, and, most importantly, regional cooperation. This is why the water-energy nexus remains a strategic priority for our Bank, both in terms of investments and research.” Localizing Water Solutions The EDB, in partnership with the United Nations Industrial Development Organization (UNIDO), recently published a report titled Irrigation Equipment Production in Central Asia: Industrialising the Water Sector, calling for localized production of irrigation equipment to enhance water efficiency and reduce dependency on imports. Another key publication from the EDB, The Irtysh River Basin: Transboundary Challenges and Practical Solutions, focuses on the Irtysh River basin shared by China, Kazakhstan, and Russia. The report outlines increasing water demand across the basin and proposes measures for managing cross-border water resources through collaborative frameworks. Uzbekistan Joins the EDB On April 9, Uzbekistan became the seventh member of the Eurasian Development Bank, joining Armenia, Belarus, Kazakhstan, Kyrgyzstan, Russia, and Tajikistan. The move is expected to provide new avenues for Uzbekistan to modernize its infrastructure, particularly in the transport, energy, and water sectors, and support its broader industrial and agricultural development goals.

UNIDO Eurasian Development Bank (EDB) Water Irrigation Central Asia

New Report Urges Local Irrigation Equipment Production to Tackle Water Scarcity in Central Asia

The Eurasian Development Bank (EDB) and the United Nations Industrial Development Organization (UNIDO) have jointly released a report titled Irrigation Equipment Production in Central Asia: Industrialising the Water Sector, highlighting the urgent need to localize irrigation equipment manufacturing in the region. The publication argues that establishing a domestic irrigation equipment manufacturing sector could serve as a strategic response to mounting water challenges in Central Asia. It calls for coordinated action by regional governments, international organizations, and private sector actors to implement investment and policy frameworks aimed at reducing reliance on imports and fostering a self-sufficient production ecosystem. Heavy Dependence on Imports The report identifies irrigation equipment as a key strategic area for bolstering food security and managing water resources more efficiently. Currently, the regional market for such equipment is valued between $130 million and $200 million, with over 90% of this demand met through imports. Despite this dependency, governments across Central Asia are taking proactive steps to modernize agriculture. Substantial financial and non-financial support is being extended to farmers, and plans are underway to expand irrigated farmland and adopt advanced irrigation technologies. According to the study, the irrigated area in Central Asia is projected to grow to 10.6 million hectares by 2040. This expansion is expected to drive demand for up to two million units of irrigation equipment, with the potential to generate $426 million annually in local production. The report further estimates the annual market for new sprinklers at $114 million and for drip irrigation systems at $220 million. Cluster-Based Development To address these needs, the publication proposes a cluster-based approach to developing local irrigation equipment production hubs. Nikolai Podguzov, Chairman of the EDB Management Board, emphasized the economic potential of localization: “The region’s demand for irrigation equipment could more than double by 2030. Localizing production will not only help retain investments within the local economy but also stimulate the development of precision irrigation technologies, digital water management tools, engineering labs, and knowledge-sharing centers focused on best practices in irrigation and water use.”

Eurasian Development Bank Suusamyr-Kokomeren pre-feasibility study Agreement HPP Eurasian Development Bank (EDB)

EDB Begins Pre-Feasibility Study for Hydropower Plant Cascade in Kyrgyzstan

The Eurasian Development Bank (EDB) and Kyrgyzstan’s Ministry of Economy and Commerce have signed a technical assistance agreement to initiate a pre-feasibility study for the Hydropower Plant (HPP) Cascade Project. The announcement was made on March 26 and marks a significant step forward in the development of one of Kyrgyzstan’s most ambitious energy infrastructure projects. This agreement builds on the existing partnership between the EDB and the Ministry, established under a Memorandum of Cooperation signed in December 2024. Scope of the Study Under the agreement, the EDB will finance the pre-feasibility study, which will include: Estimating preliminary capital expenditures Developing key technical solutions Assessing environmental and social impacts Outlining state support measures needed for project implementation The study will be carried out in collaboration with the Ministry and a designated consulting firm. Strategic Importance of the Suusamyr-Kokomeren Cascade The planned hydropower cascade will be situated on the Kokomeren River and consist of three power plants with a combined installed capacity of 1,305 MW. The project is expected to significantly enhance Kyrgyzstan’s electricity generation capacity, help meet growing domestic energy demands, and contribute to reducing greenhouse gas emissions. Hydropower is a cornerstone of Kyrgyzstan’s renewable energy strategy, and the Suusamyr-Kokomeren project is envisioned as a key driver of energy security and regional development. Regional and International Cooperation The EDB is a multilateral development institution comprising six member states: Armenia, Belarus, Kazakhstan, Kyrgyzstan, Russia, and Tajikistan. It finances regional development projects that foster economic integration across Eurasia. It is worth noting that in early 2024, Kyrgyzstan’s Ministry of Energy signed memorandums of understanding with China National Electric Engineering Co. Ltd. These agreements include cooperation on the construction of both the Suusamyr-Kokomeren HPP Cascade and the Kara-Kechin thermal power plant. Together, these initiatives underscore Kyrgyzstan’s strategic push to diversify its energy portfolio and strengthen infrastructure through international partnerships and sustainable energy investments.

Investments Social Projects Eurasian Development Bank (EDB)

EDB to Invest in Kazakhstan’s Energy Projects and Polyethylene Plant Construction

The Eurasian Development Bank (EDB) will continue financing strategic energy, transport, and industrial projects in Kazakhstan, with a focus on digital technologies and innovation, according to Nikolai Podguzov, Chairman of the EDB Management Board. Podguzov made the announcement during a meeting with Kazakhstan's Prime Minister Olzhas Bektenov on February 26. The EDB is a multilateral development bank that supports economic and infrastructure projects in its six member states: Armenia, Belarus, Kazakhstan, Kyrgyzstan, Russia, and Tajikistan. According to Podguzov, in 2025, the EDB plans to invest in socially significant projects in Kazakhstan, including: Expansion and modernization of combined heat and power plants in the country’s central and eastern regions. Construction of a polyethylene plant. Development of the 545 MW Altyn Dala solar power plant. In 2024, the EDB allocated nearly $1.4 billion to projects in Kazakhstan, bringing its total investment in the country over the past three years to $3.6 billion. This reflects Kazakhstan’s prominent share in the EDB’s investment portfolio. Bektenov reaffirmed Kazakhstan’s interest in deepening cooperation with the EDB, particularly in the energy and utilities sectors. “The Eurasian Development Bank is an important partner for Kazakhstan. Last year, the bank’s investment in our economy grew by nearly 40%, and its loan portfolio in Kazakhstan increased to 63.4% of the bank’s total loan portfolio. We are interested in expanding our cooperation on mutually beneficial terms and unlocking new opportunities in both traditional and emerging areas,” the prime minister stated.

Water Eurasian Development Bank (EDB) Water Management Report Irtysh River

Report Addresses Cross-Border Challenges in Irtysh River Basin

The Eurasian Development Bank (EDB) has released a report titled “The Irtysh River Basin: Transboundary Challenges and Practical Solutions”, analyzing the water resources of the transboundary Irtysh River basin, shared by China, Kazakhstan, and Russia. The report highlights growing water demand in all three countries and proposes practical solutions to address cross-border challenges. Strategic Importance of the Irtysh River The Irtysh River, the world’s longest transboundary tributary, stretches 4,248 km and, together with the Ob River, forms Russia’s longest waterway, the second longest in Asia and the seventh longest globally. Flowing from China through Kazakhstan into Russia, the river is crucial for all three countries, necessitating strategic cooperation in its management. [caption id="attachment_29111" align="aligncenter" width="1950"] The Irtysh River Basin; image: eabr.org[/caption] Key Challenges in Each Country China In China, the upper Irtysh River is essential for the Xinjiang Uygur Autonomous Region (XUAR), where the population has surged from 15.2 million in 1990 to 25.87 million in 2022. Rapid regional development has made water stress a pressing issue. Research forecasts that annual water withdrawals from the Irtysh could more than triple, from the current 1.5 - 2.0 km³ to 7 km³, out of an average natural flow of 8.3 km³. Kazakhstan In Kazakhstan, the Irtysh and its tributaries support 30% of the population and contribute 45% of the country’s total agricultural output. The Irtysh HPP Cascade accounts for 10% of Kazakhstan’s electricity generation and 80% of its hydropower capacity. Increased water withdrawals by China pose significant risks to Kazakhstan’s water security. Russia For Russia, upstream water policies in China and Kazakhstan are major concerns. Excessive Chinese withdrawals could reduce Kazakhstan’s downstream flow, impacting Omsk and the surrounding Omsk Municipal District. Changes in water availability and quality over the next decade present serious socio-economic challenges for the region. Key Recommendations from the Report The EDB report outlines four major recommendations for managing transboundary water challenges: Expanding Bilateral and Trilateral Cooperation The report urges stronger water agreements between Kazakhstan and Russia, as well as between Kazakhstan and China, incorporating international water management principles. Recommended cooperation areas include: Ensuring international navigation on the Irtysh-Ob River system Controlling water pollution Regulating safe water usage Improving efficiency during floods, droughts, and low-water periods This groundwork would help establish a future trilateral water management agreement between the three countries. Strengthening Water Management Infrastructure The report calls for soft infrastructure development, such as: Creating an interstate river flow monitoring system with open data access Developing joint training programs for water management specialists Expanding interdisciplinary water research involving experts from all three nations Coordinating Hydraulic Infrastructure Operations The report stresses the importance of joint management of existing and future hydropower plants, dams, reservoirs, and irrigation canals to ensure stable water supplies without harming other nations' resources. Priority projects include: Shulbinsk HPP (Phase 2) in Kazakhstan Semipalatinsk HPP in Kazakhstan Modernization of the Satpayev Irtysh-Karaganda Canal in Kazakhstan Construction of the Krasnogorsk hydro-system near Omsk, Russia Developing a Multimodal Transport Corridor The report proposes a multimodal transport corridor linking Russia,...