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

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Investment Projects

EDB Establishes Investment Bridge Between Gulf Capital and Central Asian Projects

The Eurasian Development Bank (EDB), headquartered in Almaty, has opened a representative office in Abu Dhabi Global Market (ADGM), the United Arab Emirates’ international financial center, marking a strategic move to connect Gulf Cooperation Council (GCC) investors with high-potential projects across Central Asia. According to the Bank, the new platform will offer GCC investors structured investment opportunities backed by EDB analytics, regional expertise, and strong ties with the governments of its member states, Armenia, Belarus, Kazakhstan, Kyrgyzstan, Russia, Tajikistan, and Uzbekistan. Through this initiative, investors will gain access to infrastructure and sustainable development projects with optimized risk-return profiles. At the launch ceremony, EDB Management Board Chairman Nikolai Podguzov underscored the strategic significance of the move. “We are creating an ‘investment highway’ between Gulf capital and opportunities in Central Asia. Our new office in Abu Dhabi reinforces our role as a regional bridge, combining local knowledge with tailored financial instruments. Investors gain access to proven projects with favorable risk-return dynamics, while Central Asian economies unlock new development funding.” A centerpiece of the new platform is a specialized credit fund dedicated to financing infrastructure development in Central Asia. Registered under ADGM jurisdiction, the fund will focus on debt financing for EDB’s infrastructure portfolio. The Bank highlighted ADGM’s regulatory advantages, noting that the fund will offer Middle Eastern and global investors a secure and efficient entry point into the region’s development landscape. EDB will serve as both a structuring partner and co-investor, providing access to a diversified project pipeline. Priority Sectors for Investment Transport and Logistics: The development of the North-South Corridor could boost transit volumes through Central Asia by up to 40%, significantly reducing shipping distances between the Gulf and key Eurasian markets. Water Sector and Agribusiness: The irrigation equipment market in Central Asia is valued at approximately $426 million annually, while the broader water supply sector is worth up to $2 billion. Renewable Energy: The sector continues to attract major players such as the UAE’s Masdar, which has established a growing footprint across Central Asia. Strengthening Gulf-Central Asia Economic Ties In recent years, the Gulf states have become major trading partners and investors in Central Asia. According to EDB data, trade between the Gulf and Central Asia reached $3.3 billion in 2024, a 4.2-fold increase since 2020. Imports from the Gulf made up 80% of the total trade turnover. Top Central Asian trading partners with the Gulf in 2024 were: Turkmenistan - $2 billion (61%) Uzbekistan - $740 million (23%) Kazakhstan - $302 million (9%) The highest trade growth rates were recorded in: Turkmenistan - up 9.9 times Kyrgyzstan - up 9.5 times Uzbekistan - up 8.1 times The UAE accounted for 97% of all Gulf-Central Asia trade. For Turkmenistan, Gulf trade represented around 10% of total foreign commerce, while Kyrgyzstan’s share stood at approximately 1%, with even lower figures across other regional states. The EDB projects continued growth in trade, citing an unrealized potential of $4.9 billion, including $4.4 billion in potential Gulf exports (motor vehicles, electronics, jewelry) and $500...

Economic Growth

Kyrgyzstan Reports Strong Economic Growth and Budget Surplus

Kyrgyzstan's consolidated budget for 2025 is expected to exceed $12.5 billion, marking the first time it will cross the historic threshold of one trillion soms. The announcement was made by Chairman of the Cabinet of Ministers Adylbek Kasymaliev during a government meeting on December 8. Kasymaliev stated that while the 2025 state budget was initially approved at the equivalent of $8 billion, it had expanded by $4.3 billion by year-end, leaving the country with a budget surplus of more than $110 million. According to the Statistics Department of the Eurasian Economic Commission, Kyrgyzstan was the only member of the Eurasian Economic Union (EAEU) to post a budget surplus in the first nine months of 2025. The surplus totaled $1 billion, with revenues reaching $4.9 billion and expenditures at $3.9 billion. By comparison, the surplus in the same period of 2024 was $0.5 billion. Citing International Monetary Fund data, Kasymaliev noted that Kyrgyzstan ranked among the top three countries globally in terms of real GDP growth in 2024. The national economy grew by 10% in the first ten months of 2025, with all major sectors showing expansion. The construction sector led with a remarkable 42.8% growth rate. GDP per capita for 2025, initially projected at $2,616, is now expected to reach $2,770 by the end of the year. Kyrgyzstan’s international reserves also saw a significant increase. As of the end of October 2025, reserves stood at $7.955 billion, up by $3.02 billion compared to October 2024, according to the National Bank. The National Statistics Committee earlier reported that Kyrgyzstan’s GDP grew by 11.5% in 2024. Services accounted for the largest share of GDP at 52.3%, followed by goods-producing industries at 33.3%, industry at 17%, construction at 7.7%, and agriculture at 8.6%. The Eurasian Development Bank (EDB) forecasts record-high economic growth for Kyrgyzstan in 2025, driven by robust investment activity. From January to October, fixed capital investment rose by 18.9%, with state budget funds and company resources accounting for 31% and 23% of that total, respectively.

Irrigation

Kazakhstan to Modernize Irrigation Sector with $5.3 Million EDB Grant

Kazakhstan’s Ministry of Water Resources and Irrigation, the United Nations Development Programme (UNDP), and the Eurasian Development Bank (EDB) have launched a new joint initiative aimed at modernizing the country’s irrigation sector. Titled “Developing a Business Ecosystem for Sustainable Irrigation in Kazakhstan,” the project is supported by a $5.3 million grant from the EDB and implemented in partnership with UNDP. The agreement was signed by Minister of Water Resources and Irrigation Nurzhan Nurzhigitov, UNDP Resident Representative Katarzyna Wawiernia, and EDB Deputy Chairman Ruslan Dalenov. Boosting Climate Resilience and Water Efficiency The multi-year initiative focuses on strengthening Kazakhstan’s resilience to climate change by improving irrigation management. Key components include establishing a National Water Resources Information System, deploying forecasting and water distribution tools, creating regional centers for modern irrigation, training specialists, and promoting water-saving technologies nationwide. Nurzhigitov emphasized that the project aligns with Kazakhstan’s broader strategic goals for climate adaptation and water sector reform. “For us, participation in this project means achieving strategic goals to modernize the water sector and increase resilience to climate change. We are actively working to attract investment in the water sector, but all strategic decisions are and will be made exclusively in Kazakhstan. Transferring water resources or facilities to foreign countries has never been considered. Our goal is to modernize the water sector to protect the interests of our citizens and ensure security and sustainable development,” he stated. Expanding Water-Saving Irrigation Kazakhstan has steadily increased the use of water-efficient irrigation technologies such as drip and sprinkler systems to reduce agricultural water consumption. Since 2024, the government has raised subsidies for farmers adopting these technologies. Reimbursement rates for drilling underground water wells and installing modern systems have increased from 50% to 80%. As a result, the area equipped with water-saving irrigation expanded from 312,200 hectares in 2023 to 580,000 hectares in 2025, representing 30% of the country’s total irrigated farmland. By 2030, the government aims to extend modern irrigation systems to 1.3 million hectares, covering 70% of all irrigated land in Kazakhstan.

EDB and Tajikistan Expand Cooperation in AI and Digital Technologies

Tajikistan is accelerating the digitalization of its economy through new partnerships aimed at advancing AI and related technologies. The country’s Ministry of Industry and New Technologies has signed a memorandum of cooperation with the Eurasian Development Bank’s Digital Initiatives Fund (EDB DIF), focusing on AI and digital transformation. The agreement was formalized in Dushanbe during the AI Conf 2025 international conference. It outlines joint innovation projects, knowledge exchange, and capacity building in the field of AI. Key areas of cooperation include integrating AI into public administration, developing a multimodal large language model (LLM), and advancing initiatives in energy efficiency and cybersecurity. “An Artificial Intelligence Council has been established under the ministry to supervise major national projects,” said Dauren Rakhimzhanov, Managing Director of the EDB's Digital Initiatives Directorate. “Under the new memorandum, we will jointly develop AI technologies, exchange expertise, and expand the portfolio of digital projects in the Republic of Tajikistan.” The agreement also grants Tajikistan access to the EDB DIF’s financial and technical resources, including grant programs designed to support digital solutions with cross-border integration potential and technology sharing among member states. One of the first joint projects is the creation of the “Electronic Map of Dushanbe,” a digital platform that will underpin broader smart city development. The EDB signed a grant financing agreement for this project with the state unitary enterprise “Smart City” on September 24, 2025. Alexander Petrov, Director of the EDB Digital Initiatives Directorate, emphasized the importance of international collaboration in developing AI. “Strengthening cooperation in AI is essential, not only among EDB member states but also with global institutions,” Petrov said. “These projects facilitate knowledge exchange and contribute to building a resilient digital ecosystem.” According to Petrov, Kazakhstan, Kyrgyzstan, and other countries in the region have already shown interest in joining similar initiatives. He noted that such programs represent a step toward deeper economic integration across the Eurasian region.

Agriculture

Central Asia Loses 14 Million Tons of Crops Annually Due to Poor Storage Infrastructure

Each year, approximately 14 million tons of agricultural products are lost across Central Asia due to inadequate storage infrastructure, according to a recent analytical report from the Eurasian Development Bank (EDB). In Kyrgyzstan, Tajikistan, and Uzbekistan, so-called “dry warehouses” remain the norm. A significant share of produce is stored in facilities lacking the conditions necessary for long-term preservation. As a result, large volumes of crops spoil annually, especially during seasonal peaks. The EDB notes that Eurasian countries are entering a new logistics phase. The rapid growth of e-commerce and retail expansion is generating unprecedented demand for modern warehouse infrastructure. According to the bank’s projections, total demand for warehouse space in the region will double by 2040, surpassing 120 million square meters. Between 2020 and 2024, the region’s total warehouse space increased from 48 to 58 million square meters. Russia remains the dominant player, with around 53 million square meters of commercial and logistics space. Central Asian countries, however, continue to lag far behind. Crop losses peak during the autumn harvest and spring sales of residual stock. During these times, buffer storage and efficient transport logistics are critical. Without these, “farmers are forced to sell surpluses at the lowest price or throw them away,” EDB analysts warn. Experts identify the warehouse sector as a key driver of trade growth in Eurasia. Realizing this potential, however, will require coordinated action among governments, businesses, and international institutions. The report emphasizes the need for a unified institutional environment to enhance investment appeal and market transparency. “The region, which has long remained on the periphery of global logistics flows, is now shaping a new map of Eurasian logistics. In the coming years, the market will remain highly dynamic: more than 20 million square meters of new warehouse space is planned for commissioning, including 1.6 million square meters in Central Asian countries,” the report states. Kyrgyzstan serves as a case in point. In 2020, amid the COVID-19 pandemic, agriculture was the country’s only growing sector. Yet farmers struggled with oversupply, cabbage, in particular, had to be fed to livestock or discarded due to a lack of buyers and storage facilities. A similar situation unfolded with potatoes.

Recycling

Kyrgyzstan to Launch Program for Recycled Resources Market

Kyrgyzstan’s Ministry of Natural Resources, Ecology, and Technical Supervision, supported by the Russian-Kyrgyz Development Fund (RKDF) and the Eurasian Development Bank (EDB), has signed a trilateral agreement to develop a national program for establishing a recycled resources market. The agreement was formalized in Bishkek. According to the ministry, the initiative aims to support the creation of a modern waste management system based on green economy principles and more efficient use of raw materials. The RKDF and EDB will provide financing and expert support for drafting the program. The forthcoming plan will include pilot projects integrating recycled materials into economic activity, improvements to recycling infrastructure and supply chains, and incentives to encourage businesses to increase the use of secondary raw materials. Minister of Natural Resources Meder Mashiev emphasized that building a recycled resources market is key to transitioning toward a circular economy. He added that international support would help integrate secondary materials into production and unlock new business opportunities. RKDF Chairman Artem Novikov noted that the final program would serve as a tool to stimulate recycling, attract investment, and bolster the country’s climate resilience efforts. The agreement underscores Kyrgyzstan’s growing cooperation with international financial institutions in the field of environmental development.