Foreign direct investment (FDI) - The Times Of Central Asia

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Foreign direct investment (FDI)

How Almaty and Astana Built Central Asia’s Deepest Business Ecosystem

Every region has cities that pull people and money toward them. New York, London, Dubai, and Singapore became places where ambitious people went to make careers, companies went to find talent, and investors went to put money to work. Once that concentration takes hold, it feeds on itself. More companies create more jobs, more talent attracts more companies, and banks, lawyers, consultants, airlines, schools and restaurants grow around them. Central Asia has developed its own version of that gravitational pull. Almaty has long been the region’s main commercial center and was Kazakhstan’s capital until 1997. It remains effectively tethered to Astana by intense passenger traffic and the constant movement of businesspeople, officials and professionals between the two cities. Astana has grown around government, international finance, technology and diplomacy. Together, they function as a two-city economic and political engine. The numbers explain much of this. The Times of Central Asia’s Central Asia Balance Sheet puts Kazakhstan at $306.2 billion of the five Central Asian economies combined $543.4 billion in GDP, or 56.4%. Its share of accumulated foreign investment is even larger. The Balance Sheet puts Central Asia’s inward foreign direct investment (FDI) stock at $235.6 billion at the end of 2025, of which Kazakhstan held $156.4 billion, or 66.4%. FDI stock represents capital accumulated over years rather than announced agreements or one unusually strong year of inflows. Almaty and Astana Play Different Roles Almaty accounted for 22.7% of Kazakhstan’s GDP in 2025 and Astana another 12.3%, putting their economies at roughly $69 billion and $38 billion respectively. Together they produced around $107 billion. Almaty is Kazakhstan’s main business and financial center. Kazakhstan’s largest banks, investment firms, multinational offices, lawyers, accountants and consultants are concentrated there. The Globalization and World Cities research network (GaWC) placed Almaty in its Gamma+ group in 2024, alongside Austin, Antwerp, and Kuwait City. GaWC bases the classification on the networks of major international business-service firms, offering a measure of how closely a city is connected to the global corporate economy. Consistent with that ranking, multinational companies have also chosen Almaty as a base for regional operations. Mars runs its eleven-country regional headquarters from Almaty, covering all five Central Asian states, the South Caucasus, Belarus, Mongolia, and Turkey. Mastercard describes Almaty as a regional hub and the heart of its consulting operations for the CIS, Central and Eastern Europe. Kazakhstan is unusual in Central Asia in having two major hubs. In functional terms, Astana complements Almaty much as Washington D.C. complements New York: Almaty is the deeper commercial center, while Astana concentrates government, sovereign institutions, diplomacy, and national policy. Astana has also developed regional corporate operations of its own. Alstom runs its Western and Central Asia cluster from the capital, and Mercuria opened a regional office there in 2026 headed by its CEO for Central Asia and the Caspian region. U.S. rail company Wabtec has made Astana a regional locomotive production and engineering base, reinforced by its $4.2 billion agreement as Kazakhstan expands its Middle Corridor links to...

Chinese Investment

Chinese Investment in Uzbekistan Surpasses $8 Billion This Year

President Shavkat Mirziyoyev met with a delegation of leading Chinese companies and financial institutions on the sidelines of the Tashkent International Investment Forum. The meeting focused on new investment projects in energy, mining, infrastructure, and finance. The Chinese delegation was led by Wang Hongzhi, head of China’s National Energy Administration. It included executives from China Energy Engineering Corporation, China Datang, Sinoma Energy Conservation, China Southern Power Grid, China CAMC Engineering, China National Nuclear Corporation, and State Nuclear Uranium Resource Development. Representatives of the Export-Import Bank of China and Bank of China also attended. According to Uzbekistan’s presidential press service, the talks focused on high-tech projects in the energy and geological sectors, as well as cooperation in banking and finance. Mirziyoyev welcomed the rapid growth of Uzbekistan-China economic ties. Since the beginning of the year, bilateral trade has exceeded $6 billion, while direct Chinese investment in Uzbekistan has surpassed $8 billion. Nearly 6,000 joint ventures involving Chinese partners are operating in the country. Renewable energy projects formed a major part of the discussion. Chinese companies are already involved in building solar and wind power plants, as well as energy storage systems, across Uzbekistan. Participants supported plans to accelerate ongoing projects and launch new initiatives. These include expanding photovoltaic power generation capacity, introducing agrivoltaic technologies that combine agriculture and solar energy production, and building new transmission lines. The meeting also covered cooperation in waste-to-energy generation and advanced technological solutions, including modern data centers. In mining and geology, officials discussed joint exploration and development of mineral deposits. They also reviewed long-term partnerships in the supply of critical raw materials. Financial cooperation was another key topic. Participants reviewed opportunities for Chinese banks to support infrastructure projects, irrigation modernization, high-speed road construction, hydropower development, agricultural machinery supplies, and financing for small and medium-sized businesses. Earlier this year, the third Uzbekistan-China Interregional Forum in Xi’an resulted in more than $3.5 billion in investment and export agreements, including $3.35 billion in investment projects and $156 million in export contracts. Officials said the agreements would support infrastructure modernization, transport development, environmental services, and industrial production. Speakers at the Xi’an forum said bilateral trade reached nearly $18 billion last year, while accumulated Chinese investment in Uzbekistan totaled $17 billion.

Economy

Tokayev: Kazakhstan’s GDP Could Reach $320 Billion by End of 2026

Kazakhstan’s gross domestic product could reach $320 billion by the end of 2026, President Kassym-Jomart Tokayev said at a forum for parliamentary deputies. Speaking at the event, Tokayev noted that the global economy is facing heightened geopolitical tensions and trade conflicts, which he linked to declining trust between major powers and what he described as a weakening of international responsibility mechanisms. “Of course, the current situation directly affects our country’s opportunities. But despite this, we are overcoming challenges, maintaining steady economic growth, and consistently implementing our national strategy,” Tokayev said. According to him, Kazakhstan’s GDP reached $306 billion in 2025. He described this as the second-highest level among post-Soviet countries and the highest in Central Asia. Tokayev also said Kazakhstan had entered the world’s top 50 economies and cited forecasts by international financial institutions suggesting that GDP could reach $320 billion by the end of 2026. Investment and reserves Kazakhstan continues to attract significant foreign direct investment, Tokayev said, noting that net inflows had exceeded $150 billion. According to him, this represents about 69% of total investment directed to Central Asia. He added that the country’s financial buffers remain substantial. Gold and foreign exchange reserves stand at about $74 billion, while total reserves, including assets held in the National Fund, amount to approximately $139 billion. Industrial and agricultural growth Tokayev said economic expansion is being driven not only by overall growth but also by structural changes. In particular, manufacturing output has increased by more than 6% annually over the past two years. He also highlighted the importance of the agro-industrial sector, which he said affects the living standards of 7.4 million people, or about 36% of Kazakhstan’s population. State support for agriculture has increased in recent years. In 2025, more than $2 billion was allocated for concessional lending to farmers, which Tokayev described as the largest level of support provided to the sector since independence. According to Tokayev, government policy aims not only to expand agricultural production but also to develop a modern, export-oriented agro-industrial economy. He said that in 2025 around 250 new production facilities were launched in the sector, while international companies increased their presence in agricultural projects. Major investment initiatives involving foreign partners are being implemented in the Almaty, Akmola, Zhambyl, and North Kazakhstan regions, as well as in the city of Shymkent. Total investment in these projects exceeds $1 billion and is expected to create tens of thousands of jobs. As previously reported by The Times of Central Asia, export revenues from Kazakhstan’s agro-industrial sector reached $7 billion in 2025, an increase of 37% compared with the previous year.

Foreign direct investment (FDI)

Foreign Capital Inflows to Tajikistan Jump by One-Third, Approaching $7 Billion

Foreign investment in Tajikistan increased sharply in 2025, rising by more than one-third compared to the previous year, as the authorities also announced new investment agreements and long-term development strategies extending to 2040. Speaking at a press conference, Sulton Rahimzoda, chairman of the State Committee for Investment and State Property Management of the Republic of Tajikistan, said that by the end of 2025, total foreign capital inflows had reached $6,925.3 million. This represents an increase of $1,798.6 million, or 35.1%, compared to 2024. In absolute terms, the economy attracted nearly $1.8 billion more in foreign investment than a year earlier. According to the committee, $3,031.0 million of the total came from post-Soviet states in 2025, accounting for 43.8% of overall foreign investment. At the same time, countries outside the former Soviet Union accounted for the majority share. Tajikistan received $3,894.3 million from these countries, or 56.2% of total inflows. Investment from this group increased by $731.3 million year over year, or 23.1%. Authorities attributed the growth in foreign capital to improvements in the regulatory framework. On the initiative of the State Committee, a new version of the Law of the Republic of Tajikistan “On Investments and Stimulation of Investment Activity,” dated May 14, 2025, No. 2173, was adopted. Additional momentum came from the International Investment Forum “Dushanbe Invest - 2025,” held on October 14-16, where more than 50 cooperation agreements worth a combined $4.1 billion were signed.

Investments

Uzbekistan and Kazakhstan Emerge as Top Investment Destinations in Eurasian Region

A new report from the Eurasian Development Bank (EDB) highlights a significant shift in investment flows within the Eurasian region, with Central Asia, particularly Uzbekistan and Kazakhstan, emerging as the primary recipients of foreign direct investment (FDI). Titled Investment Cooperation in the Eurasian Region Based on EDB Monitoring of Mutual Investments, the report provides a detailed analysis of mutual FDI trends across former Soviet republics (excluding the Baltic states) and Mongolia. Despite a global downturn in FDI, investment activity across the Eurasian region continues to grow. As of the first half of 2025, mutual FDI between member countries reached a record $48.4 billion, with private businesses driving the majority of the growth. Kazakhstan and Uzbekistan Take the Lead Kazakhstan has become a central player in regional investment. The country’s outbound investments total $3.25 billion, while inbound investments stand at $9.4 billion, accounting for 19.5% of all mutual FDI in the region. Notably, Kazakhstan’s investment in neighboring Uzbekistan rose by 60% over the past 18 months, driven primarily by construction projects. Uzbekistan is now the largest recipient of FDI in the Eurasian region, attracting over $10.7 billion in inbound investment, 22.3% of the regional total. The country also doubled its outbound investment in 2025 compared with the previous year, reaching $396 million. Uzbek companies invested heavily in manufacturing, which made up 85% of their foreign investment activity. Russia remains Uzbekistan’s largest investor, accounting for 90% of the total. Intra-Regional Investment on the Rise Intra-regional investment in Central Asia reached $1.3 billion in the first half of 2025, a 42% increase compared to 2023 and nearly triple the volume recorded in 2016. Kazakhstan remains the largest regional capital exporter, while Uzbekistan continues to lead as the main recipient. Roughly 80% of these intra-regional investments are concentrated in the construction, manufacturing, and financial sectors. Other Central Asian Economies Also Attract Investment Kyrgyzstan recorded $2.4 billion in incoming FDI, up 21% from 2023. The increase was largely driven by investments in manufacturing and energy. Tajikistan also saw modest growth, with mutual FDI from Eurasian countries reaching $530 million by mid-2025, up 3% compared to 2023. Russian investment continues to dominate, comprising 93% of the total and focusing on energy, telecommunications, and financial services.

Investment

Kyrgyzstan Sees Rising Pakistani Investment Amid Expanding Economic Partnership

Foreign direct investment (FDI) from Pakistan in Kyrgyzstan has more than doubled over the past five years, rising from $2 million in 2020 to $4.6 million in 2024, according to the National Investment Agency. A sharp spike occurred in 2023, when Pakistani FDI reached $6.9 million, reflecting growing interest from Pakistani businesses in the Kyrgyz market. “Kyrgyzstan and Pakistan demonstrate stable, positive dynamics of cooperation. The number of joint projects in agriculture, energy, trade, and the digital economy is expanding every year. We see high potential for further deepening of the partnership,” said Farkhat Iminov, Director of the National Investment Agency. Expanding Sectoral Cooperation On August 6, Iminov met with Marwan Alex Ayyash, Deputy Head of Mission at the Embassy of Pakistan in Kyrgyzstan. The Pakistani side expressed interest in developing cooperation in Kyrgyzstan’s mining sector, particularly in gold, tungsten, copper, and granite deposits. Earlier, on July 28, Kyrgyzstan and Pakistan held the fifth meeting of the Intergovernmental Commission on Trade, Economic, Scientific, and Technical Cooperation. The key outcome was the signing of a Memorandum of Understanding between Kyrgyzstan’s National Investment Agency and Pakistan’s Investment Board. The agreement aims to implement joint projects and expand cooperation in priority sectors including tourism, energy, agriculture, industry, transport, and logistics.