Foreign Investment - The Times Of Central Asia

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Baytik Mountain Resort

$128 Million Ski Resort Near Bishkek to Use Chinese Financing

Kyrgyzstan is launching another major ski resort project. The year-round Baytik Mountain Resort, valued at $127.9 million, will be built 35 kilometers from Bishkek. China National Heavy Machinery Corporation (CHMC) will participate in both the construction and financing of the project. On August 27, the Tourism Development Support Fund, Valmont Group, and the National Investment Agency signed a public-private partnership agreement to build the resort in Kashka-Suu. The first phase of infrastructure is expected to be commissioned within four to five years. Kashka-Suu has been a ski destination since the Soviet era, with its first ski club established in 1976. The plans include cable cars, ski slopes with artificial snowmaking, accommodation, and facilities for summer recreation and business events. Funding will also come from state-owned Eldik Bank and a private partner. The project is expected to create at least 1,500 jobs during construction and around 800 permanent jobs once operational, with at least 80% of the latter to be held by Kyrgyz citizens. Baytik comes as Kyrgyzstan pursues a much larger expansion of its ski tourism infrastructure. In the east of the country, the government is already developing the Ala-Too Resort, valued at around €1.2 billion. The project will link Jyrgalan, Ak-Bulak, and Boz-Uchuk, with plans for 260 kilometers of ski runs and construction extending through 2038. As The Times of Central Asia previously reported, work began in August 2025. The two projects have different locations and potentially different markets. Ala-Too is being developed near Issyk-Kul as a large international tourism cluster. Baytik’s main advantage is its proximity to Bishkek and the country’s largest international airport. Karakol, Kyrgyzstan’s best-known ski destination, is roughly 400 kilometers from the capital. Baytik is intended to create a major year-round recreation area within easy reach of Bishkek. The investment comes as Kyrgyzstan’s tourism revenues are growing. Foreign visitors spent almost $1.1 billion in the country in 2025, up from $1.02 billion a year earlier, while tourism’s share of the economy reached 3.8%. Travelers from neighboring Central Asian countries and Russia continue to account for most foreign arrivals. For Kyrgyzstan, developing mountain resorts offers a way to reduce the tourism industry’s dependence on the summer season and Issyk-Kul. CHMC’s involvement brings another potential source of capital to the project. Chinese companies have long been involved in infrastructure projects in Kyrgyzstan, particularly in transport and energy. With Baytik, a major Chinese contractor is moving into the country’s tourism infrastructure.

Currency

Kazakh Tenge Rises as Foreign Investors Buy Government Debt

Kazakhstan’s tenge has strengthened by 9.7% against the dollar since the start of 2026, making it the best-performing currency across Europe and Asia, according to the Financial Times. The newspaper points to an influx of foreign capital into Kazakhstan’s government debt: nonresident holdings of tenge-denominated bonds have risen from roughly $2 billion to $5 billion over the past year. The appreciation has come despite serious disruptions to Kazakhstan’s oil exports through Russia. Kazakh data show that foreign interest in government securities did not begin this summer. In July alone, nonresidents increased their holdings by 92.2 billion tenge, about $195 million, to 2.6 trillion tenge, or roughly $5.5 billion. Since the start of the year, their portfolio has grown by 32.9%, while their share of the market has risen from 6.2% to 7.2%. The Association of Financiers of Kazakhstan (AFK) attributes the interest to high real interest rates and relative macroeconomic stability. Why Foreign Investors Are Buying Kazakh Debt During 2025, nonresident holdings of Kazakh government securities rose from roughly 1.1 trillion tenge, about $2.3 billion, to 2 trillion tenge, about $4.2 billion. Growth continued this year. In June alone, foreign investors added 185.1 billion tenge, about $390 million, bringing their total holdings to 2.5 trillion tenge, roughly $5.3 billion. Their share of the market increased from 6.2% to 6.9% by then. The reason for the interest is fairly straightforward: Kazakhstan offers high yields while maintaining an investment-grade credit rating. The base rate remained at 18% through the spring. The National Bank cut it to 17% in June and announced a further cut to 16.75% on July 24. Annual inflation, meanwhile, declined for a ninth consecutive month and stood at 10.3% in June. For foreign investors, the combination of high interest rates and a strengthening tenge creates an opportunity to earn both on bond yields and currency appreciation. For the tenge itself, the same transaction works in reverse: before buying a Kazakh security, a foreign investor has to acquire the national currency. In June, AFK analysts cited nonresident transactions among the factors supporting the tenge, alongside foreign-currency sales by exporters, state-controlled companies, and the National Bank. Market Access Is Becoming Easier High yields alone do not explain the growing interest. Kazakhstan is also trying to make its domestic debt market easier for international investors to access. A primary dealer system has been operating since May 4. Five banks were granted primary dealer status and are expected to support the government securities market, including buying and selling bonds in the secondary market. In April, the National Bank announced that Euroclear had begun a project to make Kazakhstan’s government bonds eligible for settlement through its international system. A direct link with the local market infrastructure is planned for 2027. For foreign investors, this would make it possible to trade Kazakh government debt through a familiar global settlement system, alongside the existing Clearstream channel. Kazakhstan is also seeking eventual inclusion of its tenge-denominated government bonds in JPMorgan’s GBI-EM, one of the main international indexes for emerging-market government...

Foreign Investment

Tashkent’s Rise Reshapes Central Asia’s Business Landscape

Tashkent is changing faster than it can adjust to its own growth. The city is already pressing against the limits of its existing airport; a vast new city designed for up to two million people is being built alongside it, and a separate financial jurisdiction drawing on English common law is being created. Uzbekistan is opening up further to foreign investment, and nearly two-thirds of the country’s foreign-invested enterprises are already concentrated in the capital. But being the leading business city in your own country and becoming a regional hub are not the same thing. Tashkent already has strong competitors in Central Asia. Given that competition, it is more useful to examine why companies are choosing Tashkent now and what the city still lacks than to declare it the region’s new business capital. As of July 1, 2026, Uzbekistan had 20,502 operating enterprises with foreign investment. Their number had increased about 1.4 times over five years. China accounted for the largest number, with 6,060 companies, followed by Russia with 3,454, Turkey with 2,293, and Kazakhstan with 1,307. As of June 1, 12,480 of the 19,921 enterprises with foreign investment then operating in Uzbekistan were located in Tashkent. That was almost 63%. Why Tashkent? Part of the answer is obvious: the institutions and services businesses rely on are concentrated there, from government and finance to professional services, technology firms, and skilled workers. That creates a network effect: companies come because partners, clients, and suppliers are already there. But the capital had roughly the same administrative advantages ten years ago without attracting business on anything like the current scale. What changed first was Uzbekistan’s economy itself. After 2016, the country began moving away from its previous closed economic model. One of the first major steps was currency liberalization in 2017. Changes followed in trade, taxation, privatization, and the treatment of foreign investors. The state still plays an enormous role in the economy, but it has become considerably easier for foreign private businesses to operate. Uzbekistan’s GDP grew by 7.7% in 2025. The IMF expects growth of about 6.8% in 2026, while pointing to a longstanding problem: the state’s large footprint in the economy, including major state-owned enterprises and banks, continues to constrain competition and private-sector development. The combination of rapid growth and a gradually more open economy has benefited Tashkent more than any other city in the country. Uzbekistan also has an advantage that cannot be created by government decree. With a population of about 38.5 million, it is Central Asia’s most populous country and has a large domestic consumer base. It is also the region’s only country that borders all four other Central Asian republics. For an international company, Tashkent can serve both as an office for the Uzbek market and as a gateway to neighboring countries. Now, Tashkent is entering territory long occupied by others. For decades, Almaty has concentrated banks, international representative offices, private companies, and professional talent. In 2018, the Astana International Financial Centre began operations, with a...

Foreign Investment

Foreign-Owned Companies in Central Asia: What the Figures Mean

When political leaders or national statistical agencies report an increase foreign-owned companies in Central Asia, the media often draw the wrong conclusion. A rise in the number of foreign-owned businesses is frequently interpreted as evidence of growing investment from the countries where their owners originate. In reality, this is not always the case. In some instances, the increase may simply reflect the registration of additional legal entities. The headline figures are nevertheless striking. According to official statistics, Kazakhstan had 52,693 operating entities with foreign ownership as of July 1, 2026, alongside 8,909 with joint ownership. In Kyrgyzstan, 5,724 operating enterprises with foreign investment were recorded in 2024. Uzbekistan had 20,502 enterprises with foreign capital as of July 1, 2026, including 15,891 wholly foreign-owned companies, while the remainder were joint ventures. Comparable totals are harder to obtain for Tajikistan and Turkmenistan. In May 2026, Tajikistan’s presidential office said that more than 700 companies with Chinese capital were operating in the country, albeit that figure covers only companies with Chinese participation and cannot be treated as a national total for all foreign-owned businesses. No equivalent recent official total is publicly available for Turkmenistan. The economic contribution made by foreign businesses also varies across the region. According to Kazakhstan’s Ministry of National Economy, gross inflows of foreign direct investment into Kazakhstan reached $20.5 billion in 2025, up 14.4% from the previous year. In Kyrgyzstan, enterprises with foreign participation accounted for 30% of industrial output in 2024. They produced goods, works, and services worth 179.7 billion soms, according to the National Statistical Committee’s report on foreign-invested enterprises. Uzbekistan’s Ministry of Investment, Industry and Trade reported that investment reached $43.1 billion in 2025, comprising $38.2 billion in foreign direct investment and $4.9 billion from international financial institutions. None of these figures, however, means that every registered foreign-owned company has made a meaningful contribution to the economies of Central Asia. A business established by a foreign investor, either alone or jointly with local partners, may conduct no commercial activity while continuing to fulfill its statutory reporting obligations. A limited liability partnership in Kazakhstan or a limited liability company in Kyrgyzstan may be established for a variety of reasons. Sometimes a legal entity is created to carry out one or two contracts, bid for public procurement tenders, or receive specific payments. In other cases, it may be set up to facilitate import-export transactions, sell goods through online marketplaces, lease property or equipment, or remain available for future business opportunities. A registered company may have little more than a legal address. It may have no production facilities, offices, employees, or assets beyond its registered capital. A single foreign investor may also establish several legal entities in Kazakhstan, Kyrgyzstan, or another country in the region. This may be done to separate projects, operate in different sectors, manage logistics, handle different product lines, or organize financial settlements. The laws of Central Asian countries generally allow such arrangements, provided that the companies comply with national legislation and meet their tax and reporting obligations....

Global Business Services

GBSF 2026 Highlights Uzbekistan’s Push for Global Business Services and AI

More than 450 participants from business and government, representing over 45 countries, gathered in Tashkent on July 24–25 for the Global Business Services Forum 2026. The event centered on Uzbekistan’s effort to become a regional center for global business services and business process outsourcing (BPO), with artificial intelligence (AI) also a major focus. Organizers described it as Central Asia’s largest international forum devoted to global business services and the digital economy. The forum follows May’s Global Tech Weekend in Tashkent, which brought more than 2,500 technology and investment professionals to the capital. Opening the forum, Uzbekistan’s Minister of Digital Technologies Sherzod Shermatov said recent reforms had improved conditions for international technology companies considering investment or expansion in the country. Shermatov said companies could draw on qualified specialists and modern digital infrastructure while reaching a fast-growing regional market. He also invited international firms to invest and develop long-term partnerships. Azamat Karamatov, CEO of IT Park Uzbekistan, said the organization now has more than 3,800 resident companies, including over 1,000 international businesses. Exports of technology services have surpassed $1 billion. He said IT Park gives foreign companies a route into Uzbekistan’s technology sector while helping develop local talent. Sessions examined AI and talent development. Other discussions covered international investment and outsourcing. Speakers also outlined tax incentives and support available to foreign companies entering the Uzbek market. The Soft Landing program and Zero Risk initiative are among the available schemes. Key Account Management services provide additional assistance. One speaker was Arseny Kucheryuk, an expert at Antal Uzbekistan, part of the British recruitment company Antal International. He drew on the firm’s recruitment work and salary surveys to describe changes in the labor market. Kucheryuk, who moved to Uzbekistan nearly five years ago, said employers once struggled to find highly qualified candidates. The market has since become more balanced, although strong candidates can still receive several offers within weeks. He said companies seeking experienced professionals often need to offer salaries well above candidates’ current income. Antal research found that more than 60% of candidates expect an increase of at least 20% when changing jobs. Kucheryuk added that pay alone does not determine retention. Career prospects and management quality also influence whether skilled staff remain with an employer. He said workplace culture is especially important when addressing religion or family. Speaking to The Times of Central Asia after his presentation, Kucheryuk said foreign investment was creating career opportunities in Tashkent and elsewhere in Uzbekistan. He attributed Uzbekistan’s appeal to cooperation between the government and private sector, which he said helps international companies enter the market and supports local businesses. Kucheryuk advised foreign investors to understand local business culture before entering the market. Although companies may bring senior executives from abroad, he said operational roles requiring knowledge of local law and business practice should generally be filled in Uzbekistan. Iyad Hafez, CEO and managing partner of Staff Arabia, said his first visit to Uzbekistan exceeded expectations. “I’m positively surprised,” he told The Times of Central Asia. “Very...

Kashagan

Kazakhstan’s $5 Billion Kashagan Fine Moves Into New Legal Phase

Kazakhstan has escalated its dispute with the foreign investors behind the Kashagan oil field, warning the consortium’s managing director that he could face administrative and criminal liability over its failure to pay an environmental fine of nearly $5 billion. The warning to Giancarlo Ruiu, managing director of North Caspian Operating Company, was reported by Reuters, which cited two sources and a document it had reviewed. NCOC’s shareholders include Eni, ExxonMobil, Shell, and TotalEnergies, each with a 16.81% stake; Kazakhstan’s state-owned KazMunayGas, with 16.88%; CNPC, with 8.33%; and Inpex, with 7.56%. The dispute began after the Department of Ecology for the Atyrau Region inspected the consortium’s production facilities in 2022 and identified about ten alleged violations. Inspectors said that by November 1, 2022, more than 1.7 million metric tons of sulfur had accumulated at a storage site within the Bolashak oil and gas processing complex. NCOC’s permit allowed it to store no more than 730,000 tons. According to the environmental authorities, the operator had exceeded the permitted limit by more than twofold. In early 2023, the regional environmental department issued a notification seeking 2.356 trillion tenge in penalties, equivalent to about $5.4 billion at the exchange rate at the time. NCOC rejected the allegations and maintained that its sulfur-handling operations complied with Kazakh law and the permits issued for the project. The proceedings continued for more than three years. In August 2025, a court set aside the original notification because of procedural deficiencies in the way it had been issued. The ruling did not dismiss the environmental allegations themselves. The authorities subsequently issued a new notification, allowing the case to proceed. After further domestic proceedings, the Atyrau Regional Court upheld the penalty on June 19, allowing the ruling to enter into force. It later emerged that members of the consortium had been aware of the risk posed by the growing sulfur stockpiles for years. In 2017, Eni warned that the project was heading towards exceeding the permitted storage capacity. By late 2020, NCOC had also cautioned that Kazakhstan’s new Environmental Code, adopted the following year, would increase the risk of substantial penalties. According to internal documents reported by Bloomberg, Eni executives proposed processing more of the sulfur for sale on international markets. ExxonMobil, TotalEnergies, CNPC, and Inpex were not planning comparable measures at the time, while KazMunayGas had yet to settle on a position. On July 14, Kazakhstan’s Ministry of Justice said the domestic court ruling had entered into force and gave NCOC until July 20 to pay voluntarily. The ministry said compulsory enforcement proceedings could begin if the consortium failed to meet the deadline. NCOC did not pay by July 20. The Justice Ministry subsequently warned Ruiu of possible liability for non-compliance, marking a further escalation in a dispute that had already moved beyond the original question of sulfur storage. The consortium continued to deny wrongdoing and maintained that the penalty could not be enforced while international arbitration proceedings were under way. Its foreign shareholders are separately challenging the fine...