Foreign Investment - The Times Of Central Asia

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Investments Foreign Investment Tashkent International Investment Forum

Uzbekistan Hosts Fourth Tashkent International Investment Forum, Seals $26.6 Billion in New Investment

From June 9-12, the Uzbek capital hosted the Fourth Tashkent International Investment Forum (TIIF), attracting more than 2,500 participants from 93 countries. Among the attendees were ministers, global corporate leaders, financial institutions, and economic experts. The forum served as a strategic platform for promoting Uzbekistan’s investment climate, advancing its reform agenda, and strengthening global partnerships. Laziz Kudratov, Uzbekistan’s Minister of Investment, Industry and Trade, underscored the country’s progress as an emerging regional investment hub. “Over the last seven years, major reforms have been carried out to liberalize the economy, improve the business climate, and create favorable conditions for investors,” he stated. Uzbekistan has drawn more than $90 billion in foreign direct investment in recent years, contributing to a 6.5% GDP growth in 2024. A Vision for 2030 The government’s “Uzbekistan 2030” development strategy aims to raise national GDP to $200 billion by the end of the decade. Foreign investment is central to achieving this target, and forums like TIIF are integral in showcasing Uzbekistan as a stable and attractive investment destination. This year’s forum concluded with the signing of investment agreements worth $26.6 billion. Since TIIF’s inception in 2022, it has facilitated 357 investment deals valued at $44 billion. Of these, 57 projects have been completed, with 263 others in development. Saudi Arabia led new investment commitments with $10.7 billion, followed by China ($7 billion), Russia ($5.5 billion), the UAE ($4.6 billion), Turkey ($3.6 billion), Germany ($3.4 billion), and France ($2 billion). Rising Global Interest Coinciding with the forum was the release of a new Investor Perception Report by Montfort Eurasia. The report highlights a threefold increase in interest from U.S. and UK investors in Central Asia and the Caucasus since 2023. Improved investor awareness and sectoral potential were cited as key drivers of this surge. John Mann, Director at Montfort Eurasia, emphasized Uzbekistan’s potential: “One opportunity that stood out to me was mining. A new mining law passed earlier this year has created a solid framework for foreign companies, particularly those interested in critical minerals.” Mann also identified pharmaceuticals, agriculture, and urban development as promising sectors, and stated that Uzbekistan’s geographic position is ideal for regional manufacturing hubs. According to Montfort’s data, U.S. and UK investors now rate their understanding of the region at 7.36 out of 10, up from 4.92 in 2023. “There’s definitely been progress,” Mann noted. “More executives are showing interest in emerging markets, and there’s a better understanding of this region. However, concerns remain around investment security and political stability.” Despite such concerns, 47% of surveyed investors expressed strong interest in Central Asia, up sharply from 15.5% last year. Leading sectors included industrial and manufacturing (63.5%), oil and gas (57.9%), and mining and natural resources (49.2%). Regional Integration and Vision In his address to the forum, President Shavkat Mirziyoyev highlighted that trade with neighboring countries has increased 3.5 times over the past eight years, reaching nearly $13 billion. To accelerate regional economic integration, he proposed developing a “Concept of an Integrated Region for Investment and...

Green Energy Foreign Investment Energy Exports Caspian Green Energy Corridor Green Future

Central Asia’s Green Energy Dream: Too Big to Achieve?

Although most Central Asian nations are heavily dependent on fossil fuel production and exports, they are aiming to significantly increase the use of renewable energy, hoping to eventually become crucial suppliers of so-called green electricity to Europe. Achieving such an ambitious goal will be easier said than done, given that developing the green energy sector in the region requires massive investment. What Central Asian states – struggling to attract long-term private capital into clean energy projects – need is financing for projects that modernize power networks, improve grid stability, and enable cross-border electricity flows. These upgrades are essential for large-scale renewable energy deployment and regional trade in power. Most actors in Central Asia seem to have taken major steps in this direction. In November 2024, at the COP29 climate conference held in Baku, Kazakhstan signed several deals worth nearly $3.7 billion with international companies and development institutions to support green energy projects. Neighboring Uzbekistan, according to reports, has attracted more than €22 billion ($23.9) in foreign investment in renewable energy, while Kyrgyzstan, Turkmenistan, and Tajikistan – which is aiming to generate all its electricity from green energy sources by 2032 – have developed strategies to help increase their renewable potential. But to turn their goals into reality, all these nations will need funding – whether from oil-rich Middle Eastern countries, China, the European Union, or various international financial institutions. Presently, the development of the Caspian Green Energy Corridor – which aims to supply green electricity from Central Asia to Azerbaijan and further to Europe – remains the region’s most ambitious project. According to Yevgeniy Zhukov, the Asian Development Bank's (ADB) Director General for Central and West Asia, this initiative is a strategic priority for Kazakhstan, Uzbekistan, and Azerbaijan. “While the prospect of exporting green electricity to Europe is part of the long-term vision, the core goal of the initiative is to accelerate green growth within the region,” Zhukov told The Times of Central Asia. Together with the Asian Infrastructure Investment Bank, the ADB is funding a feasibility study for this proposed transmission corridor. The study will assess the technical and economic viability of such a system, along with the environmental and regulatory requirements. In the meantime, the ABD is expected to continue funding other green energy projects in the region. The financial entity, according to Zhukov, invested $250 million in Uzbekistan in 2023 to support renewable energy development and comprehensive power sector reforms, while in other Central Asian countries, it remains “firmly committed to driving the green energy transition.” “For instance, in Tajikistan we are exploring the potential to co-finance the Rogun Hydropower Project alongside the World Bank and other international partners. In Kyrgyzstan, our focus has been on supporting foundational reforms in the energy sector, including strengthening the policy and regulatory environment to attract private investment in renewables. In Turkmenistan, we’ve launched a total of $1.75 million technical assistance initiative to help lay the groundwork for future renewable energy development,” Zhukov stressed, pointing out that these efforts are part...

Investments Foreign Investment

Uzbekistan Attracts Over $8.7 Billion in Foreign Investment in First Quarter of 2025

Uzbekistan attracted more than $8.7 billion in foreign investment during the first quarter of 2025, marking a nearly 20% increase compared to the same period last year, according to President Shavkat Mirziyoyev's press service. The investment influx is being channeled into strategic sectors such as energy, metallurgy, chemicals, pharmaceuticals, transport, agriculture, water management, and public services. The government is placing particular emphasis on generating added value and creating new employment opportunities. By the end of the first half of the year, total foreign investment is projected to exceed $18 billion. For all of 2025, Uzbekistan aims to attract $42 billion in foreign investment and carry out 81 large-scale projects along with more than 8,000 small and medium-sized initiatives. In support of these goals, Mirziyoyev recently signed a decree aimed at bolstering production, exports, and entrepreneurship. Starting June 1, 2025, foreign nationals and stateless persons will be eligible to obtain a five-year residence permit by paying $200,000. An additional fee of $100,000 will apply for each accompanying family member, including spouses, children, and parents.

Investments Mining Foreign Investment Investment Lithium HMS Bergbau AG East Kazakhstan

German Company to Mine and Process Lithium in East Kazakhstan

Two new industrial facilities dedicated to the mining and processing of lithium are set to be established in the Ulan district of East Kazakhstan Region by 2029. The announcement was made by Nurymbet Saktaganov, akim of East Kazakhstan Region, who noted that plans are underway for the construction of a mining and processing plant, as well as a pegmatite ore processing facility. $500 Million Investment from Germany The project will be implemented with the participation of HMS Bergbau AG, a German mining company that plans to invest $500 million into the development of a lithium deposit discovered in 2023. The initiative will include both the extraction of raw materials and the production of lithium oxide concentrate, a product in high demand across the global high-tech sector. Germany’s interest in Kazakhstan’s rare earth resources was discussed during a September 2023 meeting between President Kassym-Jomart Tokayev and Dennis Schwindt, Chairman of the Board of HMS Bergbau AG. Tokayev reaffirmed Kazakhstan’s openness to foreign investment and emphasized the country’s intention to become a key player in the supply of strategic raw materials. He highlighted lithium’s growing importance in modern industry, particularly for renewable energy and high-tech manufacturing. Operating in the USA, Singapore, South Africa, Poland, and several other markets, HMS Bergbau AG is considered a major independent force in the global solid minerals sector. Its new facility in East Kazakhstan will serve as a vital link in the international lithium supply chain, amid rising global demand driven by electric vehicles, portable electronics, and energy storage systems. $15.7 Billion Discovery by South Korean Researchers In a parallel development, researchers from the Korea Institute of Geosciences and Mineral Resources (KIGAM) announced in 2024 the discovery of a lithium deposit in East Kazakhstan valued at approximately $15.7 billion. Spanning 1.6 square kilometers, the site was previously mined for tantalum. The research, commissioned by the Kazakh government, was based on geological data indicating frequent co-location of lithium, cesium, and tantalum deposits. “KIGAM has been studying the area since last May at the request of the Kazakh government, given that tantalum usually comes with lithium and cesium,” The Korea Times reported. Lithium: A Cornerstone of the New Economy Globally recognized as one of the most critical and scarce elements, lithium is essential for producing lithium-ion batteries that power everything from smartphones and laptops to electric cars and grid-scale energy storage systems. Kazakhstan’s efforts to harness its lithium reserves in East Kazakhstan are expected to boost the country's role in the global energy transition and significantly enhance investment opportunities in the region.

Investments Kazakhstan Economy Foreign Investment

Kazakhstan Aims to Nearly Triple Investment in the Economy by 2029

Kazakhstan plans to significantly increase investment in its economy over the next five years, aiming to nearly triple current levels. However, officials from the Ministry of National Economy acknowledge that the primary challenge lies not in securing additional funds but in the shortage of high-quality investment projects. Shortage of Viable Projects At a recent meeting of the Expert Council under the Ministry of National Economy, Deputy Minister Arman Kasenov stated that the ratio of domestic investment to GDP currently stands at a modest 14-15%, a figure he described as objectively low. “To achieve higher rates of economic growth, investments need to increase 2.75 times, from $40 billion in 2024 to $103 billion by 2029,” Kasenov stated. To help reach this target, the government plans to allocate KZT 1 trillion (approximately $2 billion) through the state holding company Baiterek to stimulate business lending. This amount is expected to catalyze additional credit lines totaling KZT 8 trillion (around $15.9 billion). Still, Kasenov stressed that financing alone is not enough. “The real issue is the lack of quality projects,” Kasenov said. “This problem has been flagged by international development finance institutions. When we talk about increasing investment from $40 billion to $103 billion, it’s not just about capital, it's about where and how that capital is deployed.” Targeting High-Return Sectors To ensure impactful investment, the Kazakh government is prioritizing support for highly productive and export-oriented projects. These are concentrated in key sectors such as metallurgy, oil and gas, petrochemicals, and agriculture. Rustam Karagoyshin, the head of Baiterek Holding, outlined the financing model for investment projects, which consists of 60% market funding and 40% state-backed lending. In 2025, Baiterek plans to disburse a total of KZT 8 trillion in project financing, with KZT 3.75 trillion (around $7.4 billion) provided in the national currency. “Our main objective is to unify lending rates at 12.6% for end consumers. Standardizing rates will enable second-tier banks to participate across nearly all sectors where Baiterek operates today,” Karagoyshin said. Foreign Investment Outlook As The Times of Central Asia previously reported, Kazakhstan is looking to attract more foreign direct investment following a notable decline in 2023. Amid growing concerns about resource nationalism, the government is eager to position itself as a stable and attractive destination for international capital.

Bilateral Relations Foreign Investment Bilateral Cooperation State Visit Sadyr Japarov

Kyrgyzstan Raises First Sovereign Bond to Mitigate China’s Growing Influence

On February 4, Kyrgyz president Sadyr Japarov embarked on a four-day state visit to China, visiting Beijing and the northern city of Harbin for the opening ceremony of the 2025 Asian Winter Games. The visit comes against a backdrop of increasing engagement between Bishkek and Beijing. Temur Umarov, a fellow at the Carnegie Russia Eurasia Center, says that certain groups within the government are worried about an overreliance on China. “This is the problem of the current political leadership,” Umarov says. “They want to do more with China … they want to have more investment from China, but they have this debt that they inherited from the previous administrations.” Indeed, 36.7% of Kyrgyzstan’s foreign debt is now owed to the Export-Import Bank of China (Exim Bank), Beijing’s state-run lender which traditionally deals with foreign investments. China is also responsible for 46% of Kyrgyzstan’s foreign trade. With Russia hemorrhaging influence in the region amid its ongoing war in Ukraine, accessing new sources of investment has risen up the agenda in Bishkek. The Name’s Bond A key plank of these diversification attempts was put forward on January 13, when the Minister of Economy and Commerce, Bakyt Sydykov, announced plans to raise $1.7 billion through the sale of ten-year sovereign bonds in Hong Kong. “The country intends to tap into the international market for the first time,” Sydykov said. “We want to use Hong Kong’s role as a financial center to attract more potential investors, probably more diversified investors.” For Iskender Sharsheyev, an economist, this turn to the global markets cannot come soon enough. “This should have happened thirty years ago,” he says. Sharsheyev notes that the groundwork has been laid over the last few years, with ratings agency Moody’s reaffirming its B3 credit rating last year and projecting a “stable” outlook for the country. The yield of these bonds has yet to be announced, although Sharsheyev expects it to be reasonably high. “We expect that [the yield] will be worse for our country than for other countries, because, firstly, we are just entering. Secondly, the new flow of cash into the country could create risks; it can also spur inflation.” However, the high yield and the risk is seen as worth the cost. “The bond offering is an example of how Kyrgyzstan is trying to balance out its debt portfolio and have diversified ties with different creditors,” says Umarov. He notes that this mirrors a trend seen across Central Asia, where bonds have not traditionally been used as a means of fundraising but have become increasingly popular over recent years. In October 2024, Kazakhstan issued its first dollar-denominated Eurobond since 2015, the 10-year bond raising $1.5 billion with a yield of 4.714%. Sharsheyev believes that some of the proceeds of the bond sale will be used specifically to head off debts to Beijing. “China is the main [source of] pressure. To maintain sovereignty, we have begun to service the external debt. Our country has spent an average of $400-500 million on paying...