Foreign Investment - The Times Of Central Asia

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ICTWEEK Uzbekistan

ICTWEEK Opens in Tashkent With Focus on AI and Foreign Investment

Thousands of technology executives, investors, startup founders, and government representatives have gathered in Tashkent for ICTWEEK Uzbekistan 2026, as Uzbekistan seeks to expand its technology sector and attract more foreign companies. The four-day event opened on September 22 at the Central Asian Expo Uzbekistan (CAEx) exhibition center and runs through September 25 under the theme “Land of Startups.” Organizers expect around 25,000 visitors. More than 2,000 participants from abroad, representing 70 countries, have already arrived in Uzbekistan to attend the event, according to Rustamjon Ozodjonov, head of global marketing at IT Park, Uzbekistan’s national technology hub, which supports startups and operates a residency program for IT companies. [video width="3840" height="2160" mp4="https://timesca.com/wp-content/uploads/2026/09/document_5303121082444720559.mp4"][/video] “As part of ICTWEEK, we expect B2B meetings, international forums, agreements, and strategic panel sessions,” Ozodjonov told The Times of Central Asia. Ozodjonov said young companies are presenting their projects to potential investors and partners at a dedicated Startup Alley. Artificial intelligence was one of the themes of the opening ceremony. The Bravo Orchestra first performed under the direction of an AI conductor named Timur, before conductor Alibek Kabdurakhmanov took over. Uzbekistan’s Minister of Digital Technologies Sherzod Shermatov used the experiment to question the role humans will play in the economy as AI develops. “Everyone is thinking about what will happen with AI. What will we humans do? I hope this conversation will be real and that people will still remain in demand,” Shermatov told the audience. He linked the issue to Uzbekistan’s young and growing population. The minister said he could not imagine a future in which “everything will be AI” and people are no longer needed. “The most important asset we have is human capital,” he added. Shermatov pointed to the expansion of higher education and digital skills programs, including One Million Coders and training in Python and artificial intelligence. He said Uzbekistan is also sending more young people to study at leading universities abroad. Another goal of ICTWEEK is to connect young professionals and startups directly with international companies and investors. Shermatov encouraged participants to learn foreign languages, particularly English, and use the event to find international partners. Uzbekistan is also seeking to attract more foreign technology companies. “More than a thousand foreign-owned companies are already residents of IT Park,” the minister said. IT Park is also expanding its network of overseas offices and representatives, including in the United States, Germany, South Korea, Saudi Arabia, and China. ICTWEEK also featured Enterprise Uzbekistan, a special legal jurisdiction for international technology companies. “Enterprise Uzbekistan is a territory based on the common law of England and Wales and provides a special jurisdiction for global technology companies,” Sultonmurod Rasulov, head of strategic partnerships at Enterprise Uzbekistan, told The Times of Central Asia. “Our goal is to create one of the best jurisdictions in the world, modeled on international financial centers but designed specifically for global technology.” According to Rasulov, Enterprise Uzbekistan aims to create a predictable legal environment for international technology companies and allow them to conduct business from Uzbekistan...

C5+South Korea

South Korea Steps Up Central Asia Critical Minerals Push

The first South Korea–Central Asia summit, held in Seoul on September 16, capped three days of bilateral meetings that produced more than 70 agreements and memorandums. The leaders agreed to meet every two years, a separate C5+1 forum for industry ministers was established, and critical minerals took a central place on the new agenda. The main question now is how many of those documents will translate into mines, processing plants, and long-term contracts. South Korea needs reliable supplies of metals for its automotive, electronics, battery, and energy industries. Central Asia wants to use that demand to develop domestic processing and reduce its reliance on raw material exports. Seoul proposed combining the region’s resources with its own exploration, mineral processing, and manufacturing technologies. President Lee Jae Myung spoke of cooperation across the production chain, from identifying deposits to manufacturing finished products. Rare metals centers being established at key locations in Central Asia are intended to support joint research and specialist training. Until now, South Korea has worked with the region’s countries largely through bilateral ties. The new C5+1 format adds a regional mechanism to those relationships. Kazakhstan will host the next summit in 2028. Kazakh financier and analyst Rasul Rysmambetov believes the value of the new format will depend on the region’s ability to secure tangible industrial results. He sees South Korea as an attractive partner because of its experience with rapid industrialization and its strengths in building industrial facilities. “The priority for Central Asia is to stop selling raw materials. We need to establish processing in the region. The heads of state’s visit to Seoul was highly productive. In fact, all summits in similar formats have been productive. The main question now is how to move away from exporting raw materials and toward joint industrialization,” Rysmambetov told The Times of Central Asia. Uzbekistan put forward a broader regional proposal. President Shavkat Mirziyoyev called for an investment alliance for critical minerals, with processing clusters bringing together exploration, mining, and the production of high-value goods. Uzbekistan and South Korea are already developing a joint rare metals center and have agreed to strengthen cooperation throughout the production chain. Kazakhstan offered Korean businesses a broader package covering rare metals, nuclear and clean energy, and artificial intelligence. Urban development was also part of the talks, including the Alatau Smart City project near Almaty. The countries upgraded their ties to a comprehensive strategic partnership and signed a memorandum on the peaceful use of nuclear energy. The energy agreements also cover conventional resources. In April, South Korea said it had secured 18 million barrels of Kazakh crude oil. In Kyrgyzstan, Korean organizations are working with their Kyrgyz counterparts to identify possible antimony and tungsten projects and strengthen exploration capacity. Tajikistan is also offering cooperation on antimony, as well as precious metals, building on the first Korea–Tajikistan Minerals Forum, which took place in August. The minerals agenda is complemented by Korean willingness to invest in transport and infrastructure. South Korea and Uzbekistan agreed to expand Korean participation in...

Central Asia-South Korea summit 2026

Central Asia’s First Korea Summit Produces Different Deals for Each Country

The first Central Asia-Republic of Korea Summit brought five countries to Seoul with very different records of working with Korean capital. Kazakhstan arrived with commercial agreements worth about $19 billion, while Uzbekistan is discussing multibillion-dollar financing through the state-owned Export-Import Bank of Korea. In Turkmenistan, Korean companies are expanding beyond their traditional role in the gas-chemical industry; Tajikistan is offering mineral resources; and Kyrgyzstan is establishing a dedicated government contact point to help attract Korean businesses. On September 16, the presidents of all five Central Asian states met South Korean President Lee Jae Myung together for the first time. Until now, the Korea-Central Asia Cooperation Forum, established in 2007, had operated mainly at a ministerial level. A permanent secretariat was established in 2017, and in 2020 the meetings were elevated to the level of foreign ministers. The leaders adopted the Seoul Declaration, agreeing to hold summits every two years, with Kazakhstan set to host the next in 2028. Ministerial meetings in the intervening years will review implementation and prepare the next summit’s agenda. The declaration also envisages Korea Desks across the five Central Asian countries to help businesses address administrative obstacles. The leaders expressed interest in combining Central Asian minerals with Korean technology to build joint production networks, and agreed to pursue measures to reduce non-tariff barriers. Seoul also sees Central Asia as part of its own industrial strategy. South Korea, one of the world’s leading producers of automobiles, electronics, batteries, and ships, needs stable supplies of energy and raw materials. Opening the summit, Lee spoke of combining the region’s resources with Korean exploration and processing technologies. Critical minerals, energy, and supply-chain resilience were among the main issues at the meeting. In 2025, South Korea’s trade with the five countries reached $10 billion for the first time: Korean exports totaled $8.67 billion, while imports from Central Asia amounted to $1.39 billion. Cumulative Korean investment in the region reached $6.48 billion. Kazakhstan and Uzbekistan continue to account for most of this trade and investment. The talks in Seoul showed how different the next step could look in each of the five countries. [caption id="attachment_56323" align="aligncenter" width="1774"] Image: Akorda[/caption] Kazakhstan: $19 Billion in Agreements and Large-Scale Industry Kazakhstan arrived at the summit with the largest announced commercial package. On September 15, a day before the regional summit, Kazakhstan and South Korea signed around 80 agreements worth approximately $19 billion through the Kazakhstan-Korea Business Council in Seoul. About $11 billion is associated with projects involving Samruk-Kazyna, Kazakhstan’s sovereign wealth fund, which controls major state assets in oil and gas, energy, transport, telecommunications, and uranium mining. The $19 billion figure represents the value of signed agreements and announced projects at different stages of development. Behind the headline figure are several major industrial projects. QazaqGaz and Hyundai Engineering agreed to implement a gas processing plant at Karachaganak with an annual capacity of 5 billion cubic meters. KazMunayGas and Samsung E&A signed an agreement on expanding the Pavlodar refinery’s capacity to 9 million metric tons a...

TCA Interviews

Kyrgyzstan’s High-Wire Act: Sanctions, Compliance, and National Interest

On September 2, the day after the Shanghai Cooperation Organization’s Heads of State Summit in Bishkek, The Times of Central Asia spoke with Bakyt Sydykov, Kyrgyzstan’s Minister of Economy and Commerce and Special Presidential Representative for Sanctions Policy. He outlined the government’s approach to sanctions compliance and protecting Kyrgyz businesses. Sanctions exposure can affect Kyrgyz banks and businesses, as well as their international partners. U.S. secondary sanctions and EU and UK measures affecting foreign entities operate through different legal mechanisms. Some portions of the text have been edited for clarity. TCA: The sanctions against Russia adopted by the U.S., EU, and UK are not UN Security Council-mandated. Is it correct that Kyrgyzstan’s compliance policy addresses these measures rather than UN-mandated sanctions? Sydykov: That's correct. Secondary sanctions can affect non-U.S., non-EU, and non-UK entities or persons who knowingly facilitate transactions involving sanctioned parties. Our focus is on establishing better and better mechanisms and frameworks that address this bilateral dimension, that is, Kyrgyzstan's direct exposure through its relations with the sanctioning jurisdictions, in order to mitigate our exposure to potential secondary sanctions. TCA: Kyrgyz citizens and businesses can face sanctions exposure through dealings with sanctioned parties, including the risk of U.S. secondary sanctions. What are Kyrgyzstan’s main challenges in improving its compliance regime, and how are you addressing them? Sydykov: For technical reasons, our compliance regime is moving toward putting in place mechanisms that can flag or be anticipatory. I think you would agree that free markets are complicated and circumvention often comes to light only after it has occurred. We are largely equipped to manage these occurrences. We are moving to put in place firewall-like frameworks which would allow the country to identify and respond to occurrences before the fact. It is a great challenge — and one that every country operating in a free-market economy faces — to develop such a capacity, namely, to anticipate and prevent circumvention before it happens. Despite our best efforts, this remains a structural limitation. TCA: What concrete actions have you taken, or are you planning to take? Sydykov: We have established working groups, task forces, and interagency committees capable of swiftly halting the operations of any company engaged in sanctions circumvention. We are also working closely with commercial banks on these efforts. The banks, for their part, have introduced internal compliance committees and, in some cases, adjusted the composition of their boards of directors to strengthen governance and decision-making around potential circumvention risks. The banks are also developing a joint interbank blacklist of sanctioned entities, so that these entities are unable to operate through the banking system going forward. Those are steps to develop a working forward-looking, predictive approach — one that flags suspicious activity before it materializes – central to the comprehensive framework we are building. TCA: Some foreign investors may be reluctant to invest in Kyrgyzstan because of sanctions exposure. How could the measures you are taking address those concerns? Sydykov: Let me first say that we understand the rationale behind...

Bonds Investments

Kazakhstan to Receive Maximum Weight in New JPMorgan Bond Index

Kazakhstan will receive the maximum 8% country weight in JPMorgan’s new index for frontier market government bonds, creating an opportunity to attract new foreign buyers of tenge-denominated debt. JPMorgan plans to launch the GBI-EM Edge by the end of September. The maximum weight for any single country is capped at 8%, and Kazakhstan will receive the full quota. Vietnam, Pakistan, and Bangladesh will have the same weight. Other major components will include Egypt, Morocco, Nigeria, and Sri Lanka. The index will cover 26 countries, with nearly $330 billion in bonds eligible for inclusion. GBI-EM Edge is designed for frontier markets, relatively less accessible markets outside JPMorgan’s main emerging market benchmark. Inclusion is a separate development from Kazakhstan’s efforts to join that main index. The index will serve as a benchmark for international asset managers. Some funds seek to replicate its composition, while others use it to compare the performance of their own portfolios. A country’s weight can therefore influence how much money investors allocate to its bonds. However, the nearly $330 billion represents the value of bonds eligible for the GBI-EM Edge, not the amount of future investment. JPMorgan has not yet said how much capital will directly track the new index. That will largely determine how significant the additional demand for Kazakh debt may be. Foreign Investors Have Already Increased Their Holdings Foreign investors began actively buying Kazakhstan’s government debt even before JPMorgan’s decision. According to the Analytical Center of the Association of Financiers of Kazakhstan (AFK), non-resident holdings of government securities reached KZT 2.5 trillion, or about $5.4 billion, by the end of June. During the first half of the year, their portfolio grew by 28.3%, while the share of non-residents in the government securities market increased from 6.2% to 6.9%. In June alone, foreign investors added KZT 185.1 billion, or about $400 million. Just a year and a half earlier, non-resident holdings stood at around KZT 1.1 trillion, or about $2.4 billion. Kazakhstan has maintained a high base rate to combat inflation. This has also kept yields on government bonds high. According to AFK, real yields on government securities – meaning returns above inflation – ranged from 5.7% to 7.4% in the first half of the year. The association’s analysts also linked strong demand to expectations of a gradual reduction in the base rate. For a foreign fund, the trade can look attractive: raise money in a market with lower interest rates, buy tenge, and invest in Kazakh government bonds. If the tenge remains stable or strengthens, the investor benefits both from the high interest rate and from the currency movement. If the tenge falls, some of that return disappears when the investment is converted back into dollars. The tenge’s appreciation has already helped foreign bondholders. It strengthened by 2.6% during August, ending the month at KZT 461.57 per dollar, according to the National Bank. AFK points to another effect of foreign purchases. To buy the bonds, non-residents sell foreign currency and purchase tenge, increasing the supply...

Fiscal Policy

Kazakhstan Bond Market Proposed Tax Changes Aim to Attract $3 Billion in Foreign Investment

Kazakhstan is preparing tax changes to make it easier for foreign investors to trade bonds issued by quasi-state entities through international depository systems. The authorities estimate potential foreign investment in the market at around $3 billion. The problem currently arises after the securities have been purchased. If a foreign investor sells the bonds on a Kazakh stock exchange, capital gains are exempt from tax. But if the same securities are sold outside a local exchange, that exemption does not apply. For international investors, this is an important distinction. Kazakhstan wants to make quasi-state sector bonds accessible through Euroclear and Clearstream, international central securities depositories and settlement systems through which major banks and funds hold and trade securities from different countries. Transactions within these systems can take place without going through a Kazakh stock exchange. National Bank Deputy Governor Aliya Moldabekova said capital gains from non-residents’ sales of quasi-public sector bonds on the Kazakhstan Stock Exchange were exempt from tax. However, the legislation did not provide the same treatment when those securities were subsequently sold outside Kazakhstani stock exchanges. The authorities propose eliminating this discrepancy by extending the tax exemption to relevant off-exchange transactions. The approach was backed on September 7 by the government’s Project Office for the implementation of the Tax Code. The Ministry of National Economy and the Ministry of Finance will now work on the necessary legislative amendments. This is a sizable market. There are currently around 17.6 trillion tenge, or roughly $39 billion, in outstanding tenge-denominated bonds issued by Kazakhstan’s quasi-public sector entities. The government estimates potential demand from non-residents at around 1.4 trillion tenge, or about $3 billion. The calculation is based on the average 8.1% share held by non-residents in Kazakhstan’s government securities market during the first eight months of 2026. It is a benchmark rather than a forecast of actual capital inflows. Expanding access to quasi-state company bonds is part of a broader overhaul of Kazakhstan’s domestic debt 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 Euroclear is planned for 2027, while an international link with Clearstream is already operating. A primary dealer system for government securities also began operating on May 4. Five banks were appointed to support demand and provide two-way quotes for selected securities on the secondary market. The National Bank expects the system to broaden the investor base and help create conditions for Kazakhstan’s government bonds eventually to be included in global debt benchmarks, including the JPMorgan GBI-EM Index. Major Kazakh borrowers, meanwhile, are already looking beyond the domestic market for financing. In August, KazMunayGas raised 3.5 billion yuan, around $490 million, through a yuan-denominated bond offering. The final issue was nearly three times the size of the company’s first yuan bond offering a year earlier.