Foreign Investment - The Times Of Central Asia

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Japan

Tokyo Steps Up: Iwaya’s Central Asia Tour Signals Japan’s Long-Term Commitment

Japanese Foreign Minister Takeshi Iwaya made a landmark trip to Central Asia from August 24–28, 2025, holding talks in Kazakhstan and Uzbekistan. Tokyo framed the visit as a bid to deepen bilateral ties and revive the Central Asia plus Japan leaders’ summits. The visit fulfilled commitments made by then-Prime Minister Kishida, who had planned a similar tour in 2024 before cancelling at the last minute due to a domestic earthquake alert. Strategic Engagement Iwaya’s visit reflects Tokyo’s long-standing, multifaceted approach to Central Asia. Analysts emphasized to The Times of Central Asia that Japan is pursuing “trust-building diplomacy” in the region, focusing on human capital, infrastructure, and governance rather than quick geopolitical wins. Tokyo inaugurated the Central Asia plus Japan Dialogue format in 2004, making it the first outside power to group all five Central Asian republics within a single framework. As Professor Timur Dadabaev of Tsukuba University told The Times of Central Asia, Tokyo is seen “not as a competing hegemon, but as a partner that invests in the region’s human capital, infrastructure, and governance in ways that reinforce independence.” This approach contrasts with what has been characterized as the transactional models of other powers. On August 25, Iwaya met with Kazakhstan’s Deputy Prime Minister and Foreign Minister Murat Nurtleu in Astana, marking his first official visit to the country. The talks underscored both sides’ commitment to strengthening ties as strategic partners and in upholding a “free and open international order based on the rule of law.” The ministers welcomed active exchanges and pledged to expand cooperation in trade, investment, mineral resources, disaster prevention, and nuclear non-proliferation. They also announced plans to accelerate preparations for the long-delayed Central Asia plus Japan summit. [caption id="attachment_35524" align="aligncenter" width="1000"] Japanese Foreign Minister Iwaya with Kazakh Foreign Minister Nurtleu in Astana after their meeting on August 25, 2025; image Japan MOFA[/caption] In Tashkent, Iwaya echoed this message, calling Uzbekistan “an important strategic partner,” and highlighting the first-ever foreign ministers’ strategic dialogue held there. Japanese officials also stressed their policy does not aim to pressure Central Asian partners on sensitive issues. Characterizing Japan as a “catalyst to promote interconnectivity and inter-regional cooperation,” Foreign Ministry spokesman Toshihiro Kitamura stated that Tokyo does not see a zero-sum “competition between Japan and other countries. We would like to see Central Asian countries work together with other parts of the world.” In Tashkent, Kitamura explicitly noted that while Japan condemns Russia’s invasion of Ukraine, it will not pressure Uzbekistan or others to take the same stance. “The relationship between Russia and the Central Asian countries is a very delicate issue. Each country should take into account the relations it establishes with other countries. Even if it is with Russia, such relations do not affect the relations of other countries with Japan,” Kitamura stated. Bilateral Agreements In Kazakhstan, Iwaya held high-level talks with President Kassym-Jomart Tokayev and Foreign Minister Nurtleu. Tokayev welcomed Japan as a “reliable and close partner in Asia” and said ties are “developing dynamically.” The sides agreed to...

Civil Aviation

Kazakhstan Boosts Air Transport Sector with New Fleet and Airport Revamps

Kazakhstan is set to double its civil aircraft fleet over the next five years, increasing the number of aircraft from 103 to 216 by 2030. According to the Ministry of Transport, in 2025 the country's fleet will add six new Airbus A320s and one Boeing 737 MAX 8. In January 2025, FlyArystan and Air Astana received new aircraft as part of this expansion. The government’s long-term plan aims to boost the number of aircraft operated by Kazakh airlines to 216 by the end of the decade. “This year, 36 new international routes have been launched, and eight foreign airlines have entered the market. There are currently 61 domestic routes with 850 flights per week,” said Deputy Minister of Transport Maksat Kaliakparov. As part of domestic connectivity efforts, 21 subsidized routes are now operating across nine regions, with approximately $12 million allocated for these services in 2025. The government’s priority is to improve air access to tourist destinations such as Usharal, Urdar, Kokshetau, and Turkestan. Airport Infrastructure Development Major investments are also being channeled into the country’s largest airports in Astana, Almaty, Shymkent, and Aktobe, all of which are being developed into multimodal transport hubs. In Astana, a $1.1 billion modernization project for Nursultan Nazarbayev International Airport began in 2025. Plans include the construction of a second runway, a third passenger and cargo terminal, and a multifunctional complex known as the Aerotropolis. The new facility will feature an industrial and logistics zone, business centers, hotels, and retail space. In Almaty, the airport is undergoing modernization in line with a General Development Plan extending to 2050. The initial phase includes reconstructing the domestic terminal, building a taxiway, upgrading the runway and fueling infrastructure, and establishing a cargo apron and maintenance hangar. Future phases envision a hotel and a multi-level parking facility. During the construction phase, more than 1,800 jobs are expected to be created, with an additional 550 jobs during operations. Shymkent opened a new 40,000 square-meter terminal in December 2024, boosting its annual passenger capacity from 800,000 to 6 million. Plans are underway to construct a new 3,500-meter runway and develop a multimodal hub connecting the airport with the Ontustik Special Economic Zone. In Aktobe, a multifunctional logistics center is being implemented at the airport. As part of this effort, the fuel filling complex is being upgraded, and storage capacity will more than double, facilitating an increase in flight operations. Authorities are also considering the construction of a second runway, which would allow the existing runway to undergo major repairs without disrupting service. “In addition, the government has decided to expand the boundaries of special economic zones at the country's largest airports. This will attract investors, develop industry and logistics, and turn Kazakhstan's air hubs into growth points for the national economy,” the government said in a statement. Foreign Investment and Regional Expansion As previously reported by The Times of Central Asia, the German company Skyhansa intends to construct a new cargo and passenger airport in Kazakhstan’s Zhetysu region. The project...

Japan

Bridges, Not Blocs: Japan’s Central Asia Approach

Japan is one of the countries that has been most active in recent years in terms of deepening political and economic relations with the republics of Central Asia. However, the geopolitical and ideological grounds for Tokyo's activism have received less attention than those of other countries. In early August 2024, then Prime Minister Fumio Kishida was scheduled to visit the region, but the visit was cancelled at the last minute due to the risk of a major earthquake that could have struck Japan at that time. During his visit, Kishida was also expected to announce the launch of an economic aid package for the Central Asian republics. As confirmed by the Ministry of Foreign Affairs in Tokyo, Japanese Foreign Minister Takeshi Iwaya is visiting the region over the coming days, landing in Kazakhstan on August 24, before moving on to Uzbekistan until August 28. In the two countries, he will meet with his Kazakh and Uzbek counterparts, Murat Nurtleu and Bakhtiyor Saidov, respectively, with the aim in both cases of strengthening bilateral relations. Japan's interest in Central Asia is long-standing: the Central Asia Plus Japan Dialogue format was launched back in 2004, a platform that has been emulated by several countries in the following years. From a political point of view, this is a very smooth relationship, as confirmed to The Times of Central Asia by Timur Dadabaev, Professor of International Relations at the University of Tsukuba. “Japan’s engagement with Central Asia is driven less by immediate material gain and more by its pursuit of trust-building diplomacy,” Dadabaev told TCA. “It is a relationship rooted in Japan’s desire to be seen as a reliable, non-imperial partner that supports the sovereignty, stability, and regional agency of Central Asian states. Unlike other powers, Japan positions itself as a ‘distant neighbor without hidden agendas,’ which makes its initiatives particularly well-received. Over the years, this has translated into Japan being perceived not as a competing hegemon, but as a partner that invests in the region’s human capital, infrastructure, and governance in ways that reinforce independence rather than dependence.” The relationship between Japan and the Central Asian republics is based on many concrete elements - cooperation on energy, migrant workers, and connectivity - which, as Tomohiko Uyama, Professor of Modern History and Politics of Central Asia at Slavic-Eurasian Research Center at the Hokkaido University pointed out to TCA, represent the basis for broader diplomatic engagement. “The relationship between Japan and Central Asia is based on geopolitical factors. For Japan, Central Asia is a region that shares troublesome neighbors, Russia and China,” Uyama said. “Increasing Japan's presence in this region is important for curbing the excessive expansion of China and Russia’s global influence. However, strengthening diplomatic relations requires fostering economic and human relations. Therefore, in addition to its traditional technical cooperation, Japan is seeking to promote decarbonization, transportation connectivity, and human resource development.” Professor Dadabaev also stresses that the two dimensions - the one linked more to concrete elements and the one that has more to...

Foreign Investment

Kyrgyzstan Sees Continued Growth in Foreign Direct Investment

Kyrgyzstan continues to show steady growth in attracting foreign direct investment (FDI), with figures exceeding pre-pandemic levels. According to the National Statistical Committee, FDI reached over $1 billion in 2024, and the positive momentum has continued into 2025. In the first quarter of 2025, Kyrgyzstan attracted $288.3 million in direct investment, up 44% compared to the same period in 2024. The National Statistical Committee categorizes investments as coming from either Commonwealth of Independent States (CIS) countries or non-CIS countries, with volumes from both sources remaining roughly comparable. Among non-CIS nations, China maintained its position as Kyrgyzstan’s largest investor, contributing $66.3 million during the first quarter. Among CIS countries, Russia led with $56 million, while Kazakhstan remained a key regional partner with nearly $50 million invested from January to March 2025. Other CIS countries contributed considerably smaller amounts. Turkey also continues to play a significant role, investing $62 million in Kyrgyzstan’s production sector. Other notable contributors include the Netherlands, with $23.8 million. Uzbekistan demonstrated marked growth, following the signing of a bilateral agreement on the demarcation of certain border areas and water resources. Uzbek investments reached more than $5 million in the first quarter of 2025, up sharply from $237,000 in all of 2024. India likewise recorded a surge in investment, increasing from $91,000 in 2024 to $1.9 million in the first three months of 2025, an almost 2,000% rise. Bishkek remains the country’s most attractive destination for foreign investment, drawing more than $525 million in 2024. The Chui region ranks second, driven by the expansion of factories and processing enterprises with foreign participation. The manufacturing sector continues to be the primary target for foreign investment, followed by financial intermediation and insurance. Additional capital is flowing into mineral extraction, trade, and equipment repair.

Critical Minerals

Kyrgyzstan Seeks Foreign Investment in Critical Minerals Sector

Kyrgyzstan is emerging as a potential player in the global critical minerals market and is actively seeking international partnerships to develop its untapped geological resources. Speaking at the International Forum on Critical Minerals 2025 in Seoul on May 12-13, Deputy Minister of Natural Resources, Ecology, and Technical Supervision Marat Jusupbekov emphasized the country’s growing relevance in the strategic resource sector. He noted that Kyrgyzstan is home to 11 deposits of rare earth elements (REEs), positioning it as a promising destination for investment and cooperation. “Kyrgyzstan has significant reserves of rare and critical minerals that are essential for the energy transition and high-tech manufacturing. We are open to cooperation with global partners,” Jusupbekov said during his address. One of the most notable assets is the Kutessay II deposit, which holds more than 63,300 tons of rare earth metals, along with molybdenum, silver, bismuth, lead, and zinc. The government is promoting joint development of this site with the nearby Kalesai beryllium deposit, which contains an estimated 11,700 tons of beryllium. Both deposits are licensed to Kyrgyzgeology, a state-owned enterprise tasked with attracting foreign investment. Jusupbekov also highlighted the potential of the Kyzyl-Ompol uranium-thorium group, including the Tash-Bulak area, where titanium-magnetite reserves are estimated at 5.5 million tons. This project is licensed to Kyrgyzaltyn, the country’s largest mining company. The deputy minister underlined the strategic role of critical minerals in the global transition to clean energy and advanced manufacturing. Materials such as lithium, cobalt, manganese, gallium, indium, graphite, and zinc are essential for the production of solar panels, electric vehicle batteries, and other next-generation technologies. “Kyrgyzstan is committed to modernizing its mining sector by adopting green technologies and responsible extraction practices,” he said. “We invite international partners to co-develop critical mineral projects and advance sustainable industrial growth.” In December 2024, Kyrgyzstan signed Memorandums of Understanding with South Korea’s Ministry of Trade, Industry and Energy and the Korea Institute of Geoscience and Mineral Resources (KIGAM). These agreements laid the foundation for deeper cooperation and potential South Korean investment in Kyrgyzstan’s mining sector. The International Forum on Critical Minerals 2025, co-hosted by KIGAM, South Korea’s Ministry of Trade, Industry and Energy, and its Ministry of Foreign Affairs, brought together representatives from 12 countries, including Kazakhstan, Uzbekistan, Tanzania, the Democratic Republic of the Congo, Nigeria, Mongolia, Vietnam, Indonesia, Australia, Canada, and new participants Kyrgyzstan and Tajikistan.

Critical Minerals

Kazakhstan Eyes Entry into Global Gallium Market

The Eurasian Resources Group (ERG) is set to invest in gallium production and intensify exploration for copper and other critical minerals, aiming to position Kazakhstan as a key player amid rising global demand for strategic resources. Kazakhstan to Become World’s Second-Largest Gallium Producer ERG has announced a $20 million investment to launch gallium production in Kazakhstan, beginning in 2026. The metal, which will be extracted from bauxite ore, primarily used in alumina production, is targeted for supply to OECD countries. “ERG plans to become a significant player in the global gallium market, starting production in 2026 with the prospect of expanding volumes to 15 metric tons per year,” said the group's CEO, Shukhrat Ibragimov. Gallium is a critical mineral in high-tech industries, including semiconductors, radar systems, and aerospace navigation. It is listed as a strategic material by both the United States and the European Union. According to the U.S. Geological Survey, global gallium production reached 760 tons in 2023, with China dominating the supply. Following Beijing’s imposition of export restrictions on gallium, germanium, and antimony in December 2023, Western nations have been seeking alternative sources. Kazakhstan may now fill part of that void. Expanding Copper Prospects In tandem with its gallium ambitions, ERG is ramping up copper exploration efforts. At the AMM-2025 mining and metallurgical forum in Astana, ERG Exploration, a subsidiary of ERG, announced a significant copper discovery in the Karaganda region. “We have completed drilling 51 wells, copper ore has been discovered in 42 of them, with copper content in some samples reaching 6.7%,” said Zaura Kunanbayeva, ERG Exploration’s senior geologist. The Karabas site is estimated to contain over 250,000 tons of copper, with the potential to yield up to 1 million tons of ore. Additional finds include molybdenum, lead, zinc, and silver. A final assessment is expected in the second half of 2025. Tin Reserves Reassessed ERG has also reported revised figures for the Syrymbek deposit in North Kazakhstan, believed to be the world’s largest undeveloped tin reserve. Following a revaluation, tin reserves increased to 286,000 tons, while copper reserves were updated to 55,000 tons. “The price of tin has doubled in five years and recently reached $33,000 per ton. The project’s proximity to China, the world’s largest tin consumer, makes it strategically valuable,” said Aida Alzhanova, Deputy Head of Strategy at Solidcore Eurasia. Government Support and Foreign Investment At the same forum, Deputy Minister of Industry and Construction, Iran Sharkan, highlighted that more than $820 million has been invested in geological exploration since 2018. The government aims to expand the country’s exploration area from 1.9 to 2.2 million square kilometers by 2026. “As a result, we have seen a 33% increase in domestic copper processing and a twofold increase in gold ore production over the past 10 years. Kazakhstan has entered the top 20 countries globally in terms of gold reserves,” Sharkan noted. Kazakhstan’s mining sector is also attracting international attention. In May, Australian company C29 Metals Limited signed a joint exploration agreement with Astana-based Bask...