Infrastructure - The Times Of Central Asia

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Astana Finance Days 2026

Astana Finance Days: From BlackRock to Mining and Data Centers

In a trading hall in Astana, BlackRock was explaining why investors have become more cautious. A few floors away, geologists were pitching 23 mining projects, while financiers debated how many megawatts the next wave of artificial intelligence will require. That was how the first day of Astana Finance Days unfolded, as Kazakhstan brought together financial groups managing more than $26 trillion in assets – and sought to show them where that money could be put to work in Central Asia. The ninth Astana Finance Days is taking place on September 9–10 at the Astana International Financial Centre (AIFC), Kazakhstan’s special financial jurisdiction with its own regulator and a court system based on English common law principles. According to the organizers, around 8,000 participants from 90 countries registered for the forum. Institutions represented include BlackRock, Goldman Sachs, Capital Group, Brookfield, Rothschild & Co., Hong Kong Investment Corporation, and IFC Asset Management Company. The stated $26 trillion refers to the combined assets under management of participating firms worldwide – not investment pledged to Kazakhstan. More concrete signals emerged on the sidelines. Meshal Jaber AlFaras, Janus Henderson Investors’ head of the Middle East, Africa, and Central Asia, said the investment group is considering direct investments in Kazakhstan and plans to expand its presence in the country. Janus Henderson manages around $500 billion in assets. AlFaras did not disclose potential projects or investment amounts. A New Price for Risk One of the first day’s most prominent discussions took place at the Astana International Exchange (AIX), the AIFC’s stock exchange. Ben Powell, Chief Investment Strategist for the Asia-Pacific region at the BlackRock Investment Institute, spoke about how geopolitics is reshaping capital flows. “Today, we are in a structurally new regime – moving into a more complicated world where geopolitical fragmentation is intensifying, alliances are breaking down, and international relationships are changing. Of course, this affects investors. They need to completely rethink their approaches to investing,” Powell said. Higher inflation and interest rates, he continued, are changing attitudes toward risk. For smaller emerging markets, that means greater scrutiny of currency stability, regulation, and liquidity. A few halls away, that global discussion was already turning into pitches for specific mineral projects. From the Geological Map to the Investor Fifteen companies brought 23 mining projects to Astana Finance Days. Most are still at the exploration stage. In the industry, such companies are known as juniors. They search for mineral deposits and try to demonstrate that the resources they discover can eventually be mined profitably. For an ordinary bank, the risk is high: a promising area on a geological map does not yet guarantee a working mine. At the forum, companies briefly pitched their projects before moving into individual negotiations. More than ten Kazakh and international investors and strategic partners attended the pitch session. The Junior Mining Platform, launched this spring, is intended to turn this search for capital into a permanent mechanism. Private investors take on early geological risk; as reserves are confirmed and technical uncertainty declines, larger...

GDP Forecast

Kazakhstan Forecasts GDP Growth Above 5% in 2027–2029

Kazakhstan’s government has approved a socioeconomic development forecast and draft republican budget for 2027–2029, projecting average annual real GDP growth above 5% as manufacturing, agriculture, construction, transport, and other non-oil sectors expand. The forecast was prepared with reference to the global economic outlook and conditions in external markets. The accompanying draft budget, approved at the same government meeting chaired by Prime Minister Olzhas Bektenov, will be submitted to the Kurultai for consideration. Under the government’s baseline scenario, real GDP is projected to grow by 5.3% in 2027, 5.5% in 2028, and 5.4% in 2029. Nominal GDP is expected to rise from KZT 199.3 trillion in 2027 to KZT 245 trillion in 2029, an increase of almost 23%. Non-oil sectors are expected to provide the main impetus for expansion. Manufacturing output is forecast to grow by an average of 5.9% a year, substantially faster than the 2% projected for mining. Metallurgy, mechanical engineering, construction materials, chemicals, and food production are expected to make the largest contributions. Oil exports and the broader mining sector will remain central to the economy and public finances, but the forecast assumes that manufacturing and other non-oil activities will account for a larger share of new output. TCA reported in July that Kazakhstan’s economy expanded by 4.1% in the first half of 2026 despite an 8.4% decline in oil production. The non-oil economy grew by more than 5%, with manufacturing, construction, trade, and transport accounting for more than 80% of overall growth. Manufacturing output increased by 9.8%. Agriculture is expected to expand by at least 5% annually. Construction is projected to remain among the fastest-growing sectors, increasing by 16% in 2027 and 17.3% in 2029. Deputy Prime Minister and Minister of National Economy Serik Zhumangarin said the expansion would be supported by transport and logistics, energy, and water projects, together with the modernization of housing, utilities, and social infrastructure. The services sector is also expected to maintain strong momentum. Trade is forecast to expand by an average of 5.7% annually, information and communications by 9.2%, and transport and warehousing by 10.4%. The transport forecast builds on rapid expansion along the Trans-Caspian International Transport Route, or Middle Corridor. Annual freight volumes through Kazakhstan have risen from 0.8 million to 4.5 million tons over seven years, while delivery times fell from approximately 28–32 days to 13–17 days. The route still carries substantially less cargo than established northern corridors, and participating countries continue to work on remaining bottlenecks. Infrastructure spending is a central element of the draft budget, but Bektenov said it must be accompanied by stronger financial discipline. Under President Kassym-Jomart Tokayev’s instructions, accelerated construction of infrastructure and social facilities has been designated as a principal budget priority. Government bodies were told to meet the approved economic targets, while administrators of budget programs were directed to increase the return on every tenge spent. The headline budget deficit is forecast to fall from 2.3% of GDP in 2027 to just 0.4% in 2029. However, the non-oil deficit, which measures the...

Transport Infrastructure

Kazakhstan’s Largest City to Bring Back Trams as Almaty LRT Targets 2027 Launch

Kazakhstan’s largest city plans to bring back tram service more than a decade after it was suspended. Almaty aims to launch the first light rail transit (LRT) line by the end of 2027, dedicating part of one of the city’s busiest transport corridors to the new system. For Almaty, the project is primarily an attempt to cope with growing pressure on its roads. The city had a population of about 2.37 million as of June 1, 2026, while many more people commute daily from the surrounding metropolitan area. Rail-based public transportation is currently limited to a single metro line, whose first section opened in 2011 after more than two decades of construction. The first phase of the LRT will run for 18.3 kilometers. Preparatory work is underway, including the removal of infrastructure from the former tram system and the relocation of utility networks. City authorities have said late 2027 remains the target for launching the line, although the timing could change depending on the manufacture and delivery of the trains. Unlike Astana’s LRT, the Almaty line will run entirely at street level, with no elevated sections planned. Trains will operate on dedicated tracks, including along Bauyrzhan Momyshuly and Tole Bi streets. On these sections, two center lanes will be allocated entirely to the LRT once the line begins operating. Before the main construction work can proceed, 375 sections of utility infrastructure must be relocated, including water, sewer, heating, gas, and electricity networks. This work is already creating additional traffic problems along Tole Bi, one of Almaty’s main thoroughfares. In some places, the roadway has been narrowed and traffic temporarily redirected into opposing lanes. The trains will be capable of speeds of up to 65–70 kilometers per hour, but their average operating speed will be considerably lower, at around 30–35 kilometers per hour. The main reason is that stops will be spaced about 700 meters apart on average. The line’s main advantage is expected to come less from the trains’ speed than from physically separating the LRT from regular road traffic. For Almaty, this marks a return to a familiar form of transportation. Trams first appeared in the city in 1937 and remained part of its transport system for almost eight decades. Service was suspended in 2015 following two serious accidents, and the network was never restored. The idea of replacing the old tram system with a modern LRT has been discussed for years. The project has repeatedly changed and been delayed, with different financing models and routes considered. The current line is part of a broader overhaul of Almaty’s transport system, which also includes expansion of the metro, bus rapid transit (BRT) corridors, and dedicated bus lanes. Under the city’s long-term master plan, the LRT network is expected to reach 76 kilometers by 2040. Kazakhstan has already gained its first experience operating this type of transport in the capital. Astana’s LRT began carrying passengers in 2026 after years of construction and repeated delays. During its first two weeks of full...

Digitalization

Kazakhstan to Pilot Unified Smart Turmys Utilities Platform

Kazakhstan will begin pilot operation of the first modules of its Smart Turmys digital platform in the fourth quarter, bringing utility billing, subscriber records, and resource consumption data into a single system. The initiative forms part of a broader effort to modernize the country’s ageing housing and utilities sector by combining infrastructure renewal with digital management tools. Industry and Construction Minister Yersayin Nagaspayev announced the timetable at a government meeting. Prime Minister Olzhas Bektenov instructed the industry and energy ministries to accelerate the platform’s implementation and adopt common standards for utility meters and software by September 1. According to the ministry, Smart Turmys will maintain a unified subscriber registry, provide digital accounting of utility payments, and monitor the consumption of electricity, gas, heat, and water. Officials say the system should improve transparency and help reduce resource losses. The platform will sit alongside Kazakhstan’s Unified Payment Document system, which allows households to receive a single bill covering multiple utility services. The system is already used in 38 cities, 170 districts, and more than 4,500 rural communities. By 2029, the government aims to achieve full metering coverage across utility infrastructure in cities of republican and regional significance. Digitalization is being implemented alongside large-scale physical upgrades. Under Kazakhstan’s national modernization program, more than 800 billion tenge, approximately $1.7 billion, is planned for 45 projects to construct or reconstruct sewage-treatment facilities. Five projects were completed during the past two years. Work is underway in three cities and is scheduled for completion before the end of 2026. The government also hopes the investment program will support domestic manufacturers. Officials say Kazakh companies can supply a significant share of the pipes, cables, reinforced concrete structures, and pipeline fittings required for utility modernization, reducing reliance on imported equipment. For Kazakhstan, the digital push is primarily a response to decades of underinvestment in Soviet-era infrastructure. Much of the country’s utility network was built several decades ago. High-profile failures, including the heating-system collapse in Ekibastuz during the winter of 2022-23, highlighted the economic and social costs of delayed maintenance. Better data may help operators track consumption and resource losses, but the platform cannot substitute for repairs to ageing pipes, heating systems, and treatment facilities. The Smart Turmys project forms part of a broader modernization strategy. As The Times of Central Asia previously reported, the national project has a budget of 13 trillion tenge, equivalent to approximately $27.5 billion at the official July 28 exchange rate. The program combines repairs to power plants and engineering networks with digital technologies intended to improve the management and resilience of public utilities.

Central Asia + Japan

Patient Capital, Fast Deals: Japan and South Korea Take Different Paths into Central Asia

Japan and South Korea have reached the same strategic conclusion: Central Asia matters to their economic security. Yet they are pursuing that goal through markedly different playbooks. In December 2025, Tokyo hosted the first leaders' summit of the "Central Asia plus Japan" Dialogue, 21 years after the format was launched. All five Central Asian presidents attended. Japan set a target of three trillion yen in business projects across the region over five years - roughly $19 billion at the time - while placing critical-mineral supply chains among the summit's priority areas. The bilateral announcements were equally significant. Uzbekistan presented a proposed project portfolio worth more than $12 billion and called for a joint investment platform to advance it. Kazakhstan and Japan announced a package of public- and private-sector agreements worth $3.7 billion. These included a long-term uranium contract and an offtake agreement under which Kazakhstan's Eurasian Resources Group would supply gallium to Mitsubishi Corporation RTM Japan. The timing was no accident. By May 2026, Chinese shipments to Japan of dysprosium and terbium remained close to zero, while exports of finished rare earth magnets to Japan fell 35% from the previous month. These materials are essential to high-performance magnets. For Tokyo, diversifying critical mineral supply is no longer a distant policy objective; it is an immediate industrial requirement. South Korea has been moving toward the same destination by a different route. During then-President Yoon Suk Yeol's state visit to Kazakhstan in 2024, the two countries signed a critical minerals memorandum allowing Korean companies to participate in the exploration and development of lithium, chromium, uranium, and rare earths. Seoul is now preparing to host the first Korea-Central Asia summit on September 16-17, 2026, elevating years of bilateral and multilateral engagement to the leaders' level. [caption id="attachment_52351" align="aligncenter" width="1280"] Image: Japan Cabinet Public Affairs Office[/caption] Why Central Asia Counts Both Japan and South Korea are resource-poor manufacturing powers whose leading industries depend on secure supplies of imported minerals. South Korea imports more than 95% of the critical minerals it consumes. Japan received its own warning in 2010, when Chinese rare earth shipments were disrupted during a territorial dispute, and the pressure has returned in a sharper form in 2026. Central Asia cannot replace China in the short term, but it offers Tokyo and Seoul a credible route toward diversification. Kazakhstan and Uzbekistan combine substantial mineral potential with governments eager to attract investment, technology, and new export markets. Kazakhstan is already a major producer of uranium and chromium, and has significant copper, titanium, and rare earth prospects. In April 2025, Kazakhstan announced the possible discovery of a rare earth deposit containing more than 20 million metric tons of resources. If further exploration confirms that estimate, the country could possess one of the world's largest rare earth resource bases. However, the distinction between a resource estimate and a usable supply chain is crucial. A discovery is not a producing mine, and a mine is not a processing industry. Exploration, environmental approvals, infrastructure, separation, refining, and...

TCA Interviews

Kazakhstan Seeking to Turn Transit Routes Into Investment Growth, Vice Minister Says

The development of transport and logistics has become one of the main priorities of Kazakhstan's economic policy as the country seeks to turn its position between China, Russia, the Caspian Sea, and Europe into long-term growth. Government transport data show the broader transport and warehousing sector grew in January-May 2026, although rail freight and cargo turnover remained under pressure. Large-scale rail, road, port, warehouse, and digital projects now sit at the center of that effort. The sector requires tens of billions of dollars in investment, while the reshaping of Eurasian supply chains since 2022 has raised the importance of the Middle Corridor and Caspian-linked routes. Can Kazakhstan attract the capital needed to implement large-scale infrastructure projects? How will changing investment priorities affect regional development? And how could new investment reshape the country's transport market? The Times of Central Asia discussed these questions with Maksat Kaliakparov, vice minister of transport of the Republic of Kazakhstan. TCA: How would you assess the current investment attractiveness of Kazakhstan's transport sector? How much foreign investment has the industry attracted recently? Maksat Kaliakparov: The investment attractiveness of the sector is high and continues to strengthen. In 2025 alone, gross foreign direct investment into Kazakhstan's economy reached $20.5 billion, an increase of 14.4% compared with the previous year. Investment is increasingly flowing into transport and logistics alongside manufacturing, digital infrastructure, and the financial sector. The transportation and warehousing sector was among the country's fastest-growing industries in January-May 2026, expanding by 8.4%. Investor interest is also reflected in the fact that, in 2025, Kazakhstan signed 88 commercial agreements worth more than $69.5 billion with partners from China, the UAE, the United States, and European countries. A significant share of these funds will be directed toward transport and logistics projects. More broadly, Kazakhstan's investment policy framework includes a target of increasing annual foreign direct investment inflows to $25.5 billion while raising investment in fixed capital to 25.1% of GDP. TCA: Which segments of the industry are currently attracting the greatest investor interest: railways, highways, aviation, ports, warehousing, or digital logistics? Which areas will require the largest investments in the coming years? Maksat Kaliakparov: Investor interest is spread across several major segments. Railways remain a key priority. Kazakhstan is implementing modernization and new construction projects, including the recently commissioned Dostyk-Moyynty railway section, as well as the Darbaza-Maktaaral and Moyynty-Kyzylzhar lines. By 2030, the country plans to build or modernize approximately 5,000 kilometers of railway infrastructure. Maritime and port logistics are also attracting substantial investment. Expansion is underway at the ports of Aktau and Kuryk, while a new container hub in Aktau is being built with the participation of China's Lianyungang Port Group. The project is expected to increase capacity to 240,000 TEU by the end of 2026. Road infrastructure has secured a landmark private investment through the Car Park Transformer roadside service network. Warehouse and multimodal logistics continue to develop, including through Kazakhstan's terminal at Georgia's Port of Poti. Digitalization is another important area. In particular, the pilot Smart...