Innovative technology - The Times Of Central Asia

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Kazakhstan to Establish Unified Innovation Cluster

Kazakhstan is set to create a unified national innovation cluster by merging two of its key technological institutions: the International Technopark of IT Startups, Astana Hub, and the Park of Innovative Technologies fund, also known as Tech Garden. The merger bill has passed its first reading in parliament. Officials say the initiative is aimed at accelerating the development of Kazakhstan’s digital economy and enhancing its global competitiveness. Merging Platforms for Greater Synergy Astana Hub is currently Kazakhstan’s largest platform supporting IT entrepreneurs, offering tax incentives and accelerator programs. In contrast, Tech Garden is funded through mandatory contributions from subsoil users, 1% of their income, to support digital innovation in the industrial sector. According to Member of Parliament Aituar Koshmambetov, the integration of these two entities will create powerful synergies. “We’re combining infrastructure, finances, experts, mentors, support programs, and market access opportunities,” Koshmambetov said. A Digital Marketplace for Innovation At the heart of the merged structure will be a digital platform designed to link science, business, government, and startups. “It will function as a marketplace for challenges and solutions. Residents can see where subsoil users’ contributions are being directed and propose technologies to meet those needs,” explained Minister of Digital Development Zhaslan Madiev. Another component of the initiative is the expansion of the Single Window of the National Innovation System (SW NIS), which allows IT companies and scientists to directly access the development needs of industrial firms. The platform is already operating in pilot mode at astana-hub.com. Expanded Benefits for Residents Post-merger, participants from both institutions will retain all existing benefits. Tech Garden residents will gain access to Astana Hub’s startup acceleration programs, while Astana Hub startups will have new opportunities to secure contracts from major industrial players. Officials also hope the consolidated cluster will attract greater interest from international corporations. Kazakhstan already collaborates with major tech players like Indrive and Google, and negotiations are ongoing with Telegram. “Kazakhstan has the unique advantage of being able to engage comfortably with China, the U.S., and Russia,” Koshmambetov noted. “That’s a strategic asset we should fully leverage.” Economic Impact and Future Prospects Data from 2024 show that every 1 Kazakhstani tenge (KZT) invested in Astana Hub yields: 3 KZT ($0.0060) in private investment 14 KZT ($0.028) in resident company revenue 3 KZT ($0.0060) in export earnings A trade surplus 4.6 times the input Notable successes include a Kazakh-developed game generating $18 million in annual revenue, a smart scooter management system used in 20 global cities, and Higgsfield AI, a startup ranked among Google’s global top 20. Strategic Focus on Artificial Intelligence President Kassym-Jomart Tokayev has repeatedly emphasized the importance of digital transformation and artificial intelligence (AI) in national development. “The development of artificial intelligence must be accelerated and integrated into public services and Smart City projects,” Tokayev said during a recent government meeting. Prime Minister Olzhas Bektenov has also highlighted the practical use of AI in sectors such as ecology, social protection, and industry. He has instructed ministries to digitalize systems for managing...

Innovation Start-ups Innovative technology

Are Innovative Industries One of the Kyrgyz Republic’s Few Opportunities to Prosper?

The emergence of AI is considered by many to be a major tectonic shift, much like the emergence of the internet in its time. It is hard to overestimate the role innovation plays in our lives, with founders all over the world trying to pioneer our way out of the next problem. At first glance, the Kyrgyz Republic’s tech sector does not represent anything particularly meaningful. The chances of the small landlocked country - the farthest from any ocean in the world, which is the most affordable mode of shipping mode - integrating into innovative global ecosystems on its own seem wholly unrealistic. However, if we look at the dynamics of development in its tech sector, the potential is there. Is there a chance that the Kyrgyz Republic can become a part of the global tech scene? [caption id="attachment_30359" align="aligncenter" width="1440"] Image: The World in Maps[/caption] According to Ashley Vance at Bloomberg, “It’s about a landlocked nation, one with very few natural resources, hoping to gen up a tech industry on the fly.” The Kyrgyz startup ecosystem is clearly in its nascent stages, meaning that you haven’t heard about the Kyrgyz Skype. Yet. The country’s position in the Global Innovation Index in 2024 is 99th, up from 106th in 2023. The Global Startup Ecosystem Index, meanwhile, has the Kyrgyz Republic lower than 100th place in its 2024 ranking, down from 99th in 2023. “The country has maintained second position in Central Asia and seventh in the Central Asia Regional Economic Cooperation Program (CAREC) business region,” according to this index. The Kyrgyz Republic’s VC ranking of 103rd in the Venture Capital & Private Equity Country Attractiveness has barely changed over the last couple of years. When compared to peer group economies, it is obvious that the Kyrgyz Republic needs significant improvements in the depth of the capital market, social environment, entrepreneurial opportunities, and economic activity. [caption id="attachment_30358" align="aligncenter" width="1796"] Image: Venture Capital & Private Equity Country Attractiveness Index 2023[/caption] In terms of the number of venture capital deals, the Kyrgyz Republic is still lagging behind its neighbors. Out of $110+ million of venture capital funding in the region in 2023, the Kyrgyz contribution was only a fraction at $1.1 million. In 2024, this increased to $1.7 million, however, with the country's first venture capital law soon to be adopted. [caption id="attachment_30357" align="aligncenter" width="826"] Image Venture Capital in Central Asia 2024[/caption] The High Technology Park of the Kyrgyz Republic, which is a special tax regime for IT companies targeting exports, is demonstrating a steady growth, with its revenue expanding from under a million in 2013, to a more impressive $130 Million in 2024. The park’s residents are mostly companies providing IT outsourcing for developed markets, but the signs of a turn towards launching their own IT products are there. A separate world-first Creative Industries Park has also been set up to support the country's creative industries, including startups. When it comes to the largest Kyrgyz startups, they are founded by Kyrgyz nationals,...

Innovative technology public transport Digital Technologies Air Transport Transport

Unmanned ‘Aero Taxi’ Planned to Launch in Kazakhstan Next Year

Kazakhstan plans to introduce an unmanned aero taxi service by 2026, following the example of South Korea, Minister of Transportation Marat Karabayev has announced. He outlined the project's timeline and potential routes. First Route and Project Details According to Karabayev, there are currently no legal restrictions preventing the launch of aeromobile services in Kazakhstan. "The first stage will involve a route from Almaty to the town of Alatau. We are in discussions with Kazakh entrepreneurs, and a pilot launch is planned for 2026. These will be silent, hydrogen-fueled helicopters capable of carrying five passengers. One Kazakhstani company has already expressed interest in developing the aeromobility sector," he said. He noted that similar technologies are being actively developed in South Korea and the United States, and Kazakhstan is studying their potential implementation. "We are currently assessing how this technology can be adapted for our country," Karabayev added. Regulatory Framework and International Experience The minister also mentioned that the Ministry of Digital Development, Innovation, and Aerospace Industry has proposed studying international regulatory practices for such vehicles. "We will review this proposal. As unmanned vehicles become more common in Kazakhstan, we will develop the necessary legislative framework," he assured. However, Karabayev clarified that no amendments are currently being considered regarding liability for accidents involving unmanned vehicles. Global Developments in Aero Taxi Technology Unmanned aero taxis are already being tested and partially deployed in several countries. In the UAE, the Chinese company EHang has conducted pilot flights in Dubai, while in China, EHang has obtained certification for commercial operations. Meanwhile, South Korea is also conducting trials of air taxi services.

China Investment Kazakh Invest Innovative technology Economic Diversification

Chinese Company to Develop Low-Altitude Technologies and Intelligent Manufacturing in Kazakhstan

Kazakh Invest, Kazakhstan’s national investment company, has signed a memorandum of understanding (MoU) with China's Polyking New Horizons Technology Industry Co. Ltd. The agreement focuses on collaboration in the emerging field of low-altitude economy and intelligent manufacturing. As part of the partnership, the companies plan to establish an industrial park in Kazakhstan, which will integrate drone technologies, smart city solutions, and advanced manufacturing systems. The $200 million project is expected to create 1,000 new jobs, according to Kazakh Invest. Expanding High-Tech Opportunities The MoU also includes provisions for developing projects in the chemical industry and innovative technologies. These initiatives aim to strengthen Kazakhstan's position as a hub for high-tech production and innovation in Central Asia. Azamat Kozhanov, Managing Director of Kazakh Invest, highlighted the vast potential for low-altitude technologies in various sectors, including agriculture, energy, construction, and infrastructure management. “The advanced technologies and expertise of Polyking will bring new momentum to the development of this field in Kazakhstan,” Kozhanov stated. He also noted the significant economic opportunity tied to this sector, adding: “By 2050, the global low-altitude economy market is expected to reach $8.8 trillion. Therefore, we are actively creating platforms to develop new industries and providing comprehensive support.” Broader Trends in Low-Altitude Technology Kazakhstan has already taken steps to integrate drone production into its economy. The Times of Central Asia recently reported on a $12 million project by Yesil Technology Company, a subsidiary of China’s Shaanxi Kaizhuo Electronic Technology Co. Ltd., to establish an industrial drone manufacturing facility in the country. This collaboration underscores Kazakhstan’s strategic focus on becoming a leader in the low-altitude economy, a field that includes drones, unmanned aerial vehicles (UAVs), and other advanced technologies that operate at low altitudes. The partnership between Kazakh Invest and Polyking New Horizons Technology marks another milestone in Kazakhstan’s push to diversify its economy through high-tech industries. The planned industrial park, along with complementary projects like drone manufacturing, positions Kazakhstan to capitalize on the growing global market for low-altitude technologies and intelligent manufacturing. If successfully implemented, these initiatives could transform the country into a regional leader in cutting-edge technology and innovation.

Critical Minerals Foreign Cooperation Innovative technology Strategic dialogue Strategic Partnership Green Energy Foreign Investment Agriculture Automobile Industry

Uzbekistan and Korea Forge New, High-Tech Agenda for Strategic Partnership

On 14 June, South Korean President Yoon Suk Yeol held talks with Uzbekistan President Shavkat Mirziyoyev. During their meeting in Tashkent, it was noted that the Republic of Korea is among Uzbekistan’s leading trade and investment partners. Last year, bilateral trade turnover reached $2.5 billion, and Korean investments in Uzbekistan now exceed $7.5 billion. Negotiations focused on the formation of a new, high-tech agenda for Uzbek-Korean strategic partnership over the next three years. As a result, the two leaders tasked their governments to prepare a Strategic Program for the creation of a regional high-tech hub in Uzbekistan, with priority given to the following “anchor” areas of the Strategy: Partnership on critical mineral resources with deep processing and creation of a complete added value chain. Strategic cooperation in the field of semiconductors, in which the Republic of Korea is recognized as a global leader, and the implementation of plans to create in Uzbekistan’s first fully-fledged research and production cluster of semiconductor products. Full-scale partnership in the chemical industry, including new projects to produce green hydrogen and ammonia, as well as finished rubber products. Deepening cooperation in mechanical engineering. This spring, an assembly line for KIA cars was launched in Uzbekistan’s Jizzakh region, to be followed next year, by a plant with the capacity to manufacture over 60 thousand vehicles per year. Transfer of technologies to develop “smart” agriculture, including via the digitalization of the agricultural sector, the introduction of “smart” and “green” technologies. Agreements have already been reached on the creation of modern greenhouses and garden complexes in Uzbekistan’s regions based on renewable energy sources. Infrastructure modernization and a program for urban development, based on the high interest of Korean banks and companies in the modernization of transport infrastructure, and the design and construction of residential and commercial real estate in Uzbekistan on the principles of public-private partnership. With regard to developing potential projects in green energy and increase energy efficiency, strategic dialogue is to be resumed between energy ministers and a meeting organized in Uzbekistan in the near future.

Innovative technology Renewable energy USAID

U.S. Delivers Cutting-Edge Technology to Kyrgyzstan’s Renewable Energy Sector

The U.S. government – via the U.S. Agency for International Development (USAID) Power Central Asia activity – has delivered a Light Detection and Ranging unit to Kyrgyzstan’s Ministry of Energy. As reported by the U.S. Embassy in Kyrgyzstan, accurate wind measurements provided by the cutting-edge technology will prove invaluable in the development of the country’s renewable energy projects and do much to attract investment. At the handover ceremony, Minister of Energy Taalaibek Ibrayev commented that the Light Detection and Ranging equipment will not only enhance the effective use of renewable energy sources, but also improve financial forecasts and accelerate the introduction of wind farms and wind energy in Kyrgyzstan. To support the initiative, the USAID Power Central Asia activity has trained local technical staff in the use of the wind measurement equipment. USAID/Kyrgyz Republic Mission Director, Kaya Adams, stated: “The Kyrgyz Republic can ensure that all future wind projects will be both strategically located and implemented with the highest precision for maximum efficiency.  This efficiency is crucial for making informed investment decisions that will sustainably shape the country’s energy future.” The USAID Power Central Asia activity is a five-year, regional energy initiative to improve the performance of Central Asia’s energy sectors by introducing more competitive means of producing clean energy, boosting energy security and resiliency through greater regional connectivity, and expanding cross-border electricity trade. Since the inception of Power Central Asia in 2020, USAID has leveraged $2.2 billion in clean energy investments and facilitated the installation of 2,241 Megawatts of clean energy capacity across the regions.