Investment - The Times Of Central Asia

Viewing results 1 - 6 of 29

Kazakhstan’s Tourism Revival Attracts International Visitors and $1.8 Billion in Investment

Kazakhstan’s tourism sector is undergoing a notable resurgence, with a growing number of both international visitors and domestic travelers exploring the country. According to analysts at Ranking.kz, this revival is not merely inflation-driven; it reflects substantial structural changes and targeted investment in tourism infrastructure. Data from the National Statistics Bureau (NSB) shows that in 2024, the total volume of services provided by hotels, motels, and other accommodation facilities reached KZT 299.8 billion (approximately $580 million), marking a 30.8% increase from the previous year. Tax revenues from tourism-related businesses rose by 25.1% year-on-year to KZT 254 billion (about $492 million), underscoring the sector’s expanding fiscal footprint. Tourism continues to attract both domestic and international investors. In 2024, capital investment in the sector totaled KZT 947.5 billion ($1.8 billion), encompassing both private funding for resort and hotel construction and public subsidies aimed at developing tourism infrastructure. Throughout 2024, investment in fixed capital across the hospitality, arts, entertainment, and recreation sectors reached KZT 321.1 billion ($622 million). Of that, KZT 163.8 billion ($317 million) was directed toward accommodation and food services. In the first quarter of 2025, investment in these areas rose by a further 6.5%. The Almaty agglomeration, home to the Zailiyskiy Alatau ski resorts and scenic natural areas, remains a top destination for investment. In 2024, it accounted for 17.4% of total capital investments in the HoReCa (Hotels, Restaurants, and Catering) and entertainment sectors. Currently, approximately 55 large-scale investment projects are in development across Kazakhstan’s tourism sector. Notable among them are the creation of a multifunctional tourist quarter in Astana, the Aqbura Resort in the Akmola region, and the expansion of the Oi-Qaragai ski resort, one of the largest in Central Asia. The Oi-Qaragai development includes the construction of a new four-star hotel and significant upgrades to tourism infrastructure. With an estimated total investment of $150 million, the project is expected to generate over 1,200 new jobs. So far, $44.5 million has been invested, with an additional $57.4 million projected by the end of 2025.

Akylbek Japarov Investment GDP Economic Growth Inflation Kyrgyzstan

Kyrgyzstan Reports Strong Economic Growth in Early 2025

Kyrgyzstan’s economy continued its upward trajectory in the first quarter of 2025, with GDP expanding by 13.1%, according to Prime Minister Akylbek Japarov. He credited the surge to positive developments across all key sectors prioritized by the government. The food industry posted remarkable growth of 71%, while the construction sector expanded by 69%. Investments in fixed capital jumped by 90% during the same period. A detailed economic overview published by the Ministry of Economy and Commerce highlighted that Kyrgyz businesses are adapting rapidly to shifting external conditions. The ministry also pointed to increased domestic demand and investment activity as key drivers of growth. "From January to March 2025, about 93% of total investments were directed toward mining, processing industries, information and communications, electricity and gas supply, and the construction of housing and educational institutions," the ministry stated. The construction sector alone contributed three percentage points to GDP growth. However, services remain the backbone of Kyrgyzstan’s economy, accounting for 4.5 percentage points of overall growth. Within the sector, trade made up 27.4%, transportation services 10.3%, and financial intermediation and insurance services another 10.3%. Annual inflation stood just below 7% in the first quarter, with average prices for consumer goods rising by 3.5% during the reporting period.

East Kazakhstan Investments Mining Foreign Investment Investment Lithium HMS Bergbau AG

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.

Green Energy EU Cooperation Investment Transport and Logistics EU-Central Asia Relations EU-Central Asia Summit Central Asia‐EU Summit

Samarkand Declaration Paves the Way for a Stronger Central Asia–EU Partnership

The inaugural Central Asia-European Union Summit, held in Samarkand on April 3-4, marked a significant milestone in strengthening ties between the two regions. According to Sherzod Asadov, press secretary to Uzbekistan's President Shavkat Mirziyoyev, the summit's most significant outcome is the adoption of the Samarkand Declaration, which is expected to provide strong momentum for expanding constructive dialogue and cooperation across all sectors. In a statement, the EU reaffirmed its "commitment to deeper cooperation in an evolving global and regional geopolitical landscape [and] upgrade relations between the European Union and Central Asia to a strategic partnership." The EU declaration also committed the bloc to respect the "sovereignty and territorial integrity of all states within the framework of all international and regional fora" and expressed readiness to "address common security challenges." Strengthening Economic Ties Economic cooperation featured prominently on the agenda. Since 2020, trade between Uzbekistan and the EU has doubled, now exceeding €6 billion. Uzbek exports to the EU have quadrupled, and the number of joint ventures has surpassed a thousand. European investment projects in Uzbekistan, meanwhile, are now valued at over €30 billion. A key development was the agreement to open a regional office of the European Investment Bank (EIB) in Tashkent. Established in 1958, the EIB is the EU’s primary financial institution, and its new office is expected to attract greater investment in green energy, modern infrastructure, and digitalization. The European Bank for Reconstruction and Development (EBRD) has also deepened its engagement in Uzbekistan, investing over €5 billion to date. “We must work together to simplify trade procedures and ensure that Central Asian products gain greater access to European markets. Only through joint efforts can we build a strong and resilient economic partnership,” Mirziyoyev told Euronews. "Over the past seven years, the trade turnover between Central Asian countries and the EU has quadrupled, amounting to 54 billion euros... The signing of the Samarkand Declaration will reflect the common aspiration of the parties to establish a strategic partnership and lay the foundation for deepening ties between our regions." During the summit, Mirziyoyev met with European Commission President Ursula von der Leyen and European Council President António Costa. Discussions focused on trade, investment, green energy, and digital development, with the EU’s "Global Gateway” strategy, a counterpart to China’s Belt and Road Initiative, a central topic. The initiative is seeking to enhance global infrastructure and connectivity while promoting sustainability and transparency. “The EU and Central Asia are becoming closer partners, and this summit marks the beginning of a new phase in our cooperation,” von der Leyen stated. An Enhanced Partnership and Cooperation Agreement between Uzbekistan and the EU is also under negotiation. Regional Dialogue Among Central Asian Leaders The Summit also offered a platform for Central Asian heads of state to hold bilateral discussions. Mirziyoyev met with his counterparts from Kazakhstan, Kyrgyzstan, Tajikistan, and Turkmenistan. Talks centered on increasing trade, improving border security, and advancing major infrastructure projects. A recent landmark border agreement between Uzbekistan and Kyrgyzstan was lauded as a breakthrough. Uzbekistan...

Coffee-Processing Plant Investment Khorgos EBRD

EBRD Finances Coffee-Processing Plant at Kazakh-Chinese Border

The European Bank for Reconstruction and Development (EBRD) has announced a loan of up to $10 million to Empire Manufacturing Kazakhstan (EMK) to support the construction of a coffee-processing facility in the Khorgos Free Economic Zone, located on Kazakhstan’s border with China. EMK is a subsidiary of Food Empire Holdings, a global food and beverage group listed on the Singapore Exchange. The new plant will enhance the company’s regional production capacity and is expected to set a new standard for food-processing technology and hygiene in Kazakhstan and Central Asia. Once operational, the facility will export up to 50 percent of its coffee products to markets across Central Asia and the South Caucasus, where demand for Food Empire’s instant beverages is on the rise. The investment aligns with the EBRD’s broader strategy to support private sector growth in Kazakhstan. To date, the Bank has invested more than €11 billion in 335 projects across the country, with a strong emphasis on fostering entrepreneurship and innovation.

Investment Middle Corridor Economy

Kazakhstan is Striving for Investment Amid “Resource Nationalism”

Amid the war in Ukraine, as well as various geopolitical turbulences that threaten to fundamentally change the current global order, Kazakhstan is aiming to attract more foreign investment. The war in Ukraine has so far had a relatively positive impact on the economies of most Central Asian nations, giving Astana room to achieve its ambitious goal of attracting $150 billion in foreign direct investment by 2029. Kazakhstan, along with other neighboring actors, used the Russian invasion of Ukraine to develop closer economic ties with the West, namely with the European Union. It is therefore no surprise that, in 2022 and 2023, the EU member Netherlands invested over $12 billion in the Kazakh economy, making it the leading foreign investor. The United States, according to the official statistics, is the second-largest investor, with Switzerland rounding out the top three. Although between 2005 and its total foreign direct investment (FDI) reached $402 billion, Kazakhstan’s innovation agenda aims to attract $150 billion of FDI in the next five years while doubling the country’s GDP. The problem is that in 2023 the inflow of foreign direct investment into Kazakhstan decreased by 32.3%, which suggests that Astana may have a hard time finding ways to attract more capital into the Kazakh economy. Experts claim that there is no comprehensive development strategy for both industries and regions in Kazakhstan, which limits investments in its economy. But the creation of platforms with tax preferences, an independent regulator, and a regulatory environment based on the principles of British law are believed to contribute to the active development of entrepreneurship. In other words, the authorities in Kazakhstan are using a model based on practices in Britain and the United Arab Emirates to attract investment, drawing inspiration from the British Common Law system, as well as the Dubai International Financial Center, which served as a reference for the Astana International Financial Center. Given that both Kazakhstan and the UAE are economies based on fossil fuel exports, it is unlikely to be a coincidence that Astana aims to use Abu Dhabi’s experiences to improve its existing arrangements with foreign corporations operating in Kazakhstan. "Large investments require a long-term planning horizon. Therefore, the government will have to intensify negotiations regarding the extension of production sharing agreements contracts on the updated terms, favorable to the country," Kazakhstan’s President Kassym-Jomart Tokayev said on January 28, as foreign companies reportedly claim that Astana is seeking to increase its shares in key oil and gas projects in what amounts to "resource nationalism". At the same time, the Kazakh government seeks to create a favorable investment climate for foreign companies by reducing bureaucratic obstacles, introducing tax breaks, eliminating financial audits, and ensuring the protection of the legal rights of investors. Kazakhstan has also recently introduced a Digital Nomad visa (also called a 'Neo Nomad' visa), which grants foreign nationals the right to reside in the country while working for a foreign employer. Such a move can be interpreted as another attempt to attract foreign investment in Kazakhstan. ...