Investment Projects - The Times Of Central Asia

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Industrial park

Kazakhstan to Launch New AQMOLA Industrial Zone to Attract Foreign and Domestic Investment

Kazakhstan marked the groundbreaking of a major industrial development on June 20 with a ceremony inaugurating the AQMOLA Industrial Zone in the Akmola region, near the capital city of Astana. Spanning nearly 1,000 hectares, the new industrial zone is designed to host production facilities for both domestic and international investors. Seven investment projects are already underway, backed by companies from China, Turkey, Singapore, and Kazakhstan. The initiative is expected to create over 4,500 new jobs. At the launch event, Akmola region Akim (Governor) Marat Akhmetzhanov underscored the strategic significance of the project. "The industrial zone will accommodate production facilities of leading companies from Kazakhstan and abroad. Concentrating production capacities in one location will have a multiplier effect on agriculture, processing, logistics, and other sectors, providing a boost to the region’s development," he stated. Key Investment Projects Among the cornerstone ventures is a deep wheat-processing complex by China’s Dalian Hesheng Holdings. The three-phase project, scheduled from 2025 to 2028, will produce sodium glutamate, gluten powder, and other high-demand products targeting markets in China, the Middle East, Southeast Asia, and Europe. Turkey’s YDA Group will construct an agrochemical complex for manufacturing fertilizers and pesticides. The Kazakh Institute of Oil and Gas plans to establish a liquefied natural gas production facility. Meanwhile, China’s Eagle Architecture Technology Co., Ltd. will build a diverse industrial plant to manufacture bitumen waterproof roofing materials, autoclaved aerated concrete blocks, polyvinyl chloride products, aluminum facades, stained glass, windows, and doors. The AQMOLA Industrial Zone represents a key step in Kazakhstan’s broader strategy to attract foreign direct investment and develop regional industrial hubs that contribute to national economic growth.

Investments

Chinese Company to Invest Over $12 Billion in Kazakhstan’s Non-Ferrous Metals Sector

China’s East Hope Group (EHG), a global leader in aluminum and silicon production, plans to invest more than $12 billion in a large-scale non-ferrous metals production and processing project in Kazakhstan. The project was discussed last week during a meeting between Yerzhan Yelekeyev, Chairman of the Board of Kazakh Invest, and Changjun Meng, General Director of EHG. According to Kazakh Invest, EHG plans to build a large industrial park in Kazakhstan, incorporating advanced technologies in non-ferrous metallurgy. The facility will focus on deep metal processing and the production of finished goods for export to the European Union, Central Asia, and China. The project is expected to create up to 10,000 jobs at various stages of implementation. According to Changjun Meng, EHG has already registered a subsidiary in Kazakhstan, which will serve as the project's main operational center. The company has completed preliminary geodetic and hydrogeological studies of land plots across several Kazakh regions and plans to begin a detailed site assessment in the near future. Yelekeyev pledged comprehensive government support for the investment project, emphasizing its significance for Kazakhstan’s industrial sector. "Attracting major strategic investors like East Hope Group opens new opportunities for Kazakhstan," Yelekeyev stated. "We see this project not only as a large investment but also as a way to introduce advanced technologies, create new jobs, and localize production. It will strengthen Kazakhstan’s position in the global non-ferrous metals supply chain and significantly expand finished product exports." EHG has expressed its readiness to sign an investment framework agreement with Kazakhstan’s Ministry of Foreign Affairs and the Ministry of Industry and Construction, marking a significant step forward in the project’s development.

Construction

Kyrgyzstan to Build Large Residential Complex with IT Hub in Osh

Kyrgyzstan has launched the construction of an IT town as part of the large-scale project, an initiative aimed at transforming Osh, the country’s second-largest city. Speaking at the launch ceremony on February 14, President Sadyr Japarov stated that the project’s main goal is to ensure sustainable regional development through modern technology and large-scale housing construction. The Osh project will include a residential complex with over 10,000 apartments, covering a total area of 1 million square meters. The development will feature modern schools and kindergartens; medical facilities and gyms; pedestrian and bicycle paths; green recreation areas; and children’s playgrounds. A key component of the project, the IT town, will serve as an innovation hub for entrepreneurs and IT specialists, offering modern residential, social, and commercial infrastructure. According to Japarov, the growth of the IT sector will enhance Kyrgyzstan’s global competitiveness, accelerating economic, social, and technological development in Osh and beyond. The initiative is expected to strengthen trade, economic, cultural, and humanitarian ties, while also attracting more foreign tourists. Japarov noted that thousands of jobs will be created during the construction process, helping to reduce migration levels. Once completed, the Osh project will generate employment in housing services, education, healthcare, and the IT industry. The IT town is envisioned as a magnet for IT professionals, drawing specialists from across Kyrgyzstan and abroad.

Digitalization

Kazakhstan to Build Fiber-Optic Highway for Internet Traffic

On February 6, Kazakhstan’s Ministry of Digital Development, Innovation, and Aerospace Industry signed a memorandum of cooperation with Freedom Telecom Holding Ltd. to construct a fiber-optic highway and data centers for the transit and storage of international internet traffic. According to the ministry, the West-East national highway will significantly expand data transmission capacity and position Kazakhstan as a key hub for international internet traffic transit. The project aims to enhance connection speeds, improve data transfer efficiency, and establish an alternative route for internet traffic between Europe and East Asia. The hyper-highway is scheduled for completion in 2026. It is expected to attract major international clients, including IT firms, telecommunications companies, and financial institutions seeking fast and secure data transit. Kazakhstan views the hyper-highway and data center initiative as a strategic step toward strengthening its digital infrastructure. The project will boost Kazakhstan’s role in global internet traffic transit while establishing a robust and secure data storage network. The development will be financed through private investment. Freedom Telecom, a subsidiary of Freedom Holding Corp. (Kazakhstan), currently provides broadband internet access and open Wi-Fi in major cities across the country.

Trade

Uzbekistan and Afghanistan Sign $4.5M Trade Deal as Economic Ties Grow

Business representatives from Uzbekistan and Afghanistan have signed a $4.5 million trade agreement, Tasnim News reported on February 3. Afghanistan’s Ministry of Industry and Trade announced the deal, stating that it was signed by private sector representatives from both countries. Afghanistan is Uzbekistan’s fifth-largest export market. Over the past five years, trade between the two countries has grown by nearly 1.5 times, reaching $866 million in 2023. Currently, 550 Afghan-invested enterprises operate in Uzbekistan, 443 of which are fully Afghan-owned. Joint projects are ongoing in food production, construction materials, agriculture, tourism, and textiles. Beyond trade agreements, both countries are discussing broader economic cooperation. In August 2024, an Uzbek delegation led by Prime Minister Abdulla Aripov visited Afghanistan. During the meetings, both sides emphasized their goal of increasing trade turnover to $1 billion in 2024, with a long-term target of $3 billion. Officials stressed the need to tap into new economic opportunities on a mutually beneficial basis. As previously reported by The Times of Central Asia, in October 2024, Afghanistan’s Ministry of Mines and Oil signed a 10-year contract with an Uzbek company for gas exploration and production in the Tuti Maidan gas field in Jawzjan province. The project is expected to bring in about $1 billion in investment to the region’s gas sector.

Drones

Chinese Company to Manufacture Drones in Kazakhstan

Yesil Technology Company, a subsidiary of China’s Shaanxi Kaizhuo Electronic Technology Co., Ltd., is set to establish an industrial drone production facility in Kazakhstan. The project, valued at approximately $12 million, marks a significant step in advancing high-tech manufacturing in the country. Construction of the production and research zone, spanning 50,000 square meters, will begin in March 2025 in the Almaty region. The facility will include a workshop for manufacturing drone batteries, a research center for innovative technologies, a full-cycle machine storage, and a test site for drones. Supported by the national company Kazakh Invest, the initiative is projected to create 500 new jobs. The drones manufactured in Kazakhstan will serve both the domestic market and be exported to neighboring Central Asian countries. Yesil Technology aims to integrate advanced UAV (unmanned aerial vehicle) technologies into various sectors, including agricultural monitoring, environmental protection, securing sensitive facilities, emergency rescue operations, and counter-drone measures. Yongning Hui, the head of Yesil Technology, highlighted the company's commitment to solving critical challenges in the drone industry, including extending UAV flight ranges, enhancing intelligent obstacle avoidance, and improving navigation precision and stability. “Yesil Technology actively attracts outstanding scientists and researchers from around the world, focusing on solving key problems such as the limitation of unmanned aerial vehicles’ flight range, the accuracy of intelligent obstacle avoidance, and the precision and stability of navigation, which hinder industry development," Hui stated. "Today, our products already have the ability to operate stably in the most challenging conditions and accurately perform tasks, providing users with calm and reliable aviation services. Yesil Technology also takes on an important mission to train local personnel in unmanned aerial vehicle technology.” The company’s efforts come at a time of rapid global growth in the low-altitude economy. According to the World Federation of Unmanned Aerial Vehicles, the market for low-altitude drones and related technologies reached $318.64 billion in 2024. By 2050, this figure is expected to surpass $8.8 trillion. China has emerged as a leader in this sector, with its low-altitude economy market valued at $68.65 billion in 2023. Projections for 2024 estimate growth to $79 billion, with an average annual growth rate of over 16% anticipated over the next five years. The establishment of the drone production facility in Kazakhstan aligns with the country’s broader goals of fostering technological innovation and regional economic integration.