Investment Projects - The Times Of Central Asia

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Investment Projects

EDB Establishes Investment Bridge Between Gulf Capital and Central Asian Projects

The Eurasian Development Bank (EDB), headquartered in Almaty, has opened a representative office in Abu Dhabi Global Market (ADGM), the United Arab Emirates’ international financial center, marking a strategic move to connect Gulf Cooperation Council (GCC) investors with high-potential projects across Central Asia. According to the Bank, the new platform will offer GCC investors structured investment opportunities backed by EDB analytics, regional expertise, and strong ties with the governments of its member states, Armenia, Belarus, Kazakhstan, Kyrgyzstan, Russia, Tajikistan, and Uzbekistan. Through this initiative, investors will gain access to infrastructure and sustainable development projects with optimized risk-return profiles. At the launch ceremony, EDB Management Board Chairman Nikolai Podguzov underscored the strategic significance of the move. “We are creating an ‘investment highway’ between Gulf capital and opportunities in Central Asia. Our new office in Abu Dhabi reinforces our role as a regional bridge, combining local knowledge with tailored financial instruments. Investors gain access to proven projects with favorable risk-return dynamics, while Central Asian economies unlock new development funding.” A centerpiece of the new platform is a specialized credit fund dedicated to financing infrastructure development in Central Asia. Registered under ADGM jurisdiction, the fund will focus on debt financing for EDB’s infrastructure portfolio. The Bank highlighted ADGM’s regulatory advantages, noting that the fund will offer Middle Eastern and global investors a secure and efficient entry point into the region’s development landscape. EDB will serve as both a structuring partner and co-investor, providing access to a diversified project pipeline. Priority Sectors for Investment Transport and Logistics: The development of the North-South Corridor could boost transit volumes through Central Asia by up to 40%, significantly reducing shipping distances between the Gulf and key Eurasian markets. Water Sector and Agribusiness: The irrigation equipment market in Central Asia is valued at approximately $426 million annually, while the broader water supply sector is worth up to $2 billion. Renewable Energy: The sector continues to attract major players such as the UAE’s Masdar, which has established a growing footprint across Central Asia. Strengthening Gulf-Central Asia Economic Ties In recent years, the Gulf states have become major trading partners and investors in Central Asia. According to EDB data, trade between the Gulf and Central Asia reached $3.3 billion in 2024, a 4.2-fold increase since 2020. Imports from the Gulf made up 80% of the total trade turnover. Top Central Asian trading partners with the Gulf in 2024 were: Turkmenistan - $2 billion (61%) Uzbekistan - $740 million (23%) Kazakhstan - $302 million (9%) The highest trade growth rates were recorded in: Turkmenistan - up 9.9 times Kyrgyzstan - up 9.5 times Uzbekistan - up 8.1 times The UAE accounted for 97% of all Gulf-Central Asia trade. For Turkmenistan, Gulf trade represented around 10% of total foreign commerce, while Kyrgyzstan’s share stood at approximately 1%, with even lower figures across other regional states. The EDB projects continued growth in trade, citing an unrealized potential of $4.9 billion, including $4.4 billion in potential Gulf exports (motor vehicles, electronics, jewelry) and $500...

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.