Investment Projects - The Times Of Central Asia

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Alatau City

Tokayev Calls for Greater Role for Kazakhstani Businesses in Alatau City Development

Kazakhstani entrepreneurs must become full participants in the development of Alatau City, the country’s flagship smart city project, alongside foreign investors, Kazakhstan’s president Kassym-Jomart Tokayev said. He made the remarks during a meeting on the future of what is envisioned as Kazakhstan’s first fully digital city. In 2024, Tokayev signed a decree granting city status to Zhetygen village, located approximately 50 kilometers from Almaty, Kazakhstan’s largest city. Alatau City incorporates Zhetygen as well as the settlements of Enbek, Zhanaarna, and Kuigan, along with parts of Konaev and Talgar district in Almaty Region. The project is designed as a smart city comprising four distinct zones: the Gate District, a financial and business center; the Golden District, focused on education and healthcare; the Growing District, dedicated to industrial and logistics facilities; and the Green District, intended for recreation and entertainment. Speaking at the June 2 meeting in Almaty, Tokayev said more than 50 investment projects had already been identified for Alatau City, with a combined value of approximately $4 billion and the potential to create more than 50,000 jobs. He called for the portfolio to be expanded in the next one or two years by attracting investors to priority sectors. Domestic businesses, he said, must become “full participants in the city’s development rather than mere observers.” Tokayev cited Shenzhen and special legal regimes in Hainan, Dubai, and Singapore as examples of places where governments played an early role by building core infrastructure. That approach, he added, reduces risks for businesses, creates predictable conditions for private capital, and can generate a cycle in which public infrastructure investment attracts private capital and future tax revenues. The president warned that shifting the burden of initial infrastructure investment to the private sector can reduce a project’s appeal and lead to monopolistic structures with excessive tariffs. He instructed the government to ensure stable financing for Alatau City’s core infrastructure during the initial stage and said the city could be given additional borrowing limits and authority to undertake government borrowing until it develops a sustainable revenue base. Budget funds, he said, must be used strictly for investment purposes and linked to the city’s long-term development. Tokayev directed investment toward priority sectors including information technology, industry, transport and logistics, tourism, healthcare, and education. To create a favorable investment climate, he instructed officials to follow international standards, especially in areas where national regulations lag behind global practice. He identified Alatau City as a strategic platform for the rapid development of digital assets and a new financial architecture for Kazakhstan. Additionally, he called for the quick removal of excessive barriers in the sector and the introduction of new financial instruments. These would include a clear legal status for digital assets, recognition of crypto assets as property, and the use of the digital tenge within the new system. Tokayev also proposed a zero tax rate on digital asset transactions and capital gains generated within the jurisdiction, as well as faster work to tokenize real-sector assets, including real estate, infrastructure projects, and natural...

Investment Projects

Tashkent Signs $3.5 Billion in China Deals for Infrastructure and Exports

The third Uzbekistan-China Interregional Forum, held in the Chinese city of Xi’an, concluded with Tashkent signing more than $3.5 billion in investment and export agreements with Chinese partners, according to the Tashkent city administration. The agreements include $3.35 billion in investment projects and $156 million in export contracts spanning infrastructure, transport, construction, environmental technology, and industrial production. Officials said the deals are aimed at modernizing the Uzbek capital’s urban infrastructure and improving transport systems, public spaces, environmental services, and industrial capacity. The forum comes as China’s economic role in Uzbekistan continues to expand. According to Uzbekistan’s Dunyo news agency, speakers at the Xi’an forum said bilateral trade reached $18 billion last year, while Chinese investment in Uzbekistan totaled $17 billion. China has become one of Uzbekistan’s most important economic partners, with cooperation expanding from trade and construction into transport, energy, industry, and urban development. Dunyo’s report on the forum also presented the Xi’an meeting as part of a broader push to build direct ties between Uzbek regions and Chinese provinces, rather than limiting cooperation to central government agreements. Among the largest planned projects are a $1 billion initiative to develop Bus Rapid Transit, known as BRT, overpasses, and road infrastructure under the EPC+F financing model, and another $1 billion package focused on transport and social infrastructure projects. Additional agreements include $500 million for modern residential complexes in renovation zones and $400 million for drainage, irrigation, and stormwater systems. The city administration said financing is expected to come from Chinese partners without the direct use of Uzbekistan’s state budget or sovereign guarantees, although repayment would still depend on future municipal revenue streams. The projects are planned under the Engineering, Procurement, Construction, and Financing model, known as EPC+F. The financing structure is significant as many of the largest projects are municipal rather than national in scope. It allows Tashkent to pursue major road, drainage, and transport upgrades while presenting the deals as externally financed. Nevertheless, projects of this type can still create long-term obligations if future city revenues are used to cover repayments. The forum also focused on the development of Tashkent’s Yangi Avlod special industrial zone. Agreements worth $130 million were signed with Chinese companies, including Jwise, Zhongke Honghu, CAS Cloud, and UMGG. The projects are expected to support manufacturing infrastructure, digital management systems, and high-tech industrial production in the capital. Yangi Avlod has been promoted as one of Tashkent’s main industrial expansion sites. According to the zone’s official website, it is located in the Yangihayot district and is planned as a 764.5-hectare industrial area with logistics, warehouse, administrative, and commercial infrastructure. Other agreements include investments in decorative stone manufacturing, ceramic production, and smart waste-sorting equipment. Export contracts signed during the forum included three agreements worth a combined $150 million for jewelry exports, as well as deals covering cotton yarn and silver concentrate supplies. Separately, during the official visit to China, Tashkent Mayor Shavkat Umurzakov met with executives from China Railway Construction Corporation to discuss urban renovation projects, transport infrastructure, and...

Anti-Corruption

Uzbekistan Introduces Anti-Corruption Reviews for $50 Million Investment Projects

Uzbekistan has introduced mandatory anti-corruption reviews for major investment projects worth at least $50 million, as the government intensifies efforts to strengthen oversight of public spending and large-scale development initiatives. The new procedure was approved through an official instruction registered by the Ministry of Justice on May 8, according to the ministry’s Legal Information channel. Under the new rules, large investment projects involving at least $50 million in financing will be subject to anti-corruption examinations and assessments of their impact on market competition before they can move forward. The regulation applies to projects aimed at creating, expanding, or modernizing socially and economically significant infrastructure, services, and facilities. The reviews will be conducted by internal anti-corruption control units within state bodies and organizations. Officials said projects identified as carrying a high risk of corruption could receive a negative assessment regarding their feasibility and implementation. Authorities also stressed that projects will not be approved until all shortcomings identified during the examination process are fully addressed. The Times of Central Asia previously reported that Uzbekistan had opened criminal proceedings against senior officials in the Ministry of Internal Affairs following investigations into large-scale financial violations. At a government meeting on January 27, President Shavkat Mirziyoyev said investigators had uncovered 53 trillion Uzbekistani som (UZS), approximately $4.38 billion, in financial irregularities and misused funds nationwide. According to the president’s press secretary, 4.2 trillion som ($347.3 million) of the total was directly linked to corruption schemes. Authorities reported that 1.3 trillion som ($107.5 million) had already been recovered, while 55 individuals were arrested across the country in connection with corruption-related cases.

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.