Investment Projects - The Times Of Central Asia

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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.

Economy

Kazakhstan to Slash Imports with $2.6 Billion Domestic Output Plan

Kazakhstan's Ministry of Industry and Construction (MIC) has announced plans to reduce the country’s reliance on foreign imports by replacing goods worth KZT1.4 trillion ($2.6 billion) with domestically produced alternatives by 2025. This ambitious goal is intended to be achieved through the launch of new production facilities in the automotive and household appliances sectors. According to the MIC's Industry Committee, 190 investment projects are slated for implementation in 2025, creating over 20,000 permanent jobs for Kazakhstani workers. Once fully operational, these projects are expected to generate an output of KZT2.2 trillion ($4.1 billion), with KZT0.8 trillion ($1.5 billion) designated for export. The import substitution effort is forecasted to account for KZT1.4 trillion ($2.6 billion) of this total output. “This initiative will bolster domestic production, reduce dependence on imports, and enhance the competitiveness of Kazakhstan's national economy,” stated the committee. Trade Trends and Key Import Partners Kazakhstan's import volume for January - October 2024 was $48.4 billion, as reported by the Bureau of National Statistics. During this period, imports declined by 3.3% compared to the same timeframe in 2023. The country’s key import partners include: Russia: 29.7% of total imports China: 25.5% Germany: 4.9% USA: 3.9% France: 3.2% Republic of Korea: 3.1% The largest import categories in 2024 were cars (4.1%), aircraft (3%), medicines (2.9%), cell phones (2.7%), and motor vehicle bodies (2.1%). Significant Projects on the Horizon To address these import trends, major projects in the automotive, household appliances, and metallurgy sectors are planned for 2025. These include: Almaty: Construction of a multi-brand plant by Astana Motors to produce Chinese passenger cars. The facility will have an annual production capacity of 90,000 vehicles. Kostanay Region: Establishment of the KIA Qazaqstan plant, which will produce 70,000 vehicles annually of the Korean brand. Combined, these automotive projects will create 3,700 jobs. As previously reported by The Times of Central Asia, Kazakhstan is expected to record high sales of passenger cars by the end of 2024, with approximately 70% of vehicles purchased being domestically produced. Regional Investment Distribution The Turkestan region and Almaty City lead in the number of new investment projects, with 15 and 14 initiatives, respectively. The Kostanay and Karaganda regions also stand out, particularly Karaganda, which is set to receive KZT256 billion ($486 million) for ferrous and non-ferrous metallurgy projects. Overall, Kazakhstan’s manufacturing sector is projected to attract KZT1.2 trillion (nearly $2.3 billion) in investments in 2025, further solidifying the country’s industrial base and economic resilience.

Tourism

Former Son-in-Law of Azerbaijan’s President to Build Tourist Center in Uzbekistan

Uzbek President Shavkat Mirziyoyev has reviewed plans for an international tourism center to be constructed in the Bostanlyk district of the Tashkent region, signaling continued investment in the area’s tourism infrastructure. In recent years, Bostanlyk district has seen significant state-supported development. Resorts such as Amirsay and “Beldersay-Chimgan-Nanay” have been established, bolstered by investments exceeding 2 trillion UZS (approximately $155.57 million). Over the past five years, 59 new tourist facilities offering 13,000 accommodations have opened in the district. Azerbaijani businessman Emin Agalarov has proposed the creation of “Sea Breeze Uzbekistan,” an international tourism center near the Charvak reservoir. The ambitious project is set to involve collaboration with several major foreign companies. The “Sea Breeze Uzbekistan” project envisions a comprehensive facility featuring recreation areas, swimming pools, and sports facilities. Plans include hotels, cottages, and residential spaces, as well as retail outlets, restaurants, and services offered by international brands. The center will also host festivals, concerts, and cultural events, while a bridge connecting the reservoir's two banks will improve accessibility for visitors. Mirziyoyev has endorsed the proposal, emphasizing a phased approach to design and construction that incorporates international expertise. Emin Agalarov, the former son-in-law of Azerbaijani President Ilham Aliyev, married Aliyev’s eldest daughter, Leyla Aliyeva, in 2006 before divorcing in 2015. In addition to his business ventures, Agalarov is a singer and the son of Azerbaijani-Russian oligarch Aras Agalarov. The Agalarov family owns Crocus City Hall, a prominent venue in Moscow that hosted the 2013 Miss Universe pageant, once owned by Donald Trump. During Trump’s visit to Moscow that same year, Emin filmed a music video featuring Trump and the pageant contestants.

Infrastructure Development

Strategic Bypass Route Opens in Southern Kyrgyzstan

On December 6, Kyrgyzstan’s President Sadyr Japarov inaugurated a new bypass road around Uzgen, a historic city located 56 kilometers northeast of Osh, the largest city in southern Kyrgyzstan. The bypass is designed to alleviate traffic congestion in Uzgen by redirecting vehicles away from the city center. This development is expected to improve traffic flow, reduce travel times, and lower the risk of accidents on the former main route through the city. Construction of the bypass began in January 2024. The project includes two significant bridges: a 197-meter-long bridge spanning the Kara-Darya River and a 77-meter-long bridge over the Jazy River. To address the needs of residents, the project also features underground crossings for pedestrians and livestock and access roads connecting nearby villages. Speaking at the opening ceremony, Japarov emphasized that the Uzgen bypass is Kyrgyzstan’s first infrastructure project completed through a public-private partnership model. He reiterated the government’s dedication to expanding the country’s road network to enhance connectivity and boost logistics capabilities. Japarov also outlined plans for additional road projects, including a proposed 150-kilometer route linking Almaty, Kazakhstan’s largest city, to Kyrgyzstan’s Lake Issyk-Kul. This new route would significantly shorten the current travel distance, providing a faster and more efficient connection between the two destinations. While acknowledging the long-term nature of infrastructure investments, Japarov highlighted their critical importance for national and international development. He encouraged private investors, particularly domestic ones, to participate in upcoming road construction projects. If sufficient local investment is not secured, the government plans to seek foreign partnerships. In his closing remarks, Japarov likened road infrastructure to the "circulatory system" of the state, underlining its fundamental role in driving economic growth. He noted that improved roads enhance regional logistics, foster trade, and promote tourism, all of which are vital for Kyrgyzstan’s development.

Infrastructure

EDB Supports Construction of Strategic Highway in Kyrgyzstan

The Eurasian Development Bank (EDB) has pledged up to $200,000 for a preliminary feasibility study for the Bishkek - Kuntuu - Belogorka - Suusamyr highway. This alternative route aims to connect Kyrgyzstan’s capital, Bishkek, with the southern and western regions of the country. An agreement for technical assistance was signed on December 5 between the EDB and Kyrgyzstan’s Cabinet of Ministers. Strategic Importance The proposed highway is expected to have significant strategic, economic, and social benefits for Kyrgyzstan. Beyond improving transport infrastructure, it will facilitate access to mineral deposits and create new employment opportunities both during construction and operation. Nikolai Podguzov, Chairman of the EDB Management Board, emphasized the project’s importance: “This initiative is part of the Eurasian Transport Framework, a key investment mega-project. It aims to strengthen transport connectivity among Kyrgyzstan’s economic centers while increasing the transit potential of Kyrgyz highways and attracting greater interest in road transportation through Kyrgyzstan from neighboring countries.” Alleviating Traffic and Economic Growth Deputy Minister of Transport and Communications Bekzhan Rysmendeev highlighted the project’s role in addressing existing infrastructure challenges. “The Bishkek—Osh highway, Kyrgyzstan’s main arterial road, currently handles 5,000 to 18,000 vehicles per day and is struggling to accommodate the growing traffic flow,” he explained. The new highway is set to reduce the travel distance by 164 kilometers compared to the existing route, providing an alternative pathway to southern regions and improving access to mining areas. “This public-private partnership project will ease congestion on the Bishkek—Osh route, contribute to economic and social development, and foster international and domestic tourism and trade,” Rysmendeev added. Regional Connectivity As part of the EDB’s broader mission to invest in Eurasia, this project aligns with the bank’s goals of enhancing regional connectivity and economic development. The EDB, a multilateral development institution, includes Armenia, Belarus, Kazakhstan, Kyrgyzstan, Russia, and Tajikistan as its member countries.

Energy

Kazakhstan’s Power Grid Revamp Secures €267 Million Backing from EBRD and Canada

The European Bank for Reconstruction and Development (EBRD) has announced a €267 million financing package for the Kazakhstan Electricity Grid Operating Company (KEGOC) to enhance the reliability of the country’s power supply system. The funding comprises a €252 million EBRD loan and a €15 million concessional loan from the Government of Canada. The financial support will enable KEGOC, which oversees more than 27,800 kilometers of overhead transmission lines, to construct approximately 600 kilometers of 500 kV transmission infrastructure. This will facilitate the integration of the West Kazakhstan Power System into the country’s Unified Power System. The initiative is part of the EBRD’s broader efforts to assist Kazakhstan in implementing its long-term decarbonization strategy, aimed at achieving carbon neutrality in the power sector by 2060. It will improve the electricity supply for residents in western Kazakhstan and enable the integration of up to 12 GW of renewable energy capacity nationwide by 2030. Currently, Kazakhstan’s power grid is divided into three separate systems. While the EBRD connected the northern and southern grids in 2004, the West Kazakhstan Power System remains isolated. The project includes the construction of the 500 kV Karabatan-Ulke power line along the Atyrau-Aktobe motorway, the 500 kV Karabatan substation, and the expansion of the switchyards at the Karabatan (220 kV) and Ulke (500 kV) substations. These upgrades will strengthen domestic interconnections and enhance power supply reliability in western Kazakhstan. In addition to infrastructure improvements, the project is expected to reduce annual CO2 emissions by over 200,000 tons. It is supported by grant funding from the Government of Japan. The EBRD will also provide KEGOC with technical assistance, including piloting digital technologies within the grid, bolstering the system’s resilience to potential cyberattacks, and introducing gender-responsive training programs.