Investment - The Times Of Central Asia

Viewing results 1 - 6 of 76

U.S.-Kazakhstan Relations

Kazakhstan Central Bank Chief Eyes Deeper U.S. Investment Links

Addressing senior executives from more than a dozen Fortune 100 companies active in Kazakhstan at a U.S. Chamber of Commerce-hosted event in Washington, D.C., on April 14, Timur Suleimenov, Governor of the National Bank of Kazakhstan, laid out the country’s economic outlook and later spoke with The Times of Central Asia on a range of related issues. He was accompanied by Erzhan Kazykhan, President Kassym-Jomart Tokayev’s Special Representative for Negotiations with the United States, Deputy Foreign Minister Alibek Kuantyrov, and Kazakhstan’s Ambassador to the United States, Magzhan Ilyassov. [caption id="attachment_47306" align="aligncenter" width="1536"] Timur Suleimenov, Governor of the National Bank of Kazakhstan, with Javier Piedra[/caption] Kazakhstan’s U.S. Financial Stakes Amid Growth and Inflation Suleimenov offered a compelling case for Kazakhstan’s economy, citing steady growth, higher investment flows, and a deepening consumer market. Kazakhstan’s economy expanded 6.5% in 2025, marking a third straight year of growth above 5%. GDP per capita surpassed $15,000 – compared to approximately $3,162 in Uzbekistan and about $2,420 in Kyrgyzstan. Fixed-income investments rose 15% year-on-year, and foreign direct investment climbed to 20.5% (from 14.5%), broadening beyond oil. Suleimenov emphasized the Central Bank’s strong stewardship, citing a new tax and budget code to enhance fiscal discipline and monetary policy that supports investment, stressing that, “We will deal with inflation pressures and external shocks simultaneously while managing cryptocurrencies and private digital payments systems, which can weaken central bank control over money and policy transmission. The markets suggest that we have been doing an excellent job in a complex environment.” The government, Suleimenov said, is on track to consolidate the budget, with the deficit projected at 2.5% this year, 1.7% next year, and 0.9% by 2028, adding that this will strengthen fiscal-monetary coordination, and noting Kazakhstan’s debt-to-GDP ratio of 24% remains low compared with countries such as the United States (125%), Japan (230%), Italy (137%). As inflation declined to 11% in March 2026 from 11.7% the previous month, Suleimenov reassured TCA that officials regard it as transitory, saying that “inflation was driven by resilient domestic demand backed by fiscal and quasi-fiscal stimulation, external price pressures (Russian inflation, global food prices), increasing regulated prices (utilities and fuel), and tax reform (a VAT increase from 12% to 16%), with volatile and elevated inflation expectations. For these reasons, we responded with rate hikes and liquidity tightening, bringing inflation down to about 11%, with a further easing expected to single digits by the end of this year.” Suleimenov reaffirmed that “the United States is integral to Kazakhstan’s financial system and long-term asset strategy.” He noted that Kazakhstan manages approximately $190 billion in long-term assets, including some $75 billion in National Bank reserves, $60 billion in the National Fund, and $55 billion in the unified pension fund. Around one-third of these assets are invested in U.S. securities, while roughly $50 billion is managed by American firms, underscoring deep financial ties beyond industrial investment. TCA asked how U.S. sanctions and export controls affect Kazakhstan, a concern that was especially acute in the initial stages of the Russo-Ukrainian...

Aviation Industry

Tajikistan-Based Shohin Airlines Aims to Acquire Four Airbus Aircraft

Shohin Airlines, a new private airline registered in Tajikistan, says it is in the final stage of acquiring four planes from the Airbus A320neo line of aircraft. The airline and the European aerospace company met on April 10 to discuss the acquisition of two A320neo and two A321neo aircraft, building on a dialogue that began earlier this year at the Airbus headquarters in Toulouse, France, according to Shohin Airlines. The discussions with Airbus are showing “steady positive momentum,” and implementation of agreements “will be an important step in developing the airline’s fleet and strengthening its position in the air transport market,” the airline said in a statement on Friday. Currently, Shohin Airlines operates helicopters for specialized flights. The negotiations with Airbus reflect its plans for significant expansion into commercial passenger traffic. Last month, the airline announced a $200 million investment from a European investment fund.

TCA Interviews

Kyrgyz Minister Sydykov Courts Investment in Washington

On the occasion of the annual IMF/World Bank meetings in Washington this week, the Prime Minister of Kyrgyzstan, Adylbek Kasymaliev, led a delegation to Washington D.C. for World Bank and IMF meetings, the Department of State Annual Bilateral Consultations, a meeting with Secretary of State Rubio, Deputy Secretary Landau and Under Secretary Hooker, as well as a number of other constructive dialogues and engagements with scholars, researchers, and authors. This trip marks the second high-level U.S. visit in a year, signaling Washington’s strategic interest and Kyrgyzstan’s willingness to deepen cooperation. Bakyt Sydykov, Kyrgyzstan’s Minister of Economy and Commerce, accompanied the Prime Minister. The delegation’s visit to Washington reinforces President Sadyr Japarov’s statement to President Donald Trump during the November 2025 C5+1 Summit, “I am confident that this event will provide an excellent opportunity for U.S. businesses to expand cooperation in sectors such as agriculture, e-commerce, information technology, transportation and logistics, tourism, and banking.” Following Japarov’s lead, Sydykov is actively engaging private and multilateral partners; state and Commerce meetings are meant to keep things moving and steady investor confidence. This shift towards deeper diplomatic, investment, and development ties is striking and certainly welcome in Washington. The shift reflects both an evolving Central Asian geopolitical landscape, post-Afghanistan dynamics, economic needs, diversification goals, and troubles in West Asia. Deeper engagement is also driven by ambitions to enhance regional transport and logistics integration. Kyrgyzstan’s approach departs from zero-sum logic, prioritizing win-win pragmatism and mutual gains. Minister Sydykov In an interview with The Times of Central Asia, Minister Sydykov said that this visit builds on the International Monetary Fund’s (IMF) recent official mission to Bishkek (March 18–April 1, 2026) and that “our banking sector is strong and well capitalized, as affirmed by the IMF, and we are well prepared against risk, enhancing oversight in the context of global volatility.” Commenting on the government’s fiscal management following the IMF’s guidance, Sydykov said: “To expand fiscal flexibility, we are mobilizing revenue across a range of standard taxation measures and raising expenditure efficiency with responsible internal wage policies, rationalized energy subsidies, and public investment management. We are pinpointing more prudent debt management measures, enhancing risk oversight, and rolling out tracking metrics to uphold long-term sustainability and credibility.” ⁠Looking forward, Sydykov noted that Kyrgyzstan is monitoring outlook risks related to external volatility, while also insisting that “we are working to hold down domestic inflation – always a challenge with rapid economic growth – and lower fiscal pressures. We assess that these endogenous variables remain manageable, even with increased exposure to cross-border trade and capital flows. While external volatility lies beyond our direct control, Kyrgyzstan is working with the IMF, other multilaterals, and domestic banks to maintain and build resilience. We are therefore strengthening buffers, recalibrating policies, and advancing accounting reforms to support performance and sustainable growth.” Responding to the ADB’s latest forecasts, Sydykov said Kyrgyzstan’s economy is moving toward greater stability and growth. After an 11.1% surge in 2025, growth is expected to slow to 8.9% in 2026 and 8.4%...

Kazakhstan-U.S. Relations

No Longer a Startup Market: Kazakhstan Makes Its Case to U.S. Investors

Washington D.C. - Acting on President Kassym-Jomart Tokayev’s push to convert strategic alignment with Washington into tangible commercial gains, senior Kazakh officials told U.S. investors on April 14 that the bilateral relationship is entering a deeper phase focused on energy, critical minerals, and transport infrastructure. Within that context, the country has undertaken constitutional reforms and other modernization efforts to digitize and improve the investment climate. The Kazakhstan delegation was led by Erzhan Kazykhan, President Kassym-Jomart Tokayev’s Special Representative for Negotiations with the United States on priority issues of bilateral cooperation, and included National Bank Governor Timur Suleimenov and Deputy Foreign Minister Alibek Kuantyrov, who traveled to Washington for the meetings. Kazakhstan’s Ambassador to the United States, Magzhan Ilyassov, also participated. A Delivering Partner, Not a Prospective One Kazykhan presented the new commercial push as a direct outgrowth of Tokayev’s November 2025 Oval Office meeting with President Trump, casting the Kazakh leader as a partner in a more ambitious phase of U.S.-Kazakhstan relations aimed at converting political trust into practical cooperation on energy security, critical minerals, and strategic transport corridors. He placed that agenda within the framework of Kazakhstan’s participation in U.S.-backed regional diplomacy as well, pointing to Kazakhstan joining the Abraham Accords and President Trump’s broader peace initiatives. Kazykhan also highlighted Kazakhstan’s role as a founding member of the Board of Peace, noting that Tokayev signed its charter in Davos in January and participated in its inaugural meeting in Washington on February 19. Kazakhstan is positioning itself as a constructive U.S. partner not only in Eurasian connectivity and resource security, but also in Middle East stabilization through support for reconstruction, healthcare, education, and longer-term peace-building efforts. Kazakhstan is seeking to set itself apart as a partner that delivers. While many countries pitch cooperation with Washington in terms of future potential, Astana’s message is that engagement has already produced tangible commercial outcomes. Following the Oval Office meeting, 29 agreements had been signed, including with Cove Capital, Boeing, Cerberus Capital Management, and Wabtec, with a combined value of more than $17 billion. Kazykhan added that more than 600 American companies operate in Kazakhstan and that cumulative U.S. investment has exceeded $60 billion, making the United States the country’s largest foreign investor. [caption id="attachment_47222" align="aligncenter" width="1429"] Kazakhstan Deputy Prime Minister and Minister of National Economy Serik Zhumangarin; Special Representative for Negotiations with the United States, Erzhan Kazykhan; and Kazakhstan's Ambassador to the United States Magzhan Ilyassov meet with U.S. Secretary of State Marco Rubio on April 15 to strengthen commercial ties and advance regional cooperation. Image: USDOS[/caption] No Longer a Startup Market Ambassador Ilyassov said the discussion was more in-depth than a typical roundtable, because the relationship with U.S. partners has matured over many years. The tone of the session matched that description. The discussion centered on specifics of expansion, supply chains, regulation, and long-term capital rather than general market entry. [caption id="attachment_47219" align="aligncenter" width="2048"] Kazakhstan’s Ambassador to the United States, Magzhan Ilyassov; image: Kazakhstan Embassy, U.S.[/caption] Unlike the rest of Central Asia,...

Venture capital

Central Asian Startups See Investment Surge

The fifth Central Eurasian Venture Forum (CEVF 2026) opened in Uzbekistan for the first time, drawing around 800 investors, startups, and technology companies from Central Asia, Europe, the U.S., Southeast Asia, and the Middle East and North Africa. Minister of Digital Technologies Sherzod Shermatov attended the opening ceremony. The event was organized by MOST Holding and IT Park Uzbekistan with government support. Partners included Astana Hub, the European Bank for Reconstruction and Development, the International Finance Corporation, Visa, and others. During the forum, the report Startups and Venture Capital in Central Asia 2026, prepared by RISE Research, was presented. According to the study, total venture capital investment in the region reached $320 million in 2025. The two largest deals, $130 million for Higgsfield and $65.5 million for Uzum, accounted for 61% of the total. Excluding these deals, the market reached $124.5 million, marking a 31% increase compared to 2024 and indicating steady organic growth. At the forum, the analytical agency RISE Research presented a study of the Central Asian venture capital market for 2025. According to the study, the volume of venture capital investments in Kazakhstan nearly tripled, reaching $209 million, with artificial intelligence being the main driver, accounting for approximately half of the total investment. In Uzbekistan, funding reached $33.8 million, an increase of more than eleven times compared to 2022. Including major deals, the Uzbek market is estimated at $99.3 million, with 85% of investment coming from domestic investors. The forum also hosted the CEVF Awards ceremony, recognizing key players in the regional venture ecosystem. In addition, the European Bank for Reconstruction and Development announced 13 finalists for its Star Venture program for Central Asia, aimed at supporting high-tech startups. During the forum, cooperation agreements were signed with international partners, including companies from South Korea and the Middle East, to support the development of the startup ecosystem and attract investment. The second cohort of the Investment Readiness Accelerator (IRA) Tashkent program, focused on early-stage startups, was also launched.

Coal Industry

Kazakhstan Plans Diesel Fuel Production from Coal

Two projects to produce diesel fuel from coal are underway in Kazakhstan, Energy Minister Yerlan Akkenzhenov said at a government meeting. According to the minister, the projects, each with a capacity of 100,000 tons of diesel fuel per year, are being implemented in the Pavlodar and Karaganda regions. Their costs are estimated at $63 million and $65 million, respectively. As part of efforts to develop the coal chemical industry, a $132 million project is also underway in the Karaganda region to produce metallurgical coke, with a capacity of 1 million tons per year. The minister said the three projects will create about 3,000 jobs. Currently, around 32,000 people are employed in the coal industry. Three additional projects are in the planning stage. These include a coke-chemical production facility in the Karaganda region with coal tar processing capacity of up to 200,000 tons per year, benzene production of up to 35,000 tons, and coke oven gas purification. Authorities are also considering the construction of a plant in the Abai region to produce ammonia and urea from coal (300,000 tons per year of each product), as well as a project to produce up to 2 billion cubic meters of gas from coal. The minister noted that the development of the coal chemical industry faces several challenges, including high capital intensity, technological complexity, and the need to establish an appropriate regulatory framework. He added that developing this sector would reduce dependence on imported petroleum products and increase exports of higher value-added products. The coal industry remains strategically important to the country’s economy. In 2025, coal production reached 115.9 million tons, an increase of 7% compared to the previous year. Domestic consumption totaled 85.9 million tons, while exports stood at 30 million tons. In 2026, coal production is projected to reach 128.9 million tons. Investment in the sector amounted to approximately $655 million in 2025 and is expected to rise to $1.1 billion in 2026. The Times of Central Asia previously reported that Kazakhstan’s coal reserves could meet the country’s energy needs for 200-300 years. The authorities have also approved a coal-fired power generation development program that involves the construction of eight new power plants and the modernization of 11 existing ones.