Investment - The Times Of Central Asia

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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.

Investment

Tajikistan’s Reliance on External Funding for State Investment Projects Is Growing

Tajikistan continues to implement a large-scale state investment programme. International financial institutions play a key role in financing these projects, however, while the government's own contribution remains limited. According to data from the State Committee on Investment and State Property Management, 82 state investment projects are currently under way in the country The total value of ongoing initiatives is estimated at approximately $4.67 billion. Of these, 55 projects are being implemented on a grant basis, five through loans, and another 22 have mixed financing. About $3 billion has already been allocated for procurement, works, and services related to the implementation of these projects. However, more than 70% of the funding is provided by just three international institutions. The World Bank remains the largest donor, contributing $1.725 billion (36.9%). It is followed by the Asian Development Bank with $914.7 million (19.5%) and the European Bank for Reconstruction and Development (EBRD) with $658.1 million (14.1%). Other investors include the Islamic Development Bank ($207.9 million), the Chinese government ($194.9 million), the Asian Infrastructure Investment Bank ($142.5 million), the German Development Bank ($129.3 million), and the European Investment Bank ($114.8 million). Against the backdrop of extensive external financing, Tajikistan’s own contribution remains small. The state is investing approximately $151.2 million, accounting for only 3.2% of the total. This means that the implementation of key infrastructure and social projects largely depends on international donors and lenders. At the same time, in 2025 Tajikistan managed to significantly increase capital inflows. Foreign investment reached approximately $7 billion, rising by nearly $2 billion (35.1%) compared with the previous year. The authorities hope to sustain this momentum by improving the investment climate, including through legislative updates. A key step was the adoption on May 14, 2025, of a new version of the law “On Investments and the Promotion of Investment Activity,” aimed at increasing the country’s attractiveness to international partners. The current development model allows Tajikistan to implement large-scale projects that would be difficult to carry out relying solely on domestic resources. However, this financing structure also increases dependence on external sources, making the economy more sensitive to the conditions set by international institutions and the global financial environment.

Investment

Public-Private Partnership Makes Strides in Kazakhstan

In Kazakhstan, public-private partnerships (PPPs) have become a mechanism for implementing infrastructure projects using limited government financial resources. At a briefing on February 25, Aslan Kaligazin, Chairman of the Management Board of the Kazakhstan Public-Private Partnership Center, spoke about public-private partnership development in 2025 and outlined priorities for the future. According to Kaligazin, Kazakhstan has so far concluded 1,257 PPPs and concession agreements totaling KZT 3.6 trillion (€7.19bn). Of these, 697 projects are currently being implemented. Only 17 these projects are implemented at the national level, while accounting for more than half (KZT 1.8 trillion, $3.6bn) of the total projects’ value. The absolute majority of the PPPs – 1,240 projects – are being implemented at the local level. The projects mainly concentrate in the social sector, healthcare, education, energy, and housing and utilities, together accounting for over 88% of all contracts. Transport and infrastructure represent a significant share in value terms: around 27% of the total portfolio. Kaligazin noted that PPP in Kazakhstan has been undergoing a transformation in recent years: while the number of contracts is declining, the average project size is increasing. Prior to 2022, the average project cost stood at approximately KZT 6 billion ($11.99 million, but increased to KZT 18 billion ($25.97 million) in 2022–2025. The portfolio is increasingly shaped not by small social facilities, but by large-scale and technologically sophisticated infrastructure projects. Among the most capital-intensive projects of 2025 were the construction of Industrial Park No. 2 in the Astana Technopolis Special Economic Zone, and a project to introduce AI-based solutions into Astana’s security and urban infrastructure management system. The Kazakhstan Public-Private Partnership Center’s future plans include identifying priority infrastructure and sectoral segments where PPPs should become the primary project delivery mechanism. A list of areas will be formed in which PPP projects will gradually replace projects financed exclusively from the state budget. “Our task is not to formally expand the PPP portfolio, but to develop sustainable, well-structured projects that deliver long-term economic impact and tangible benefits for citizens,” Kaligazin concluded. In recent years, Kazakhstan has adopted legislative amendments increasing the efficiency and transparency of PPP project planning. PPP contracts are now concluded solely on a competitive basis, and the planning and competitive selection procedures have been digitalized, according to the Ministry of National Economy. To engage private business in the creation of social infrastructure, a Comprehensive PPP Development Plan for 2024–2028 was adopted, providing for the implementation of 43 projects in the areas of education, healthcare, sports, and social protection.

Economic Growth

Kazakhstan Projects Strong GDP Growth as Economy Nears 300 Billion Dollars in 2025

Kazakhstan’s economy is entering a new phase of growth. By the end of 2025, the country’s gross domestic product is projected to exceed $300 billion for the first time, President Kassym-Jomart Tokayev announced at a national award ceremony for the Altyn Sapa, Paryz, and Best Product of Kazakhstan prizes. Over the past decade, Kazakhstan’s GDP has shown consistent growth in absolute terms, with the exception of the pandemic year of 2020, when the economy contracted to $171.1 billion. Since then, the country has reached new historical highs each year, from $197.1 billion in 2021 to $288.41 billion in 2024. In 2025, growth is expected to reach a record level.The president noted that, over the past five years, growth in the real sector has become noticeably more balanced. Gross value added in the manufacturing industry increased by 25 percent, outpacing growth in the extractive sector. “Economic growth is expected to exceed 6% this year,” Tokayev said. “Moreover, GDP is projected to exceed $300 billion for the first time” The president highlighted that, over the past five years, growth in the real sector has become noticeably more balanced. Gross value added in the manufacturing industry increased by 25%, outpacing the growth of the extractive sector. Investments in fixed capital grew by 70% over the same period, and labor productivity rose by 40%. As a result, non-resource exports doubled, the number of exporters tripled, and the geography of supply expanded to 140 countries. According to Tokayev, small and medium-sized enterprises (SMEs) now account for 40% of GDP and remain one of the most dynamic segments of the economy. “Over the past five years, the number of SMEs has increased by 1.5 times, and their output by 2.5 times. Today, 4.5 million people work in the business sector, almost half of the country’s employed population,” the president said. Tokayev also placed particular emphasis on the finalization of certain provisions in the new Tax Code, which is set to take effect in 2026. The president acknowledged that he had received a large number of appeals from entrepreneurs and instructed the government to carefully review the most problematic provisions. “It is important to understand that the sustainable development of entrepreneurship is based on the fulfillment of mutual obligations: the state creates the climate, and businesses pay taxes. The government must find a reasonable balance, there is no other option,” he stated. The president also called for continued development of the country’s digital business ecosystem to enhance transparency and reduce bureaucratic hurdles. Kazakhstan plans to significantly increase investment in its economy over the next five years, with the goal of nearly tripling its volume by 2029.

Turkic Investment Fund

Turkic Investment Fund to Launch Operations in Early 2026

At a meeting held in Bishkek on December 5, the Board of Governors of the Turkic Investment Fund (TIF) announced that the Fund will begin its operational activities in the first quarter of 2026. With an initial authorized capital of 500 million dollars and a potential increase to 1.5 billion dollars, the TIF is the first dedicated financial institution jointly established by the Turkic states. Its mission is to enhance economic cooperation, boost intra-regional trade, and support sustainable development across the Turkic world. Headquartered in Istanbul, the Fund will finance major joint projects among member states of the Organization of Turkic States (OTS). The OTS, founded in 2009, includes Azerbaijan, Kazakhstan, Kyrgyzstan, Turkey, Uzbekistan, and Turkmenistan. Hungary and the Turkish Republic of Northern Cyprus participate as observer states. The TIF was officially established during an extraordinary OTS summit in Ankara in March 2023, with Azerbaijan, Kazakhstan, Kyrgyzstan, Turkey, and Uzbekistan as founding members. Hungary joined in June 2024, while Turkmenistan maintains observer status. According to the Board of Governors, the institutional infrastructure required for TIF operations was largely completed in 2025, and preparatory work on a pipeline of investment projects is currently underway. The Board emphasized that the decision to initiate operations reflects growing expectations among member states for the Fund to begin allocating resources and advancing strategic initiatives. During the Bishkek meeting, Uzbekistan’s representative, Laziz Kudratov, Minister of Investment, Industry and Trade, was elected Chairman of the TIF Board of Governors. The Fund will pursue its mandate by offering preferential loans, co-financing projects alongside international financial institutions, and attracting private investment into key sectors of the region’s economies. Following the inaugural meeting of the TIF Board in Istanbul in May 2024, the Turkish Ministry of Finance projected that the combined economic output of the Turkic states would reach $1.9 trillion by the end of 2024, with a population of approximately 178 million.