Investments - The Times Of Central Asia

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Energy Transition

Kazakhstan Launches QaJET Investment Platform for Just Energy Transition

Kazakhstan has announced the launch of the QaJET (Just Energy Transition) investment platform, supported by the European Bank for Reconstruction and Development (EBRD), to attract international financing and accelerate the decarbonization of its economy. A corresponding memorandum was signed on April 23 during the Regional Environmental Summit in Astana. Signatories included Energy Minister Yerlan Akkenzhenov, Minister of Ecology and Natural Resources Yerlan Nysanbayev, and EBRD Managing Director for Central Asia and Mongolia Hüseyin Özhan. The QaJET platform reflects Kazakhstan’s ambition to accelerate the transition to clean energy through a large-scale expansion of renewable energy capacity. According to current plans, the country aims to commission 10 GW of new green capacity by 2035. According to EBRD estimates, achieving these targets will require approximately $20 billion in investment from both public and private sources. This is expected to reduce greenhouse gas emissions by more than 20 million tonnes annually, equivalent to roughly 7% of the country’s energy-related emissions. The creation of the platform is of strategic importance for Kazakhstan, whose economy remains highly carbon-intensive and heavily dependent on coal-fired power generation. At the request of the Kazakh government, the EBRD participated in developing the QaJET concept and will continue to coordinate its implementation with national and international partners. The platform is also intended to support Kazakhstan’s international climate commitments, including achieving carbon neutrality by 2060 and reducing greenhouse gas emissions by up to 25% by 2030 compared to 1990 levels. QaJET is expected not only to reduce emissions but also to strengthen energy security, enhance economic competitiveness, and promote the development of local high-tech manufacturing in the renewable energy sector. Key areas of cooperation within the platform include expanding renewable energy capacity, modernizing power grids and energy storage systems, electrifying businesses and households, and supporting a just transition, technology transfer, and the development of research and innovation capacity. Authorities expect QaJET to become the central mechanism for coordinating climate finance, bringing together international financial institutions, donors, private investors, and the government to accelerate Kazakhstan’s energy transition.

Nuclear power

Uzbekistan Plans $1 Billion for First Two Small Nuclear Reactors

Uzbekistan is planning to invest nearly $1 billion in the construction of its first two small reactors as part of an integrated nuclear power plant, according to officials speaking at a major industrial exhibition in Tashkent. The estimate was announced by the Deputy Chairman of the country's Chamber of Commerce and Industry, Sukhrob Abdurakhmonov, during the “Innoprom. Central Asia” exhibition, held from April 20 to 22. The event was organized by Uzbekistan’s Ministry of Investment, Industry and Trade together with Russia’s Ministry of Industry and Trade, local media outlet Gazeta.uz reported. Abdurakhmonov said the first phase of the project involves the construction of two small reactors, each with a capacity of 55 megawatts. “Even at the initial stage, the project, valued at approximately $1 billion, will require a large volume of high-quality products,” he said during a panel session. He noted that the scale of the project is expected to push local industries toward higher standards, from electrical equipment manufacturing to construction materials. “We see this as a strong incentive for the modernization of production,” he added. The nuclear plant is planned for the Jizzakh region, where officials expect the development of a broader economic cluster. According to Abdurakhmonov, the project could stimulate growth in related sectors such as services, transport, logistics, and social infrastructure, creating thousands of jobs and new opportunities for small and medium-sized businesses. The announcement follows agreements signed in March between Uzatom and Rosatom on cooperation and further steps in the nuclear power project. Speaking earlier to reporters, Alexey Likhachev said the initiative could also generate significant economic benefits for Russia. He estimated that even a small reactor project in Uzbekistan could bring orders worth up to $22 billion for Russian companies and create around 1,000 jobs.

Foreign Affairs

Kazakhstan’s Foreign Minister Visits Caucasus to Expand Trade and Transit Ties

Kazakhstan’s Foreign Minister, Yermek Kosherbayev, conducted a diplomatic tour of the South Caucasus, Armenia, Azerbaijan, and Georgia, as part of Astana’s efforts to strengthen trade and economic ties, expand investment cooperation, and develop key transit routes between Central Asia and Europe. Armenia: Trade, Investment, and Digitalization In Yerevan, Kosherbayev held meetings with Prime Minister Nikol Pashinyan, President Vahagn Khachaturyan, and Foreign Minister Ararat Mirzoyan. He conveyed greetings from Kazakh President Kassym-Jomart Tokayev and highlighted the high level of bilateral cooperation. “Thanks to the efforts of the leaders, bilateral relations between Kazakhstan and Armenia have reached a qualitatively new level,” Kosherbayev said. He noted that the evolving geopolitical situation creates new opportunities for both economies. Kazakhstan reaffirmed its interest in long-term supplies of agricultural products, including grain and meat, as well as in expanding transport links and launching direct flights. The two sides discussed the implementation of the Roadmap for Trade and Economic Cooperation for 2026-2030. More than 100 enterprises with Kazakh capital are registered in Armenia, while over 400 Armenian companies operate in Kazakhstan, indicating growing business activity. Artificial intelligence, digitalization, nuclear energy, pharmaceuticals, higher education, and healthcare were identified as priority areas for cooperation. Particular attention was given to the establishment of a branch of the TUMO educational center in Astana. Azerbaijan: Energy and Transport Corridors In Azerbaijan, Kosherbayev met with President Ilham Aliyev and Foreign Minister Jeyhun Bayramov. Discussions focused on strengthening allied relations and expanding cooperation in energy, industry, and logistics. “Kazakh-Azerbaijani relations are characterized by steady and progressive development and possess significant potential. We express our firm commitment to further strengthening our alliance with brotherly Azerbaijan,” the minister said. Bilateral trade has increased sharply over the past five years, reaching $470.7 million in 2025. The two sides agreed to work toward raising this figure to $1 billion. Particular attention was paid to the development of the Trans-Caspian International Transport Route, a key element in diversifying Kazakhstan’s export routes. For Astana, Azerbaijan is the pivotal Caspian link in the westward corridor connecting Kazakhstan to the South Caucasus and on to European markets. The parties also discussed projects to lay a fiber-optic communication line and a subsea power cable across the Caspian Sea to strengthen regional energy and digital connectivity. These projects fit a broader strategy to connect Central Asian energy and data infrastructure more closely with Azerbaijan and, through it, with Europe. In addition, both sides highlighted opportunities to expand the transit of Kazakh energy resources through Azerbaijani territory, alongside growing cultural, humanitarian, and educational exchanges. Georgia: Investment and a Logistics Hub The final stop was Georgia, where the minister met with President Mikheil Kavelashvili and Foreign Minister Maka Bochorishvili. “Kazakhstan views Georgia as a reliable political and economic partner in the South Caucasus,” Kosherbayev said. The officials noted positive momentum in economic cooperation. Kazakh investment in Georgia has exceeded $600 million, with companies active in logistics, energy, and finance. Georgia’s importance to Kazakhstan lies not only in bilateral trade and investment, but in its role as...

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.

Healthcare

Kazakhstan Is Rethinking Its Healthcare System, Focusing on Prevention

Kazakhstan’s Ministry of Health has outlined updated investment and development plans for 2023-2027, signaling a shift in the country’s healthcare approach from treating diseases to preventing them, strengthening biosafety, and expanding mental health support. However, some experts warn that the new strategy could have unintended economic consequences, including the reallocation of budget funds toward information campaigns, digital initiatives, and infrastructure projects whose effectiveness may be difficult to assess. One of the key areas of reform is the prevention of noncommunicable diseases. Authorities are considering restrictions on advertising products high in salt, sugar, and trans fats, amid rising childhood obesity rates. According to the Food and Agriculture Organization of the United Nations, 21% of children in Kazakhstan aged 6-9 are overweight. Such restrictions could affect the media market. Research by the Institute for Fiscal Studies indicates that bans on advertising unhealthy food can reduce media revenues. In Kazakhstan, this could increase pressure on an industry already subject to limits on advertising alcohol, tobacco, and certain medications. At the same time, the ministry plans to expand public awareness campaigns, including video content and national initiatives such as “Salamatty shanyraq” (“Healthy Family”). Public health research suggests that the effectiveness of such campaigns can be difficult to measure, and their impact on behavior may be limited. Another priority is the creation of a “biological shield” system, including genomic and metagenomic surveillance, as well as the development of domestic pharmaceutical manufacturing. These initiatives are expected to attract up to $380 million in private investment. However, concerns remain about implementation capacity. Previous reports have highlighted inefficient use of medical equipment. In 2024, Health Minister Akmaral Alnazarova stated that expensive equipment in some medical facilities remained unused. In certain regions, shortages of trained specialists and necessary consumables have prevented effective deployment. The third component of the strategy focuses on mental health. Authorities plan to expand the network of specialized centers and introduce the uSupport digital platform to provide online consultations. At the same time, public trust in the state system remains limited. According to official data, individuals with addictions often avoid seeking treatment due to fears of being registered, which could restrict access to employment, education, and driver’s licenses. Experts also highlight the scale of gambling addiction. Estimates suggest that around 350,000 people in Kazakhstan suffer from compulsive gambling, while the growing availability of online casinos and microfinance services continues to contribute to rising household debt. The shift toward a preventive healthcare model aligns with global trends. However, analysts warn that without effective implementation, the reform could result in increased administrative pressure on businesses, inefficient public spending, and limited improvements in health outcomes.

Islamic finance

Uzbekistan Targets $50 Billion in Investment with Financial Reforms

Uzbekistan is preparing to introduce Islamic finance services nationwide, with the first offerings expected in 2027. Under the country’s updated “Uzbekistan 2030” development strategy, at least three commercial banks are expected to provide Sharia-compliant financial services by the end of the decade, marking a significant shift in the structure of the banking sector. Against this backdrop, President Shavkat Mirziyoyev was briefed on March 25 on a broader set of initiatives aimed at strengthening the country’s investment climate. These include plans to establish the Tashkent International Financial Center, launch an International Center for Digital Technologies, and gradually introduce Islamic finance mechanisms. The presentation comes as Uzbekistan seeks to position itself more competitively in the global economy amid rising geopolitical uncertainty and intensifying competition for foreign investment. Officials said the country’s natural resources, economic potential, and ongoing reforms create favorable conditions for attracting international companies exploring new markets. Mirziyoyev stressed the need to act swiftly to capitalize on emerging opportunities, noting that attracting foreign investors requires modern infrastructure, a transparent business environment, and legal systems aligned with international standards. Uzbekistan aims to attract more than $50 billion in investment this year. A central component of the strategy is the Tashkent International Financial Center, which is expected to serve as a platform for new investment flows and long-term economic growth. By 2030, it is projected to attract an additional $20-25 billion, contribute up to 1% of annual GDP growth, and create as many as 15,000 highly skilled jobs. The center will operate under a special legal regime incorporating elements of the common law system of England and Wales, while allowing its governing bodies to adopt independent regulations. Plans include the establishment of a Tashkent International Commercial Court and an International Arbitration Center to handle disputes. Investors are expected to benefit from tax incentives, simplified visa procedures, and the ability to freely move and repatriate capital, alongside access to modern financial instruments, including digital assets. In parallel, Uzbekistan is developing the International Center for Digital Technologies under the Enterprise Uzbekistan brand. The center will function under a special legal framework expected to remain in place until 2100. Within a regulatory sandbox, companies will be able to test new technologies, pay salaries in foreign currency, and operate under international labor and data standards. The digital center will focus on artificial intelligence, data processing, research and development, and startup support. By 2030, it is expected to attract up to 1,000 companies, create more than 300,000 jobs, and generate export revenues of up to $5 billion. Several major international technology firms have already expressed interest in the initiative. The introduction of Islamic finance is another key pillar of the reform agenda. The proposed system includes instruments such as murabaha, mudarabah, musharakah, and Islamic leasing, all designed to comply with national legislation. Tax measures are also under consideration, including exemptions on certain transactions and investment income. To oversee the sector, an Islamic Finance Council will be established under the Central Bank, with similar bodies to be created within...