Investments - The Times Of Central Asia

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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.

Aviation Investment

European Investment Fund Commits Over $200 Million to Tajik Airline

The European investment fund CFC s.r.o. plans to invest more than $200 million in the development of Tajikistan’s private carrier Shohin Airlines. The five-year agreement follows several months of negotiations between the parties. According to Shohin Airlines, the final round of talks took place on March 10, 2026, in Dushanbe. The meeting was attended by the airline’s chief executive officer, Zafar Ahmadzoda, and the founder of CFC s.r.o., Guntars Selikovs. One factor influencing the investor’s decision was the recent improvement in Tajikistan’s sovereign credit ratings by the international agencies Moody’s and S&P Global Ratings. This development has increased foreign partners’ confidence in the country’s economic stability. The parties agreed that the investment will be directed toward expanding the airline’s fleet, developing operational capacity, and modernizing infrastructure. “The signing of the investment agreement is an important milestone in Shohin Airlines’ development,” Ahmadzoda said, noting that the deal is expected to accelerate the company’s growth and expand its route network. Selikovs stated that negotiations lasted more than six months and included meetings in Dubai and several European countries. “This allowed us to thoroughly assess the company’s business model and market potential,” he said. Shohin Airlines is a private carrier focused on developing regional aviation in Tajikistan and neighboring markets. At present, the company operates specialized helicopter flights. The next stage of development will involve fleet expansion. In the near future, the airline plans to acquire an L-410 NG, a Czech-made turboprop aircraft designed for regional transport. CFC s.r.o., a fund registered in the Czech Republic, operates across markets in Europe, the Persian Gulf, and Central Asia. Its investment strategy focuses on fast-growing industries. The agreement with Shohin Airlines could become one of the largest private investments in Tajikistan’s aviation sector in recent years and may signal growing interest among international investors in the country.

Energy Project

Italy’s Eni Expands Energy Projects in Kazakhstan with Hybrid Power Plant

The Italian energy company Eni is accelerating the expansion of its projects in Kazakhstan. By the end of the year, the company plans to complete construction of a hybrid power plant in Zhanaozen, one of the country’s key oil and gas centers. The 247-MW project combines three energy sources: solar, wind, and gas generation. The approach is expected to reduce the carbon footprint while providing a more stable energy supply in a region where strategically important production assets are concentrated Construction is proceeding in stages. The first component is already operational. In September 2025, a solar power plant with 80,000 panels was commissioned. Full completion of the complex is scheduled for the end of 2026, following the launch of gas and wind generation facilities. According to the Ministry of Energy, the project is intended to strengthen energy security for major enterprises in the Mangistau region, including Ozenmunaygaz and the Kazakh Gas Processing Plant. In a region that regularly experiences power shortages, this is a significant development. The project was discussed during a meeting between Kazakhstan’s Minister of Energy Yerlan Akkenzhenov and Italy’s Ambassador to Kazakhstan Antonello De Riu. Italian companies are gradually expanding their presence in Kazakhstan’s energy sector, from upstream production to processing and power generation. Cooperation extends beyond electricity generation. In January 2026, QazaqGaz and Eni moved to the practical phase of exploration at the Kamenkovsky block in the Caspian Basin. Work is also continuing at the Yuzhny Shu-Sarysu and Bereke blocks. Another major initiative is the gas-chemical complex under construction in the Atyrau region. The polyethylene project, with a planned capacity of 1.25 million tons per year and an estimated cost of $7.5 billion, has already entered the construction phase. The project is being implemented by KMG PetroChem, with Italy’s MAIRE group (through its subsidiary Tecnimont) serving as a key contractor. At the same time, conventional power generation projects are advancing. Cooperation with Italian power engineering company Ansaldo Energia has enabled the installation of new gas turbines at Almaty CHPP-3, with equipment deliveries completed in January 2026. However, this expanding cooperation is taking place amid legal uncertainty. Earlier, Eni and Shell, partners in the development of the Karachaganak field, lost a key stage of arbitration proceedings in London and may be required to pay Kazakhstan between $2 billion and $4 billion. While this could affect future investment decisions, it has not so far slowed the growth of Italian companies’ activities in the country.

TCA Interviews

Can Special Economic Zones Become a Driver of Economic Growth in Kazakhstan?

Kazakhstan currently has 17 special economic zones (SEZs) operating across 14 regions, three of which were created in 2025. How effective is this tool for attracting investment, reducing import dependence, and developing exports? And how will the SEZ model evolve within the framework of the Single Coordination Center? Yerlan Kusainov, Deputy Chairman of the Board of JSC Kazakhstan Center for Industry and Export “QazIndustry,” discussed these issues with The Times of Central Asia. TCA: Kazakhstan currently has 17 SEZs. How many companies operate in them, and what is the total volume of production? Kusainov: There are 1,144 participants registered in SEZ territories. Of these, 558 projects are already operational, while another 586 are in the implementation stage. Since the establishment of the zones, enterprises have produced goods worth 13.9 trillion tenge (about $28 billion). The current occupancy rate of the SEZs is 42.4%. This indicator is dynamic and may change as new contracts are signed or as some participants cease operations. TCA: What types of products are manufactured in the SEZs, and how does this contribute to reducing import dependence? Kusainov: The SEZs cover a wide range of industries, including manufacturing, construction, transport and logistics, and tourism. For example, the Aktau Seaport SEZ is implementing projects in the chemical industry, including the production of caustic soda and hydrochloric acid by Topan Chemical Industries. These products are widely used in metallurgy, the oil and gas industry, and water treatment. Previously, a significant portion of such products was imported, but production is now being localized in Kazakhstan. A major petrochemical cluster is being formed in the Jibek Joly SEZ. Projects there include the production of mineral fertilizers, chemical reagents, and polymer products. Participating companies include HIM-plus, KPM Plast, Chemical Engineering, and C9 Technologies. These projects are expected to supply the domestic market while also supporting exports. In the Pavlodar SEZ, projects are being implemented in metallurgy and petrochemicals. These include the production of calcined petroleum coke by UPNC-PV, car wheels by Vector Pavlodar, and aluminum ingots and alloys by LeichtMetall KZ and Unimetals. These products are exported to markets in Europe and Asia. The Ontustik SEZ focuses on the textile industry, where a full cotton-processing cycle has been established, from raw materials to finished products. Enterprises there produce cotton and synthetic yarn, carpets, and other textile goods. Another important site is the Park of Innovative Technologies SEZ, where projects in digital technologies and electronics are being developed. Key participants include the Institute of Physics and Technology, KT Cloud Lab, which is building a data center, and DS Multimedia CA, which manufactures electronic components. Together, these projects contribute to reducing import dependence and building export-oriented industries. TCA: What is the export volume of SEZ enterprises? Kusainov: The total export volume from SEZ enterprises has reached about $2 billion. In 2025 alone, exports amounted to approximately $490 million, compared with $148 million in 2021, an increase of 231%. TCA: How much investment has been attracted through the SEZs? Kusainov: Over the entire period of...

Asian Development Bank

Asian Development Bank to Invest $5.5 Billion in 15 Projects in Kazakhstan by 2029

Kazakhstan's government and the Asian Development Bank (ADB) have signed a memorandum of understanding to implement 15 major projects worth approximately $5.5 billion in the period 2026-2029. The initiatives, focused on infrastructure, digitalization, and sustainable development, aim to strengthen the country’s transit capacity and investment appeal. According to an official statement, the memorandum lays the groundwork for large-scale projects in regional connectivity, disaster resilience, water resource management, modernization of housing and utilities infrastructure, and housing market development. ADB will also continue financing private-sector initiatives, including projects in agriculture, transport, and logistics. Priority areas include transport and logistics infrastructure, emergency response systems, digital technology development, and green finance. The parties also highlighted potential cooperation in artificial intelligence, the construction of data centers, the expansion of fiber-optic backbone networks, and the digitalization of transport corridors and customs procedures. One of the first concrete steps under the agreement is a project between KazAutoZhol JSC and the ADB to construct a 102-kilometer bypass road around the town of Saryagash in the Turkestan region. The new road is expected to enhance road safety, accelerate freight and passenger transport, and strengthen trade links between Kazakhstan and Uzbekistan. The parties also reviewed progress on a public-private partnership project to build a 300-bed university hospital in Karaganda. The planned medical cluster will combine professional training and scientific research, with subsequent integration of innovations into practical healthcare. ADB President Masato Kanda noted Kazakhstan’s progress in structural reforms, including measures to enhance financial sector stability, and reaffirmed the bank’s interest in supporting the country’s digital transformation. Earlier, ADB initiated a project to develop a shorter road route from Almaty to Lake Issyk-Kul in Kyrgyzstan. The new route is expected to reduce travel time by nearly half, strengthening tourism and trade connectivity between the two countries.

Pharmaceuticals

EBRD Provides €20 Million Loan to Expand Uzbekistan’s Pharmaceutical Production

Uzbekistan is taking further steps to strengthen its pharmaceutical industry and healthcare system through new investment and sector reforms aimed at reducing reliance on imported medical products. The European Bank for Reconstruction and Development (EBRD) has announced a loan of up to €20 million to its long-term client Samarkand England Eco-Medical (SEEM) and its sister company, Bayan Medical. Both companies produce intravenous solutions, including sodium chloride, glucose, and amino acid infusions, as well as generic and specialized medicines in tablet and capsule form. The financing will support the installation of new production lines at SEEM, enabling the company to expand manufacturing of in-glass intravenous solutions, antibiotics, syrups and suspensions, medical-grade water, nasal sprays, suppositories, and ointments. Part of the funds will also be allocated to modernizing Bayan Medical’s facilities, including energy-efficiency upgrades and the installation of a blow-fill-seal ampoule production line and other specialized equipment. The companies are also expected to restructure their balance sheets as part of the project. The investment comes at a time when approximately 75% of medical goods used in Uzbekistan are imported. Expanding domestic production capacity is intended to promote localization, strengthen supply security, and align manufacturing standards with international requirements. The project also includes social and workforce components. Bayan Medical plans to introduce internship opportunities for university graduates, expand professional training programs for employees, and create new jobs, including positions accessible to people with disabilities. To date, the EBRD has invested nearly $6.9 billion (€5.8 billion) in Uzbekistan across 205 projects, the majority of which have supported private sector development. Uzbekistan has been the largest recipient of EBRD funding in Central Asia for six consecutive years, reflecting sustained economic reforms and investor engagement. Healthcare indicators point to broader structural progress. According to the 2024 Health Care Index published by CEOWORLD magazine, Uzbekistan ranks first in Central Asia and 64th globally, with a score of 36.26. Kazakhstan ranks 78th, and Turkmenistan 95th. Data from the World Health Organization and the World Bank indicate that Uzbekistan’s Universal Health Coverage service index rose from the mid-50s in 2000 to the mid-70s by 2021, suggesting expanded access to essential medical services. Authorities aim to further increase coverage by 2027 while reducing out-of-pocket healthcare spending through strengthened primary care systems and clearer guarantees of publicly funded services.