Regional integration - The Times Of Central Asia

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Banking

Halyk Bank Buys 49% Stake in Uzbekistan’s Click in Landmark Fintech Deal

Almaty - Kazakhstan’s Halyk Bank has announced it will acquire a 49% stake in Uzbek digital payments company Click for $176.4 million, marking one of the largest cross-border banking investments in Central Asia to date. The deal values Click at approximately $360 million, highlighting the growing importance of digital finance in the region’s rapidly evolving financial landscape. With over 20 million customers, Click is one of Uzbekistan’s most widely used payment providers. As part of the agreement, Click will also take a 49% stake in Tenge Bank, Halyk’s Uzbek subsidiary, for $60.76 million. The reciprocal structure of the deal is designed to foster tighter operational integration and shared technological infrastructure between the two institutions – a significant step toward regional financial harmonization. “This is a historic moment for Click. Partnering with Halyk Bank and expanding our capabilities through Tenge Bank represents a major step forward in delivering world-class digital financial services to millions of users,” said Ulugbek Rustamov, CEO of Click. “At the same time, the structure of the deal ensures Click retains its independence, continues to shape its strategic vision, and remains a proud national brand.” Strategic Push Toward Integration The announcement comes as both Kazakhstan and Uzbekistan continue efforts to modernize their financial systems and ease cross-border payments. Regional trade between the two nations has grown steadily in recent years, with bilateral trade turnover reaching $4.22 billion in 2024, up from $2.9 billion in 2020. Halyk Bank, already Kazakhstan’s dominant financial institution with a 29% market share and more than 10.9 million active retail clients, views the investment as a strategic step towards capturing Uzbekistan’s booming digital economy. Click, meanwhile, gains regulatory grounding via Tenge Bank and access to Halyk’s technology and ability to raise capital from its public listing on the London Stock Exchange. Uzbekistan, whose GDP grew by 7.2% in the first half of 2025, continues to open its financial sector to foreign capital – a key pillar of President Shavkat Mirziyoyev’s economic reform program. Competing Power Structures? This fintech alliance also throws an intriguing light on Central Asia’s most influential business families. Halyk Bank is majority-owned by Timur Kulibayev and his wife Dinara, the daughter of former Kazakh president Nursultan Nazarbayev, widely viewed as Kazakhstan’s most powerful couple. Their expanding presence in Uzbekistan via Click and Tenge Bank may once have had the potential to ruffle feathers amongst Uzbekistan’s elite. The fact that the deal has been allowed to proceed this far is in itself an acknowledgement of the shared interests of regional powerbrokers. A Shift in Regional Strategy The deal represents a strategic reversal for Halyk Bank. In recent years, the bank has divested from its Kyrgyz and Tajik operations, selling 100% of its Kyrgyz subsidiary to oligarch Aidan Karibzhanov in 2024 and liquidating its Tajik entity in 2022. The Click acquisition signals a renewed focus on Uzbekistan, with the potential to make the country Halyk’s primary external growth market. This renewed push comes as Halyk cements its dominance in Kazakhstan, where it controls...

Agriculture

Turkic States Push Digital Integration and Organic Farming in Agriculture Sector

The fourth meeting of agriculture ministers from the Organization of Turkic States (OTS) took place on June 25 in Cholpon-Ata, in Kyrgyzstan’s Issyk-Kul region, with a strong focus on organic agriculture and digital transformation in the sector. Strengthening Regional Agricultural Cooperation Agriculture ministers from Azerbaijan, Kazakhstan, Kyrgyzstan, Turkey, Uzbekistan, and Hungary convened to reaffirm their shared commitment to sustainable agriculture and explore strategies for deepening regional cooperation. Central to the discussions was the promotion of organic farming as a tool for ensuring food security, preserving natural resources, and adapting to climate change. The ministers unanimously supported Kyrgyzstan’s proposal to designate Cholpon-Ata as the “Agricultural Capital of the OTS” for one year, beginning in September 2025. A major outcome of the meeting was the decision to establish a Digital Agro-Platform for OTS member states. This digital initiative is designed to simplify market access for farmers and agribusinesses, reduce trade and customs barriers, and increase transparency in agricultural supply chains. The platform aims to streamline trade within the region and bolster exports. The ministers also endorsed the promotion of a unified regional label, “OTS-Made”, for agricultural and food products originating from member countries, with the goal of strengthening brand identity and consumer trust. Kyrgyzstan’s Organic Agriculture Ambitions During the forum, Kyrgyzstan’s Deputy Chairman of the Cabinet of Ministers and Minister of Water Resources, Agriculture and Processing Industry, Bakyt Torobayev, announced a national organic agriculture development program for 2025-2029. The program sets ambitious targets: expanding certified organic farmland from the current 63,000 hectares (5.25% of arable land) to 200,000 hectares by 2029 and transitioning the Issyk-Kul and Naryn regions entirely to organic farming methods. In addition to increasing the land under organic cultivation, the government aims to raise the share of organic products to 25% of total agricultural output and increase the proportion of organic goods in agricultural exports to 25%. “Kyrgyz agricultural products are environmentally friendly, as they are produced in favorable agro-climatic conditions, on mountain pastures irrigated with clean glacial waters, and on fertile lands,” said Torobayev. By positioning organic agriculture as a regional priority and embracing digital tools, the OTS member countries are taking coordinated steps to modernize their agricultural sectors and ensure long-term food and environmental sustainability.

Central Asia-China Summit

XI Jinping’s Five Points: How China Is Looking To Reshape Central Asia

The second China-Central Asia summit on June 17, held in Astana, Kazakhstan, underscored the strengthening ties between China and the region. This event marked a significant milestone in solidifying the China-Central Asia cooperation framework with the signing of the Treaty on Eternal Good-Neighborliness, Friendship, and Cooperation. Experts note that Central Asian countries, once unable to adopt an intra-regional treaty, collectively reached this broader agreement with China. The summit also featured a range of side events, including the Energy Forum “Energy of Central Asia - China,” the Forum on Humanitarian Exchange, the Second Forum on Industrial and Investment Cooperation, and the Central Asia-China Business Council meeting, among others. These gatherings highlighted cooperation in energy, trade, and cultural exchange, reflecting China’s deepening influence in the region. Kazakh President Kassym-Jomart Tokayev praised China’s approach to equal partnership, stating that relations between the two nations are “stable and free from the negative impacts of geopolitical challenges and shocks as well as the international circumstances. China has never imposed any political conditions regarding cooperation with Kazakhstan.” “This is a very important point, Kazakhstani Sinologist Adil Kaukenov explained, “as the head of state, being at the forefront of Kazakhstan's foreign and domestic policies, faces political games, manipulation, and pressure at various levels, which require considerable restraint, experience as a statesman, and popular support to overcome.” During the summit, the heads of the Central Asian states articulated their priorities for cooperation with China. Kazakhstan emphasized projects like the creation of a joint cargo terminal in the port of Kuryk on the Caspian Sea, cooperation in the fields of nuclear energy and artificial intelligence, and counteracting international cybercrime. Kyrgyzstan focused on security, transport, e-commerce, energy, and tourism. Tajikistan prioritized industrial development, trade, food security, and green economy initiatives. Uzbekistan, meanwhile, sought the further integration of Afghanistan into the region, and proposed an “Electronic Silk Road” trade platform, and the development of a long-term strategy called the “Central Asia-China Industrial and Infrastructure Belt.” Chinese President Xi Jinping used his address to outline five key points that shape China’s vision for the future of its relationship with Central Asia. “Our cooperation is rooted in more than two thousand years of friendly relations, consolidated by the solidarity and mutual trust that has been established for 30 years since the establishment of diplomatic relations, and has made great progress thanks to mutually beneficial cooperation in the new era,” Xi stated in his keynote speech. According to Xi, China considers Central Asia one of the priorities of its foreign policy, and this building of peaceful, inclusive partnerships was marked by the historical milestone of the signing of the treaty at the summit. “We will improve the architecture of cooperation, which is characterized by pragmatism, efficiency, and deep integration,” the Chinese president said, adding that 2025–2026 have been declared the Years of High-Quality Development of China-Central Asia Cooperation. This initiative will focus on trade, transport connectivity, green energy, agriculture, and technology. Notably, China pledged 1.5 billion yuan ($208 million) in grants for projects aimed...

Agriculture

Central Asia Prioritizes Food Security Amid Shared Challenges

Food security remains a top priority for Central Asian nations, yet they face shared challenges that threaten regional stability. Deteriorating water resources, climate change, reliance on external food markets, and geopolitical pressures have intensified the need for regional cooperation in addressing these issues. Bilateral and Regional Efforts Talks between the presidents of Uzbekistan and Kazakhstan, Shavkat Mirziyoyev and Kassym-Jomart Tokayev, on August 8 underscored the importance of collaboration. The two leaders witnessed the signing of an agricultural cooperation agreement between their respective ministries. This followed Tokayev’s November 2022 visit to Tashkent, which was particularly productive in advancing food security. Agreements included joint production of mineral fertilizers and a bilateral cooperation program worth $1.3 billion aimed at boosting mutual trade and developing agricultural projects. Trade within Central Asia has grown significantly, with Uzbekistan’s trade volume with its neighbors nearly doubling between 2017 and 2019. Kazakhstan, the region’s leading grain supplier, plays a central role: • Uzbekistan accounts for 60% of Kazakhstan’s grain exports. • Tajikistan consumes 18%. • Kyrgyzstan takes 14%. • Turkmenistan absorbs 6%. Despite this growth, experts highlight the untapped potential for expanding trade and cooperation in agriculture. Common Challenges Food security challenges are compounded by shared threats, including demographic growth and dwindling water resources. The region’s population has reached 75.5 million, while irrigated land per capita has decreased by more than 25% over the past 15 years. Water availability in the Syr Darya and Amu Darya river basins—crucial for irrigating 10 million hectares - faces a projected 15% decline. This is exacerbated by the alarming retreat of glaciers that feed these rivers, jeopardizing long-term agricultural sustainability. The Need for Regional Solutions While each Central Asian country primarily relies on its resources to address food security, the interconnected nature of these challenges calls for a collective approach. Enhanced regional cooperation is essential to develop resilient agricultural systems, manage water resources effectively, and ensure sustainable growth in food production.

Organization of Turkic States

Empowering Trade and Women Entrepreneurs: Kazakhstan’s Digital Leap for the Turkic States

The head of the Presidium of the National Association of Women Entrepreneurs of Kazakhstan (ASMAR), Lazzat Ramazanova, who currently chairs the Council of Women Entrepreneurs of Turkic States, has reported on the development of a single digital ecosystem for business in the five countries which form the Organization of Turkic States (OTS). This platform is expected to expand international trade with countries outside of the Organization. This year, Kazakhstan chairs the Council of Women Entrepreneurs of Turkic States, which operates under the OTS and includes five member countries: Kazakhstan, Kyrgyzstan, Azerbaijan, Turkey, and Uzbekistan. Three more countries - Hungary, Northern Cyprus, and Turkmenistan - are represented in the Organization with the status of observer states. One of the goals of Kazakhstan's chairing of the OTS was to strengthen business ties between Turkic states. To this end, the Turkic Business Hub initiative was implemented, an online platform that will become an important element of integration and cooperation in the region. Speaking at the close of the meeting in Astana, Lazzat Ramazanova told those in attendance: “Today, within the framework of the General Assembly of Women Entrepreneurs of the Turkic World, an ambitious initiative was put forward to create a unified digital platform for business. Kazakhstan was the initiator and implementer of this idea, as our country is now among the top 25 most digitized countries. The platform has already been developed, and in Kazakhstan, we are already working with our ministries on the integration of info-systems. Now, we will work with the governments of Turkic states so that the same integration takes place with their info-systems. In other words, the software has been created, and we are working to bring other countries into it.” The main advantage of a Turkic Business Hub is it ensures business security when choosing a partner in a given country. This is because when a user of the platform registers as a potential participant in trade relations, all information about them as a business entity is collected. Artificial intelligence automatically scans the fiscal (tax and customs) authorities and runs the business' credit history through the hub's integration with the databases of banks. The banks have their own interest in this system, since using it they can find clients and borrowers who have passed strict compliance checks. AI can also monitor the presence or absence of lawsuits from former partners of the entity that is attempting to register. “In the case of detection of negative information, the entity is denied registration, i.e., from there start, there will be no 'scam' companies or unscrupulous counter-parties on the platform," Ramazanova explained. "They will immediately be 'canceled' by the artificial intelligence based on the data from tax, customs, and other state services. But the most important thing is that in case of rejection, AI will send such the rejectee a complete summary of the reasons why they were denied registration, so the business will know what they need to correct to join the system. Once business entities that have no...

Organization of Turkic States

OTS Countries Take Steps Towards Turkic Integration

On October 18, Bishkek hosted the 13th meeting of the Organization of Turkic States (OTS), wherein Ministers of Economy and Trade aimed to strengthen economic cooperation between the OTS member states. The OTS, currently comprising Azerbaijan, Kazakhstan, Kyrgyzstan, Turkey, Uzbekistan, and Turkmenistan, with Hungary and the Turkish Republic of Northern Cyprus as observers, was founded in 2009 to foster comprehensive cooperation among Turkic-speaking nations. During the meeting, Chairman of the Cabinet of Ministers of Kyrgyzstan, Akylbek Japarov, stated that in recent years, Kyrgyzstan's trade turnover with the OTS member states has grown by almost 62%, with Kyrgyz exports increasing by 54.6%, and imports by 66%. The Deputy Prime Minister - Minister of National Economy of Kazakhstan, Nurlan Baibazarov, emphasized Kazakhstan’s adherence to the development of Turkic integration and announced that the "Turkic Investment Fund created within the OTS demonstrates a common desire to expand economic and investment cooperation, implement joint investment projects, and attract capital, technology, and talent for our countries' dynamic growth and prosperity." OTS ministers supported Kazakhstan's initiatives to create a Green Finance Council, a Council of Central (National) Banks of the OTS member states, and the inauguration of the Turan Special Economic Zone in the Kazakh city of Turkestan, where the next meeting will be held. In January-August 2024, trade between Kazakhstan and the OTS countries amounted to $7.2 billion, and according to the Turkish Ministry of Finance, by the end of 2024, the Turkic states are poised to play an important role in the world economy, reaching an economic volume of $1.9 trillion and a population of 178 million. As previously reported by The Times of Central Asia, the Turkic Investment Fund, with an authorized capital of $1 billion, will begin financing major joint projects of the OTS member countries from January 2025.