Technology Investment - The Times Of Central Asia

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Innovation Rankings

Central Asia in the Global Innovation Rankings: Supercomputers, Engineers, and the Economics of Government Ambitions

In the Global Innovation Index (GII), published on September 29 by the World Intellectual Property Organization (WIPO), Kazakhstan climbed eight places to rank 73rd among 139 economies. Uzbekistan ranked 77th and Kyrgyzstan 92nd. Tajikistan placed 112th, while Turkmenistan was not included in the study. The overall rankings, however, conceal some interesting details. Uzbekistan ranks second worldwide in the share of graduates in science and engineering. Kyrgyzstan ranks second in labor productivity growth, while Tajikistan leads in utility model applications relative to the size of its economy. Utility models are a simpler form of patent protection, usually for smaller inventions. Such strong results in individual indicators stand in contrast to the countries' relatively modest overall rankings. Part of the explanation lies in the study's methodology. WIPO evaluates education and scientific capacity alongside infrastructure and investment. It also considers business activity and research output. A country may train large numbers of engineers or register technical innovations while lagging in research output and investment, with limited commercial activity. For Central Asia, the rankings also offer a way to compare economic performance with the scale of governments' technological ambitions. Kazakhstan: Supercomputers in Search of Customers In recent years, Kazakhstan has assembled an impressive portfolio of digital projects. The Alem.Cloud and Al-Farabium supercomputers, along with the Data Center Valley project in Ekibastuz, are intended to improve the country's computing infrastructure. The Alem.ai artificial intelligence (AI) center and the KazLLM and AlemLLM large language models are designed to develop its AI capabilities. Training opportunities are also expanding through AI-Sana and Tomorrow School, with TUMO Astana offering education in AI and other digital fields. However, the wider use of AI remains relatively modest. The Digital Qazaqstan strategy through 2029 cites figures for the second half of 2025 showing that generative AI adoption in Kazakhstan stood at 13.7%, compared with a global average of 16.3%. Kazakhstan ranked 24th in the United Nations (UN) E-Government Development Index in its 2024 survey but 73rd in the 2026 GII. Kazakhstan's digitalization model has long centered on government services. The country's high position in the UN study reflects this focus. Commercial technologies present a more complicated picture: here, the government must rely on research teams, private developers, investors, and customers willing to pay for their services. The arrival of supercomputers expands the country's technical capabilities. How extensively they will be used outside government projects remains to be seen. Uzbekistan: Engineering Education and IT Services Exports The country has long focused on workforce development for the IT industry. An export-oriented digital services sector is growing around IT Park. Foreign companies are operating in the country, while training programs in programming and AI are expanding. Tashkent intends to support its workforce development policies with domestic computing infrastructure. Under the AI development strategy adopted in 2024, Uzbekistan plans $50 million in AI infrastructure spending and the training of one million specialists. AI laboratories are also planned at 15 universities. A smaller supercomputer is already operating, and preparations are underway to acquire a more powerful system....

Technology Investment

Enterprise Uzbekistan Offers Tech Firms English-Law Framework and Tax Incentives Through 2100

Uzbekistan is offering international technology companies a separate legal regime based on principles of English law, tax incentives, three-year visas for foreign specialists, and a regulatory sandbox for testing new products. The measures will form the basis of Enterprise Uzbekistan, a new international center for digital technologies. Organizers presented the project a ICT Week Uzbekistan 2026, held in Tashkent from September 22 to 25, during which they hosted a dedicated Enterprise Uzbekistan Summit. [caption id="attachment_56891" align="aligncenter" width="1200"] Davron Yakubov, managing partner at BDO Uzbekistan[/caption] The government hopes the new regime will reduce some of the risks foreign companies face when entering Uzbekistan, including changes in tax rules, commercial disputes, and restrictions on hiring overseas staff. The special regime is planned to remain in place through 2100, while conditions granted to participants are not supposed to become less favorable over time. Farkhod Ibragimov, Chief Executive of Enterprise Uzbekistan, said foreign companies entering a new market typically want to know how long incentives will last, how disputes will be resolved, and what tax, customs, and visa rules they will face. Sultonmurod Rasulov, Head of Strategic Partnerships at Enterprise Uzbekistan, argued that uncertainty itself imposes costs on businesses. “Uncertainty is a kind of hidden tax on every direction a business moves in and every decision it makes,” Rasulov said. For technology companies, he added, rapid economic growth alone is not enough. “Global clients do not buy Uzbekistan’s GDP. They buy certainty, they buy products, they buy predictability.” English Law, Commercial Court, and Regulatory Sandbox Enterprise Uzbekistan is being established as a separate legal environment for international technology companies. English will be the official language for documentation, while its legal framework will draw on the common law of England and Wales. Commercial disputes are expected to fall under the jurisdiction of the Tashkent International Commercial Court. “Even if the Enterprise Uzbekistan administration makes a wrong decision regarding a company, it will be able to challenge that decision in an independent court,” Ibragimov said. The center will also include a regulatory sandbox allowing companies to test products in areas where existing rules have not kept pace with new technologies. The regime is expected to cover cloud data storage and processing, international recruitment, and investment instruments familiar to foreign investors. Companies will be allowed 100% foreign ownership, while more flexible employment arrangements are planned for overseas specialists. Taxes and Visas Enterprise Uzbekistan plans to apply three main taxes: value-added tax (VAT), corporate income tax, and personal income tax. Priority activities may qualify for exemptions from corporate income tax and a zero VAT rate on sales abroad and within the center, subject to the final rules. Rasulov said highly qualified foreign specialists may also qualify for zero personal income tax on salaries and dividends. Foreign specialists are expected to be eligible for visas valid for up to three years, renewable without leaving Uzbekistan. Those meeting Enterprise Uzbekistan requirements will not need a separate work permit. Technology Exports and Talent Rasulov said Uzbekistan’s information and communications technology (ICT)...

Artificial intelligence

Kazakhstan Prepares for China Investment Forum While Pursuing U.S. AI Ties

Kazakhstan will host a major investment forum with China in Almaty on September 25, with artificial intelligence expected to feature prominently among potential new agreements. The meeting comes as Astana deepens technology cooperation with Beijing while remaining part of the U.S.-backed Pax Silica initiative. Tokayev confirmed his participation in the forum in an interview with China’s Xinhua News Agency. “This forum is intended to serve as a platform for launching new concrete economic and investment cooperation projects,” the president said. In the same interview, Tokayev outlined potential cooperation with China in AI and digital technologies, ranging from industry, mining, and energy to transport, healthcare, satellite technology, and data centers. Some projects in these areas are already being discussed with Chinese businesses. During Tokayev’s July visit to Shanghai, Kazakhstan and Chinese companies signed more than 70 commercial agreements with a stated value exceeding $15 billion. They included projects involving Huawei, robotics development, AI in the automotive industry, and the Data Center Valley in Ekibastuz, where a complex with capacity of up to 1 GW is planned. Two International Initiatives in Three Weeks On June 25, Kazakhstan became the first country in Central Asia to join Pax Silica, a U.S.-backed initiative aimed at developing trusted supply chains for the AI economy. It covers areas including semiconductors, critical minerals, computing infrastructure, energy, and advanced manufacturing. Kazakhstan also signed a joint statement with the United States on an AI Opportunity Partnership. On July 16, Kazakhstan joined 28 other countries in Shanghai in signing an agreement to establish the World Artificial Intelligence Cooperation Organization (WAICO). The organization, headquartered in Shanghai, says its goals include expanding international cooperation and developing approaches to global AI governance. Its other founding participants include Brazil, China, Indonesia, Russia, and the four other Central Asian states: Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan. Beijing is promoting wider access to AI technologies and open models, workforce development, and greater participation by developing countries in setting international rules. China is also seeking to reduce its technology sector’s dependence on U.S. components. Kazakhstan, meanwhile, has remained part of Pax Silica. Washington Raises the Question of Choosing Sides On August 14, Reuters reported that the U.S. State Department had drafted a letter for countries partnering with Washington on AI. Countries participating in both Pax Silica and the China-backed initiative could be asked to choose between the two frameworks. A U.S. official told Reuters that Washington wanted a clearer separation between the American and Chinese technology ecosystems. The report specifically identified Kazakhstan as a participant in both initiatives and said its dual participation had raised concerns in Washington. At the time, the document remained a draft. There is no public evidence that Kazakhstan has received such a demand or that Washington has formally required Astana to choose between the two initiatives. Several weeks later, Tokayev argued in his Xinhua interview against dividing technology along geopolitical lines. “AI should not become the privilege of a narrow circle of the most technologically advanced states, much less turn into a new...

Venture capital

How a New Generation of Startups From Kazakhstan Attracted International Investors

A software engineering team writes code in Almaty for a parent company incorporated in Delaware. Most of its revenue comes from customers in the United States and Singapore, with the United Kingdom another important market. Until recently, this business model was unusual in Kazakhstan. It is now becoming more common as entrepreneurs launch international companies from the outset rather than focus solely on the domestic market. Rather than adapt foreign products for Kazakhstan’s population of about 20 million, these founders are developing technology for customers abroad. Their success is drawing interest from international venture capital firms and raising Kazakhstan’s profile as a source of high-growth technology companies. Growth Measured in Numbers The latest Startups and Venture Capital in Central Asia 2026 report by RISE Research shows how quickly Kazakhstan’s venture sector is growing. Venture investment reached $209 million in 2025, nearly three times the $71 million raised a year earlier. The figure also exceeded the combined total elsewhere in Central Asia. The aggregate valuation of funded startups in Kazakhstan rose to $2.16 billion. RISE Research also found that U.S.-oriented startups with roots in Kazakhstan raised more than $214 million in 2025. This helps explain the rise in international interest. Venture funds are backing companies built for global markets rather than businesses dependent on a relatively small domestic customer base. Among the best-known examples is Higgsfield AI, which develops software for creating and editing AI-generated video. The company raised $50 million in Series A financing in September 2025. An $80 million extension in January 2026 brought the round to more than $130 million and valued the company at over $1.3 billion, confirming its status as Kazakhstan’s first unicorn. Cerebra AI develops software that analyzes CT scans to help clinicians detect ischemic and hemorrhagic strokes. The platform uses the ASPECTS scale and can return an analysis within minutes. Codiplay supplies educational software and Internet of Things kits used to teach programming and hands-on electronics in 13 countries, including South Korea and the UK. The company raised $9 million in Series A financing in January 2025. Parqour develops parking management software with automated license plate recognition. Its systems operate in 22 countries and cover more than 300 parking areas. These companies work in different fields, but their businesses are built mainly around software and intellectual property, even where hardware is part of the product. That makes expansion abroad less capital-intensive and helps explain their appeal to foreign investors. Why Investors Are Paying Attention Now Kazakhstan’s emergence as Central Asia’s leading venture capital market did not happen overnight. The record investment figures of 2025 followed several years of work in the startup sector, including Astana Hub’s accelerator programs and tax incentives. More founders also began developing products for international markets. One clear sign was international recognition. Three startups with founders from Kazakhstan were accepted into Y Combinator in 2025, matching the total accepted in all previous years combined, according to RISE Research. For international investors, acceptance into the Silicon Valley accelerator provides external validation as...