Kazakhstan strengthens its leadership, accounting for over 60% of all investments in Central Asia.

2025-02-11 10:41:35https://daryo.uz/ru/2025/02/07/kazahstan-ukreplaet-liderstvo-na-stranu-prihoditsa-svyse-60%25-vseh-investicij-v-centralnoj-azii

Kazakhstan Strengthens Its Leadership: The Country Accounts for Over 60% of All Investments in Central Asia

Kazakhstan to Boost Its Economy to $450 Billion Through Foreign Investments

Kazakhstan maintains its status as the leading investment hub in Central Asia, accumulating over 60% of all foreign investments in the region, reports Tengrinews.kz.

To achieve the goal of increasing the economy to $450 billion by 2029, it is planned to attract at least $150 billion in direct foreign investments.

At the investment forum in Astana on February 7, 2025, Kazakhstan's First Deputy Prime Minister Roman Sklyar stated that the government is actively creating favorable conditions for investors. Within the framework of the Investment Headquarters, 115 investment projects have already been reviewed, totaling around $50 billion. The priority remains the elimination of administrative barriers that hinder business development.

In 2024, Kazakhstan signed seven investment agreements totaling $2.5 billion and finalized 107 investment contracts worth approximately 3 trillion tenge (about $5.8 billion at the exchange rate of the National Bank of Kazakhstan on February 7, 2025 — 515.31 tenge for $1). Since the beginning of 2025, an additional six investment agreements have been approved, exceeding $2 billion.

Kazakhstan Strengthens Its Gas Sector with $15.7 Billion in Investments

Investment volume in Kazakhstan has increased by 88%, reaching $15.7 billion.

The key contribution came from the Qatari company UCC Holding, which invested $11 billion in the construction of gas processing plants, compressor stations, and main gas pipelines.

In November 2024, it was announced that UCC Holding, a subsidiary of Qatar Power International Holding, finalized negotiations and signed an agreement to acquire a 75% stake in a gas processing plant at the Kashagan field in Kazakhstan, reported the publication inbusiness.kz citing QazaqGaz.

Upon completion of the deal, UCC Holding gained operational control over the project, which involves processing up to 1 billion cubic meters of gas per year.

The financial details and terms of the agreement have not been disclosed by the parties.

Central Asia Sees Increased Inflow of Foreign Investments

According to the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), in 2024, the volume of foreign investments in Central Asia grew by 27%, reaching $24.8 billion. Kazakhstan and Uzbekistan emerged as key destinations for international capital, attracting funds in the gas sector and bioenergy.

In 2024, the volume of Greenfield investments in Uzbekistan decreased by 49% compared to 2023, amounting to $4 billion, according to the report. However, the country is focusing on “green” technologies. The South Korean company Western Power is investing $152 million in the construction of a biofuel plant in the Fergana region, which will reduce CO₂ emissions by 120,000 tons over 10 years.

The inflow of Greenfield investments in North and Central Asia in 2024 increased by 27%, reaching $24.8 billion.

Direct investments in new projects in Russia rose by 88%, totaling $1.1 billion, despite ongoing geopolitical tensions.

The largest volumes of Greenfield investments in the region were also received by:

Kazakhstan — an increase of 88% to $15.7 billion.
Kyrgyzstan — a rise of 310% to $2.1 billion.
Azerbaijan — a slight increase of 1% to $1.2 billion.

Since 2017, a total of $188 billion in investments has been attracted to Uzbekistan's economy, of which $87 billion comprises foreign investments, according to a statement from the press service of President Shavkat Mirziyoyev of Uzbekistan. This has contributed to an increase in the share of investments in GDP to over 30%, laying the foundation for sustainable economic growth.

Outgoing investments from the Central Asia region have decreased to $2.3 billion, down by 58%.

Russia remains the largest source of capital, accounting for 90% of the total volume ($2.1 billion). The main investments are directed towards coal, oil, and gas projects in India and Belarus.
Georgia invested $105 million, Azerbaijan — $76 million, Kazakhstan — $47 million.