Central Asian Investment: Kazakh Prime Minister Highlights Strategic Importance at Tashkent Discussion
Kickstarting Economic Growth: Kazakhstan and Uzbekistan's Investment Priorities
ASTANA – Attracting investment is a crucial engine for economic development in Central Asia, underscored Kazakh Prime Minister Olzhas Bektenov during his speech at the fourth Tashkent International Investment Forum on June 10.
"At the recent Astana economic Forum, President of Kazakhstan Kassym-Jomart Tokayev advocated our country's dedication to building a robust, unified, and forward-thinking Central Asia. The government of Kazakhstan is determined to spearhead successful and enduring projects, fostering a symbiotic relationship of trust and sustainable development. Drawing investments is a vital factor in our region's economic paradigm," said Bektenov.
Bektenov set a target of attracting at least $150 billion of foreign capital into the economy by 2029.
"Large-scale and ambitious targets, but from our perspective, they are achievable. To this end, comprehensive reforms aimed at national economic transformation are being carried out diligently," said Bektenov.
Investment incentives in Kazakhstan include tax breaks, customs duty exemptions, in-kind grants, and infrastructure development.
Uzbek President Shavkat Mirziyoyev, addressing the forum participants, emphasized the country's focus on economic stability. "Our GDP has doubled over the past eight years. We aim to raise it to $200 billion by 2030. Last year, investments into our national economy reached $35 billion, and exports amounted to $27 billion. This is a tangible outcome of the Tashkent International Investment Forum, now in its fourth consecutive year," said Mirziyoyev.
Mirziyoyev pinpointed the green sector, digital technologies and AI, and the financial system and technologies as key sectors for investment in Uzbekistan.
"We are dedicated to fostering green energy for a reliable energy supply. Over the past short period, approximately $6 billion in foreign direct investment has been funneled into this sector. (...) We plan to pump in $4 billion to upgrade power grids," said Uzbek President.
During the forum, Prime Minister Bektenov and President Mirziyoyev held discussions on various topics, including trade and economic relations, transport and logistics, industrial collaboration, water and energy cooperation, as well as cultural and humanitarian ties.
Uzbekistan serves as an essential trading partner for Kazakhstan. In the first four months of the year, bilateral trade reached $1.3 billion, marking a 9.4% increase compared to the same period last year. Exports rose by 15.9%, totaling $1 billion. This growth was primarily driven by cooperation within the industry, automotive manufacturing, and agriculture.
Besides expanding trade and investment ties, Bektenov touched on several key priorities: strengthening regional cooperation in energy and logistics, developing critical minerals, advancing digitalization, and promoting sustainable growth.
Kazakhstan's Investment Focus
While the specific sectors emphasized by Kazakhstan's leaders during the forum weren't detailed in the provided sources, Kazakhstan typically focuses on attracting long-term investments into strategic sectors such as banking ecosystems, e-commerce platforms, and e-government services, as well as energy, logistics, and infrastructure, thanks to its natural resources and strategic position between Europe and Asia.
Uzbekistan's Investment Pointers
According to the leaders' statements at the forum, Uzbekistan has identified several key sectors for investment:- Green sector: Uzbekistan aims to establish a sustainable energy base, with investments in clean energy resources and upgrades to power grids.- Digital technologies and AI: Uzbekistan sees digitalization as a cornerstone of its future economic growth.- Financial system and technologies: Improvements in this area are seen as essential for economic development.- Energy and industry: Uzbekistan is building energy projects, including thermal power plants and solar power plants, and focusing on infrastructure development.
A favorable investment climate, inclusive of legal guarantees and a level playing field for foreign investors, is a priority for Uzbekistan.
In the context of Central Asia's economic development, Kazakhstan is focusing on strategic sectors such as banking ecosystems, e-commerce platforms, e-government services, energy, logistics, and infrastructure for long-term investments.
Uzbekistan has identified key sectors for investment, including the green sector for sustainable energy, digital technologies and AI, the financial system and technologies, energy, and industry, with a priority given to maintaining a favorable investment climate that ensures legal guarantees and a level playing field for foreign investors.
