Central Asia, despite global challenges, has seen a substantial increase in foreign direct investment (FDI). According to the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), the region increased its investment inflow by 27% in 2024, reaching $24.8 bn.
Uzbekistan: A Green Approach to Development
While Uzbekistan attracted $4bn in foreign investment, a 49% decrease compared to 2023, the country is actively promoting sustainable development initiatives.
South Korea's Western Power plans to construct a $152mn biofuel plant in the Fergana region. The plant will process cotton stalks to heat greenhouses, replacing coal and reducing carbon dioxide emissions by 120,000 tons of CO2 equivalent over 10 years. This project underscores Uzbekistan's commitment to environmental sustainability, aiming to reduce dependence on fossil fuels and promote green technologies.
Kazakhstan: Gas Projects Take the Lead
Kazakhstan continues to solidify its position as the region's largest recipient of foreign investment, attracting 63% of Central Asia's total FDI, according to the report. The country's investment volume surged by 88% to reach $15.7bn.
Qatar's UCC Holding played a pivotal role in this success, investing $11bn in the construction of two gas processing plants, a compressor station, and new gas pipelines. These projects highlight Kazakhstan's strategic importance as an energy hub for Central Asia and neighboring regions.
Other Countries in the Region
- Kyrgyzstan demonstrated the most significant relative growth in investments, increasing inflow by 310% to $2.1 bn.
- Azerbaijan recorded a 1% growth, attracting $1.2bn.
- Turkmenistan and Tajikistan received investments of $339mn and $281mn, respectively.
- Georgia and Armenia attracted $126mn and $67mn.
Outward investment: decreased activity
Outward direct investment from Central Asia decreased by 58% to $2.3bn.
- Russia remained the largest source of outward capital flows, accounting for 90% of the total volume ($2.1bn). A significant portion of these investments was directed towards coal, oil, and gas projects in India and Belarus.
- Other countries in the region showed significantly less activity: Georgia invested $105mn, Azerbaijan - $76mn, and Kazakhstan - $47mn.
Comments (0)