Central Asia: From Transit Corridor to Investment Destination

Central Asia: from transit corridor to investment destination

The New Geography of Capital: Why Kazakhstan Matters

By Renat Bekturov, Governor of the Astana International Financial Centre

At a time of heightened geopolitical complexity, ongoing conflicts, disruptions in global supply chains, economic transformation, and rapid technological change, Central Asia is gaining renewed strategic importance. For decades, the region has been viewed primarily through the prism of geography, natural resources, and geopolitics. Positioned between China, Russia, Europe, and the Middle East, it has long played an important role in global trade, logistics, and energy security.

Yet in today’s economy, geography alone is no longer enough to attract sustainable investment. Capital no longer flows simply toward resources or transit routes. It flows toward jurisdictions that offer trust, transparency, legal certainty, market access, and the institutional capacity to manage risk.

This shift is already visible in the growing partnership between Kazakhstan and the European Union – one of the clearest signals of Central Asia’s rising global relevance.

European Partnership as a Strategic Anchor

Kazakhstan is the European Union’s largest partner in Central Asia, accounting for more than 80% of the EU’s trade with the region, while the EU remains Kazakhstan’s leading trade and investment partner globally.

The EU represents almost 40 % of Kazakhstan’s total trade, and in 2025, bilateral trade reached USD 45.1 billion, with exports totaling USD 34.7 billion and imports USD 10.4 billion. These flows are largely driven by energy exports and imports of machinery and equipment.

Today, more than 4,000 European-linked companies operate in Kazakhstan across sectors such as energy, manufacturing, finance, logistics, and digitalization, including global leaders such as TotalEnergies, Siemens, Airbus, and Schneider Electric. Since 2005, cumulative European investment has exceeded USD 200 billion.

The depth of this partnership is also reflected in engagement with leading European financial centres. Cooperation between Kazakhstan and Luxembourg spans green technologies, digitalisation, renewable energy, pharmaceuticals, and agriculture. During 2005 - 2025, investment from Luxembourg reached USD 3.8 billion, with 192 enterprises operating in Kazakhstan.

This growing engagement highlights a broader shift: European capital is increasingly aligning with Central Asia’s long-term development priorities.

A New Financial Architecture for Central Asia

This is precisely why a new financial architecture is emerging across the region - and why the Astana International Financial Centre (AIFC) is playing a central role in shaping it.

Established in 2018, the AIFC was created as an independent jurisdiction designed to connect international capital with the rapidly evolving opportunities of Kazakhstan and the wider Central Asian region. Built on the principles of English common law, it provides institutional predictability in an emerging market environment.

Today, more than 5,600 companies from 90 countries operate under the AIFC jurisdiction, including over 730 companies from Europe. Total investments facilitated through the centre have exceeded USD 21.8 billion, while more than 10,000 jobs have been created across its ecosystem.

These numbers reflect not only growth, but confidence.

Building Trust Through Institutions

In global finance, capital follows trust. Trust is built through predictable regulation, independent courts, enforceable contracts, and transparent governance.

The AIFC remains the only jurisdiction in Central Asia operating under English common law principles, supported by the Astana Financial Services Authority, the AIFC Court, and the International Arbitration Centre.

This institutional foundation has allowed Astana to rank as the leading financial centre in Eastern Europe and Central Asia for three consecutive years in the Global Financial Centres Index, while aligning with international AML/CFT and OECD transparency standards. For investors, these are not technicalities - they are prerequisites.

Connecting Regional Opportunities with Global Markets

A financial centre is only as strong as its market infrastructure. At the core of the AIFC ecosystem is the Astana International Exchange (AIX), operating on Nasdaq technology and integrated with global settlement systems such as Euroclear.

This infrastructure is enabling new forms of cross-border capital formation. Recent milestones include the region’s first yuan-denominated IPO via a dual listing with the Hong Kong Stock Exchange, Kazakhstan’s first spot Bitcoin ETF, and the world’s first spot Solana ETF with staking functionality.

These developments reflect a broader transformation: emerging markets are becoming digitally integrated, multi-currency, and globally connected.

Financing the Green Transition

The next decade will be defined not only by growth, but by sustainability. Across Central Asia, energy transition, infrastructure modernization, and climate adaptation are driving demand for green capital.

Through the AIFC Green Finance Centre, Kazakhstan introduced the region’s first national Green Taxonomy. Approximately 70% of all green bonds and loans in Kazakhstan have been verified within the AIFC ecosystem.

The AIFC has also launched a regional Carbon Platform, providing access to international environmental instruments such as I-REC certificates and carbon credits.

Regulating Digital Finance

At the same time, digital assets are reshaping global finance.

The AIFC became the first jurisdiction in the region to introduce a comprehensive regulatory framework for digital asset service providers. In 2025, it was recognized globally for aligning its regulatory approach with IOSCO principles.

Beyond Traditional Finance

Modern financial centres must go beyond traditional markets. The AIFC is expanding into strategic sectors that define future growth.

In mining, the AIFC launched Central Asia’s first Junior Mining Platform, aimed at attracting investment into geological exploration, particularly relevant given that over 65% of Kazakhstan’s territory remains underexplored.

In aviation, the AIFC Aviation Hub facilitates aircraft leasing and structured financing transactions, supporting regional connectivity.

In Islamic finance, the AIFC has established the region’s only full ecosystem operating under Shariah principles.

In the creative economy, we are developing legal and financial infrastructure for intellectual property protection, venture financing, crowdfunding, and asset tokenisation.

These sectors differ - but share one requirement: access to trusted capital.

Bridging Europe, Central Asia and Kazakhstan

The AIFC will continue serving as the institutional bridge between European capital and Central Asian opportunity. Offering over 220 business and professional services, it provides a trusted environment for long-term partnerships.

In the decade ahead, we see growing collaboration in critical minerals, clean energy, digital infrastructure, and logistics - areas where European expertise aligns closely with Kazakhstan’s development priorities.

Each successful project strengthens not only commercial ties, but also institutional trust and regional stability.

Central Asia: From Transit Corridor to Investment Destination