The volume of foreign direct investment (FDI) from Asian countries to Central Asia has significantly increased from $29.9 billion in 2016 to $68 billion by mid-2025, which is a 2.3-fold increase.
The main factors contributing to the investment attractiveness of Central Asia include:
Rich natural resources and high potential for infrastructure growth
The region has large reserves of oil, gas, and metals, including rare earth elements, making it appealing to foreign investors with experience in extraction and construction. New technologies and expertise in renewable energy sources (solar and wind) also open up additional investment opportunities.
Improvement of the investment climate in the region
Increased competition for FDI among Central Asian states is pushing them to implement reforms. Uzbekistan has become a leading country in attracting foreign investments in recent years, while Kazakhstan is working on improving its legislative framework and creating support mechanisms for investors.
Kyrgyzstan and Tajikistan are also drawing attention to investment projects in hydropower and other areas, which overall enhances the region's attractiveness for foreign investors. Central Asia has effectively become a key center of investment appeal in Eurasia.
Central Asia is the main beneficiary of the changing geography of FDI in Eurasia
A significant portion of FDI has shifted to Central Asia from other countries in the Eurasian region, and further growth in its share of the regional FDI portfolio is expected in the coming years.
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The Asian countries considered in the report include: Afghanistan, Vietnam, India, Iran, Indonesia, China, Turkey, and Gulf states — Bahrain, Qatar, Kuwait, UAE, Oman, Saudi Arabia.
Central Asia consists of five countries: Kazakhstan, Kyrgyzstan, Uzbekistan, Tajikistan, and Turkmenistan.
