Kazakhstan, Uzbekistan Seal $7 Billion Deal for Investment & Trade Projects

Kazakhstan and Uzbekistan have reached a landmark agreement to jointly implement 34 investment projects valued at $4.4 billion and seven trade contracts worth $2.6 billion.

This agreement was announced following bilateral talks between Kazakh Deputy Prime Minister Serik Zhumangarin and his Uzbek counterpart Jamshid Khodjaev at the Kazakh-Uzbek business forum on Wednesday.

According to the Prime Minister’s press service, the investment projects will cover a range of sectors, including energy, mining, transport, chemicals, construction, electrical engineering, mechanical engineering, and pharmaceuticals. Agriculture will see the most projects, with a focus on joint cultivation, deep processing of grains and rice in Kazakhstan, and silk production in the Turkistan Region.

Deputy Prime Minister Zhumangarin emphasized Uzbekistan’s role as one of Kazakhstan’s key commercial partners, ranking seventh in 2023. Uzbekistan represents over 57 percent of Kazakhstan’s total trade turnover with Central Asian nations.

“Bilateral trade has increased by 29 percent over the last five years, reaching $5 billion in 2022. To meet the $10 billion target set by both Presidents, we need structural solutions to trade challenges and explore new growth areas,” Zhumangarin stated.

Khodjaev underscored the importance of such forums in strengthening bilateral cooperation and recognized Kazakhstan as a primary economic partner.

“The world views our region as a unified market. I propose we collaborate to attract major global brands,” he said.

The forum in Astana saw the participation of over 400 representatives from the business communities of both countries. Business leaders discussed joint projects in automotive engineering, electrical engineering, pharmaceuticals, chemicals, and logistics, resulting in agreements totaling $43.5 million.

Economic cooperation between Kazakhstan and Uzbekistan has seen substantial growth, with 69 industrial projects worth $3.1 billion expected to create nearly 14,700 jobs. To date, 12 joint projects valued at $217 million have been completed, generating around 4,500 jobs. Three investment projects worth $178 million are currently underway, including a major electrometallurgical plant in Taraz with a capacity of 500,000 tons of steel products.

Another significant initiative is the construction of the Central Asia International Center for Industrial Cooperation on the Kazakh-Uzbek border. Spanning 100 hectares across the Turkistan Region of Kazakhstan and the Syrdarya Region of Uzbekistan, the center aims to enhance trade and economic relations, strengthen business connections between manufacturers and entrepreneurs, and boost trade turnover between the two countries. The technical launch of the center is scheduled for the fourth quarter of 2026, with an official opening in the first half of 2027.

Both countries are also looking to expand cooperation in mechanical engineering, aiming to increase the mutual supply of electrical products and batteries annually. Efforts are underway to improve transport sector interconnections, develop railway infrastructure, and address bottlenecks to facilitate higher cargo turnover.