Kazakhstan: Economic bridge between Asia and Europe

Infrastructure: Accelerated Expansion of Transport Networks

Kazakhstan has launched an ambitious plan to build 1,300 km of new railway lines by 2026, in collaboration with China’s Belt and Road Initiative. This massive infrastructure project includes the opening of a third railway crossing point at the border with China and the development of the dry ports Bakhty | Бахты and Kalzhat | Калжат, facilitating significant trade flows between Asia and Europe. These strategic investments reflect Kazakhstan’s positioning as a vital link in Eurasian logistics chains, reducing transport times between Chinese and European markets by approximately 15–20% compared to traditional maritime routes.

In recent months, the Kazakh government has accelerated the implementation of road infrastructure projects, completing over 2,000 km of highways from a total plan of 7,000 km. These developments include the modernization of the West-East corridor connecting China to Europe and the North-South corridor linking Russia with Central Asia and the Middle East. A notable project is the modernization of the Almaty-Issyk-Kul route, which reduced travel time by over 30% and boosted regional trade. These efforts are complemented by investments in customs digitization and the implementation of intelligent traffic management systems to streamline cross-border transportation.

Energy: Transition to Renewables and Diversification

Kazakhstan’s energy strategy focuses on the development of renewable sources, aiming to add 26 GW of capacity by 2035. Recent progress is significant: 148 renewable energy facilities are currently operational, and another 66 projects are in various stages of development. These initiatives are attracting major investments, estimated at approximately USD 1.3 billion, strengthening Kazakhstan’s energy ecosystem and reducing its dependence on fossil fuels.

In recent months, Kazakhstan has commissioned several renewable energy projects, including new solar plants with a combined capacity of over 160 MW. For example, a 20 MW solar plant was inaugurated in the Zhambyl region. These projects demonstrate the country’s ongoing commitment to green energy transition.

The Kazakh Ministry of Energy recently concluded the auction program for 2025, allocating 1,810 MW of renewable capacity, of which 1,200 MW is for wind farms and 90 MW for solar installations. These projects will significantly contribute to the national goal of generating 15% of electricity from renewable sources by 2030. Interest from international companies in Kazakhstan’s energy sector is growing, exemplified by a recent agreement between Masdar (UAE) and the Kazakh government to develop a 1 GW wind farm in the Zhambyl region. Once completed, it will become the largest in Central Asia and supply clean energy to approximately 500,000 households.

Natural Resources: Modernization and Contract Renegotiation

Kazakhstan’s natural resource sector is undergoing a significant transformation, with a focus on optimizing resource utilization and increasing benefits for the national economy. Recently, Chevron announced the completion of the first phase of the Tengiz field expansion project, valued at USD 48 billion, which will increase production capacity by 260,000 barrels per day, solidifying Kazakhstan’s position as a major hydrocarbon producer.

In this context, President Kassym-Jomart Tokayev emphasized the importance of renegotiating contracts with oil companies to ensure more favorable conditions and greater state involvement in strategic projects. This approach aims to maximize local economic benefits and implement advanced technologies for sustainable resource exploitation.

In April 2025, a meeting between President Tokayev and Chevron’s CEO highlighted both parties’ commitment to long-term cooperation. Projects discussed include the construction of a gas processing plant in Karachaganak with an annual capacity of 4.5 billion m³, which will enhance resource value and reduce emissions associated with production.

Kazakhstan continues to develop strong economic partnerships with Russia and China, who remain key investors in the natural resources and energy sectors. In the first quarter of 2024, the number of active Russian companies in Kazakhstan reached nearly 20,000, indicating a strong economic and commercial presence. Joint projects with Russia, estimated at around USD 5.5 billion, include investments in energy and transport infrastructure, such as the pipeline connecting Russia, Kazakhstan, and western China.

Since launching the Belt and Road Initiative in 2013 from Kazakhstan, China has become a major strategic partner, holding significant stakes in Kazakh oil and gas companies—23% and 13%, respectively. This collaboration was crucial in supporting Kazakhstan’s economy following the 2008–2010 global economic crisis and continues to aid the development of infrastructure and the energy sector.

In addition to regional relations, Kazakhstan maintains active dialogue with European partners such as Romania, with which trade reached USD 2.9 billion in 2024. The national company KazMunayGas has a significant presence in Romania, representing a strategic pillar of bilateral energy cooperation. The European Union has announced a EUR 12 billion investment in Central Asia, targeting the development of transport, green energy, and the exploitation of strategic natural resources.

International Partnerships: Diversification and Geopolitical Balance

Kazakhstan’s foreign economic policy is characterized by a multi-vector approach, cultivating balanced relations with various global players. The recent signing of 22 agreements with the United Arab Emirates, totaling over USD 5 billion, exemplifies this diversification strategy. The partnerships cover sectors such as energy, agriculture, advanced technology, and tourism, strengthening economic ties between the two nations. These agreements include the joint development of an industrial park in the Aktau region and the construction of a modern logistics center near Almaty, enhancing trade infrastructure.

Kazakhstan’s active participation in the Belt and Road Initiative underscores its critical role in connecting Asian and European markets. In the past three months, new trade routes through Kazakhstan were inaugurated, including a direct rail service between Chongqing (China) and Duisburg (Germany), reducing transit time by approximately 30% compared to maritime routes. Simultaneously, Kazakhstan is strengthening its role within the Shanghai Cooperation Organization, collaborating with Russia and China on strategic economic projects, including trans-regional transport corridors and energy infrastructure.

Financial Centers and Investment Attraction

The Astana International Financial Centre (AIFC) has emerged as a successful regional financial hub, with over 3,000 registered companies as of August 2024. Among them are global firms such as KPMG, EY, and Binance, which use AIFC as a platform for their operations in Central Asia. Recently, the AIFC implemented a regulatory framework for green finance and launched the region’s first platform for carbon credit trading, positioning Kazakhstan as a leader in sustainable finance.

Kazakhstan’s National Infrastructure Plan through 2029 outlines an ambitious vision, comprising 204 projects in energy, transport, digital infrastructure, and water management, with a total value of nearly USD 81.8 billion. This initiative aims to attract at least USD 150 billion in foreign direct investment, fundamentally transforming national infrastructure and strengthening the country’s geo-economic position. The first 28 projects have already been launched, including the modernization of regional airports and the expansion of the national fiber optic network, demonstrating the government’s commitment to this bold strategy.

Innovation and Expanding Digital Economy

Kazakhstan’s digital sector is experiencing rapid growth, contributing over 6% to the national GDP in 2024, up from 3.5% in 2020. Astana Hub, the country’s main tech park, now hosts over 900 tech companies, 35% of which are international. The startup ecosystem has attracted USD 180 million in investment over the past 12 months, marking a 40% increase compared to the previous period. The government actively supports this sector through initiatives such as the Digital Kazakhstan 2025 Program, which has facilitated public service digitalization and boosted the adoption of advanced technologies in traditional industries.

In March 2025, Kazakhstan launched its first high-capacity communications satellite, KazSat-4, strengthening the national digital infrastructure and reducing dependence on foreign services. This ambitious project, carried out in collaboration with international partners, will improve connectivity in rural areas and support the rollout of 5G services across the country. Simultaneously, Astana is implementing the Smart City concept, integrating IoT technologies and data analytics to optimize urban services and reduce municipal energy consumption by approximately 25%.

International Partners and Chinese Investment in the Digital Sector

Kazakhstan collaborates with numerous international partners in the development of its digital sector. Among them is Google, which has a strategic partnership with the Ministry of Digital Development to accelerate the country’s digital transformation. This partnership aims to modernize infrastructure, adopt cloud technologies, develop digital skills, and promote innovation, with concrete results including the training of over 900 students in fields such as AI, machine learning, and cloud technologies.

China plays a significant role in Kazakhstan’s digitalization. Chinese companies such as Huawei are strategic partners of local operators, providing telecommunications equipment and participating in projects to expand communications networks and introduce broadband services, including in rural areas. In 2024, a cooperation agreement was signed for digital trade projects between Chinese and Kazakh companies, such as WELOCK and ApartX, aiming to digitize hotel services and promote innovations in smart hotel management.

Additionally, in January 2025, Kazakhstan’s Ministry of Digital Development signed a Memorandum of Understanding with partners from China and the Middle East to transform the country into a regional innovation hub for robotics and AI. A key element of this agreement is the creation of a joint venture and a research and development center in collaboration with AgiBot, a leading Chinese AI and robotics company. This center will accelerate the development of Industry 4.0 applications and involve local universities and tech hubs.

Smart City Investments and Projects

The Astana Smart City project benefits from significant investments and collaborations with international companies, such as Presight AI from the UAE, for the implementation of advanced video analytics systems using AI, digital twin models, and integrated urban management. Kazakhstan ensures that 60% of project work is carried out by local companies, thereby fostering the growth of the domestic digital ecosystem.

Agriculture and Food Security

Kazakhstan’s agricultural sector is undergoing profound transformation, focusing on sustainable practices and higher added value. In recent months, investments in agriculture have exceeded USD 200 million, enabling the adoption of modern farm technologies and increasing productivity by approximately 18%. The national program for sustainable agriculture development has certified over 500,000 hectares for organic production, positioning Kazakhstan as an important supplier of organic food to Asian and European markets. Agricultural exports reached USD 4.2 billion in the first two quarters of 2025, a 22% increase compared to the same period the previous year.

A recently launched innovative project is the Biotech Agricultural Park in the Akmola region, bringing together research institutes, private companies, and experimental farms to develop and test new crop varieties adapted to climate change. This initiative, with a total investment of USD 320 million, focuses on water-saving technologies and drought-resistant crops, essential for adapting Kazakhstan’s agriculture to climate challenges. In parallel, complete value chains have been developed for products such as durum wheat, sunflower oil, and premium beef, maximizing added value and creating new export opportunities.

Tourism and Cultural Heritage Promotion

Kazakhstan is actively developing its tourism sector, leveraging its diverse landscapes and rich cultural heritage. The “Kazakhstan Experience” program, launched in February 2025, promotes lesser-known destinations and facilitates access for foreign tourists by simplifying visa procedures and improving infrastructure. In the past three months, six new international air routes have been inaugurated, connecting Astana and Almaty with destinations in Europe and Southeast Asia, resulting in a 28% increase in foreign tourist arrivals. Recent investments in tourism infrastructure in the Altai region and Lake Balkhash have created 1,200 new jobs and diversified the country’s tourism offerings.

A notable aspect is the promotion of cultural tourism and nomadic traditions, illustrated by the success of the “Spiritual Heritage of the Great Steppe” festival held in April 2025, which attracted over 15,000 international visitors. In addition, recently developed digital tourism platforms and augmented reality applications offer interactive experiences related to the history of the Silk Road and nomadic civilizations, further strengthening Kazakhstan’s tourism brand on the global market.

Social Policies and Human Development

Kazakhstan’s economic transformation is accompanied by significant social reforms aimed at improving quality of life and developing human capital. The national program “Skills of the Future,” launched in January 2025, provides advanced technical training for 50,000 young people annually, aligning the workforce with the needs of the modern economy. Meanwhile, investments in the education sector have increased by 17% over the past year, with a focus on STEM subjects and digital skills. Recent healthcare reforms have expanded access to quality medical services in rural areas through telemedicine and mobile clinics, reducing regional disparities.

An important aspect of social policy is the affordable housing program “Nurly Zher,” which facilitated the construction of 18,000 housing units in the first six months of 2025. These initiatives reflect an integrated approach to national development, aiming not only for economic growth but also for the equitable distribution of its benefits and the improvement of human development indicators across all regions of the country.