Central Asia Attracts Surge in Asian Investment, Becoming a Eurasian Transit Hub

Central Asia is rapidly transforming into a key investment destination and transit hub, attracting significant capital inflows, particularly from Asian countries and the Gulf states. Foreign direct investment (FDI) stock from Asian countries into Central Asia more than doubled over the past decade, reaching $68 billion in the first half of 2025, according to the Eurasian Development Bank (EDB).

Investment Growth and Regional Shifts

The EDB’s Monitoring of Mutual Investments report, released in January 2026, indicates that Asian FDI stock in the region rose 2.3 times between 2016 and mid-2025 – climbing from $29.9 billion to $68 billion. This growth has positioned Central Asia as a “center of attraction for investment in Eurasia.” A particularly noticeable acceleration occurred since 2023, with the region’s share of total investments from external partners reaching 50%, and growing to 57% by the conclude of the first half of 2025.

Gulf States Lead Investment Surge

The Gulf states – Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the UAE – have been the primary drivers of recent investment growth. Of the $20 billion increase in Asian investment stock since 2016, Gulf investors accounted for approximately $9 billion, or 45%. Their investments have expanded at an average annual rate of 13.9% since 2016, more than double the average growth rate of investments from all external partners (6.8%).

Concentration and Key Destinations

Despite the overall inflow, Asian FDI stock remains concentrated in three countries: Uzbekistan, Turkmenistan, and Kazakhstan, accounting for 92% of the total. Uzbekistan leads with $22.6 billion and has experienced the most rapid expansion, with FDI stock increasing more than 45-fold since 2016. Turkmenistan follows with $20.6 billion, and Kazakhstan with $19.3 billion.

Power Sector Emerges as a Growth Engine

While extractive industries remain significant, there’s a clear structural shift towards a more diversified investment model. The power sector is experiencing rapid growth, with its share of mutual FDI increasing nearly tenfold from 2.6% in 2016 to 26% by mid-2025. In the year and a half leading up to mid-2025, power projects accounted for over half of the total increase in attracted investments – $10.1 billion out of $19.8 billion. The Gulf states and China are the most active investors in this sector.

By the end of the first half of 2025, Gulf state investment in the power sector reached $8.3 billion, surpassing China’s $8.2 billion.

Diverse Investment Profiles Among Asian Partners

• India: Mutual FDI stock with India reached $13.4 billion, with balanced incoming and outgoing flows, concentrated in Russia’s and Azerbaijan’s oil and gas sectors.
• Vietnam: FDI stock grew from $613 million in 2016 to $825 million by mid-2025, with diversification in geography and sectors. Investments are increasingly focused on Kazakhstan, with activity from ROX Group in the Kyrgyz Republic and Uzbekistan focusing on real estate and renewable energy.
• Afghanistan: Viewed as a strategically important niche market, with total FDI stock reaching $190 million by mid-2025, with the Eurasian region acting as a net capital exporter. Turkmenistan is the largest investor, focusing on infrastructure and power projects, including the TAPI gas pipeline.
• Indonesia: Centered on a single significant industrial project: Indorama Corp’s acquisition of 99% of FerganaAzot in Uzbekistan, with an estimated investment of $240 million by mid-2025.

Eurasian Investment into Asia

Eurasian countries are also actively exporting capital. By the end of the first half of 2025, their FDI stock in Asian partner countries reached $56.6 billion, a 12.5% increase over the previous 18 months. Russia and Azerbaijan dominate outward investment, accounting for 72% and 23%, respectively. Türkiye absorbs 78% of Eurasian investments, followed by India (12%), Vietnam (4%), and China (2%).

FDI stock from the Eurasian region into Türkiye reached $44 billion, more than twice the volume of Turkish investments in the Eurasian region ($18.6 billion). Kazakhstan has also emerged as an active investor, driven by financial-sector deals by Kaspi Bank.

EDB’s Role in Monitoring Investment Flows

The EDB’s Monitoring of Mutual Investments report is a key analytical initiative tracking and analyzing mutual FDI stock across the Eurasian region and its links with Asian partners, providing a comprehensive assessment of cross-border investment flows. The EDB highlighted the importance of aligning regional ambitions with global trends during the Astana International Forum 2025, emphasizing energy innovation, sustainable water resource management, and next-generation transport infrastructure as central pillars of regional development. Uzbekistan’s recent accession as the Bank’s seventh member state further reinforces the EDB’s mandate as a financial institution for the entire Eurasian region.