BAKU, Azerbaijan, February 16. Regulatory
stability and bilateral legal frameworks have played a decisive
role in enabling Türkiye to scale its presence simultaneously
across multiple Central Asian markets, a source from the Analytical
Department of the Eurasian Development Bank (EDB) told Trend.
"The active expansion of Turkish investments in Uzbekistan,
Kazakhstan, and Turkmenistan is the result of robust institutional
safeguards and economic complementarity," the source stated.
The bank stressed that a solid legal foundation remains central
to investor confidence in the region.
"Bilateral agreements on investment protection and the avoidance
of double taxation are in force, while access to international
arbitration mechanisms helps to mitigate regulatory and political
risks. At the same time, each country offers its own structural
advantages. Kazakhstan, as a member of the Eurasian Economic Union
(EAEU), provides investors with access to a broader regional
market. Uzbekistan has been implementing large-scale economic
liberalization and public-private partnership reforms since 2017,
significantly improving the investment climate. In Turkmenistan,
major projects are typically structured on an intergovernmental
basis, which ensures long-term stability for strategic
infrastructure initiatives," the source explained.
In addition to legal guarantees, the bank mentioned that
sectoral alignment between Turkish expertise and Central Asia’s
development priorities has facilitated expansion.
"Equally important is the high degree of economic
complementarity. Turkish companies have strong expertise in
construction, manufacturing, power generation, infrastructure, and
logistics—precisely the sectors that are central to Central Asia’s
modernization agenda. Rapid growth in electricity demand and
large-scale infrastructure development programs are creating
sustained opportunities for Turkish capital," the source noted.
The bank also pointed to institutional and cultural proximity as
an additional supporting factor, including cooperation within the
Organization of Turkic States.
"This platform strengthens dialogue, improves coordination, and
builds trust between businesses and governments," the source
added.
The EDB emphasized that legal guarantees, ongoing reforms,
regional integration advantages, and Türkiye’s sectoral
specialization collectively form a strong basis for further
expansion of Turkish investment in Central Asia.
"Taken together, legal guarantees, ongoing reforms, regional
integration advantages, and Türkiye’s sectoral specialization
provide a solid foundation for the continued expansion of Turkish
investment in Central Asia," the EDB Analytical Department
concluded.
Major Turkish investments in Central Asia exceed $3.8 billion as
of early 2026, primarily targeting energy infrastructure,
construction, and manufacturing, with Turkmenistan, Kazakhstan, and
Uzbekistan as principal partners. Key areas include the TAP power
transmission line in Turkmenistan, airport modernization projects
in Almaty and Turkistan, and significant textile and manufacturing
ventures. Turkmenistan leads with $1.1 billion in investments,
while Uzbekistan hosts over 2,000 Turkish enterprises focusing on
joint manufacturing. Kazakhstan serves as a crucial investment hub,
particularly for construction, logistics, and mining
activities.
