BlackRock sees Kazakhstan and Uzbekistan as new investment hubs

The two largest economies in Central Asia—Kazakhstan and Uzbekistan—are increasingly drawing the attention of BlackRock’s Investment Institute: for the firm, they rank alongside India and the Gulf states, the company’s chief strategist, Ben Powell, told Bloomberg.

"Kazakhstan and Uzbekistan are indeed very interesting," Ben Powell said in an interview with the news agency.

He noted that they are very encouraged by the reforms they are seeing in Kazakhstan, such as pension reform and capital market reform.

"Kazakhstan is becoming more attractive to capital, and when the country sees the benefits, it becomes even more attractive. If we see more opportunities, we will be happy to direct more capital here," Powell said.

“We’re always interested in new opportunities in Uzbekistan,” said the strategist. “It seems that we’ll likely find even more opportunities in Uzbekistan in the future.”

Kazakhstan’s economy grew by 4.1% in the first eight months of the year, thanks to strong performance in the manufacturing and construction sectors. Uzbekistan’s GDP rose by 8.5% in the first half of the year, according to Bloomberg. This growth, along with reforms and growing interest in resources such as critical minerals, is drawing increased investor attention to both republics, the agency notes.

Since the beginning of this year, foreign investors have invested approximately $2 billion in Kazakhstan’s tenge-denominated debt instruments. The region’s largest economy, located between Russia and China, is raising funds for a large-scale infrastructure modernization program. Among the options being considered by the government are an initial public offering of the national railway operator and securing loans from the Asian Infrastructure Investment Bank, the agency reports.

High oil prices also benefit Kazakhstan, the largest exporter of energy resources in Central Asia. Due to the war between the U.S., Israel, and Iran, the price of Brent crude has approached $105 per barrel.

In July, representatives of BlackRock met with Uzbekistan’s President Shavkat Mirziyoyev and discussed cooperation in the areas of privatization, petrochemical projects, and artificial intelligence. BlackRock also served as a key investor in the initial public offering of shares in Uzbekistan’s national investment fund.

This article was AI-translated and verified by a human editor