Legal framework supports Turkish capital growth in Central Asia - EDB (Exclusive)

[ad_1] BAKU, Azerbaijan, February 16. Regulatory stability and bilateral authorized frameworks have performed a decisive position in enabling Türkiye to scale its presence concurrently throughout a number of Central Asian markets, a supply from the Analytical Division of the Eurasian Improvement Financial institution (EDB) advised Development.

"The lively enlargement of Turkish investments in Uzbekistan, Kazakhstan, and Turkmenistan is the results of sturdy institutional safeguards and financial complementarity," the supply acknowledged.

The financial institution pressured {that a} strong authorized basis stays central to investor confidence within the area.

"Bilateral agreements on funding safety and the avoidance of double taxation are in power, whereas entry to worldwide arbitration mechanisms helps to mitigate regulatory and political dangers. On the identical time, every nation presents its personal structural benefits. Kazakhstan, as a member of the Eurasian Financial Union (EAEU), supplies traders with entry to a broader regional market. Uzbekistan has been implementing large-scale financial liberalization and public-private partnership reforms since 2017, considerably enhancing the funding local weather. In Turkmenistan, main tasks are usually structured on an intergovernmental foundation, which ensures long-term stability for strategic infrastructure initiatives," the supply defined.

Along with authorized ensures, the financial institution talked about that sectoral alignment between Turkish experience and Central Asia’s growth priorities has facilitated enlargement.

"Equally essential is the excessive diploma of financial complementarity. Turkish corporations have robust experience in development, manufacturing, energy era, infrastructure, and logistics—exactly the sectors which are central to Central Asia’s modernization agenda. Fast progress in electrical energy demand and large-scale infrastructure growth packages are creating sustained alternatives for Turkish capital," the supply famous.

The financial institution additionally pointed to institutional and cultural proximity as a further supporting issue, together with cooperation inside the Group of Turkic States.

"This platform strengthens dialogue, improves coordination, and builds belief between companies and governments," the supply added.

The EDB emphasised that authorized ensures, ongoing reforms, regional integration benefits, and Türkiye’s sectoral specialization collectively kind a powerful foundation for additional enlargement of Turkish funding in Central Asia.

"Taken collectively, authorized ensures, ongoing reforms, regional integration benefits, and Türkiye’s sectoral specialization present a strong basis for the continued enlargement of Turkish funding in Central Asia," the EDB Analytical Division concluded.

Main Turkish investments in Central Asia exceed $3.8 billion as of early 2026, primarily concentrating on vitality infrastructure, development, and manufacturing, with Turkmenistan, Kazakhstan, and Uzbekistan as principal companions. Key areas embody the TAP energy transmission line in Turkmenistan, airport modernization tasks in Almaty and Turkistan, and vital textile and manufacturing ventures. Turkmenistan leads with $1.1 billion in investments, whereas Uzbekistan hosts over 2,000 Turkish enterprises specializing in joint manufacturing. Kazakhstan serves as a vital funding hub, notably for development, logistics, and mining actions.