Central Asia is rapidly gaining traction as a prime destination for financial investment from the Middle East. According to Arab News, investment flows from Gulf Cooperation Council (GCC) countries into the region have nearly tripled since 2022. Much of this growing cooperation is being facilitated through Islamic finance. The Islamic Development Bank (IsDB) has invested $9.1 billion across CIS countries, with around 60% of that directed toward Central Asia. These financial ties are not only deepening but are also reshaping the region’s economic landscape and accelerating its modernization.
Among the most active investors is the United Arab Emirates. First Abu Dhabi Bank (FAB), the UAE’s largest lender, has emerged as a key financial player in Central Asia. FAB was instrumental in arranging a green loan for Uzbekistan’s Zarafshan Wind Power Project — a 500-megawatt facility that stands as the largest renewable energy project in the region. In 2025, the Eurasian Development Bank (EDB), headquartered in Almaty, issued bonds worth 200 million dirhams (approximately $54 million) on the Abu Dhabi Securities Exchange with FAB’s support. This milestone opened a new financial corridor between Gulf capital markets and Central Asian issuers.
Saudi Arabia is also expanding its financial footprint in Central Asia through development and export financing. The Saudi Export-Import Bank (EXIM) has partnered with Kazakhstan’s Development Bank and signed a memorandum of cooperation with Tajikistan’s State Unitary Bank (AFESD) to enhance access to Saudi exports. The Saudi Fund for Development (SFD) has extended concessional loans across the region, including a $30 million loan to Tajikistan for the construction of the Kulob Ring Road. As the largest shareholder in the IsDB, Saudi Arabia continues to support key infrastructure projects in energy, transport, and agriculture across Central Asia.
Qatar, too, is steadily increasing its presence. In 2024, Qatari Lesha Bank acquired Kazakhstan’s Bereke Bank JSC for 65 billion Kazakh tenge (approximately $134 million), marking the first complete acquisition of a Central Asian bank by a Gulf investor. The Qatar Fund for Development (QFFD) committed $50 million to Tajikistan’s Rogun Hydropower Project and announced plans to invest in gas processing and hydropower developments in Kazakhstan and Turkmenistan. At the 2025 Astana Forum, Qatar’s Power International Holding (PIH) declared its intent to make long-term investments in Kazakhstan’s energy, infrastructure, and digital sectors.
PIH is currently involved in constructing two gas processing plants with capacities of 1 and 2.5 billion cubic meters per year, alongside two major gas pipelines: Aktobe–Kostanay and Beineu–Bozoy–Shymkent. The company also acquired Kazakhstan’s mobile operators Altel and Tele2, aiming to modernize the country’s digital infrastructure and provide widespread access to high-speed internet.
This increased Gulf activity in Central Asia reflects a dual strategy: diversifying away from oil-dependent economies while supporting Central Asia’s growing need for long-term investment — particularly in the “Middle Corridor,” or Trans-Caspian International Transport Route. This route connects Asia to Europe through the Caspian Sea and the Caucasus, offering a faster and more efficient alternative to traditional transit paths. Gulf institutions such as FAB, Saudi EXIM, SFD, QFFD, and PIH are forming a new financial link between the Persian Gulf and Eurasia, while also responding to competition from Chinese and U.S. interests in the region.
A central facilitator in this emerging financial network is the Astana International Financial Centre (AIFC), established in 2018. The AIFC provides a legal and financial ecosystem modeled on English common law and serves as a bridge between Central Asia, the Caucasus, the Eurasian Economic Union, and western China. It operates in English and offers modern services for investors, including platforms for Islamic finance and international dispute resolution. The AIFC has played a vital role in simplifying Gulf-Central Asia financial cooperation.
Another significant trend is the rise of Islamic banking across the region. According to Fitch Ratings, the value of Islamic finance products in Central Asia surpassed $500 million by the end of 2024. In Kyrgyzstan, Islamic “windows” within commercial banks are growing faster than conventional sectors. Meanwhile, Kazakhstan and Uzbekistan are developing legal frameworks for Shariah-compliant financing and sukuk (Islamic bonds). For Gulf institutions, this presents a natural area of expansion, where cultural alignment and financial expertise converge.
However, several challenges remain. Gulf-backed projects in Central Asia are still largely focused on large-scale infrastructure and capital markets, with limited engagement in retail or SME banking. Regulatory fragmentation presents another hurdle: each Central Asian nation maintains its own rules for banking, currency, and investments, making cross-border operations complex. Limited transparency, weak investor protection, and underdeveloped local capital markets also hinder deeper integration. Without robust domestic financial infrastructure, many Central Asian issuers struggle to access Gulf exchanges directly.
Still, the momentum is undeniable. The region’s financial map is being redrawn, with Gulf countries now playing a central role. In the years ahead, we can expect further growth in Islamic banking services, expanded financial offerings for local businesses and individuals, and increased access for Central Asian issuers to Gulf capital markets. The pace and success of this transformation will depend on the region’s ability to improve transparency, harmonize regulations, and build investor confidence.
If these reforms take hold, Gulf banks will increasingly act not just as lenders, but as strategic partners in building a modern financial infrastructure across Central Asia. Leading institutions like FAB, Saudi EXIM, SFD, Lesha Bank, and QFFD are already showing that this cooperation is about more than capital — it’s about shaping a long-term, resilient, and inclusive economic future.
While retail banking in Central Asia has yet to be significantly transformed by Gulf influence, the impact on regional financial flows is already substantial. These evolving partnerships between the Arab world and Central Asia may prove to be one of the most important economic shifts of the decade — one that redefines how capital moves, where it’s invested, and who shapes the region’s future.