Central Asia’s Investment Landscape Transforms with $68 Billion Influx as Regional Powers Deepen Economic Ties

Central Asia is rapidly emerging as a major hub for foreign direct investment, with capital from Asian and regional powers pouring into the energy sector and deepening economic integration. According to a recent report from the Eurasian Development Bank, foreign direct investment stock from Asian countries into Central Asian economies soared to $68 billion by mid-2025, a 2.3-fold increase from $29.9 billion in 2016, reports The Astana Times.

The report highlights a significant acceleration in investment since 2023 and a crucial shift in focus away from traditional extractive industries and toward the energy sector. In a notable development, investment from Gulf states has surged, with their FDI stock reaching $8.3 billion by the middle of 2025, surpassing China’s investment stock in the region’s power sector.

This trend of growing investment is being reinforced by deliberate policy efforts within the region. The Organization of Turkic States (OTS) is intensifying efforts to expand intra-regional trade and investment, according to The Times of Central Asia. In 2025, mutual trade among the member states surpassed $11.9 billion. FDI flows are also robust, with investment from OTS countries into Kazakhstan exceeding $6.3 billion between 2005 and 2025. In the same period, Kazakh investments into fellow OTS economies reached $5 billion, with over $1.3 billion invested in 2025 alone. OTS Secretary General Kubanychbek Omuraliev called ongoing negotiations for an Agreement on Services and Investment Facilitation a “decisive step toward deeper economic integration.”

The broader region is also benefiting from increased investor confidence. In neighboring Pakistan, 79 new foreign companies have begun operations over the last three years, investing Rs40.7 billion across sectors like energy, logistics, and IT, according to data from the Securities and Exchange Commission of Pakistan reported by Dawn. Notable deals include Saudi Aramco purchasing a 40% stake in Gas & Oil Pakistan Limited and UAE-based DP World entering a joint venture with the National Logistics Corporation, signaling a broad-based appetite for investment in the region’s growing economies.