Kazakhstan and Uzbekistan launch $10 bln industrial cooperation project

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President of Kazakhstan Kassym-Jomart Tokayev has signed a law ratifying the interstate agreement with Uzbekistan on the establishment of the International Center for Industrial Cooperation "Central Asia," according to the official website of the President of Kazakhstan.

The document was signed as part of the agreements reached in 2024 during Uzbek President Shavkat Mirziyoyev’s visit to Astana and was ratified by the Kazakh parliament in February 2025.

The creation of this industrial hub is a key step toward the ambitious goal of both countries: increasing bilateral trade turnover to $10 billion by 2030, Kazakh President's web-site stated.

A Key Platform for Cross-Border Economic Cooperation

The new center is expected to become a pivotal element of cross-border economic interaction, providing a platform for joint manufacturing, logistics, and trade.

Expansion of Regional Logistics and Infrastructure

Located in the border area, the center will include modern warehouses, customs terminals, service zones, and production facilities for various industries—from light manufacturing to mechanical engineering.

The primary funding sources for the project are direct and portfolio investments. Kazakhstan and Uzbekistan are actively promoting the site among investors from China, South Korea, the UAE, and European countries.

Geopolitical and Economic Significance

Discussions on the center continued on the sidelines of a recent ministerial meeting in Khiva, where the foreign ministers of Kazakhstan and Uzbekistan reaffirmed the strategic importance of joint initiatives for sustainable development in Central Asia.

Global logistics disruptions caused by geopolitical conflicts have made regional supply chains critically important. The "Central Asia" center aims to reduce dependence on unstable transit routes.

A Multipolar Approach with Support from the EU and China

The project has received positive assessments from Kazakhstan and Uzbekistan’s partners in the EU and China. It is seen as a point of convergence between the Global Gateway initiative and China's Belt and Road Initiative.

The center could serve as a pilot model for transborder cooperation in Eurasia, combining principles of equality, economic benefit, and sustainable development.

Kazakhstan Strengthens Its Logistics Infrastructure

As part of the national logistics modernization program, Kazakhstan plans to open four additional logistics centers by the end of 2026, including a hub at the Chinese border (Khorgos), in Aktobe, Almaty region, and on the Caspian Sea.

Kazakhstan is also attracting international development institutions to finance logistics and transport infrastructure, including roads, railways, and digitalization of customs control.

CentralasianLIGHT.org
April 1, 2025