BAKU, Azerbaijan, September 5. Central Asia is gradually reinforcing its economic connections with the Middle East by developing new trade and logistics routes. In this context, Turkmenistan is emerging as a regional leader, demonstrating active cooperation with the countries of the Persian Gulf.
In the first half of 2025, Turkmenistan’s trade turnover with Gulf countries grew by 17.7 percent compared to the same period last year. According to the Eurasian Development Bank, the country remains the region’s largest partner, facilitating a significant portion of trade between Central Asia and the Gulf. Turkmenistan plays a key role in the export of metals, agricultural products, and energy resources, as well as in the import of machinery, vehicles, and consumer goods.
The United Arab Emirates remains Turkmenistan’s main trading partner. In the first half of 2025, trade with the UAE increased due to imports of machinery, vehicles, and metal products, while Turkmen exports rose approximately 13-14 percent, including fuel and energy products, chemicals, and agricultural goods.
Other Gulf countries, including Qatar, Saudi Arabia, Kuwait, Oman, and Bahrain, currently show smaller trade volumes, but interest in cooperating with Turkmenistan is growing, especially in energy, transport logistics, and investment projects. These trends confirm that Turkmenistan not only maintains a leading role in regional trade with the Gulf but also lays the foundation for expanded exports and investment attraction in the coming years.
Financial discipline and stability provide a solid basis for growth and international integration. Net sovereign foreign assets amount to 55.4 percent of GDP, government debt is 3.3 percent of GDP, and foreign exchange reserves cover over 57 months of current external payments. The projected GDP per capita in 2025 is $13,013, while consumer inflation is controlled at 4.5 percent.
Broad money supply accounts for 33.5 percent of GDP, and the banking system’s capitalization reaches 28.5 percent, significantly above the median for BB-rated countries. These indicators demonstrate the resilience of Turkmenistan’s financial system and its ability to attract foreign investment for strategic projects.
The energy sector remains the main driver of export growth. The Goturdepebit oil and gas production department exceeded its seven-month 2025 oil production plan by 107.91 percent, producing 680,390 tons. The Turkmennebit Concern actively cooperates with foreign partners to develop and process hydrocarbons.
A key investment project is Dragon Oil, a UAE company that has been developing the Jeytun and Jygalybeg fields on the Caspian shelf since 2000. Dragon Oil’s total investments in these projects amount to approximately $8 billion, and the contract has been extended to 2035. Turkmenistan’s participation in regional transport projects, such as TAPI, further strengthens its strategic role in energy and exports.
The Turkmenbashi Port on the Caspian Sea, along with a developed network of rail and road corridors, creates a strategic bridge between Central Asia and the Gulf countries. These routes improve the efficiency of exporting energy resources, textiles, agricultural products, and industrial goods. The development of transport infrastructure makes Turkmenistan attractive to investors and reinforces its position as a regional logistics hub.
The Gulf economies are expected to grow by 3.2 percent in 2025, accelerating to 4.5 percent in 2026, driven by the recovery of oil production, infrastructure investments, and the development of non-oil sectors. Turkmenistan can leverage this trend to increase exports of energy, textiles, chemicals, and agricultural goods.
In addition to the UAE, Gulf countries are showing interest in investing in infrastructure, renewable energy, tourism, and logistics. The establishment of the GCC-Central Asia Strategic Dialogue and the joint 2023–2027 Action Plan underscore Turkmenistan’s strategic significance in the region and open opportunities for economic diversification.
Turkmenistan combines macroeconomic stability, abundant energy resources, and developed transport infrastructure, making the country a driving force for Central Asia’s trade with the Gulf. The UAE’s leading role, rising exports to other regional states, and strategic transport projects position Turkmenistan as a regional energy and logistics hub with long-term prospects.