BAKU, Azerbaijan, February 16. Regulatory stability and bilateral legal frameworks have played a decisive role in enabling Türkiye to scale its presence simultaneously across multiple Central Asian markets, a source from the Analytical Department of the Eurasian Development Bank (EDB) told Trend.
"The active expansion of Turkish investments in Uzbekistan, Kazakhstan, and Turkmenistan is the result of robust institutional safeguards and economic complementarity," the source stated.
The bank stressed that a solid legal foundation remains central to investor confidence in the region.
"Bilateral agreements on investment protection and the avoidance of double taxation are in force, while access to international arbitration mechanisms helps to mitigate regulatory and political risks. At the same time, each country offers its own structural advantages. Kazakhstan, as a member of the Eurasian Economic Union (EAEU), provides investors with access to a broader regional market. Uzbekistan has been implementing large-scale economic liberalization and public-private partnership reforms since 2017, significantly improving the investment climate. In Turkmenistan, major projects are typically structured on an intergovernmental basis, which ensures long-term stability for strategic infrastructure initiatives," the source explained.
In addition to legal guarantees, the bank mentioned that sectoral alignment between Turkish expertise and Central Asia’s development priorities has facilitated expansion.
"Equally important is the high degree of economic complementarity. Turkish companies have strong expertise in construction, manufacturing, power generation, infrastructure, and logistics—precisely the sectors that are central to Central Asia’s modernization agenda. Rapid growth in electricity demand and large-scale infrastructure development programs are creating sustained opportunities for Turkish capital," the source noted.
The bank also pointed to institutional and cultural proximity as an additional supporting factor, including cooperation within the Organization of Turkic States.
"This platform strengthens dialogue, improves coordination, and builds trust between businesses and governments," the source added.
The EDB emphasized that legal guarantees, ongoing reforms, regional integration advantages, and Türkiye’s sectoral specialization collectively form a strong basis for further expansion of Turkish investment in Central Asia.
"Taken together, legal guarantees, ongoing reforms, regional integration advantages, and Türkiye’s sectoral specialization provide a solid foundation for the continued expansion of Turkish investment in Central Asia," the EDB Analytical Department concluded.
Major Turkish investments in Central Asia exceed $3.8 billion as of early 2026, primarily targeting energy infrastructure, construction, and manufacturing, with Turkmenistan, Kazakhstan, and Uzbekistan as principal partners. Key areas include the TAP power transmission line in Turkmenistan, airport modernization projects in Almaty and Turkistan, and significant textile and manufacturing ventures. Turkmenistan leads with $1.1 billion in investments, while Uzbekistan hosts over 2,000 Turkish enterprises focusing on joint manufacturing. Kazakhstan serves as a crucial investment hub, particularly for construction, logistics, and mining activities.