Tashkent, Uzbekistan (UzDaily.uz) — Trade between Central Asia and the Gulf countries nearly quadrupled over five years, rising from US$1 billion in 2020 to US$3.9 billion in 2025, according to the Eurasian Development Bank (EDB).
Accumulated Gulf investments in the region increased 3.4-fold to US$31.1 billion by mid-2026, compared with US$9.1 billion in 2020. The United Arab Emirates (UAE) was identified as the leading partner in this cooperation.
The figures are presented in EDB analytical brief No. 5, dated 10 November 2026 and prepared by Aidos Omarov. According to the report, Gulf businesses see significant opportunities in Central Asia, where economic activity, household incomes, consumer demand and investment demand are growing.
The Gulf's share of Central Asia's foreign trade increased from 0.7% to 1.7% between 2020 and 2025. Although trade volumes remain relatively modest, the bank considers the Gulf one of the region's increasingly important trade destinations.
Trade between the two regions is asymmetrical. Around 70% of total trade consists of supplies from Gulf countries to Central Asia. These mainly comprise machinery and equipment, transport, electronics, pharmaceutical products and chemicals.
Central Asia remains a net importer. Some goods supplied from the UAE are re-exports, as the Emirates serve as a major international trade and logistics hub, the brief said.
Trade is also heavily concentrated geographically. Uzbekistan and Turkmenistan accounted for around 85% of the region's trade with Gulf countries in 2025. Uzbekistan has overtaken Turkmenistan as the leading trading partner. Turkmenistan's trade with the Gulf stood at around US$1.7 billion in 2024.
Uzbekistan and Turkmenistan
Uzbekistan's trade with Gulf countries nearly sevenfold between 2020 and 2025, reaching US$1.75 billion. This represented around 45% of total trade between the two regions.
Unlike most neighbouring countries, Uzbekistan's trade flows are relatively balanced. Exports reached US$860 million in 2025, while imports totalled US$890 million.
Uzbekistan exports precious metals, mineral products and agricultural goods to Gulf countries. Its imports mainly consist of electronics, machinery and equipment, aircraft, pharmaceutical products and chemicals.
Turkmenistan's trade with Gulf countries increased around eightfold, from US$200 million to US$1.6 billion. The main driver was imports from the UAE, nearly 90% of which consisted of machinery and equipment, electrical equipment and vehicles.
Turkmenistan's exports were considerably smaller and consisted mainly of products from the fuel and energy sector, chemicals and agriculture.
The UAE's role as a re-export hub is particularly evident in trade with Turkmenistan. The EDB used mirror trade data for Turkmenistan in its calculations.
Kazakhstan, Kyrgyzstan and Tajikistan
Kazakhstan's trade with Gulf countries exceeded US$300 million in 2025. Its exports are gradually becoming more diversified.
In addition to metallurgical products, supplies of agricultural goods, including meat and other food products, are increasing. Exports of chemicals and certain types of equipment are also growing.
Pharmaceutical products, chemicals, machinery and equipment dominate Kazakhstan's imports. These include equipment for the oil and gas industry.
Given the size of Kazakhstan's economy and its growing investment ties with Gulf countries, the bank considers the potential for expanding trade significant.
Kyrgyzstan recorded one of the highest growth rates in trade with Gulf countries. Between 2020 and 2025, turnover increased around ninefold, from US$20 million to US$185 million.
Growth was driven mainly by Kyrgyz exports, although a significant share consisted of re-exports. In 2025, electronics, primarily mobile phones, accounted for 80–87% of supplies to the UAE.
Exports of food products, pulses, metals and certain industrial goods are also expanding. Kyrgyzstan mainly imports vehicles, perfumes and cosmetics, and textile products.
Tajikistan's trade with Gulf countries increased more than fivefold over the same period, from US$20 million to US$107 million.
Tajikistan imports vehicles, machinery and equipment, electronics and chemical products. Its exports are considerably smaller and consist mainly of metals and agricultural goods.
Although trade turnover continues to grow steadily, imports account for the larger share.
The UAE dominates regional trade
Trade concentration is even higher on the Gulf side. The UAE accounted for around 94% of trade with Central Asia in 2025, or US$3.67 billion.
Saudi Arabia ranked second, with approximately US$225 million, representing 6%. Trade with Qatar, Oman, Kuwait and Bahrain remains limited.
According to the EDB, the UAE's leading position reflects not only the capacity of its domestic market but also its role as an international trade, logistics and re-export hub.
The bank estimates that additional trade potential between Central Asia and the Gulf could reach US$4.9 billion by 2030. The calculations are based on data from the International Trade Centre of UNCTAD and the World Trade Organization (WTO).
This potential is equivalent to 125% of the trade turnover recorded in 2025.
One of the main constraints is high transport and logistics costs. Central Asia has no direct access to Gulf seaports. Complex multimodal transport arrangements make deliveries more expensive and time-consuming, reducing the competitiveness of both exported and imported goods.
Other obstacles include underdeveloped quality logistics and warehouse infrastructure and limited access to trade financing. The bank also identifies shortcomings in mechanisms for the mutual recognition of standards.
Transport links and trade liberalisation
According to the EDB, realising the region's trade potential will require developing transport routes, reducing logistics costs and liberalising trade.
New opportunities are emerging from the Economic Partnership Agreement between the Eurasian Economic Union (EAEU) and the UAE, which entered into force on 6 October 2026. The agreement provides for the elimination or reduction of tariffs on more than 85% of tariff lines.
For Kazakhstan and Kyrgyzstan, the agreement expands access to the UAE market. This primarily concerns agricultural products, food, petroleum products, metallurgical goods, machinery and equipment.
The agreement could help these countries diversify their exports and reduce trade imbalances.
In October 2026, UAE-based DP World, described in the brief as a leading global operator of container transport and port services, began construction of a major dry port near Tashkent.
The facility will include Class A warehouses with a capacity of 63,000 square metres and container yards capable of handling 150,000 twenty-foot equivalent units (TEU) annually.
Gulf investments in Central Asia
Most Gulf investments in Central Asia are concentrated in Turkmenistan, Uzbekistan and Kazakhstan, although the balance between these countries is changing.
Turkmenistan remains the largest recipient. Accumulated investments there increased from US$7.3 billion to US$14.4 billion.
Investment growth has been fastest in Uzbekistan, where accumulated investments increased more than 25-fold, from US$400 million to US$11.3 billion.
In Kazakhstan, the figure rose from US$1.3 billion to US$5.3 billion, mainly over the past two years.
The UAE remains the largest investor, with US$20.6 billion, accounting for 66% of the total investment portfolio as of mid-2026.
Saudi Arabia and Qatar are rapidly expanding their presence. Their accumulated investments reached US$6.5 billion and US$3.1 billion, respectively. Saudi investments stood at just US$300 million in 2021.
The sectoral structure of investment is also changing. The share of electricity generation increased from 2% to 34%, with accumulated investment in the sector reaching US$10.5 billion.
The extractive sector remains the largest, accounting for 49% of the portfolio, although its share stood at 82% in 2020.
According to the brief, the investment portfolio is becoming more diversified as investment in electricity generation and other non-resource sectors grows faster. Large solar and wind power projects, particularly in Uzbekistan, are the main drivers of this trend.
The UAE's investment projects
The UAE has maintained a presence in Central Asia longer than other Gulf countries. Turkmenistan is the largest recipient of Emirati investment, with two major oil and gas projects accounting for most of the portfolio.
The first involves the development of the offshore Jeitun and Jigalybeg fields, which Dragon Oil has operated since 2000. Total investment in the project is around US$10 billion.
The second project involves a 38% stake in Offshore Block I, acquired by XRG, an ADNOC company, in 2025. The transaction was completed under a production-sharing agreement with PETRONAS and Turkmen companies.
As a result, Turkmenistan, primarily its oil and gas sector, accounts for around 70% of the UAE's investment portfolio in the region.
Since the early 2020s, the UAE has increased investment in electricity generation, particularly renewable energy. During the period under review, accumulated investment in the sector rose from US$140 million to US$3.85 billion.
The EDB's MVI database lists more than 20 energy projects at various stages of development, mainly solar and wind power plants.
Most of the growth has come from Uzbekistan, where Masdar and other investors are implementing renewable energy projects.
Among the largest projects are a 500 MW wind farm in Zarafshan and the Sherabad solar power plant in Surkhandarya region, both involving Masdar. Tepelen Group is participating in a solar power plant project in Namangan region.
In Kazakhstan, accumulated UAE investments reached US$1.9 billion by mid-2026.
The largest completed project is Abu Dhabi Plaza in Astana, which has made construction the leading sector in the structure of these investments.
In June 2026, construction began on a 1 GW wind power plant in Zhambyl region with the participation of Masdar. The project is valued at around US$1.4 billion.
Accumulated investment in the food industry has exceeded US$200 million.
New projects include the construction of a sugar factory in Almaty region with the participation of Al Khaleej Sugar.
Another project is the Biolife Proprevit complex in Akmola region, which will produce functional dairy products and non-alcoholic beverages with the participation of UAE-based EXIM FINANCE.
Saudi Arabia and Qatar expand their presence
Saudi Arabia is the second-largest Gulf investor in Central Asia, with accumulated investment of US$6.46 billion by mid-2026. This is around 20 times higher than in 2021.
Almost the entire Saudi investment portfolio is concentrated in Uzbekistan, with ACWA Power accounting for more than 95%.
The EDB's MVI database lists 12 Saudi projects, most of them in the energy sector.
The largest include the Karakalpakstan Wind and Kungrad 1, 2 and 3 Wind projects in Karakalpakstan, as well as solar power plants in Tashkent, Samarkand and Syrdarya regions.
Projects involving a data centre and cable manufacturing are also being implemented in Tashkent.
New areas of cooperation include Vision Invest's participation in the construction of a new Tashkent airport and a planned wind power project in Kazakhstan's Zhetysu region.
Qatar has doubled its investments in Central Asia in around 18 months, bringing its accumulated portfolio to US$3.1 billion by mid-2026.
Around 90% of Qatari investments are concentrated in Kazakhstan, with most of the remainder going to Uzbekistan.
Qatar's sectoral investment structure is more diversified than Saudi Arabia's. Telecommunications account for 36%, finance for 17%, and manufacturing for 16%.
Electricity generation and transport and logistics each account for 11%.
Among the largest transactions in Kazakhstan was Power International Holding's acquisition of mobile operator Mobile Telecom-Service, which operates the Tele2 and Altel brands, for around US$1.1 billion.
Qatar's Lesha Bank acquired Bereke Bank.
In Uzbekistan, Qatari investment is concentrated mainly in electricity generation, including a thermal power plant project in Surkhandarya region involving Nebras Power.
Oman and other Gulf investors
Oman more than doubled its accumulated investments in Central Asia over five years, reaching US$924 million by mid-2026.
Around 70% of its investment portfolio is concentrated in Kazakhstan. The extractive sector dominates, accounting for 60% of investments.
Other areas include transport and logistics, manufacturing and commercial real estate.
The largest Omani projects in Kazakhstan include a stake of around 30% held by Maaden International Investment in Solidcore Resources and a 20% stake held by Oman Oil Company in the Dunga oil and gas project.
In Uzbekistan, Oman invests mainly through the joint UzOman platform. Its activities cover commercial real estate, logistics infrastructure and the financial sector.
The EDB expects trade and investment ties between Central Asia and Gulf countries to continue expanding. It attributes this outlook to economic growth in Central Asia, Gulf businesses' expansion into international markets and stronger economic cooperation across the Islamic world.
