EDB at 20 Seeks Bigger Role in Central Asia's Development

Tashkent, Uzbekistan (UzDaily.uz) — The Eurasian Development Bank (EDB), which marks its 20th anniversary this year, is positioning itself as a key intermediary between Central Asia and international capital markets, a role it intends to expand as competition among development banks intensifies.

"Every region has its own development banks. We are Central Asia's home team," said Ruslan Dalenov, Deputy Chairman of the EDB's Management Board.

The bank's positioning is based on five trends that EDB analysts have identified in its lending portfolio.

Clients are shifting from financing existing industries to creating new ones. Demand for "reliable energy"—including gas and conventional power generation—is replacing the previous focus solely on green energy.

Transport infrastructure is becoming more complex, expanding beyond roads and railways to include ports and freight hubs. New financing instruments are also emerging, including lending in Chinese yuan and UAE dirhams. At the same time, demand is increasing for large syndicated transactions requiring the participation of multiple institutions.

Sami Al-Suwailem, Director General of the IsDB Institute, speaking remotely, warned that development banks risk losing their relevance unless they respond more quickly to clients' needs. A global survey of 650 respondents from 125 countries conducted by UDI Global in 2024 found that while development institutions continue to be highly valued, the perceived effectiveness of individual development banks is declining.

"Demand for development bank support is increasing. But if we cannot provide resources more quickly, our role will diminish," Al-Suwailem said.

As a strategic response, he proposed shifting the focus from lending to institution building in member countries, helping governments develop their own capacity for growth rather than simply financing individual projects.

For the EDB, whose shareholders are Russia, Kazakhstan, Armenia, Belarus, Kyrgyzstan and Tajikistan, and whose partners include institutions ranging from the Islamic Development Bank to Chinese commercial banks, this means balancing growing geopolitical pressures with the task of mobilising diverse sources of capital for the region.

The session concluded with a clear message: Central Asia's investment needs of US$251 billion by 2030 cannot be met by any single institution acting alone.

A coalition model—combining the EDB, Islamic financial institutions, Chinese capital and investors from the Gulf states—is becoming a necessity rather than an option.