Investors Show Strong Interest in Central Asia and Caucasus

Tashkent, Uzbekistan (UzDaily.uz) — Central Asia and the Caucasus continue to strengthen their positions on the international investment map. According to the third annual Montfort Eurasia investment sentiment report, the interest of institutional investors from the United Kingdom and the United States in the region remains at a record high, despite ongoing geopolitical tensions and instability in global financial markets.

According to the study, 66.3% of surveyed investors declared a high or moderate interest in investing in the countries of the region. Analysts note that the key trend is not so much an increase in interest, but rather its qualitative transformation: Central Asia and the Caucasus have ceased to be perceived as an exotic destination and have entered the ranks of markets considered within long-term investment strategies.

The authors of the study emphasize that the approach of investors toward evaluating the region has changed in recent years. While attention was previously largely formed under the influence of the news agenda, today investment decisions are based on financial analysis, industry research, and due diligence procedures.

At the same time, the study revealed a gap between the level of interest and the depth of knowledge about the region. The average self-assessment of awareness was 6.63 out of 10 points among British investors and 6.79 points among American investors. Although these indicators significantly exceed the 2023 level, experts note a slight decrease compared to the peak values of last year.

Moreover, objective awareness remains limited. For instance, only 29% of British investors were able to correctly assess the volume of trade between the UK and the countries of the region, while about a quarter of respondents in both the UK and the US found it difficult to name the most favorable country for doing business in Central Asia and the Caucasus.

As noted by the Managing Director of Montfort Eurasia, Eleanor Kramers, the region has successfully passed the stage of attracting the attention of the international investment community.

"Just two years ago, the main task of Central Asia and the Caucasus was to attract attention. Today, it is important to be understood. Investors make decisions based on financial data and thorough analysis, rather than news headlines. Now the key task becomes providing high-quality, consistent, and deep information that meets the expectations of the professional investment community," she emphasized.

The study also shows a change in the informational preferences of investors. Financial analytics became the main source of information for 68.6% of British and 56.6% of American respondents, ahead of international media. This indicates a transition of investors toward a more professional assessment of the investment opportunities in the region.

Simultaneously, attention to political risks has intensified. While investment security remains the primary factor in decision-making, political stability took second place among the key conditions for the region's attractiveness. Its importance was noted by 56.2% of British and 52.9% of American survey participants. Furthermore, almost two-thirds of investors from the UK consider the further strengthening of political stability to be the main condition for increasing investment volumes.

Experts note that the results of the study reflect a new stage in the perception of Central Asia and the Caucasus by the global investment community. The region is gradually ceasing to be perceived as a high-risk market and is increasingly viewed as a promising platform for long-term capital investment. At the same time, further growth in investment attractiveness will depend on the quality of institutional reforms, regulatory transparency, the effectiveness of communication with international investors, and the preservation of political stability.