According to the latest Report of the Eurasian Development Bank “The EDB Monitoring of Mutual Investments (EDB MMI) on the Eurasian Continent”, the volume of Türkiye’s stock foreign direct investment in the countries of the Eurasian region reached $ 12.3 billion at the end of the first half of 2024. This represents a significant increase of 34% compared to 2016 and 8.8% compared to 2022.
Investments structure
Greenfield projects account for the largest share of the total stock of investments with Türkiye — 60.7%, or $7.5 billion. Greenfield projects have grown 62% since 2016 and 18% since 2022. The number of active projects is 98.
In terms of forms of ownership, private companies account for the largest share (72.2%) of Turkish investments. The stock of FDI by private companies is $8.9 billion, up 50% since 2016 and 11% since 2022.
Focus on Central Asia
Central Asia is of particular interest to Turkish investors. The region accounts for 24% of Türkiey’s total accumulated investments in the Eurasian region. From 2016 to the first half of 2024, the volume of investments in this region increased 2.5 times, from $1.1 billion to $2.9 billion, which significantly exceeds the total growth of Turkish investments in the Eurasian region over the same period (34%).
Kazakhstan became the most attractive destination for Turkish investors, providing the largest increase in the volume of stock investments — by $ 1.3 billion in the first half of 2024 compared to 2016. This underlines the strategic importance of Kazakhstan as a key partner of Türkiye in the region.
Key projects in Central Asia financed by Türkiye
Kyrgyz-Turkish Manas University in Kyrgyzstan is one of the largest education sector projects implemented with Türkiye. Financing was provided from the Turkish state budget, which became an important element of bilateral cooperation in the field of education.
Production of soda ash in Kazakhstan (Yildirim Group). The plant located in Zhambyl Oblast is designed to meet the entire domestic demand for soda. The $412 million project started in 2021 and is scheduled for completion in 2025. The construction uses zero waste technology, which minimises its environmental impact.
CHP in Kyzylorda Oblast, Kazakhstan, is another significant project, initiated by Aksa Energy. Construction began in 2022 and completion is expected in 2025. The total cost is about $450 million.
Turkestan International Airport, Kazakhstan, built by YDA Group, was commissioned in 2020. Its construction, which began in 2019, was completed in record time. The project is worth $200 million, aims to develop the region’s transport infrastructure, improving the transport connectivity of Turkestan Oblast, and should contribute to the growth of tourism and the mobility of citizens.
A textile production project in Namangan Oblast, Uzbekistan, is being implemented by Akca Holding. The project is worth $250 million.
Sectoral structure of investments
Türkiye’s investment stock in the Eurasian region is relatively evenly distributed across sectors.
Extractive industries are leading with a 23.6% share, or $2.9 billion (up 2% on 2022).
Manufacturing has shown significant growth of 74% since 2016 and 25% since 2022, making it one of the fastest growing sectors for Türkiye’s investments in the Eurasian region. The sector hosts the largest number of projects at 49. The largest recipients of investments in manufacturing are Russia (23 projects worth $1.4 billion) and Kazakhstan (19 projects worth $632 million).
Among the new projects of Turkish investors in this sector is Isiklar Holding, a paper packaging project. The total investment will be $12 million. A project to produce Borsan cable products in Kazakhstan is also underway. The total investment will be $90 million
The agro-industrial complex as a whole shows positive trends — a twofold growth relative to 2016, although there has been a slight decline of 3% in the last year and a half.
The main driver of growth in recent years has been electricity generation. Investment growth in this sector is 2.4 times in a year and a half to $0.72 billion as at the end of 1H 2024.
Construction holds a special position in Türkiye’s investment stock, with a share of 23.2%. Turkish businesses lead the sector in the Eurasian region with an investment stock of $2.85 billion as at the end of 1H 2024.
The EDB Monitoring of Mutual Investments (EDB MMI) on the Eurasian Continent is a study of mutual investments of the countries of the Eurasian region (Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan, Kyrgyzstan, Moldova, Mongolia, Russia, Tajikistan, Turkmenistan, Ukraine, and Uzbekistan) and major partners in Eurasia (China, Türkiye, Iran, and the Gulf states).///nCa, 25 February 2025