European investment in Central Asia is entering a more practical phase. The region is no longer only about hydrocarbons or development finance: European capital is now moving through institutional lenders, private companies and sector-specific projects in energy, transport, urban infrastructure, construction materials and industrial services.
The EU remains the largest foreign investor in Central Asia, providing over 40% of FDI in the region over the past ten years, with total investment exceeding EUR 100 billion. In 2022, the EU accounted for 42% of FDI in Central Asia, compared with 14.2% for the United States, 6% for Russia and 3.7% for China.
- Kazakhstan: The Investment Anchor
Kazakhstan remains the main destination for European capital in Central Asia. The EU is Kazakhstan’s biggest foreign investor, with EUR 54.8 billion of total FDI stock in 2022.
The relationship is still resource-heavy. In 2025, EU imports from Kazakhstan reached EUR 30.8 billion, and fuel and mining-related products accounted for 92% of Kazakhstan’s exports to the EU.
However, Kazakhstan is no longer only a raw-materials story. The same market is now attracting European companies in rail technology, renewable energy, engineering, industrial maintenance and construction materials. For private companies, the opportunity is often not the largest project itself, but the service chain around it: equipment supply, maintenance, technical consulting, logistics, subcontracting and local production.
- Uzbekistan: The Growth Market
Uzbekistan is smaller than Kazakhstan in accumulated European FDI, but its growth profile is stronger. EU outward FDI stock in Uzbekistan increased from EUR 0.6 billion in 2021 to EUR 4.2 billion in 2024, while EU exports to Uzbekistan rose from EUR 2.3 billion in 2021 to EUR 4.5 billion in 2025.
This makes Uzbekistan one of the most interesting markets for private European companies. Its appeal is not only macroeconomic: it lies in concrete demand for renewable power, heating systems, building materials, food processing, industrial equipment and urban services.
The key point for investors is timing. Uzbekistan is still a developing market, but several sectors are already moving from “market potential” to signed contracts, financed projects and operating assets.
Kyrgyzstan and Tajikistan remain much smaller destinations for direct European investment, but financing for energy and water infrastructure, provided by the European Investment Bank (EIB) and the European Bank for Reconstruction and Development (EBRD), including the rehabilitation of Tajikistan’s Qairokkum Hydropower Plant, which increased its installed capacity from 126 MW to 174 MW, is gradually enhancing their attractiveness to private contractors.
- Development Banks Are Creating Entry Points
European development finance remains a major driver of the market, but it is not only relevant for large public projects. It often creates entry points for private contractors, suppliers, consultants and operating companies.
In 2025, the EBRD invested almost USD 2 billion, or EUR 1.72 billion, through 120 projects in Central Asia and Mongolia. Uzbekistan was its leading recipient for the sixth consecutive year, while close to 68% of EBRD loans supported private entrepreneurial initiative and 53% promoted green economy projects. In Kazakhstan, a EUR 45 million financing package from the EBRD and the EU is helping increase cargo-handling capacity at the Port of Aktau, the country’s primary Caspian gateway and a key element of the Trans-Caspian Corridor, creating the type of infrastructure entry point where private logistics and engineering contractors typically find work.
The EIB is also expanding its role. At the 2025 EU–Central Asia Summit, EIB Global signed agreements to provide EUR 365 million, expected to unlock up to EUR 1 billion for sustainable transport, water management and climate resilience projects.
For private companies, lender-backed projects can be attractive because they bring clearer tender procedures, stronger documentation and a more disciplined project environment. The trade-off is that preparation becomes more important: a company must be ready to meet lender requirements, prove technical capacity, document its ownership structure and manage local execution risks.
- Private European Companies Are Already Testing the Market
Several European companies show how the current investment landscape is changing.
In Kazakhstan, TotalEnergies is developing the Mirny wind project, a 1 GW onshore wind farm combined with a 600 MWh battery energy storage system. The company states that the project should supply renewable electricity to around one million people.
Alstom represents another model: localisation rather than simple export. Its Astana plant is the only producer of electric locomotives in Central Asia and has capacity to manufacture 100 locomotive sections per year.
In Uzbekistan, Voltalia’s Sarimay Solar project shows how private renewable projects are becoming bankable. The 126 MW project was awarded through a public tender, is backed by a 25-year power purchase agreement and is expected to generate around 252 GWh per year once fully operational.
Veolia’s Tashkent district heating project is another example of long-term private participation in public infrastructure. The company received a 30-year concession for the operation, maintenance and management of the city’s district heating system.
Knauf’s acquisition of Texnopark’s rock mineral wool insulation business in Tashkent shows a different route into the region: industrial manufacturing linked to urbanisation and energy-efficient construction. The acquired plant uses advanced electric melting technology and produces low-carbon insulation materials.
Italian companies are also visible, especially in Kazakhstan. TECNIMONT signed a memorandum with Samruk-Kazyna in 2025 to develop innovative energy infrastructure, including conventional and green energy initiatives and local supply-chain development. Ansaldo Energia is supplying two AE94.2 gas turbines and related services for the reconstruction of Almaty CHPP-3.
These examples matter because they show that European private-sector activity is no longer limited to oil majors. It now includes renewables, rail, heating systems, insulation materials, engineering, power equipment and industrial localization.
- Where Private Companies Should Look
For founders and private businesses, the most realistic opportunities are often around large investment flows rather than inside them.
Transport investment creates demand for rail components, logistics services, warehouse operators, customs support and digital tracking. Energy transition creates demand for EPC support, grid services, storage, engineering, maintenance and equipment distribution. Urban development creates demand for heating, water systems, insulation, waste solutions and energy-efficient construction materials.
Critical raw materials are also attractive, but they require a more cautious approach. Mining and processing projects often involve licensing, state participation, environmental approvals, export controls and stronger scrutiny of counterparties.
- Legal Structure as a Deal-Making Tool
Central Asia should not be treated as a “copy-paste” expansion market. The legal setup often determines whether a project can actually move from negotiations to execution.
For private companies, the main issues are practical: choosing the local entity, checking the local partner, securing licenses, understanding tax exposure, controlling payment risk, protecting technology or know-how, and making sure the contract can survive delays, currency issues or regulatory changes.
In lender-backed or public-sector projects, documentation is even more important. The winning company is not always the one with the lowest price, but the one that can show a clean structure, credible experience, reliable financing and enforceable obligations.
European investment in Central Asia is becoming more diversified and more relevant for private business. The opportunity is real, but the market rewards companies that enter with a clear structure, verified partners and contracts designed for local realities.
