What Kyrgyzstan and Gulf states are building together

#Analyse

Investment by Gulf countries into Central Asia has tripled since 2022, and nearly 96% of all Gulf investment in Eurasia is concentrated there. Kyrgyzstan works with all the members of the Gulf Cooperation Council (GCC) — Bahrain, Kuwait, Oman, Qatar, Saudi Arabia the United Arab Emirates — with cooperation spanning broadly across infrastructure, energy, technology and industrial modernisation, education and trade.

This year Kyrgyzstan marks 30 years of diplomatic relations with the UAE, and with that partner the visits, summits and agreements have already turned into standing structures. One of them is Abu Dhabi Kyrgyz Investment, a joint venture set up by the Kyrgyz Ministry of Economy and Commerce and the Emirati side to bring Emirati direct investment into the country. Beyond investment and trade, the countries cooperate on solar projects, education, and exchange public administration practices.

Green energy and minerals

Renewable energy is one of the most promising areas of GCC-Kyrgyz cooperation, and geography explains why. Kyrgyzstan is mountainous and criss-crossed by rivers, and the fast flows that come with that terrain are well-suited for hydropower: the country generates about 90% of its electricity from hydropower, and is already a top producer of green energy in Central Asia, but only about 14% of its hydropower potential is currently utilised.

Kyrgyzstan's resource base creates further opportunities to partner with Gulf states on low-carbon energy. The country holds more than 20 minerals essential for green technology, among them lithium, rare earths, and copper, with applications ranging from energy storage to wind power. And agreements have followed: Kyrgyzstan signed a framework agreement with the Emirati renewables developer Masdar this year to build a 200 MW solar power plant, the first phase of a 1 GW renewable energy programme. A memorandum of understanding with 40 Capital, an Emirati clean energy investment and infrastructure company, also covers joint energy projects. In another key initiative, Saudi Arabia's Fas Renewable Energy is working with the Green Energy Fund under the Cabinet of Ministers of the Kyrgyz Republic to develop a massive solar power plant of up to 900 MW at a cost of USD 500 million.

Reform models and social projects

Kyrgyzstan and its Gulf partners are cooperating beyond the investment agenda as well, starting with improvements to public administration. With the support of the UAE government, Kyrgyzstan is implementing principles of the Government Accelerators programme, an Emirati working mechanism that pushes public sector projects, policies and national agenda targets through intensive 100-day cycles.

Kyrgyzstan has completed 17 reforms via this mechanism, including simplifying procedures in construction, preschool education, healthcare, land legislation, international transport and logistics; removing excessive bureaucracy; and cutting decision-making time. The programme now runs to 2030.

The relationship extends into education, where the Islamic Academy in Tokmok opened under the directives of UAE President His Highness Sheikh Mohamed bin Zayed Al Nahyan in the presence of Kyrgyz President Sadyr Japarov. Part of the UAE's humanitarian and development work, it is meant to support higher education, Islamic values, tolerance and intercultural dialogue in Kyrgyzstan.

The Saudi Development Fund also backs the construction of educational facilities in Kyrgyzstan, with 28 schools and two kindergartens built across the country in the first phase of the project at a cost USD 30 million, financed by a 25-year loan from the fund. A second phase to build 14 schools in Bishkek began earlier this year with a further loan of USD 50 million over 25 years from the same fund. In total, the Saudi Development Fund is running projects worth USD 330 million in housing, infrastructure and social programmes in the country.

Trade, councils and Islamic finance

Bilateral trade between Kyrgyzstan and the UAE reached USD 176 million in 2025, placing the Emirates among Bishkek's top 12 trading partners. That is more than double the 2024 figure of USD 78.5 million, and both sides are working to push it even higher.

A major boost to bilateral trade is the Economic Partnership Agreement signed between Eurasian states and the United Arab Emirates and ratified by Kyrgyz President Sadyr Japarov this year. As a result of this move, Kyrgyz exporters will be able to supply key goods to the Emirati market duty-free. The document also covers e-commerce, intellectual property, government procurement, competition, and customs administration. The agreement is expected to help increase trade volumes and create jobs, as well as addressing the mutually critical issue of food security: both countries face tight climatic constraints to domestic agriculture, and more trade routes create more sources of supply.

Kyrgyzstan is increasing trade relations with other countries in the GCC. This includes the establishment of a Saudi-Kyrgyz Business Council to boost Gulf investments in the country, as well as agreements on renewable energy, tourism, agriculture and industry with Riyadh. The countries are also discussing cooperation in energy, mining, metallurgy, including rare metals, science and healthcare. With Bahrain, Kyrgyzstan is working towards a business council of the same kind, and the agenda there also includes Islamic banking — a promising but still nascent sector in Central Asia. The two sides discussed establishing an Islamic bank in Kyrgyzstan with Bahraini support during President Japarov's first visit to Manama in 2025, and their central banks signed a memorandum of cooperation on the issue shortly after. Islamic finance is a focus area for the National Bank of the Kyrgyz Republic's plans for 2025-2030, and in March 2026 the Cabinet of Ministers adopted a resolution approving the requirement for takaful, the cooperative system of mutual insurance based on Islamic law.

Talks with Qatar, Kuwait and Oman are at an earlier stage. The Kyrgyz embassy and the Qatar Chamber this month discussed creating a joint business council to boost economic ties, while Oman's finance minister announced intent to send a working group to study investment and tourism opportunities in the country. In Kuwait, the Kyrgyz embassy and the Union of Investment Companies discussed a memorandum of understanding and a visit by a Kuwaiti investment delegation.

As relations with Gulf states deepen, Tamchy SFIT is creating a new financial ecosystem for joint investment projects. Kyrgyzstan's special financial and investment territory partnered with AIM Congress in Dubai and presented the project to Gulf government and business leaders in September 2026. As part of the event Ayaz Baetov, Chairman of Tamchy SFIT's Management Council and head of the delegation, met with UAE Minister of Foreign Trade Thani bin Ahmed Al Zeyoudi, Secretary General of the UAE International Investment Council Abdulla Ahmed Al Suwaidi and President and CEO of Dubai Chambers Mohammad Ali Rashed Lootah to discuss new opportunities for growth.

The delegation also met key relevant regional institutions, including financial centres, and representatives of leading companies in the region. Meeting participants discussed trade development, economic, and investment cooperation, establishing direct institutional and business ties, and exploring potential areas of collaboration with Tamchy SFIT.