Islamic Development Bank to invest $1.3 billion in Kazakhstan's industrial zones

Kazakhstan's Minister of Industry and Construction, Yersaiyn Nagaspayev, held a meeting with the President of the Islamic Development Bank (IsDB), Muhammad Suleiman Al Jasser, during a working visit to Jeddah, Saudi Arabia.

The negotiations focused on the current state and future prospects of cooperation between the IsDB and Kazakhstan's financial institutions. The parties also discussed expanding investment interaction in priority economic sectors, including industrial infrastructure and the modernization of utility networks. Special attention was paid to implementing joint projects aimed at sustainable development and enhancing the country's investment appeal.

Following the meeting, a framework agreement was signed between the IsDB and Kazakhstan's Industrial Development Fund to attract $1.3 billion for financing the construction and modernization of infrastructure within Special Economic Zones (SEZs) and Industrial Zones (IZs). Additionally, an agreement was signed between the IsDB and Kazakhstan's Ministry of Industry and Construction for a $1.3 million technical assistance grant.

"The signed documents form a solid financial and institutional foundation for modernizing zone infrastructure and represent an important step in strengthening strategic partnership between Kazakhstan and the Islamic Development Bank," noted Yersaiyn Nagaspayev.

The grant support from the IsDB will be directed towards improving SEZ management mechanisms, digitalizing processes, implementing modern administration standards, and enhancing the professional competencies of managing companies. Implementing these measures is expected to create a more transparent and efficient operational model for these zones, focused on attracting investment and developing export-oriented production.

This development follows President Kassym-Jomart Tokayev's instruction on February 10, 2026, during an expanded government meeting. He tasked officials with approving a new model for developing Special Economic Zones within three months, emphasizing the need to fully utilize their potential. The President stated that SEZs should become full-fledged investment platforms employing modern regulatory norms, new tools, and service solutions for subsequent scaling at a national level.