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

Kazakhstan's Minister of Industry and Construction, Yersain Nagaspayev, held a meeting with the President of the Islamic Development Bank (IsDB), Muhammad Sulaiman 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 discussed expanding investment interaction in priority sectors of the economy, 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. This agreement secures $1.3 billion in funding for the construction and modernization of infrastructure within Special Economic Zones (SEZs) and Industrial Zones (IZs). A separate agreement was also signed between the IsDB and Kazakhstan's Ministry of Industry and Construction for a $1.3 million technical assistance grant.

"The signed documents create 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," stated Yersain 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 mandated that a new model for developing Special Economic Zones be approved within three months, emphasizing the need to fully utilize their potential. The President stated that SEZs must become full-fledged investment platforms employing modern regulatory norms, new tools, and service solutions with subsequent nationwide scaling.