asia investment stock in Central Asia rose to $68 billion from $29.9 billion, reflecting roughly 10% average annual growth over the report's period, according to the Eurasian Development Bank's Monitoring of Mutual Investments report.
Gulf states were the main recent drivers, accounting for about $9 billion of a reported $20 billion increase in Asian FDI stock, and posting an average annual growth rate of 13.9%, more than double the external partner average of 6.8%, the report says.
The region's Asian FDI portfolio remains geographically concentrated, with 92% of Asian FDI stock held in three countries. Uzbekistan leads with $22.6 billion and recorded the fastest expansion, Turkmenistan holds $20.6 billion, and Kazakhstan $19.3 billion, the report notes.
Sectoral composition is shifting away from extractives toward power and manufacturing. The extractive industry's share of mutual FDI stock fell from 55% to 35% over the report's timeframe, while the power sector's share climbed nearly tenfold from 2.6% to 26%, according to the EDB.
Power projects accounted for more than half of the recent increase in attracted investments, contributing $10.1 billion out of a $19.8 billion rise over a one and a half year span covered by the report. The most active investors in the power segment are the Gulf states and China, with Gulf FDI stock reaching $8.3 billion and China at $8.2 billion in the power sector.
Eurasian Outflows And Country Profiles
The report also details bilateral profiles. Mutual FDI stock with India reached $13.4 billion, concentrated largely in oil and gas projects in Russia and Azerbaijan. Vietnam's FDI stock grew to $825 million and is diversifying geographically and sectorally, with Russia still the primary destination but a rising presence in Central Asia, including Kazakhstan and renewable energy projects.
Afghanistan remains a modest but strategically focused partner, with total FDI stock of $190 million and Turkmenistan the largest investor in the Afghan portfolio at $99 million, driven by infrastructure and power projects such as the TAPI gas pipeline. Uzbekistan pursues gas production projects, Azerbaijan operates an oil refinery in Hairatan, and Kazakhstan's role in Afghanistan is limited.
Indonesia's involvement centers on a single major industrial deal, with Indorama Corp holding 99% of FerganaAzot in Uzbekistan and total investment estimated at $240 million, including modernization commitments. The EDB report says the announced project pipeline suggests potential for further expansion.
Eurasian countries themselves remain active capital exporters to Asia. Their FDI stock in Asian partner countries reached $56.6 billion, up 12.5% over the previous 18 months. Russia and Azerbaijan account for 72% and 23% of outward Eurasian investment, while Turkey absorbed 78% of Eurasian investments by destination, followed by India at 12%, Vietnam 4%, and China 2%.
