The agreement package worth 5 billion USD, signed between Kazakhstan and the United Arab Emirates (UAE) on May 12, 2025, comprising over 20 agreements, represents a significant development not only in terms of bilateral relations but also regarding the economic balance in Central Asia. These agreements cover a wide range of sectors including energy, transportation, education, digital transformation, and healthcare, reflecting the long-term strategic partnership vision of both countries. Behind this development lie Kazakhstan’s reforms aimed at increasing its capacity to attract investments from other countries and the UAE’s strategy to engage with Central Asia within the framework of its “Vision 2031”. These steps, taken by both governments in line with their objectives of sustainable development, economic diversification, and regional integration, are indicators of not only commercial but also diplomatic rapprochement.
One of the most striking aspects of the agreement package is the projects undertaken with Masdar Company, which foresee a total of 500 MW of baseload renewable energy generation and 2 GW of energy storage capacity. These projects are directly linked to Kazakhstan’s targets of meeting 15% of its electricity production from renewable sources by 2030 and 50% by 2050. Masdar’s ongoing 1 GW wind energy project in Kazakhstan is also considered a strategic investment tool from this perspective. In addition, energy storage infrastructures and battery technologies are intended to position Kazakhstan not only as a producer but also as a country building capacity in energy management.[i]
The partnerships established with Presight and AIQ in the fields of artificial intelligence and digital infrastructure can be regarded as an indication that Kazakhstan is adopting a model based on external technology partnerships in its digital transformation journey. Major projects such as the planned data processing center and supercomputer clusters in Astana are expected to enhance capacity not only in public administration but also in the private sector and security fields. [ii] These projects align with Kazakhstan’s regional leadership goals in areas such as data security, digital sovereignty, and high processing capacity.
In the field of transportation and logistics, the agreement for the modernization of Nursultan Nazarbayev International Airport is among the other prominent topics. This transformation, integrated with new passenger terminals, cargo facilities, and an “aerotropolis” model, constitutes a concrete step toward transforming Kazakhstan into a regional air transportation hub.[iii] Additionally, components such as certified personnel training aim to develop a qualified workforce. Such projects are critically important not only as infrastructure investments but also in terms of service quality, sustainability, and digital integration.[iv]
Cooperation documents have also been signed in the fields of healthcare and education. Notably, the planned maternity hospital in Turkistan and the opening of SABIS International School in Astana demonstrate the scope of infrastructure investments supporting social development. These investments are expected to both improve the welfare of local communities and contribute to Kazakhstan’s attainment of international standards in social services.
There are also notable collaborations between the two countries in the agriculture and food sectors. The agreement signed with QazaqArab Sugar for the establishment of a sugar factory in the Almaty region aims to increase added value in agricultural production and to strengthen the export of processed food products. Meanwhile, the cooperation with Lulu Group is considered a strategic step in opening Kazakh agricultural products to Gulf markets.[v]
The agreements signed between Kazakhstan and the UAE in May 2025 have not only deepened the existing trade relations but have also demonstrated how the development visions of both countries intersect. This multidimensional bilateral relationship, extending from energy transformation to digital infrastructure, from transportation to social services, positively reinforces Kazakhstan’s capacity as a regional actor. Additionally, the UAE’s growing strategic interest in Central Asia indicates that alternative sources of capital and technology, apart from China and Russia, are increasingly being directed toward the region. These collaborations also reflect Kazakhstan’s aspiration to move beyond its traditional role as an energy exporter and evolve into a multifaceted development actor. This situation clearly reveals that Kazakhstan is not only engaging with traditional major partners such as China and Russia but is also turning toward alternative strategic partners like the Gulf States.
In the coming years, the implementation process of these agreements is expected to be closely linked to Kazakhstan’s commitment to maintaining an investor-friendly environment and decisively carrying out structural reforms. Overall, it is evident that Kazakhstan has gained strategic flexibility in a multipolar geo-economic order and is increasingly becoming an influential player in the global investment environment.
[i] “Kazakhstan, UAE Sign Over $5 Billion in Agreements During Crown Prince’s Visit”, Astana Times, https://astanatimes.com/2025/05/kazakhstan-uae-sign-over-5-billion-in-agreements-during-crown-princes-visit/ (Erişim Tarihi: 14.05.2025).
[ii] “Agreements worth USD 5 bln signed at Kazakhstan-UAE Business Forum”, Qazinform, https://qazinform.com/news/agreements-worth-usd-5-bln-signed-at-kazakhstan-uae-business-forum-6131cf, (Erişim Tarihi: 14.05.2025).
[iii] “Kazakhstan and UAE sign agreements worth $5bn at business forum”, Daryo.uz, https://daryo.uz/en/2025/05/13/kazakhstan-and-uae-sign-agreements-worth-5bn-at-business-forum, (Erişim Tarihi: 14.05.2025).
[iv] “Kazakhstan Signs Renewable Energy Deal with UAE’s Masdar”, The Electricity Hub, https://theelectricityhub.com/kazakhstan-signs-renewable-energy-deal-with-uaes-masdar/, (Erişim Tarihi: 14.05.2025).
[v] “Kazakhstan Seals UAE Deal For Nursultan Nazarbayev Airport”, Visaverge, https://www.visaverge.com/news/kazakhstan-seals-uae-deal-for-nursultan-nazarbayev-airport/, (Erişim Tarihi: 14.05.2025).
