Eurasian Development Bank Emphasizes Growth, Renewable Energy, and Integration at AIF 2025 Event
AT THE HEART OF ASIA - The Eurasian Development Bank (EDB) recently gathered for a thought-provoking discussion at the Astana International Forum (AIF) 2025, tackling the future of growth in the Eurasian region. This event, led by Kazakhstan's president Kassym-Jomart Tokayev, took place on May 29th.
Nikolay Podguzov, Chairman of the EDB Management Board, steered the conversation. Highlighting Kazakhstan and Central Asia's sustainable economic growth for over two decades, Podguzov pointed out that this growth often outpaced the global and developing country averages. In 2024, the combined GDP of Central Asian nations rose above $500 billion.
"This region must capitalize on all global economy opportunities. The goal can be simplified as follows: think locally and tap into your full potential while relying on trends set by the world," Podguzov elucidated.
The discussion delved into the potential transformation of the Eurasian region within the global economy, zeroing in on energy innovation, the management of water resources, and the development of transport infrastructure. By exhibiting examples of their mega projects, the EDB showcased how these initiatives reshaped the region's economic landscape. As part of its 2022-2026 Strategy, the bank is implementing three key initiatives: the Water and Energy Complex of Central Asia, the Eurasian Transport Network, and the Eurasian Commodity Distribution Network.
Mohamed Jameel Al Ramahi, CEO of Masdar, a leading renewable energy company and pioneer in green hydrogen production, sheds light on a noteworthy milestone in the world: the harmonious blend of solar power and battery storage significantly hastens the global transition to sustainable energy. Al Ramahi stressed that enhanced storage technology capabilities now make it feasible to compete with traditional energy sources, without needing subsidies or higher costs.
"Central Asia appears ready for such transformative solutions, and we're prepared to collaborate with governments and partners to expedite this evolution," he declared.
Currently, Masdar partners with Kazakhstan on the Zhambyl Wind Project, marking a significant step in Kazakhstan's clean energy aspirations.
In response to a question from Podguzov, Vice Minister of National Economy Arman Kasenov underscored the Kazakh government's focus on high-productivity, export-oriented industries, particularly raw material processing. Kasenov affirmed that the diversification process reaps impressive results.
"Kazakhstan has a golden opportunity to extensively expand its share of raw material processing industries, which account for 70% of the country's industrial output. With the potential for significant growth, we've intensified investment activities via national development financial institutions, aiming to provide $100 billion cumulatively," Kasenov reiterated.
Mustafa Adil, Head of Islamic Finance at London Stock Exchange Group (LSEG), spoke about the growing impact of Islamic finance on the global economy. He expressed that this sector is no longer a specialized niche, despite lingering misconceptions among the uninformed.
"Global Islamic finance is worth over $5 trillion within the overall financial services sector," he affirmed.
Rae Kwon Chung, Nobel Laureate and Board Director of the Ban Ki-moon Foundation, proposed a sustainable cotton project for Central Asia. This idea involves smart farms powered by renewable energy, capable of reducing water consumption by up to 90%. With global brands seeking eco-friendly merchandise, the initiative addresses environmental concerns while boosting export potential.
"Creating carbon-neutral energy and goods, and selling them at a premium, is a lucrative green growth strategy. We invest in sustainability and make it profitable. This initiative has already begun in Kazakhstan and Uzbekistan, and I look forward to strengthening cooperation and support," Chung asserted.
The AIF 2025 forum, held for the second time this year, assembles politicians to engage in diverse debates, from geopolitical twists and turns to sustainable energy solutions. This event aims to tackle global challenges by amplifying various perspectives, much like President Tokayev emphasized in his speech on the forum's second day.
Samruk Kazyna National Welfare Fund, ERG, and Freedom Bank Kazakhstan serve as the general partners and sponsors of AIF 2025. The official sponsors are Kazakhmys, Karachaganak, KAZ Minerals, North Caspian Operating Company, Tengizchevroil, Alatau City, Baiterek Holding, VISA, Stepnogorsk Bearing Plant, Caspian Oil, Qarmet, and RG Gold.
- The Eurasian Development Bank, under Nikolay Podguzov, emphasized sustainable economic growth in Kazakhstan and Central Asia, which frequently surpassed global and developing country averages, with the region's combined GDP exceeding $500 billion in 2024.
- Reflecting on the potential transformation of the Eurasian region in the global economy, the discussion centered on energy innovation, water resource management, and transport infrastructure, showcasing the impact of the EDB's mega projects on the region's economic landscape.
- Mohamed Jameel Al Ramahi, CEO of Masdar, highlighted the growing importance of solar power and battery storage in the global transition to sustainable energy, asserting that improved storage technology could now compete with traditional energy sources without subsidies or higher costs.
- In partnership with Kazakhstan, Masdar is involved in the Zhambyl Wind Project, a significant step in Kazakhstan's clean energy endeavors.
- Arman Kasenov, Vice Minister of National Economy, stated that Kazakhstan focuses on high-productivity, export-oriented industries, particularly raw material processing, and has made sizable strides in the diversification process.
- Mustafa Adil, Head of Islamic Finance at the London Stock Exchange Group, discussed the substantial impact of Islamic finance on the global economy, clarifying that it now accounts for over $5 trillion within the overall financial services sector.
- Rae Kwon Chung, a Nobel Laureate, proposed a sustainable cotton project for Central Asia, ensuring smart farms powered by renewable energy and capable of reducing water consumption by up to 90%.
- The AIF 2025 forum, hosted by Samruk Kazyna National Welfare Fund, ERG, and Freedom Bank Kazakhstan, fosters debates on diverse topics, from geopolitical developments to sustainable energy solutions, aiming to address global challenges by amplifying various perspectives.
