Regional Connectivity Projects Highlighted by Turkic Investment Fund
BAKU, Azerbaijan, November 13. The Turkic Investment Fund (TIF) is focusing on significant regional connectivity initiatives, including the China-Kyrgyzstan-Uzbekistan railway and investment possibilities along the Caspian transport corridor. Ramil Babayev, General Director of the Fund, shared insights during an exclusive interview with Trend.
Priority Areas for Expansion
The TIF places a high priority on energy projects, industrial development, and support for micro, small, and medium-sized enterprises (MSMEs) as it broadens its activities in Uzbekistan. This strategic focus aims to enhance economic collaboration among member states of the Organization of Turkic States (OTS).
Babayev noted that these priorities were reassessed during the Fund’s recent third annual Board of Governors meeting held in Tashkent on October 22, 2026. The assembly reinforced critical sectors for investment, including transport and logistics, industrial partnerships, green energy initiatives, and entrepreneurship.
Significance of Uzbekistan’s Transport Geography
Uzbekistan’s landlocked position makes transit projects vital for its connectivity to global markets. Key infrastructure initiatives such as the China-Kyrgyzstan-Uzbekistan railway and the Southern Corridor are expected to redefine the nation’s role in regional trade and logistics sectors.
Energy Sector Investment Opportunities
Another focal point for investment is within the energy sector. Uzbekistan aims to increase its generating capacity by approximately 22 gigawatts by 2030, aspiring for renewables to comprise over 50% of its energy mix. This ambition necessitates capital for generation, transmission, energy storage, and efficiency improvements.
Manufacturing and Entrepreneurship Growth
The Fund also discerns prospects in manufacturing and entrepreneurship. Nearly half of Uzbekistan’s exports to OTS nations are industrial goods and machinery. MSMEs contribute significantly to the national economy, accounting for over half of Uzbekistan’s gross domestic product and providing about 75% of employment.
Additional sectors of interest identified during a visit to Tashkent include digital infrastructure, agribusiness, water management, and public service enhancements.
Building Partnerships and Financing Pipelines
TIF is actively cultivating its project pipeline in Uzbekistan by collaborating with international financial institutions, national development agencies, and private sector entities.
During a recent visit to Tashkent from October 20 to 23, Babayev engaged with representatives from various institutions, including the International Finance Corporation (IFC), the European Investment Bank (EIB), and the Azerbaijan-Uzbekistan Investment Company (AUIC), among others. The discussions focused on potential projects in infrastructure, energy, textiles, agriculture, and public services to ensure they align with the Fund’s commercial viability and development impact criteria.
Co-Financing Framework and Financial Commitments
The Fund has established its first Co-Financing Framework with the Islamic Corporation for the Development of the Private Sector (ICD), capable of mobilizing up to $300 million for private sector development projects across five TIF member states, including Uzbekistan. Additionally, TIF has secured $50 million in commitments through partnerships with reputable development banks.
TIF aims to enhance its operations in Uzbekistan via co-financing and syndicated transactions, allowing the Fund to leverage partnerships effectively.
Efforts to Mobilize More Capital
With an authorized capital of $600 million, the Fund seeks to establish a balance sheet and partnership network that can support projects far exceeding this figure. Strategies under consideration include risk-sharing instruments, such as guarantees and first-loss arrangements to stimulate lending for smaller enterprises that commercial banks may avoid.
Babayev emphasized that securing an international credit rating is a strategic priority, as it would bolster TIF’s ability to attract additional funding from both global and local markets.
Encouraging Cross-Border Investment
Cultivating cross-border investments is a central focus for TIF. The Fund evaluates projects in a regional context, considering how investments in one member country can yield benefits for others. For instance, Uzbekistan’s trade with OTS nations surged from approximately $4 billion in 2017 to $10.8 billion in 2025. Cargo traffic along vital corridors has also risen significantly, contributing to improved regional trade dynamics.
The ongoing construction of the China-Kyrgyzstan-Uzbekistan railway is anticipated to further enhance regional connectivity, with TIF committed to supporting not only major transport routes but also the necessary infrastructure for their commercial functionality.
Impact Assessment and Focus on MSMEs
TIF employs a results-oriented approach to assess the economic impact of investments before approval. Projects undergo thorough evaluations against a framework that includes performance indicators and baseline data. These metrics help gauge performance throughout the project lifecycle, focusing on various elements such as job creation and support for cross-border trade.
Emphasizing the significance of MSME participation in Uzbekistan’s economy, the Fund tracks their involvement both through direct financial support and by facilitating access to larger projects as suppliers and contractors.
Conclusion
As TIF continues to focus on fostering regional collaboration through investment in vital sectors, its efforts in Uzbekistan exemplify its broader objective of enhancing economic ties among OTS member states. The Fund’s initiatives are poised to significantly impact infrastructure, trade, and overall economic stability in the region.
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