IDB to support infrastructure of special economic and industrial zones in Kazakhstan

The Islamic Development Bank (IDB) will provide $1.3 billion to support the construction and modernization of infrastructure in Kazakhstan's special economic zones (SEZs) and industrial zones (IZs), following agreements signed in Jeddah, Saudi Arabia, on February 26.

The financing was confirmed during a working visit by Kazakhstan's Minister of Industry and Construction Yersain Nagaspayev to Saudi Arabia, where he met with the President of the Icelandic Development Bank, Muhammad Suleiman Al-Jasser, the ministry's press service reported.

Expanding investment cooperation

During the negotiations, the parties discussed the current state and future prospects of cooperation between the IsBR and financial institutions of Kazakhstan, as well as the expansion of investment cooperation in priority sectors of the economy. Particular attention was paid to the development of industrial infrastructure and the modernization of engineering networks.

Along with the framework agreement for infrastructure financing worth $1.3 billion, the parties also signed a separate agreement under which the ISDB will provide a technical assistance grant of $1.3 million.

“The signed documents create a solid financial and institutional foundation for the modernization of the zone’s infrastructure and are an important step in strengthening the strategic partnership between Kazakhstan and the Islamic Development Bank,” said Nagaspayev.

Improving governance and digitalization

Grant support will focus on improving SEZ management mechanisms, digitalizing processes, implementing modern administrative standards, and improving the professional competencies of management companies.

Officials noted that these measures are expected to establish a more transparent and efficient operating model for economic zones, aimed at attracting investment and developing export-oriented industries.