AIFC Insights Releases First Comparative Review of Capital Markets in Central Asia and Azerbaijan

According to the review, Kazakhstan maintains the most developed capital market architecture in the macro-region.

For a long time, the main task for the countries of Central Asia and the Caucasus was the formation of basic institutions and the drafting of laws. Now, this stage has largely been passed. The focus is shifting to deepening liquidity, attracting new issuers, and expanding the base of retail and institutional investors.

Why it matters

The maturity of the infrastructure is confirmed by the emergence of complex instruments. The authors of the review cite the sustainable finance segment in Kazakhstan as an example. In 2024, the volume of issued ESG bonds in the country grew by 2.2 times, reaching $1.6 billion, while the number of issues increased to 31.

Reliance on international standards in such issues makes local securities clear to foreign funds. This is a direct path to the long-term investments that regional platforms lack.

What’s next

Further competition among the region’s exchanges will depend on settlement speeds, the quality of regulation, and real access to instruments.

Capital markets in the region are gradually hitting the ceiling of domestic liquidity, so the winning platforms will be those that can bring in foreign capital faster and cheaper.