The analytical division of the AIFC assessed the infrastructure of four countries. The main takeaway: the region is shifting from building basic institutions to competing for liquidity.
What happened
The analytical division of the Astana International Financial Centre (AIFC) presented the first comparative analysis of stock exchanges in four countries. The document assesses the current state of the markets and their readiness for integration with international capital.
Researchers also studied the experiences of Poland, Vietnam, and Abu Dhabi. The analysis of these jurisdictions shows that the size of an economy does not guarantee stock market success. The quality of regulation, the availability of instruments, and investor trust play a key role.
Country and market
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.