The Islamic Development Bank (IsDB) is expanding its project portfolio in Kazakhstan to $3 billion, while telecom holding VEON will invest $1 billion in the development of artificial intelligence and cloud services. The state is simultaneously building a foundation for industrial growth and the localization of digital technologies.
What happened
President of Kazakhstan Kassym-Jomart Tokayev held meetings with the heads of major international organizations, securing new investment plans. As reported by Kursiv citing Akorda, the IsDB is preparing a new partnership strategy with the republic for 2027–2032.
Historically, the IsDB has already financed Kazakhstani projects worth $4.2 billion. Currently, the portfolio of ongoing and prospective initiatives exceeds $3 billion. The bank's main focus is water infrastructure, transport, and industrial zones.
In parallel with classic infrastructure, Kazakhstan is strengthening its digital base. During a meeting with VEON Group CEO Muhterem Kaan Terzioğlu, the construction of modern computing facilities was discussed. Over the next three years, the holding intends to invest $1 billion in the country's economy.
Country and market
Kazakhstan is attracting capital on two parallel tracks. On the one hand, the economy requires physical connectivity and solutions to water resource issues—this is where money from development institutions like the IsDB goes. Previously, Finteqstan wrote that the UAE-based Abu Dhabi Commercial Bank registered a subsidiary in Kazakhstan; expanding cooperation with the IsDB confirms the systemic interest of Middle Eastern capital in the region.
On the other hand, digitalization is constrained by a lack of hardware. The development of artificial intelligence and cloud services, announced by VEON, requires local data centers. Financial organizations and the public sector cannot process sensitive customer data on foreign servers due to regulatory restrictions.
Why it matters
VEON's investments in computing power directly impact the fintech market. Banks and startups need reliable local platforms to deploy resource-intensive scoring models, AI assistants, and anti-fraud systems.
Large-scale investments in local data centers and clouds create a physical foundation for implementing complex AI solutions without transferring data abroad.
What's next
VEON plans to double the scale of its business in Kazakhstan over three years, which should accelerate the emergence of new cloud products for the corporate sector. The IsDB, in turn, will hold its group's annual meeting in Kazakhstan in 2028, which will attract additional international investors to the country.