DECEMBERASIA BUSINESS OUTLOOK9· EDB opens an Abu Dhabi office to deepen engagement with Gulf investors.· New ADGM-registered infrastructure cred-it fund to finance Central Asia projects.· Follows two dirham bond issuances and rising regional interest in Islamic finance.China's trade with Central Asian nations expanded sharply during the first ten months of 2025, according to Chinese government data, highlighting deepening economic ties across the region. The most dramatic growth was recorded with Kyrgyzstan, where trade turnover jumped from $17.4 billion to $23.6 billion. However, Kyrgyzstan presents a unique situation: its official GDP for the same period stood at just $16.3 billion.This mismatch suggests large-scale smuggling and sanctions-evasion activities, where billions of dollars' worth of goods enter the country without appearing in Kyrgyz records. This aligns with long-standing concerns about informal cross-border flows and trade misreporting.Kazakhstan also saw a notable increase in trade with China, rising from $36.5 billion to $39.8 billion, while Uzbekistan's figures grew from $11.1 billion to $12.9 billion. Tajikistan saw a smaller rise, from $3.3 billion to $3.5 billion.Meanwhile, Turkmenistan emerged as the regional exception: total trade with China fell slightly from $8.9 billion to $8.3 billion. Yet Turkmenistan remains the only Central Asian nation with a positive trade balance, exporting over $8.1 billion worth of goods--primarily energy--to China while importing just $784 million.Parallel to these developments, China, Iran, Kazakhstan, Uzbekistan, Turkmenistan, and Turkey agreed to harmonize rail transit procedures along the southern route of the Middle Corridor. Measures include unified tariffs, reduced customs delays, and infrastructure upgrades, which could shift major transit volumes through Iran, according to the Tehran Times.In November, Baku hosted the first meeting of the Eurasian Transport Route Association, involving officials from Azerbaijan, Kyrgyzstan, Tajikistan, and Uzbekistan.The Eurasian Transport Route, a southern extension of the Middle Corridor, began new shipments from Kashgar, China, to Azerbaijan, marking a significant step in regional connectivity, supply-chain development, and rail freight growth. This growing network underscores the region's rising role in cross-border logistics and Eurasian trade expansion. The Eurasian Development Bank (EDB) has introduced a novel investment platform aimed at attracting capital from the Gulf Cooperation Council (GCC) countries for infrastructure and other development projects in Central Asia.By this action, the bank has established its representative office at the Abu Dhabi Global Market (ADGM), the international financial centre of the UAE capital, Trend reported, quoting the EDB.The new office, which was opened in the presence of ADGM Authority CEO Salem Al Darei and EDB Chairman Nikolai Podguzov, will enable the bank to engage more closely with the Gulf regulators, sovereign wealth funds, and institutional investors.EDB representatives stated that the relocation will be instrumental in facilitating the financial liaison between the Gulf and Central Asian markets when cross-regional investment flows are on the rise.One of the main features of the platform is the setup of a specialised infrastructure credit fund in ADGM, which is under the jurisdiction of the United Arab Emirates. The fund will concentrate on the provision of debt financing for infrastructure projects supported by the EDB.Middle Eastern and global investors will enjoy a regulated and structured vehicle through which they can take part in the growing infrastructure pipeline of Central Asia.It started with a $50 million equivalent offering on the Astana International Exchange in April, and then, in June, a $54 million equivalent placement was made in the UAE with the participation of First Abu Dhabi Bank and the Abu Dhabi Fund for Development. CHINA-CENTRAL ASIA TRADE SURGES IN 2025 DESPITE DATA GAPSEDB OPENS ABU DHABI OFFICE TO BOOST GULF INVESTMENT IN CENTRAL ASIANEWSROOM
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