A bilateral meeting was held in Jeddah between the representative of the Government of the Republic of Kazakhstan, Advisor to the Prime Minister Mr. Nurlan Baibazarov, and the President of the Islamic Development Bank (IsDB), Dr. Muhammad Sulaiman Al Jasser.

During the negotiations, the parties discussed opportunities for deepening cooperation in financing priority infrastructure projects in Kazakhstan. Particular attention was given to the development of engineering and transport infrastructure in Special Economic Zones (SEZs) and Industrial Zones (IZs). A key outcome of the meeting was the agreement to attract financing of up to $1.1 billion from the Islamic Development Bank to implement these objectives.

In addition to the reached agreements, a Letter of Intent was signed between the Government of the Republic of Kazakhstan and the Islamic Development Bank. The document reflects the mutual commitment of the parties to practically work out financing mechanisms for projects in SEZs and IZs using Islamic finance instruments.

The implementation of this cooperation is expected to give a strong impetus to the country’s infrastructure development, attract over 1.6 trillion tenge in investments, and create more than 16,000 jobs, thereby contributing to the accelerated industrialization and economic diversification of Kazakhstan.

This initiative continues the course set by the Framework Program Agreement on Strategic Cooperation between the Government of the Republic of Kazakhstan and the IsDB, signed on June 25, 2024. Under this agreement, the parties confirmed their intention to implement investment projects totaling more than $8 billion.

The first phase of implementation was the Climate-Resilient Water Resources Development Project, for which the IsDB provided a $1.15 billion loan — the largest in the Bank's history. The funds are allocated for the construction and reconstruction of eight reservoirs and the modernization of 115 irrigation canals with a total length of over 3,600 kilometers. The project aims to improve the country’s water and environmental security and lays the foundation for sustainable agricultural development.

During the meeting, key areas of cooperation in Islamic finance were also outlined, including the attraction of Islamic investments with the participation of Development Bank of Kazakhstan JSC — a subsidiary of Baiterek National Management Holding JSC.

Source : https://www.gov.kz/memleket/entities/mfa-jeddah/press/news/details/1034382?lang=kk