Kazakhstan is set to receive $1.3 billion from the Islamic Development Bank (IsDB) Group to modernize infrastructure in special economic zones and industrial zones - a move expected to significantly boost the country’s investment appeal.

The agreement was reached during a working visit to Jeddah, where Kazakhstan’s Industry and Construction Minister Yersayin Nagaspayev met with IsDB Group President Muhammad Sulaiman Al Jasser, The Caspian Post reports via Kazakh media.

$1.3 Billion for Industrial Growth

Following the talks, the IsDB and Kazakhstan’s Industrial Development Fund signed a framework agreement to raise $1.3 billion to finance the construction and modernization of infrastructure in special economic zones (SEZs) and industrial zones.

In addition, the IsDB will provide a $1.3 million technical assistance grant to the Kazakh Industry and Construction Ministry. The grant is aimed at strengthening institutional capacity and improving management systems within SEZs.

Focus on Modernization and Digitalization

Officials say the funding will support:

Construction and modernization of engineering and utility infrastructure

Digitalization of SEZ management processes

Introduction of modern administrative standards

Improvement of professional competencies of management companies

Nagaspayev said that the signed documents lay a strong financial and institutional foundation for infrastructure renewal and mark an important step in deepening strategic cooperation between Kazakhstan and the IsDB.

Boosting Investment and Exports

The reforms are expected to help Kazakhstan build a transparent and efficient SEZ model designed to attract foreign investors and expand export-oriented production.