Kazakhstan parliament ratifies agreement to establish Turkic Investment Fund

The Kazakh Parliament’s lower chamber (Mazhilis) adopted an agreement on the establishment of the Turkic Investment Fund.

The five member nations of the Organization of Turkic States (OTS) signed the agreement in Ankara in March 2023: Azerbaijan, Kazakhstan, Kyrgyzstan, Turkey, and Uzbekistan.

The Turkic Investment Fund is the world’s first cooperative financial entity promoting Turkic economic unification. Its mission is to promote the economic growth of UTC member countries by boosting intraregional trade and supporting economic activities.

The authorized capital of the fund is divided into paid shares worth $350 million and attracted shares worth $150 million. Each state pays $70 million in dividends.

Through investing operations, the Turkic Investment Fund will carry out the following functions: “financing projects of small and medium-sized firms; supporting the establishment and modernization of physical and digital infrastructure; and supporting development projects in mutually beneficial fields such as industrial production, transportation, agriculture, tourism, and the green economy.”

The approval of the law would enable Kazakhstan to become a full-fledged country-creator of the Turkic international financial institution, to obtain finance for initiatives in key sectors of the economy, particularly the growth of SMEs, and to boost trade and economic relations within and outside the OTG region.