Kazakhstan and the Islamic Development Bank (IsDB) have signed a Protocol of Intent to expand cooperation on financing key infrastructure initiatives across the country, with a particular focus on industrial and special economic zones.

The agreement was formalized during a bilateral meeting in Jeddah between Nurlan Baibazarov, Advisor to the Prime Minister of Kazakhstan, and Muhammad Sulaiman Al-Jasser, President of the IsDB. The sides discussed opportunities to deepen collaboration in financing priority infrastructure, especially in engineering and transport development within Kazakhstan’s SEZs and industrial zones.

A key outcome of the meeting was the IsDB’s commitment to provide up to $1.1bn in financing for these projects, using Islamic financing instruments. The Protocol of Intent outlines both parties’ readiness to develop practical mechanisms for implementing these projects, aimed at stimulating industrialization and economic diversification.

According to initial estimates, the cooperation is expected to bring in over 1.6 trillion tenge in investment and create more than 16,000 new jobs.

This partnership builds on the Framework Program Agreement on Strategic Cooperation signed on June 25, 2024, under which Kazakhstan and the IsDB pledged to implement investment projects totaling over $8bn.

One of the first projects under this broader agreement is the development of climate-resilient water infrastructure. The IsDB has allocated $1.15bn—its largest loan to date—for the construction and reconstruction of eight reservoirs and the modernization of 115 irrigation canals, stretching over 3,600 kilometers. The project aims to enhance the country’s water and environmental security while supporting sustainable agricultural growth.

During the meeting, further areas of cooperation in Islamic finance were explored, including the involvement of Kazakhstan’s Development Bank, a subsidiary of NMH Baiterek, in attracting Islamic investment.