In the last few years, GCC companies – led mainly by Saudi entities and, to a lesser extent, Emirati organisations – have stepped up their involvement in large-scale green infrastructure projects across Central Asia.
While Azerbaijan and Kazakhstan are hydrocarbon-rich, other countries such as Uzbekistan and Tajikistan have little oil and gas – but plentiful sunshine and wind.
These ventures are often carried out in collaboration with Chinese companies and financiers such as the Bank of China, the Silk Road Fund and China Southern Power Grid International, illustrating a complex web of trilateral cooperation.
Projects and partnerships
A case in point is Saudi Arabia’s Acwa Power, one of the world’s largest developers of renewable infrastructure. Acwa formed a partnership with Kazakhstan’s ministry of energy and sovereign wealth fund Samruk-Kazyna to develop a one gigawatt (GW) wind energy and battery storage project, valued at $1.5 billion.
Once completed in 2027, this project is expected to play a major role in decarbonising Kazakhstan’s fossil fuel-heavy energy mix and provide enough power for about 800,000 homes.
In Uzbekistan, Acwa is also leading the development of the 500 megawatt (MW) Bash wind farm in the Gijduvon district and the 500MW Dzhankeldy wind farm in Peshku. Together, these projects are expected to generate 3,235GW-hours of electricity annually and curtail around one million tonnes of CO₂ emissions, contributing to Uzbekistan’s renewable energy goals.
GCC governments’ promotion of clean energy projects in Central Asia are a sophisticated and forward-looking form of energy diplomacy
Similarly, UAE renewables developer Masdar is spearheading major clean energy projects in the region. A notable milestone is the signing of a project roadmap for a 1GW wind farm in Kazakhstan’s Jambyl region.
Once operational, the project will power approximately 300,000 homes and curb two million tonnes of CO₂ emissions annually, positioning Masdar as a player in Central Asia’s energy transition.
Growing strategic ties
Cooperation in renewable energy is clearly deepening the relationship between the GCC and Central Asia. A series of regional forums, including the GCC-C5 Summit in Saudi Arabia (2023) and the Central Asia-GCC Summit in Uzbekistan (2024) signify growing political will for broader collaboration.
The joint declarations from both summits highlighted the importance of collective action on global challenges, particularly in the realm of energy security.
Yet, GCC engagement in the region remains largely bilateral and sector-specific, primarily focused on energy and trade. This limited footprint is partly due to the entrenched presence of other major actors – most notably the EU, Russia and China – who have built deep-rooted relationships with mostly land-locked Central Asia over decades, especially in the energy sector.
For example, Russia’s Rosatom holds stakes of 30 to 70 percent in companies involved in uranium extraction in Kazakhstan. China now sources over 60 percent of its imported uranium from Kazakhstan – a relationship that has grown steadily since the early 2000s and continues to shape China’s strategic interests in the region.
The opportunity gap
While the GCC is unlikely to match China or Russia in terms of trade volume in critical minerals or legacy influence, the economic relationship with Central Asia is still in its early stages. Many states in the region are keen to diversify away from dependence on their much larger neighbours to the north and east.
In 2021, GCC exports to the region stood at $2 billion, with imports totalling just $1 billion. By contrast, China’s trade with Central Asia reached $70 billion in 2022.
These disparities highlight the considerable untapped potential for deepening economic cooperation across a broader spectrum of sectors including infrastructure, logistics and the digital economy.
The way forward
Whether today’s large-scale renewable energy initiatives will translate into a consistent and coordinated framework for inter-regional cooperation remains to be seen. Yet, the direction of travel is unmistakable.
GCC governments’ promotion of clean energy projects in Central Asia are a sophisticated and forward-looking form of energy diplomacy.
These efforts not only support Central Asian countries in securing energy supplies and reducing reliance on legacy powers like Russia and China, but also help position the Gulf states at the forefront of the emerging post-oil global energy landscape.
In the long term, these investments can form the basis for broader strategic alignment – creating new corridors of cooperation, accelerating green industrialisation and allowing both regions to navigate the global energy transition together.
Zeina Moneer is an academic and senior climate practitioner. She is an expert in climate politics, international development and social justice in climate governance and green transition
