Photo via SPA
By Emil Avdaliani and Joseph Epstein
The evolving relationship between the five Central Asian countries and the Gulf Cooperation Council (GCC) countries—comprising Saudi Arabia, the United Arab Emirates (UAE), Qatar, Kuwait, Bahrain, and Oman—has become an axis of its own in the shifting geopolitical landscape of Eurasia. Geopolitics push them closer, so do untapped trade, investment potential as well as evolving trade routes.
The engagement between the GCC and Central Asia reflects broader realignment in the global order – a shift toward multipolar system. Central Asian states, which have traditionally balanced ties with such powers as Russia, China, Turkey, and the West, now seek new partners, especially since traditional routes through Russia have become less reliable due to the Ukraine war.
The GCC outreach offers alternative avenues for influence and cooperation. For the Arab states, cooperation with Central Asia provides land access to new markets, strengthens ties in a Muslim-majority region bordering Iran, and entrenches their multi-vectoral foreign policy approach, which builds relations with other nations based on pragmatism and not ideology. As a result, these growing ties are less about creating blocs and more about hedging relations between two regions with similar geopolitical situations and development goals. Summit meetings have emphasized sovereignty, non-interference, and shared objectives such as energy security and stable supply chains.
Economic diversification is key to these expanding ties. Gulf states seek to reduce dependence on oil, while Central Asia offers natural resources and a growing market. Investments align with national visions. Indeed, both Central Asian governments and the Gulf monarchies have embarked on ambitious long-term development strategies aimed at diversifying their economies beyond hydrocarbons and raw materials. Saudi Vision 2030, the UAE Vision 2031, Kuwait Vision 2035, and Oman Vision 2040 all emphasize investment in high-tech industries, renewable energy, tourism, and logistics.
Similarly, Central Asian states also tout their own grand strategic plans. Kazakhstan has “Kazakhstan 2050 Strategy,” Uzbekistan’s multi-sector development plans which envision economic growth, infrastructure and private sector participation. Kyrgyzstan’s and Tajikistan’s visions for the next decade stress building manufacturing, agriculture, and modern infrastructure.
The alliance between the GCC and Central Asia is a natural fit. As so-called “middle powers” – not a superpower but one with regional influence — both regions seek a balanced approach between large powers while maintaining their independence. While this has always been Central Asia’s strategy, the GCC has increasingly sought friendlier ties with global powers since its traditional closest ally, the United States, continues to signal that it wants to disengage from the Middle East
As a reflection of the growing alignment in 2023, the GCC and the Central Asian states launched their first summit, which was followed by a second meeting in 2024. A 2025 conference is due to be held later this year.
The summits also show how increasingly important the regions are to each other. But beyond trade and investments there is also a geopolitical hedging that drives the relations. Central Asia, wary of geopolitical dependence on Russia or China, sees the Gulf as a key partner for diversification of foreign policy. Similarly, the GCC balances relationships with Iran, the U.S., and China, and views Central Asia as part of a broader pivot toward Asia. This deepening partnership has not disrupted the existing alliances. Central Asia remains engaged with the Shanghai Cooperation Organization (SCO), which includes Kazakhstan, Kyrgyzstan, Tajikistan and Uzbekistan and the Collective Security Treaty Organization (CSTO), which is comprised of six post-Soviet states. While the GCC avoids hard power projection in the region, the trend signals a quiet realignment: Central Asia is moving beyond its post-Soviet dependency, and the Gulf is evolving into a diplomatic and investment hub. Both regions are navigating a multipolar world by building diversified, balanced partnerships—including with each other.
Bilateral relations also share a security component. Both regions align on the need to battle against threats from terrorism and extremism. GCC and Central Asian leaders have pledged to increase intelligence-sharing, training, and counterterrorism coordination. Discussions include regular defense meetings and joint responses to extremism and narcotics.
Both regions also aim to diversify trade routes and adjust to shifting connectivity in Eurasia. For example, the Trans Caspian International Trade Route (TCIT) or Middle Corridor, would connect Central Asia to Azerbaijan through the Caspian Sea, avoiding chokepoints like the Suez Canal. The GCC could benefit from participating in the expansion of this route. The Gulf countries are also interested in Central Asia because of the International North-South Transport Corridor (INSTC) which connects Russian ports on the Baltic and the Caspian seas to Iran and India. Though INSTC’s main branch goes through Azerbaijan, the eastern part of the corridor spans Central Asia. Russia also eyes the Gulf region as southermost point in INSTC’s reach.
Moreover, Central Asian leaders favored the idea of Gulf participation in new transport corridors that would shorten the route from the region to the Gulf through the proposed Trans-Afghan Railway, which would link Kabul with its neighboring countries Moreover, projects such the China–Kyrgyzstan–Uzbekistan railway or the Turkmenistan–Afghanistan–Pakistan corridor, could likewise lead to opening of the new trade routes for Gulf exporters.
However, connectivity has still proven a major challenge. While the most obvious trade route geographically would cross through Iran or Afghanistan, the regimes in both countries prevent such a road from being reliable. Likewise, the INSTC’s reliance on transport through Russia would cause the region to depend on both Russia and Iran for expanding trade with the Gulf. One potential alternative could be the Middle Corridor. Goods could then travel through Georgia to Turkey and through Turkey to the Gulf via Iraq. Ankara has been a large proponent of the Iraq Development Road or Dry Canal, which would link Iraq’s southern gulf ports to Turkish ports in the Mediterranean and could handle
significant trade volumes.
Trade and Investment Links
Trade volumes – around $4 billion in 2024— remain modest by global standards, but both have been rising rapidly in recent years. The United Arab Emirates and Saudi Arabia rank among Central Asia’s largest Arab trading partners, importing local minerals, grain, and cotton, while exporting consumer goods, machinery, and fuel. Notably, Kazakh exports of grain and aluminum have found buyers in Gulf states. However there is still considerable untapped potential in trade and investments.
Connectivity issues have not prevented the increase of foreign direct investment. GCC FDI in Central Asia has approximately tripled over two years. Saudi Arabia’s energy company. ACWA Power and Abu Dhabi’s energy company Masdar and state investment firm Taqa are prominent examples. ACWA Power, known for its large-scale solar and wind plants, has signed multi-billion dollar deals in the region. In Uzbekistan, ACWA will build three utility-scale solar parks (totaling over 1.4 gigawatts) and battery storage systems. In May, Abu Dhabi’s sovereign investor Mubadala and the Abu Dhabi National Energy Company (TAQA) acquired an 875-megawatt combined-cycle gas-fired power plant in Uzbekistan.
Similarly, in Kazakhstan, ACWA partnered on a 1,000 MW wind and battery project valued at over $1.5 billion. Masdar will build 500 MW “Zarafshan” wind farm in Uzbekistan (the region’s largest), and is developing another 1 GW wind installation in the south of Kazakhstan. At the COP29 summit in late 2024, Masdar signed a $1.4 billion deal to build a wind farm in Kazakhstan’s Jambyl region.
Agriculture and food security have also become subjects of cooperation. The Gulf states import the vast majority of their food, and Central Asian want to turn into a major exporter of food and water to the GCC. For instance, Kazakhstan co-sponsored the international “One Water Summit” in Riyadh in 2024, reflecting a shared concern over water scarcity and a possibility for technology transfer (such as Saudi desert agriculture techniques) to Central Asian contexts. In this way, food and water security link the regions as complementary strands of the emerging partnership.
Central Asia’s fast-growing tech sectors are also drawing Gulf attention.
Uzbekistan has nurtured an IT export industry, and in 2025 Qatar’s state investment promotion agency signed a digital transformation pact with Uzbekistan’s Ministry of Digital Technologies. This agreement, signed at a tech summit in Doha, aims to create joint projects, startup funding and skills programs in fields like AI, data centers, and cloud services. In December 2024, Saudi Arabia and Uzbekistan reached a bilateral partnership covering 5G, digital infrastructure, and tech entrepreneurship, encouraging Saudi tech firms to establish regional offices in Central Asia. These pacts reflect a broader trend of digital diplomacy: Central Asian countries see the Gulf markets as a new customer base and investor pool for their nascent IT industries, while Gulf states invest in digital skills and platforms that fit their diversification agendas.
Deepening Ties, Lingering Hurdles
The upcoming 2025 GCC summit in the Uzbekistan city of Samarkand and ongoing ministerial and business council meetings will be key in watching how expansive the relations between the two regions will become. Establishment of a free trade zone would mark a qualitatively new period
To be sure, growing challenges persist. Not all Central Asian countries are benefitting equally from recent changes —Kazakhstan and Uzbekistan lead in attracting Gulf deals, while others less so. Economic growth matters for the GCC. Kazakhstan and Uzbekistan are also most populous and therefore have bigger markets attractive to investors. Also, geography slows down the pace of economic cooperation. The countries lying in between Central Asia and the Gulf – namely Iran, Pakistan, Afghanistan – are difficult to traverse due to poor infrastructure, lack of security and coordination over border controls. And last but not least, though the Central Asian state are diversifying their foreign policy portfolios, Russia and China remain dominant powers in the region. This spans security and trade/investment aspects and should the GCC become more active in the region, the Arab countries may face stiffer resistance from the traditional great powers.
Emil Avdaliani is a professor of international relations at the European University in Tbilisi, Georgia, and a scholar of Silk Roads. He can be reached on Twitter/X at @emilavdaliani.
Joseph Epstein is the Director of the Turan Research Center and Senior Fellow at the Yorktown Institute.