Tajikistan Increases Trade with Persian Gulf Countries More Than Fivefold — EDB

Tajikistan and the Persian Gulf countries have strengthened trade ties, according to an analytical brief by the Eurasian Development Bank (EDB), published on November 10. The review covers five Central Asian states and six countries of the Cooperation Council for the Arab States of the Gulf: the UAE, Saudi Arabia, Qatar, Kuwait, Oman, and Bahrain.

From the Gulf countries, Tajikistan primarily imports cars, machinery and equipment, electronics, and chemical products. The republic's exports are significantly smaller in volume; they mainly consist of metals and agricultural and industrial goods.

The total trade of Central Asia with the Gulf countries increased from $1 billion to $3.9 billion over the period under review. The bulk of the turnover from the Gulf countries is accounted for by the UAE, while among the Central Asian states, Uzbekistan and Turkmenistan provide the largest volumes.

The EDB also notes an increase in investments from Gulf countries into Central Asia. These are most notably directed toward the energy sector, including solar and wind generation projects, primarily in Uzbekistan. The largest investors remain the UAE, Saudi Arabia, and Qatar.

High transportation costs hinder the expansion of trade, as Central Asian countries lack direct access to the Gulf's sea ports. Among other constraints, analysts cite insufficient logistics and warehouse infrastructure, limited access to trade financing, and issues with mutual recognition of standards.