Chairman of the Management Board of the Eurasian Development Bank (EDB) Nikolai Podguzov has said that the bank aims to build partnerships, deploy its structuring expertise, and promote the Gulf–Eurasia investment corridor.
In remarks to Asharq Al-Awsat, Podguzov said EDB is participating in the Future Investment Initiative (FII) in Riyadh as part of its strategic effort to deepen engagement with the Gulf region and explore cooperative investment and project financing opportunities beyond its traditional member states.
“At FII, the Bank aims to build partnerships, deploy its structuring expertise, and promote the Gulf–Eurasia investment corridor,” he said.
The Bank offers Gulf partners access to investment opportunities in green energy, transport infrastructure, logistics, and industry - sectors crucial for sustainable growth across Central Asia.
“We can offer our potential Gulf partners access to investment opportunities in Central Asia’s green energy, transport infrastructure, and logistics sectors. We are fully committed to championing Islamic finance across Central Asia and beyond. This aligns with our strategic goals for long-term regional development,” he said.
Cooperation opportunities with Saudi Arabia
Asked about the opportunities for financial and banking cooperation between the Eurasian Development Bank and Saudi banks, Podguzov said: “The Bank's extensive experience as an issuer of debt instruments (including ESG bonds) in local and international capital markets in various currencies creates the foundation for joint collaboration and partnership with Saudi Arabian financial institutions, including through the local financial market infrastructure, where the Saudi exchange Tadawul is a key participant. We also see potential for developing mutually beneficial cooperation with the Public Investment Fund (PIF), the Saudi Fund for Development, and national development banks, including Saudi Exim.”
“In addition, we identify significant potential for cooperation in the area of trade finance and export support programs. This includes the development of joint instruments such as letters of credit and guarantees to facilitate trade between the member countries of the Eurasian Development Bank and the Kingdom.”
Challenges
On the challenges facing banking and financial growth globally, Podguzov said: “There are quite a few of them. Elevated risks – lessons from the Global Financial Crisis are partially forgotten. Rising sovereign debt. Challenges related to the efficient implementation of digital solutions. Emergence of new alternative forms and sources of credit, which have yet to prove their resilience. Limited availability of longer-term and cheaper financing for developing countries and sustainable development.”
“Since I am a development banker, let me say a few things about the availability of financing for development. If we talk about private capital, what private capital wants is a good risk-return ratio. Development projects usually carry low margins. If margins will be higher, and risks lower, then private capital will be available. So the tasks are to better structure projects so that margins are sustained and risks are contained.”
Talking about development financial institutions, they are mission-driven banks, Podguzov told Asharq Al-Awsat.
“They are a right source of capital to fund the SDGs. But they face issues with their capital and efficiency of operations. For example, annual volumes of financing by multilateral development banks (MDBs) stay at $180 billion.”
“Over the past 25 years, the value of MDB assets relative to global GDP has actually fallen from 1.9% to 1.7%. That means that the MDB role in the global economy has in fact shrunk in real terms,” he added.
MDBs should invest more through better project expertise, more local knowledge and presence, and finally more capital, he stated.
Non-sovereign financing
The EDB is a leading institution in non-sovereign financing across Eurasia and Central Asia. It focuses on mobilizing external funds for large-scale private sector and public–private partnership (PPP) projects that drive sustainable economic growth and regional integration, Podguzov said.
“Our team has extensive experience in investing in transport infrastructure, industrial modernization projects aimed at improving environmental performance and efficiency, the construction of renewable energy facilities, and the development of energy initiatives. All projects are selected in line with international ESG principles, ensuring both financial returns and a positive social and environmental impact.”
Islamic financing
“We are also working to develop Islamic finance across Central Asia and aim to serve as a key regional platform for its growth. In late 2024, the EDB joined the Islamic Financial Services Board (IFSB) as an Associate Member and, in early 2025, became a member of the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI). These memberships reinforce our commitment to high supervisory standards and global best practices,” he said.
As part of this initiative, the EDB is exploring the potential issuance of sukuk to finance strategic projects and expand sustainable financing tools.
“Our team is also undertaking economic studies that are relevant to Central Asia. Together with the Islamic Development Bank and the London Stock Exchange Group (LSEG), we recently published a study on Islamic finance in Central Asia. The region currently hosts 18 Islamic banks and 14 non-bank financial institutions, as well as takaful, ijara, and Islamic fintech operators.”
However, the Islamic capital market, particularly sukuk, is developing at a slower pace. According to the report, Islamic banking assets in the region are projected to grow to $2.5 billion by 2028 and $6.3 billion by 2033, while the sukuk market is expected to reach $2.05 billion by 2028 and $5.6 billion by 2033, led by Kazakhstan and Uzbekistan.
Direct investments
In October, the EDB releases its first macroeconomic study of the Gulf countries, analyzing the period 2020–2024. Over the past five years, mutual trade between Central Asia and the Gulf states has increased 4.2 times, reaching $3.3 billion, while accumulated direct investments have risen 1.8 times to $16.2 billion, Podguzov said.
The potential for additional trade between the regions is estimated at $4.9 billion, equivalent to 150% of the current level.
In a recent milestone, the EDB became the first development institution to issue dirham-denominated bonds in Kazakhstan, diversifying its investor base, creating a pricing benchmark for future issuers, and further strengthening financial ties between the Gulf Cooperation Council and Eurasia, he added.
