International investor interest in Central Asia and the Caucasus is rising rapidly, according to a new Investor Perception Report released today by Montfort Eurasia. As regional leaders gather for the Tashkent International Investment Forum, new data shows that interest from US and UK investors in the region has tripled since 2023 - despite lingering concerns over political stability and investment security. Investors showed particular interest in the development of the industrial and manufacturing sectors, oil and gas, mining and natural resources.

Overall, investor understanding of Central Asia and the Caucasus has significantly improved since Montfort conducted a similar survey in 2023. Investors from both the UK and US now rate their understanding of the region at an average of 7.36 out of 10, up from 4.92 in 2023. This data shows that significant efforts by governments to promote investment in the region are bearing fruit. Nevertheless, the number of investors choosing Central Asian countries as their top investment destination remains low, signaling the ongoing need for investor education, information sharing and administrative reform.

“To fully tap into the region's investment potential, strong communication and engagement are essential. By sharing clear, trustworthy information and openly addressing investors' key concerns and risks, Central Asia and the Caucasus can become even more attractive to global investors,” noted Eleanor Kramers, managing director of Montfort Eurasia.

Key highlights of the report:

• In the poll, 66.7% of UK investors and 72.9% of US investors surveyed expressed strong interest in global emerging markets, a sharp rise from 2023 when only 44.7% of UK investors and 29.5% of US investors reported high interest.
• Investor knowledge of Central Asia and the Caucasus has significantly improved since the previous survey. Respondents rated their understanding of investing in the region at an average of 7.36 out of 10, up from 4.92 in 2023.
• Interest in Central Asia and the Caucasus tripled in the new report. About 47% of investors expressed strong interest in the region, compared to just 15.5% in 2023, signaling a growing recognition of the region's investment potential.
• Despite rising interest, the security of their investments and political stability remain top concerns for respondents. Investment security is the primary concern for 76% of investors, followed closely by political stability, which worries 65% of investors.
• Investors rely heavily on international media (80%) and financial analysts (70%) as their primary sources of information on emerging markets. About 68% of respondents also stated that better market understanding would increase the likelihood of their investment in the region.
• The most attractive sectors for investors include industrial and manufacturing (63.5%), oil and gas (57.9%), and mining and natural resources (49.2%). In citing their top investment destination in the region, 11% of respondents chose Kazakhstan, 10.5% selected Armenia, 8.7% named Azerbaijan and 7.8% chose Uzbekistan.

Full version of the report is available at the Montfort Eurasia website.