The Kazakhstani tenge has become the best-performing currency in Asia and Europe in 2026, according to the Financial Times. Since the beginning of the year, it has appreciated by nearly 10% against the US dollar, outperforming all other currencies worldwide except for several currencies of Latin American and African countries. This performance has been underpinned by economic growth driven by the transformation of Kazakhstan’s economic model. The country is rapidly evolving from a commodity-based economy into a financial and technology hub for Central Asia, amid growing inflows of foreign capital.

Growth factor

This year, the key factor behind the tenge’s significant 9.7% appreciation was not oil prices, which have traditionally been associated with Kazakhstan’s economic performance. This time, the appreciation of the Kazakhstani currency was driven by capital inflows, Dmitry Dolgin, Chief Economist for the CIS at ING, told the Financial Times. As of June, foreign investments in tenge-denominated government debt had reached $5 billion, 2.5 times higher than a year earlier, accounting for nearly one-tenth of the total volume of such securities outstanding.

Foreign investors seeking to diversify their portfolios are attracted by high yields — with the base rate at 16.75% — combined with a moderate level of risk, as confirmed by Kazakhstan’s sovereign credit rating. Another factor contributing to increased foreign capital inflows is the easier access for foreign investors to the country’s government debt. In April, the Kazakhstani authorities announced plans to connect local government bonds to the international clearing system Euroclear, and foreign investor activity has increased notably in recent months.

In addition, Kazakhstan expects to be included in the benchmark JPMorgan GBI-EM index of local-currency government bonds of emerging markets. The US bank is also preparing a separate index for frontier markets (a category of emerging markets — ed. note), in which, according to the National Bank, Kazakhstani bonds could account for an 8% share if included.

Foreign direct investment in Kazakhstan

The growth of foreign direct investment is providing additional support for the tenge. In the first quarter, FDI amounted to $6.3 billion. As the Financial Times notes, Kazakhstan is seeking alternative sources of income beyond oil, including by positioning itself as a transit and technology hub for goods moving from China to Europe. To this end, the country is investing heavily in infrastructure, the publication emphasizes.

In recent years, the country’s authorities have implemented reforms aimed at strengthening the national investment ecosystem, including tax, customs and other incentives. As a result, the total gross inflow of foreign direct investment into Kazakhstan from 2021 through 2025 amounted to approximately $114.3 billion. In 2025, the figure reached $20.5 billion, up 14.4% year on year. At the same time, the structure of investment has also changed, with capital increasingly flowing into manufacturing, trade, the financial sector, transportation and the IT industry.

The changes have resulted in record economic growth. In 2025, Kazakhstan’s GDP grew by 6.5%, the highest rate in a decade. Growth continued in the first five months of 2026, reaching 3.7% despite a decline in oil production. Meanwhile, the real sector of the economy grew by 4%, while services expanded by 3.6%, which can be seen as evidence of a qualitative transformation of the economy.

Statistical data illustrate the rapid expansion of the non-resource sector during this period. Construction recorded the strongest performance in 2026, growing by 13.4% in the first five months of the year compared with the same period in 2025. Manufacturing was also among the leaders, increasing by 9%. The highest growth rates were recorded in machinery manufacturing, which expanded by 23.3%, and pharmaceuticals, which grew by 35.2%.

According to the IMF, Kazakhstan’s economy measured at purchasing power parity is expected to reach $993.7 billion in 2026, effectively approaching the psychological milestone of $1 trillion. Over the past decade, this figure has nearly doubled.

Competitive economy

Based on its 2025 results, Kazakhstan ranked among the world’s most competitive economies, taking 34th place out of 69 countries in the IMD World Competitiveness Ranking, ahead of Japan, Kuwait, Portugal, India, Italy and other countries. Kazakhstan was also the only country from the CIS and Central Asia represented in the ranking. Analysts note that the country’s economy is becoming increasingly diversified. Today, manufacturing, logistics, energy infrastructure and investment projects are playing an increasingly important role.

Kazakhstan also ranked 53rd out of 150 countries in the Global Investment Risk & Resilience Index, achieving the highest result among Central Asian countries.

Focus on digitalization

Digitalization is one of Kazakhstan’s strategic priorities. In early June 2026, it was announced that an agreement had been signed with Firebird and Nvidia US companies to build data centers in the so-called “Data Center Valley.” According to Bloomberg, investments in the project could amount to $10 billion.

According to the Ministry of Artificial Intelligence, Kazakhstan’s IT services exports exceeded $1.142 billion in 2025. The sector has been growing at a rapid pace: five years ago, exports of high-tech solutions from Kazakhstan amounted to just $33.5 million. The strategic goal is to increase Kazakhstan’s IT services exports to $5 billion by 2030.

Fintech for export

Kazakhstan is expanding its export potential in the financial sector. In August, the subsidiary of one of the largest fintech holdings operating in Kazakhstan, Freedom, received a brokerage license from the local regulator in Turkey, becoming the first foreign broker in 34 years to obtain such a license. In late July, the company also completed the acquisition of a local bank. According to the holding’s founder, Timur Turlov, the company plans to invest $300 million in the Turkish market to create an integrated digital financial ecosystem built around its brokerage and banking businesses.

Freedom already operates in 24 countries worldwide. This year, the company applied for a banking license in France, viewing it as a gateway to the broader European market. The holding currently serves more than 600,000 brokerage clients in Europe and aims to increase that number to 50 million by exporting its ecosystem.

The total number of clients across all companies within the Freedom group stands at 14 million, while the holding’s assets exceed $14 billion and its market capitalization stands at $10 billion. Since Freedom’s listing on Nasdaq in 2019, the value of its shares has increased nearly 13-fold.

Another Kazakhstani fintech giant, Kaspi.kz, is also actively expanding its presence in Turkey. In July, the company announced the completion of a deal to acquire the Turkish subsidiary of Rabobank Dutch group. Earlier, in 2025, Kaspi.kz acquired a controlling stake in Turkish marketplace, Hepsiburada. The company’s shares are also traded on a US stock exchange, underscoring the high level of international confidence in Kazakhstani fintech companies.

Kazakhstan is also actively building its own financial infrastructure, while its stock market ranks among the largest in Eastern Europe. Trading volume on the Astana International Exchange (AIX), which officially began operations just eight years ago, amounted to $2.1 billion in 2025. Since its launch, AIX has facilitated the raising of $12.4 billion in debt and equity capital, while assets under management within the Astana International Financial Centre (AIFC) exceeded $5.4 billion at the end of 2025.

On the country’s oldest exchange, the Kazakhstan Stock Exchange (KASE), trading volume in 2025 amounted to KZT 400.8 trillion ($769.1 billion). At the same time, the KASE Index has nearly tripled over the past four years, reaching 7,712.53 points by the end of June 2026. Combined trading volume on the two exchanges increased by nearly 50% in the first half of the year, while equity market capitalization rose by 18.8%.

The Sudanese Armed Forces (SAF) are facing fresh accusations of employing chemical weapons in the ongoing conflict against the Rapid Support Forces(RSF), with the latest reports coming from US media outlets, writes Mohsin Osman.

On Saturday (5 September), The New York Times and The Washington Post published dual investigative reports based on leaked intelligence materials. The files include approximately 150 documents, photographs, video clips, and intercepted communications, alongside thousands of text messages retrieved from the phones of Sudanese officers.

The evidence points to an alleged program established in 2024 to manufacture chlorine-based munitions. It details bomb design blueprints, testing operations, and a coordinated cover-up strategy initiated after the plot was uncovered by the United States. The records also outline plans to siphon chlorine gas from a civilian water treatment facility that had originally received the chemical from international aid agencies.

These revelations reignite long-standing allegations of chemical weapons usage that have shadowed SAF leadership since last year, significantly heightening international pressure on the military command.

The United States previously imposed sanctions on Sudan in May 2025 over allegations that the military deployed chemical weapons during the conflict in 2024. The sanctions took effect on July 20, 2025. Authorities in Port Sudan have consistently rejected these accusations, maintaining that they do not produce, stockpile, or use chemical weapons, and emphasizing their adherence to the Chemical Weapons Convention (CWC).

A covert programme amid escalating pressure

According to The New York Times, the SAF turned to chemical weapons early in 2024 to break a strategic stalemate, as RSF fighters held firm control over most of the capital, Khartoum.

Leaked records show that Brigadier General Tariq Hussein emerged as a central figure in July 2024, orchestrating the design, planning, and execution of the program. Intercepted messages reveal that Hussein proposed using chlorine to give army forces a tactical edge in the battle for Khartoum. He distributed prototype schematics for an explosive warhead integrated with roughly 33 pounds of chlorine gas, with production commencing that same month.

In messages published by the Times, Hussein noted that the hybrid munitions were designed to maximize lethality—either by shrapnel fragmentation or chlorine gas poisoning—asserting that the explosion would destroy all chemical traces of the attack.

On July 22, an Antonov cargo plane took off from Merowe Airport, roughly 200 miles north of Khartoum, to conduct a test launch. Following the trial, Hussein reported that the experiment was a "100 percent success," attaching a video of a desert explosion and confirming that the munition "hit the target and released the gas."

Brigadier General Amir Idris, identified in records as the supervisor of military drone operations, responded with a single directive: "Top Secret."

Technical hazards and signs of lethality

The communications reveal that the program faced severe technical flaws. Chemical leaks were a recurring issue; on one occasion, workers found dead insects and scorpions on the floor of a hangar after overnight exposure to leaking gas.

The incident underscored the volatile nature of the agent being handled long before it reached the battlefield. Concurrently, the program faced a critical challenge in securing a steady supply of chlorine.

Diverting humanitarian chlorine supplies

According to The New York Times, 20 cylinders of chlorine gas were smuggled across the border from a neighboring country in late August 2024. Hussein calculated that this batch would yield roughly 1,100 bombs.

Hussein subsequently sought internal sources, turning to local civilian infrastructure in violation of international norms. He admitted to sourcing additional chlorine from the Al-Manara water treatment plant in Omdurman—one of the few remaining operational facilities amid the war.

"Al-Manara has some of those cylinders, and we took them from there," Hussein stated in an August 26 voice message to Idris.

The diversion of these supplies carries significant gravity, as the chlorine at the plant was intended for emergency water purification during cholera outbreaks rather than military application.

The International Committee of the Red Cross (ICRC) confirmed to the Times that it had donated 30 chlorine cylinders to the plant in 2023, while CARE reported delivering 35 cylinders across 2024 and 2025. A UNICEF spokesperson added that the organization supplied chlorine to six treatment plants in Khartoum, including Al-Manara, between 2023 and 2025.

By October 2024, Hussein reported manufacturing approximately 300 chemical munitions, most of which were stored at Merowe Airport.

Earlier in September, Hussein sent a notable message to a colleague stating, "They drank the gas," describing an attack on RSF fighters at the Al-Jaili oil refinery north of Khartoum. This account aligns with claims made by the RSF on September 13, when the paramilitary group issued a statement accusing the army of firing "toxic" missiles at the refinery. Footage circulated online at the time showed men in civilian clothing inside the facility wearing oxygen masks.

Command responsibility and cover-up efforts

The New York Times indicates that the program was likely shuttered once U.S. officials detected its existence and moved to apply targeted sanctions.

Intercepted communications reveal that the head of Sudan’s Armed Forces, General Abdel Fattah al-Burhan, instructed Hussein to "erase all traces" of the operation. The response back was: "The operation was completed a month ago."

During a subsequent round of measures in June, the U.S. sanctioned Hussein for importing explosives for bomb production, though that specific designation did not explicitly cite chemical weapons.

By that time, Burhan had established an internal committee to investigate the U.S. allegations. According to documents in the file, Hussein himself—the architect of the program—was appointed as an advisor to the panel.

The intelligence indicates that General Burhan was not merely informed after the fact, but was directly involved in overseeing the chemical weapons program. His direct knowledge was a primary factor in the U.S. decision to impose sanctions on him in January 2025.

While proving chemical weapons usage in conflict zones remains complex, arms experts consulted by The New York Times concurred that available evidence strongly points to their deployment in the Sudanese conflict. However, they stressed the necessity of an independent field investigation.

Addressing the findings, the Emergency Lawyers group, a Sudanese legal advocacy organization, issued a statement calling for a transparent international probe. The group urged that "international experts be granted safe, unconditional access to targeted sites, enable the physical examination of munitions fragments and delivery systems, and be permitted to interview witnesses and victims independently and securely."

Kazakh President Kassym-Jomart Tokayev has called on nuclear-armed states to engage in negotiations and accelerate efforts to bring the Comprehensive Nuclear-Test-Ban Treaty (CTBT) into force, reaffirming Kazakhstan’s commitment to the global anti-nuclear movement, Qazinform News Agency cites Akorda. 

Tokayev made the remarks in a statement marking the International Day against Nuclear Tests, established by the UN General Assembly at Kazakhstan’s initiative.

The president noted that exactly 35 years ago, amid a difficult international situation, Kazakhstan closed the Semipalatinsk nuclear test site. For decades, the testing ground caused irreversible damage to people’s health and the environment, leaving a painful legacy for the Kazakh people, he said.

“Thirty-five years later, this date will serve as a reminder to all humanity of the tragic consequences of nuclear tests and as a call to prevent them from ever happening again,” Tokayev said.

He also highlighted Kazakhstan’s decision to voluntarily give up the world’s fourth-largest nuclear arsenal following the country’s independence.

“By voluntarily renouncing the fourth-largest nuclear arsenal on the planet, Kazakhstan made a historic choice in favor of peace, security and sustainable development. This decision fulfilled the aspirations of the people of Kazakhstan and demonstrated our state’s responsibility for the fate of future generations,” Tokayev said.

According to the president, Kazakhstan’s commitment to peace and friendship with all states, enshrined in the preamble of the country’s new Constitution, remains an unwavering principle of its foreign policy.

“Our country’s position as one of the leaders of the global anti-nuclear movement remains unchanged. We call for negotiations among nuclear powers, the earliest possible entry into force of the Comprehensive Nuclear-Test-Ban Treaty, and decisive multilateral action to eliminate the threat of nuclear weapons use,” Tokayev said.

The president also stressed that nuclear energy should be used exclusively for peaceful and constructive purposes.

He noted that the Kazakhstani people had firmly supported the country’s course toward developing nuclear energy in a nationwide referendum, laying a solid foundation for Kazakhstan’s economic, scientific and technological progress for decades to come.

Tokayev said this strategic choice forms an important part of the country’s transformation and opens a new stage in its sustainable development. He added that large-scale reforms across all areas of public life are aimed at building a Just, Progressive and Clean Kazakhstan.

“I am confident that together we will achieve this ambitious goal,” the president concluded.

Earlier, Qazinform reported President Kassym-Jomart Tokayev had offered condolences over passing Norway’s King Harald V.