Uzbekistan signed an agreement on founding of a $500 million Turkic Investment Fund on March 16 at an extraordinary Turkic Summit in Ankara.

The capital of the fund shall be divided into 10,000 shares with a par value of $50,000 each. It is divided into paid shares and shares to be traded. The total nominal value of the paid-in shares will be $350 million, and the total nominal value of the attracted shares will be $150 million.

Each of the five countries—Azerbaijan, Turkey, Kazakhstan, Kyrgyzstan, and Uzbekistan—will receive 2,000 initial shares but must pay four installments for paid-in shares: an initial installment of $5 million within 90 days of the inaugural meeting, and then three annual installments $18 million, $23 million, and $24 million, respectively (total $70 million for each country). As part of the attracted shares, the share of each country will be $30 million.

The Turkic Investment Fund with the status of an international financial organization will be headquartered in Istanbul and will be valid for 20 years. But the board of governors can extend it or close it.

The initiative to create an investment fund belongs to Turkish President Recep Tayyip Erdogan, who voiced this proposal at the Turkic Summit in Samarkand in November 2022.

At the same summit, President Shavkat Mirziyoyev supported this idea and put forward the initiative to create a Space of New Economic Opportunities within the Turkic Organization.

At the extraordinary Turkic Summit in Ankara on March 16, the Uzbek leader noted that it was advisable to introduce mechanisms for close cooperation and support in overcoming social and economic problems during unforeseen ordeals. We are talking about the unimpeded delivery of food and building materials, the launch of cooperation projects aimed at restoring industry.

“We believe it is possible to attract the first financial resources of the Turkic Investment Fund, which is officially established today, to these projects,” he said then.