ADB Calls For Deeper Capital Markets To Unlock Investment Potential In CAREC Region

Developing deep and sustainable capital markets is essential for countries in the Central Asia Regional Economic Cooperation (CAREC) region to fully utilize their economic potential, according to Yingming Yang, AzerNEWS reports via local media.

Speaking at a seminar held on the sidelines of the ADB Annual Meeting of the Board of Governors, Yang emphasized that without stronger capital markets, opportunities for mobilizing domestic savings, attracting foreign investment, and efficiently allocating resources will remain limited.

He noted that the CAREC 2030 strategy highlights the importance of developing more robust financial systems to support economic diversification, strengthen regional connectivity, and facilitate a transition toward low-carbon, climate-resilient growth.

According to Yang, financial systems across the region share common structural challenges, including a heavy reliance on banking sectors and underdeveloped non-banking segments, particularly capital markets.“In such conditions, without their deepening, the possibilities for mobilizing domestic resources, attracting investments and effectively allocating capital, including for the development of green and sustainable infrastructure, will remain limited,” he said.

The ADB Vice President emphasized that regional cooperation is critical to addressing these challenges, identifying it as one of the five priority areas under the CAREC 2030 framework.

He also highlighted the absence of a structured regional platform to facilitate dialogue among regulators and market participants. In response, the Asian Development Bank is supporting the institutionalization of the CAREC Capital Markets Development Forum (CMDF), which will serve as a platform for coordination, knowledge exchange, and policy alignment.

The CMDF is expected to operate under a cooperative governance model led by national regulators, bringing together stakeholders from across CAREC member states, alongside strategic partners and specialized working groups.

Looking ahead, Yang noted that strengthening ties with other regions, particularly Southeast Asia, will be an important direction for further development of capital markets in the CAREC region.

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