INDUSTRY
Economic Growth and Industrial Contribution
Turkmenistan’s industrial sector serves as a key driver of GDP growth, exports, and foreign exchange earnings. In 2023, the sector accounted for a substantial portion of the country’s economic output, supported by ongoing investments in manufacturing, infrastructure, and modernization. By 2024, industrial production increased by 12.1% compared to the previous year, highlighting the sector's resilience and expansion. Growth was evident across multiple industries, including energy, chemicals, textiles, and building materials, reinforcing Turkmenistan’s position in global markets.
Oil, Gas, and Petrochemicals
Oil and gas remain the cornerstone of Turkmenistan’s industrial sector, significantly contributing to GDP and export revenues. The country possesses some of the world's largest natural gas reserves, underpinning its energy sector and industrial expansion. Recent initiatives have focused on value-added production, with the development of petrochemical plants for polyethylene, polypropylene, and gasoline from natural gas. Key projects include the new polypropylene and polyethylene plants in Kiyanly, aimed at bolstering exports and reducing reliance on raw hydrocarbon sales.
Chemical Industry Developments
The chemical sector is one of Turkmenistan’s fastest-growing industries, playing a crucial role in the country’s socio-economic development strategy for 2022-2028. Major investments include:
- Ammonia and urea plants in Mary and Garabogaz.
- A polymer production facility in Kiyanly.
- A gasoline-from-natural-gas plant in Ovadandepe. Additionally, the Garabogazgol Bay area, home to the world’s largest deposit of sodium sulfate, supports large-scale production of iodine, bromine, and other chemical products for export.
Textiles and Light Industry
Turkmenistan's textile sector is a vital component of its industrial diversification strategy. The country has long been a significant cotton producer and is now shifting towards value-added manufacturing, producing cotton yarn, fabrics, garments, and knitwear. In 2024, the sector demonstrated robust growth:
- Cotton yarn production surged by 46.7%.
- Cotton fabric output grew by 27.1%. This expansion strengthens Turkmenistan’s position as a competitive player in the global textile market.
Construction Materials Industry
The construction materials sector has seen rapid development, driven by large-scale urbanization and infrastructure projects. Cement production grew by 3.5% in 2023, alongside increased output of precast concrete structures, rebar, and sheet glass. Notable projects include:
- The phased development of the “smart” city of Arkadag.
- New residential complexes and cultural centers.
- Expanding road and transportation networks. Public and private sector investments continue to fuel growth in construction materials production, supporting national infrastructure development.
Consumer Goods and Food Industry
The industrial sector's expansion has also benefited consumer goods and food production. In 2024, notable growth included:
- Confectionery Manufacturing Growth: 2.1%
- Dairy Products Manufacturing Growth: 4.7%
- Butter Manufacturing Growth: 3%
- Tinned Fruit and Vegetables Manufacturing Growth: 7.2%
- Fish catch: +20.1%
Agricultural Production (Food Items)
- Gourds Production Growth: 6%
- Potato Production Growth: 4.6%
- Berries and Fruit Production Growth: 1.5%
- Milk Production Growth: 2.1%
- Meat Production (net weight) Growth: 7%
Additional Food Production Indicators:
- Increase in Agricultural & Food Production (Union of Industrialists and Entrepreneurs): 110%
- State Association of Food-Processing Industry Output: 101.6%
- State Association of Cattle-breeding and Poultry Output: 100.2%
Beverage-Related Statistics
- Mineral Water and Soft Drinks Manufacturing Growth: 11.5%
These figures underscore the diversification of industrial output and the growing role of domestic production in meeting consumer demand.
Turkmenistan’s industrial development strategy continues to drive economic growth, job creation, and diversification across multiple sectors. The ongoing modernization of oil and gas, petrochemicals, chemicals, textiles, and construction industries positions the country as an emerging industrial powerhouse, well-integrated into global supply chains. Looking ahead, continued investment and innovation will further strengthen Turkmenistan’s industrial competitiveness on the international stage.
CONSTRUCTION
Turkmenistan’s construction sector has undergone substantial transformation in recent years, driven by a vision of sustainable develqopment, technological innovation, and regional connectivity. As part of its economic diversification efforts, Turkmenistan has made significant strides in modernising its infrastructure, fostering industrial growth, and establishing itself as a key player in global trade and connectivity.
A landmark project that highlights Turkmenistan’s dedication to sustainable urban development is the phased construction of Arkadag Smart City. Located near Ashgabat, this ambitious initiative is set to create a modern, eco-friendly urban hub, featuring cutting-edge infrastructure, expansive green spaces, and advanced medical clusters. These medical centers are not only designed to deliver top-tier healthcare services but also aim to establish the city as a center for research, innovation, and technological advancement in the healthcare sector. Arkadag Smart City embodies Turkmenistan’s commitment to sustainability and demonstrates the country’s ambition to become a regional leader in modern urban development.
The integration of smart technologies, energy-efficient solutions, and green architecture within Arkadag Smart City is a clear reflection of Turkmenistan’s broader vision for sustainable development. This includes creating a harmonious urban environment that balances economic growth with environmental responsibility, ultimately enhancing the quality of life for residents and strengthening the country’s position as an innovation hub in Central Asia.
Arkadag City is not only the first "smart city" in Turkmenistan but also the first in the entire Central Asian region. Built in one of the oldest regions of the country, the city stands as a symbol of Turkmenistan’s commitment to social progress and technological innovation. Arkadag has earned over 20 certificates and awards from UN specialised agencies, international organisations, and foreign scientific institutions, recognising its achievements in sustainable urban planning and innovative development.
The forum’s sub-session, titled «Phased construction of the Arkadag Smart City including medical clusters as modern centres for sustainable development» will address topics such as the role of the mining industry in supplying building materials, the potential for import substitution, and the latest innovations in construction technologies.
One of the most ambitious and transformative projects underway in Turkmenistan is the development of Ashgabat-City, a sprawling urban initiative that will redefine the landscape of the nation's capital. As Turkmenistan continues to modernize and position itself as a regional and global hub, Ashgabat-City stands as a key cornerstone in the realisation of this vision, aiming to create a vibrant, modern business, cultural, and residential district.
Spanning a total area of 744 hectares, this large-scale development can be described as a "city within a city," as it will house over 200 buildings, each serving a unique purpose in shaping a modern urban infrastructure designed for both comfort and recreation. Residential accommodations will be offered in the form of 180 luxury high-rise buildings, ranging from 12 to 35 stories in height, with a total of 17,836 apartments designed for over 107,000 residents.
The overarching goal of Ashgabat-City is to transform the capital into a smart, green city with world-class infrastructure, setting the stage for Turkmenistan's growing role as an emerging destination for international business and tourism. The project envisions the creation of a dynamic urban center equipped with state-of-the-art technology and sustainable design principles, all while incorporating elements that reflect the nation's rich cultural heritage.
This monumental undertaking will include the construction of residential buildings, commercial complexes, public spaces, and transportation networks. Each aspect of the development has been carefully integrated with modern technology and sustainability in mind. With a strong emphasis on environmental responsibility, Ashgabat-City will embrace eco-friendly design principles, ensuring that the city thrives in harmony with its surroundings.
The integration of cutting-edge technology will play a significant role in the city’s development. Smart houses and "smart stops" for public transport will be incorporated into the design, enhancing the convenience and efficiency of everyday life. Digital systems will manage building operations and the city's economy, ensuring that Ashgabat-City remains at the forefront of modern urban planning.
As Ashgabat evolves into an increasingly dynamic urban center, the Ashgabat-City project will further solidify the capital's status as a key economic and cultural hub within Central Asia, drawing both domestic and international investments. The project's expansive scope promises to bolster the capital’s global competitiveness and attractiveness, creating new opportunities for residents and businesses alike.