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2026  N1-2(251-252)
ECONOMY
LEVELS OF WELL-BEING
Turkmenistan’s construction industry achieved a high growth rate of 7.9 percent by the end of 2025. Such impressive results in this sector have been sustained for several years following significant capital investment in construction, ensuring a favourable investment climate and state support for national entrepreneurship.
Hundreds of industrial, social and cultural facilities are built and renovated annually in the capital and regions of the country as part of the urban development policy. These include modern residential buildings, schools, kindergartens, medical and sports centres, as well as large and small industrial enterprises.
As President Serdar Berdimuhamedov noted at an enlarged government meeting that discussed the results of the country’s socio-economic development in 2025, “last year, 116 industrial and social-cultural facilities and 645,000 square meters of housing were commissioned through all sources of financing. Construction of many important facilities was launched. Construction of the second stage of the country’s first ‘smart’ city, Arkadag, was continued.”
No less ambitious plans have been outlined for the country’s construction sector in 2026. In accordance with the Program for the Socio-Economic Development of Turkmenistan and Investments in 2026, there are plans to build and commission residential housing with a total area exceeding 900,000 square meters, general education institutions for 3,380 students and preschool institutions for 1,080 children.
As part of the implementation of this program, construction of a number of new facilities will begin in the regions and the capital city, while several projects will soon be completed. These include dozens of residential buildings in Ashgabat, numerous shopping centres and consumer service facilities, the International Paediatric Centre, the International Scientific and Clinical Centre of Oncology, the Dental Centre and other facilities.
According to the Program for the Socio-Economic Development of Turkmenistan and Investments in 2026, construction of new plants is expected to create approximately 5,300 jobs and increase the share of the private sector in the GDP to 72.9 percent. In 2026, investments totalling approximately 41.2 billion manats are planned to be channelled into the country’s economy from all sources of financing. Notably, this volume of investment exceeds that of the previous year. Equally important is the fact that the head of state issued instructions to continue building new modern plants for the construction sector and industrial production.
Turkmenistan’s large private construction companies take active part in implementing state development programs, building residential complexes, educational institutions and infrastructure facilities. The practice of public-private partnership is effectively used in this process. In 2025 alone, more than 3.9 billion manats were invested in the development of the country’s construction industry. These funds were used for construction of major infrastructure projects, modernization of industrial facilities and introduction of modern technologies in the construction industry.
The private sector in the construction industry is represented by companies that are members of the Union of Industrialists and Entrepreneurs of Turkmenistan (UIET). In recent years, private companies have been implementing the country’s largest infrastructure and housing projects, including the construction of highways and new cities.
It is worth noting that during the second phase of construction of the “smart” city of Arkadag, 120 facilities with a total value of approximately 3.4 billion manats are being erected by companies-members of the UIET. During the first phase, UIET member companies built and commissioned 337 facilities worth around 11.5 billion manats.
By now, a number of large private construction companies have emerged in the country, differing in the scale and specialization of the projects they implement. Private construction companies are actively involved in implementing the National Program of the President of Turkmenistan on Transforming Social and Living Conditions of the Population of Villages, Settlements, Cities, Districts and District Centres up to 2028.” Under this program, new modern villages are being built in every region, where all necessary conditions are created for residents. Kindergartens, general education schools and health centres are equipped in accordance with modern requirements, and shopping centres offer a wide range of goods.
A number of companies specialize in building technically complex facilities and construction of transport highways. For example, “Turkmen Awtoban” is a consortium of private companies responsible for implementing one of the largest projects in the country—the construction of the Ashgabat–Turkmenabat high-speed highway. “Adjayip Bina” is engaged in the design and construction of industrial facilities and administrative centres. “Hayyrly Goldaw” participates in projects involving the construction of industrial buildings and infrastructure networks. A number of companies not only carry out construction but also supply the local market with domestically produced construction materials. For example, “Agzybir Oy” specializes in construction and production of building materials. “Erjel Begenc” is a leading producer of marble, granite and concrete products used at the country’s major construction sites. “Turkmen Enjam” supplies engineering equipment and builds industrial facilities.
The list of major industrial facilities built by private construction companies and commissioned in 2025 include the Baherden ceramic products plant in the Baherden etrap of Akhal velayat, inaugurated with the participation of President Serdar Berdimuhamedov, as well as a glass production workshop located within the industrial complex in the northern part of Ashgabat.
The new ceramics plant, equipped with advanced machinery from leading foreign companies, has become the first of its kind in Turkmenistan and one of the region largest modern production facilities manufacturing such products. Its production capacity amounts to 3.3 million square meters of ceramic tiles and 120,000 units of faience products per year.
The high quality of engineering works carried out and equipment, fully compliant with international standards, is confirmed by the relevant certificates issued by Italian companies. A wide range of modern construction and finishing materials produced at the new facility demonstrates how successfully Turkmenistan is addressing the modernization of the construction sector.
The glass production workshop in Ashgabat, equipped with high-tech equipment from renowned global manufacturers, produces up to 100 tons of high-quality products per day. Importantly, this facility, which has also received a number of international compliance certificates from foreign companies, uses exclusively local raw materials in production, including quartz sand, dolomite, limestone and sodium sulphate. This not only reduces production costs but also ensures uninterrupted manufacturing processes.
An important trend has been gaining momentum in recent years. Construction of the country’s largest highways is being entrusted to national private companies. The 600-kilometer-long Ashgabat–Turkmenabat high-speed highway is currently the main project in this area. “Turkmen Autobahn” is a key participant in the implementation of this project. It was established in 2018 specifically for the construction of this highway and pooling the resources of the largest private construction companies - members of the UIET.
The Ashgabat – Turkmenabat highway construction project worth 2.3 billion USD has been implemented in stages since January 2019. The first section (Ashgabat – Tejen, 203 kilometres) was commissioned in 2021, the second section (Tejen – Mary, 109 kilometres) was opened in 2024. The final section (Mary – Turkmenabat, 288 kilometres) is scheduled for completion in 2026.
The project provides for the most optimal route of the high-speed highway, connecting Ashgabat with the city of Turkmenabat – the administrative center of Lebap velayat, a region with significant industrial and transit potential. Along the route, toll terminals, dozens of large and small bridges and underpasses have been constructed, including bridges over railway lines, at intersections with other highways, and over mudflow channels and the Murgab and Karakum rivers.
When completed, the Ashgabat – Turkmenabat highway will not only establish direct high-speed transport links between Ashgabat and the eastern region of the country but also become an important element of the national transport and logistics system, facilitating increased transit cargo transportation with neighbouring countries.
In 2026, the country’s private construction companies will also continue building another high-speed highway that will connect the cities of Ashgabat, Turkmenbashi, Farab and Dashoguz.
The construction of the 564-kilometer Ashgabat – Turkmenbashi highway will make it possible to improve the quality of logistics services, expand international transit and transport infrastructure, increase trade turnover between neighbouring countries and boost export and transit volumes, taking into account the capabilities of the Turkmenbashi International Seaport.
In the coming years, private construction companies will take part in the construction of new highways in Turkmenistan, such as Turkmenabat – Gazocak – Dashoguz; Mary – Serhetabat; and Gumdag – Etrek – the border with Iran. These highways will also be used for transit cargo transportation through Turkmenistan from Russia, Kazakhstan, Iran and India, providing access to Northern and Western European countries.
Private construction companies actively participate in the development of aviation infrastructure, including the construction of new airports and modernization of existing ones. In fact, a new international airport was commissioned in May 2025 in the city of Balkanabat in Balkan velayat in the western part of the country.
The airport was built by the private construction company “Gundogdy”, experienced in implementing complex transport projects. The Balkanabat Airport, capable of handling up to 100 passengers per hour, is located 20 kilometres from the administrative centre of the velayat and four kilometres from the well-known resort of Mollagara. The opening of the airport significantly improved access to health resort services and stimulated the development of tourism in the region.
The same company completed the construction of the international airport in the city of Kerki in Lebap velayat in the summer of 2021. The airport with the capacity of 100 passengers per hour is designed to simultaneously receive two large aircraft and four helicopters. The airport has the international status because of its geostrategic location between Uzbekistan to the north and Afghanistan to the south.
Representatives of the construction business regularly participate in sector-specific international forums both in Turkmenistan and abroad, where they exchange experience and establish new business contacts.
For example, in November 2025, the Turkmenistan delegation presented the country’s strategic vision of creation of a sustainable urban environment and modernization of large-scale infrastructure at the international exhibition Big 5 Global 2025 in the United Arab Emirates.
During the talks with representatives of the Government of the United Arab Emirates and executives of leading global engineering companies, the sides discussed opportunities for introducing digital technologies in construction, increasing the efficiency of construction processes and expanding supplies of glass and construction materials to the markets of the UAE and the Persian Gulf countries. The delegation of Turkmenistan also studied best practices at the pavilions of Saudi Arabia, Turkey and China and got acquainted with modular construction technologies and “smart city” management systems.
The prospective plans of development of Turkmenistan’s construction sector provide for the further modernization of the national economy, transition to digital technologies in the construction industry and expansion of the production base for building materials.

Oleg LUKIN


©Turkmenistan Analytic magazine, 2005