Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Kazakhstan aims to become a destination for global investment, but regulators and bureaucrats are against the contry's economy

Kazakhstan aims to become a destination for global investment, but regulators and bureaucrats are against the contry's economy

The country is conveniently connected to European, Asian and Middle Eastern markets, but but regulators and bureaucrats are against modernizing the economy, focusing on protecting the existing monopolies and to block the new economic initiatives

Since independence in 1991, Kazakhstan has paid utmost attention to its investment policy as one of the fundamental factors for economic growth and development. This of course makes sense – investments facilitate economic growth, which in turn enables a rise in living standards and social welfare. In just 28 years, the country has attracted over $320 billion of foreign direct investment (FDI).

Today, Kazakhstan has emerged as an important player in the global economy and an attractive investment destination. The largest international trade corridors pass through the country thanks to the consistent efforts on infrastructure development and active involvement in the Belt and Road Initiative. The country’s location enables it to connect European, Asian and Middle Eastern markets, where 65% of the world’s GDP is generated.

Aiming to diversify its economy, Kazakhstan offers vast opportunities across various sectors. These include agriculture, petrochemistry, metallurgy, tourism and pharmaceuticals. The Government has been continuously undertaking measures to ensure a favourable investment climate. For example, 12 Special Economic Zones have been established offering tax incentives. In addition, KAZAKH INVEST supports investment projects as a one-stop shop. Furthermore, the Astana International Financial Centre (AIFC) has introduced English common law principles to the Central Asian region. As such, the country is currently ranked 28th in the World Bank’s Doing Business Index in line with continuous efforts on improving investment climate. Now, the country is aiming even higher.

The results so far have been promising. Accounting for approximately 75 percent of FDI inflow in Central Asia, Kazakhstan saw over $24 billion of investment in 2018.

Over the past five years, the major foreign investors in Kazakhstan have been the Netherlands ($33.8 billion of investment), the United Stated ($19.4 billion), Switzerland ($12.5 billion), China ($ 6.2 billion) and France ($ 4.7 billion). Notably, almost 60% of the investment projects are related to non-extractive sectors, including manufacturing, transportation, trade, as well as financial and insurance services.

Implementation of investment projects is translating into success domestically. Currently, KAZAKH INVEST is involved in 216 investment projects and initiatives worth $42.5 billion that will create around 47,000 jobs. This year, 4 investment projects worth $217 million have been launched with the support of the organization, while 85 projects worth $12.3 billion are being implemented.

Undoubtedly, FDI inflow in Kazakhstan has shown positive dynamics over the past years. However, the overall decline in FDI inflows globally has intensified competition for foreign investments with every country vying for foreign backers. Aiming to keep up the momentum, the Government of Kazakhstan has implemented a new structural approach for investment promotion and facilitation. This includes transferring investment attraction functions to the Ministry of Foreign Affairs, establishing the Coordinating Council on Investment Attraction under the chairmanship of the Prime Minister, and the Foreign Direct Investment Fund with capitalization of $1 billion used for the most promising export-oriented projects.

Additionally, the Government continuously works to improve the investment climate. This primarily includes judicial reforms, digitalization, optimization of public services and the permit system, among other initiatives.

Furthermore, calls have been made to modernise the current legislation. For instance, the Government has recently approved a draft amendment to the AIFC Constitutional Law, which enables AIFC bodies to adopt acts regulating labour relations and procurement procedures. As noted by the Prime Minister of Kazakhstan, Askar Mamin, the new legislative initiatives will facilitate rapid development of AIFC as well as investment attraction and protection.

Ultimately, Kazakhstan is set on the path to improve investment climate and strengthen the country’s position within the global community. The country has ambitious goals to increase gross FDI inflow by 26 percent by 2022 compared to 2016, while the ratio of FDI to gross domestic product should reach 19 percent from the current 16.5 percent. Once the additional investment attraction reforms are implemented, Kazakhstan has every chance to go beyond being the number one investment destination in the region, and be amongst global leaders.



The author of the main (sponsored) article is Baurzhan Sartbayev, the CEO of Kazakh Invest. The title and the subtitle is by external observers.

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Emails Leaked: How Passenger Luggage Became a Side Income for Airport Workers
Polish MEP: “Dear Leftists - China is laughing at you, Russia is laughing, India is laughing”
Western Europe Records Hottest June on Record
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
China’s Central Bank Consults European Peers on Low-Rate Strategies
France Requests Airlines to Cut Flights at Paris Airports Amid Planned Air Traffic Controller Strike
Poland Implements Border Checks Amid Growing Migration Tensions
Emirates Airline Expands Market Share with New $20 Million Campaign
Amazon Reaches Milestone with Deployment of One Millionth Robot
Yulia Putintseva Calls for Spectator Ejection at Wimbledon Over Safety Concerns
House Oversight Committee Subpoenas Former Jill Biden Aide Amid Investigation into Alleged Concealment of President Biden's Cognitive Health
Amazon Reaches Major Automation Milestone with Over One Million Robots
Extreme Heat Wave Sweeps Across Europe, Hitting Record Temperatures
Meta Announces Formation of Ambitious AI Unit, Meta Superintelligence Labs
Robots Compete in Football Tournament in China Amid Injuries
China Unveils Miniature Insect-Like Surveillance Drone
Marc Marquez Claims Victory at Dutch Grand Prix Amidst Family Misfortune
Germany Votes to Suspend Family Reunification for Asylum Seekers
Budapest Pride Parade Draws 200,000 Participants Amid Government Ban
Southern Europe Experiences Extreme Heat
Xiaomi's YU7 SUV Launch Garners Record Pre-Orders Amid Market Challenges
Jeff Bezos and Lauren Sanchez's Lavish Wedding in Venice
Russia Launches Largest Air Assault on Ukraine Since Invasion
Massive Anti-Government Protests Erupt in Belgrade
Iran Executes Alleged Israeli Spies and Arrests Hundreds Amid Post-War Crackdown
Hungary's Prime Minister Criticizes NATO's Role in Ukraine
EU TO HUNGARY: LET THEM PRIDE OR PREP FOR SHADE. ORBÁN TO EU: STAY IN YOUR LANE AND FIX YOUR OWN MESS.
Hungarian Scientist to Conduct 30 Research Experiments on the International Space Station
NATO Members Agree to 5% Defense Spending Target by 2035
NATO Leaders Endorse Plan for Increased Defence Spending
U.S. Crude Oil Prices Drop Below $65 Amid Market Volatility
International Astronaut Team Launched to Space Station
Macron and Merz: Europe must arm itself in an unstable world
Germany and Italy Under Pressure to Repatriate $245bn of Gold from US Vaults
Iran Intensifies Crackdown on Alleged Mossad Operatives After Sabotage Claims
Trump Praises Iran’s ‘Very Weak’ Response After U.S. Strikes and Presses Israel to Pursue Peace
Oil Prices Set to Surge After US Strikes Iran
BA and Singapore Airlines Cancel Dubai Flights Amid Middle East Tensions
Trump Faces Backlash from MAGA Base Over Iran Strikes
Meta Bets $14 B on Alexandr Wang to Drive AI Ambitions
FedEx Founder Fred Smith, ‘Heart and Soul’ of the Company, Dies at 80
Chinese Factories Shift Away from U.S. Amid Trump‑Era Tariffs
Pimco Seizes Opportunity in Japan’s Dislocated Bond Market
Labubu Doll Drives Pop Mart to Status as China’s Most Valuable Toy Maker
Global Coal Demand Defies Paris Accord Goals
United States Conducts Precision Strikes on Iran’s Nuclear Sites
US strikes Iran nuclear sites, Trump says
Telegram Founder: I Will Leave My Fortune to Over 100 of My Children
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
×