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
Vatican hosts first Catholic LGBTQ pilgrimage
Apple Unveils iPhone 17 Series, iPhone Air, Apple Watch 11 and More at 'Awe Dropping' Event
France joins Eurozone’s ‘periphery’ as turmoil deepens, say investors
France Faces New Political Crisis, again, as Prime Minister Bayrou Pushed Out
Nayib Bukele Points Out Belgian Hypocrisy as Brussels Considers Sending Army into the Streets
France, at an Impasse, Heads Toward Another Government Collapse
The Country That Got Too Rich? Public Spending Dominates Norway Election
EU Proposes Phasing Out Russian Oil and Gas by End of 2027 to End Energy Dependence
More Than 150,000 Followers for a Fictional Character: The New Influencers Are AI Creations
EU Prepares for War
Trump Threatens Retaliatory Tariffs After EU Imposes €2.95 Billion Fine on Google
Tesla Board Proposes Unprecedented One-Trillion-Dollar Performance Package for Elon Musk
Gold Could Reach Nearly $5,000 if Fed Independence Is Undermined, Goldman Sachs Warns
Uruguay, Colombia and Paraguay Secure Places at 2026 World Cup
Trump Administration Advances Plans to Rebrand Pentagon as Department of War Instead of the Fake Term Department of Defense
Big Tech Executives Laud Trump at White House Dinner, Unveil Massive U.S. Investments
Tether Expands into Gold Sector with Profit-Driven Diversification
‘Looks Like a Wig’: Online Users Express Concern Over Kate Middleton
Florida’s Vaccine Revolution: DeSantis Declares War on Mandates
Trump’s New War – and the ‘Drug Tyrant’ Fearing Invasion: ‘1,200 Missiles Aimed at Us’
"The Situation Has Never Been This Bad": The Fall of PepsiCo
At the Parade in China: Laser Weapons, 'Eagle Strike,' and a Missile Capable of 'Striking Anywhere in the World'
The Fashion Designer Who Became an Italian Symbol: Giorgio Armani Has Died at 91
Putin Celebrates ‘Unprecedentedly High’ Ties with China as Gazprom Seals Power of Siberia-2 Deal
China Unveils New Weapons in Grand Military Parade as Xi Hosts Putin and Kim
Rapper Cardi B Cleared of Liability in Los Angeles Civil Assault Trial
Google Avoids Break-Up in U.S. Antitrust Case as Stocks Rise
Couple celebrates 80th wedding anniversary at assisted living facility in Lancaster
Information Warfare in the Age of AI: How Language Models Become Targets and Tools
The White House on LinkedIn Has Changed Their Profile Picture to Donald Trump
"Insulted the Prophet Muhammad": Woman Burned Alive by Angry Mob in Niger State, Nigeria
Trump Responds to Death Rumors – Announces 'Missile City'
Druzhba Pipeline Incident Sparks Geopolitical Tensions
Cost of Opposition Leader Péter Magyar's Economic Plan Revealed
Germany in Turmoil: Ukrainian Teenage Girl Pushed to Death by Illegal Iraqi Migrant
United Krack down on human rights: Graham Linehan Arrested at Heathrow Over Three X Posts, Hospitalised, Released on Bail with Posting Ban
Asian and Middle Eastern Investors Avoid US Markets
Ray Dalio Warns of US Shift to Autocracy
Eurozone Inflation Rises to 2.1% in August
Russia and China Sign New Gas Pipeline Deal
Von der Leyen's Plane Hit by Suspected Russian GPS Interference in an Incident Believed to Be Caused by Russia or by Pro-Peace or by Anti-Corruption European Activists
China's Robotics Industry Fuels Export Surge
Suntory Chairman Resigns After Police Probe
Gold Price Hits New All-Time Record
UK Fintechs Explore Buying US Banks
Greece Suspends 5% of Schools as Birth Rate Drops
Apollo to Launch $5 Billion Sports Investment Vehicle
Bolsonaro Trial Nears Close Amid US-Brazil Tension
European Banks Push for Lower Cross-Border Barriers
Poland's Offshore Wind Sector Attracts Investors
×