Now Is the Time to Invest in Kazakhstan

As the government of Kazakhstan seeks to deliver prosperity for its people, built upon economic growth that goes beyond oil and gas, it has increased economic opportunities for national and international investment.

In 2012, the Kazakhstan 2050 Strategy was launched, defining new parameters for future development. As a result of these reforms, which notably include progressive policies to boost the economic empowerment of women, Kazakhstan’s investment environment has drastically improved over the past 10 years, becoming increasingly attractive to innovative firms and drawing more foreign investment. Kazakhstan’s economy, which grew by 3.2% in 2022, is now almost one-third larger than the other Central Asian economies combined, while the country receives around 60% of the region’s foreign investment.

Concrete improvements in the nation’s business climate include the creation of 13 special economic zones with advantageous tax regimes; simplification of administrative rules; standardization of business practices; and establishment of two new government institutions to boost the economy.

The investment agency Kazakh Invest, created in 2017, is the one-stop shop that assists investors in this growing market—a gateway to 500 million consumers, from Caspian countries to Western China. Kazakh Invest is used by dozens of foreign companies that want to grow their operations in Kazakhstan.

Beyond the traditional sectors at the core of Kazakhstan’s economy, fintech and sustainable energy firms are taking advantage of the country’s human capital and strategic location to open regional hubs. Kazakhstan offers untapped opportunities not just in the oil and gas sector, but also in minerals and precious metals, agriculture, animal husbandry, renewables and mining.

The creation in 2018 of the Astana International Financial Centre (AIFC)—the world’s newest major financial center and the only one in Central Asia—has had a considerable impact. Over 1,800 companies based in 70 countries work with AIFC, which was set up to accelerate Kazakhstan’s modernization and growth, make its business environment more friendly and attract capital. AIFC provides users with the most advanced, secure and effective investment instruments, and offers a reliable and familiar basis for arbitration and legal action; its internal court system uses English common law standards, and AIFC court decisions are final—a guarantee that its users appreciate. As part of its strategy to achieve the highest international standards, AIFC created the Astana International Exchange (AIX) in 2017 in partnership with NASDAQ and the Shanghai Stock Exchange.

AIFC is the premier hub for investors and businesses in Central Asia, and substantially contributes to the diversification of Kazakhstan’s economy. In June, at the inaugural edition of the Astana International Forum, which will bring together decision makers from global politics, business and academia, AIFC will host several panel sessions to discuss the current challenges faced by international finance, and how businesses can adapt and respond.

Through economic reforms and the incentivization of targeted foreign investment, the country is shifting away from relying exclusively on its energy sector. The process of building Kazakhstan’s new economy is well underway, and its foreign trade turnover hit a record high of $134 billion in 2022.

Today, Kazakhstan’s growth is mainly driven by the services sector and by exports, which increased by 60% to $84.4 billion in 2022, while imports reached $50 billion. Although a major part of the country’s GDP continues to comes from hydrocarbon extraction, the drive towards diversification is accelerating, with significant growth in the automotive industry, pharmaceuticals, processed metal products and mechanical engineering services.

Seizing the opportunities that Kazakhstan has to offer has never been easier.