Favorable Investment Climate
"Legal protection, effective human resources, low production costs, progressive taxation system and high potential of neighboring markets are the basis of Kazakhstan’s favorable investment climate."
"Kazakh Invest is a one-stop shop for investors that facilitates investment projects’ implementation process from an idea to implementation, as well as ensures aftercare services. Kazakh Invest provides a maximum transparency of the investment process to eliminate any possible loopholes."
Comprehensive Support In All Industries
In 2018, Kazakh Invest helped develop more than 70 investment proposals in a variety of industries: metallurgy, petrochemistry, food industry, tourism and other. It included creating a business plan, financial model and teaser development.
Access To Neighboring Markets
Besides availability of raw materials, cheap and highly qualified labor, infrastructure in Kazakhstan, the investors gain access to the largest markets of our traditional trade partners – China and Russia. These two markets open great business opportunities and are accessible from Kazakhstan.
High Investment Potential Industries
IT, tourism and finance are regarded as Kazakhstan's high investment potential industries. An important IT project is the introduction of 5G networks in the country, which will give a positive boost to economy. Cheap electricity, available infrastructure and favorable investment climate helps create the largest data centers in Kazakhstan.
World Bank Ease Of Doing Business
Kazakhstan ranks 28th among 189 countries in the World Bank Ease of Doing Business having improved by 36 points. This is the result of Kazakhstan's joint work with the OECD experts and the country's extensive measures to develop its investment climate.
According to the National Bank of Kazakhstan, during 1993 – 2018 gross foreign direct investment (FDI) into Kazakhstan amounted to about 320 billion dollars. In 2018, the gross inflow of foreign direct investment in Kazakhstan increased by 15.8% and amounted to $22,4 billion.
Rapid industrialization became an investment magnet. During 2005- 2009 it attracted 82.1 billion dollars of investment. After the implementation of the State Program of Industrial- Innovative Development of the Republic of Kazakhstan for 2010- 2014, it attracted 149.5 billion dollars (growth by 1.5 times).
National Investment Strategy
In 2017 Kazakhstan launched a new Investment Promotion Program. The government and World Bank developed and adopted a National Investment Strategy for 2017 – 2022 to create a favorable investment climate and to attract investments aimed at improving efficiency. The Strategy took 2016 indicators as a baseline and set to achieve 126% increase in the gross inflow of FDI in 2022, the share of FDI to GDP - 19%, the volume of FDI in the manufacturing sector growth - 50%.
billion dollars of FDI
The next five-year plan projects 118 billion dollars of FDI (20-25billion dollars annually) with 25 billion – invested in export-oriented manufacturing industry.
Special Economic Zones
Kazakhstan created 12 special economic zones focused on specific sectors of the economy. All SEZ provide investors with a package of incentives including exemption from corporate income tax, land tax, property tax, value-added tax when selling SEZ- made goods. Currently, 165 projects have been launched in the SEZ with total investment of KZT 713.8 billion.
Procedure Of Investment Projects Implementation
The implementation of investment projects is based on a new procedure. The first selection of promising projects is done at the regional level. Then, Kazakh Invest and AIFC experts and consultants will run the analysis of projects and shape them into understandable formats for foreign investors. At the next stage, the AIFC and the Ministry of Foreign Affairs will advertise the prepared and “packaged” projects and seek interested investors. At the concluding stage, interested investors will sign contracts on the basis of an investment hub using the legal infrastructure of the AIFC.
Special Legal Procedure For Investment Cases
Special Legal Procedure for Investment Cases was introduced three years ago. The Supreme Court and the Astana City Court formed a specialized panel of judges to deal with investment disputes and claims. Besides, The AIFC Court provides a common law court system that operates to the highest international standards to resolve civil and commercial disputes in the AIFC.
The tax system in Kazakhstan became one of the key policy instruments to attract investments. There are 52 agreements on avoidance of double taxation with countries that are major trading and investment partners. Such agreements play a significant role in the process of attracting and retaining investments. From 2018, a new Tax Code was adopted in the country. The tax reform introduced straightforward rules. The code stipulates that all inaccuracies and incorrect explanations on the part of officials are interpreted in favor of the entrepreneur. That is, the presumption of tax innocence is introduced.
New FDI Attraction Efforts
In April this year, the Prime Minister of Kazakhstan was appointed as an Investment Ombudsman. It will allow a prompt resolution of any challenges and effective collaboration with investors. The Prime Minister also chairs a newly established Coordination Council on Investment Attraction, while Investment Hub has been established based on the AIFC infrastructure.
Low Rates & Fixe Costs
Low electricity rates and raw materials boost Kazakhstan’s production efficiency. Kazakhstan is a leader in cost effectiveness in the 'Manufacturing locations of the Future 2018/2019'