Invest in Kazakhstan
10 REASONS TO INVEST IN KAZAKHSTAN
Abundant Natural Resources
Kazakhstan’s priceless treasure is its mineral resources. Kazakhstan is the 6th largest country around the world in terms of mineral resources. 99 elements discovered, 70 elements explored, 60 are being recovered and used in Kazakhstan’s soil out of 110 elements of D.I.Mendeleyev’s periodic table, they are oil, gas, uranium, zinc, tungsten, barium, silver, lead, chrome, copper, fluorites, molybdenum, and gold.
Mineral and resources base of the Republic of Kazakhstan consists of 5,004 fields, estimated cost is around USD 46 trillion.
Globally, Kazakhstan is already the largest wolframium producer, and in terms of wolframium reserves Kazakhstan holds the first place throughout the world and huge reserves of chrome ore and phosphate put Kazakhstan on the second place, Kazakhstan occupies the fourth place in terms of lead and molybdenum reserves, the eighth one - in terms of total ironstone reserves (16.6 billion tones) after Brazil, Australia, Canada, USA, India, Russia and Ukraine.
160 oil and gas deposits only are so far explored in Kazakhstan, and recoverable reserves are 2.7 billion tones.
Around 300 significant gold deposits are under forecast in Kazakhstan, 173 of which were explored in detail.
Over 100 coal fields were explored throughout Kazakhstan, the largest is Ekibastuz field, which differs in high capacity of brown-coal layers and Karaganda coal basin with the reserves of over 50 bln tns of crozzling coal.
Kazakhstan possesses a huge bulk of kalium and other sault borate reserves, bromine, sulfate, phosphate compounds, the most varied raw materials for paint and varnish industry, sulphur pyrite that consist of plymetallic ores used to arrange sulfuric acid other chemicals production.
Kazakhstan possesses significant reserves of natural resources for glass and whiteware industry: rare precious stones, a variety of construction and covering materials.
Kazakhstan is located right in the heart of Eurasia, The Silk Road extended throughout the whole Kazakhstan. The major overland routes binding Asia and Pacific Region with Near East and Middle East and Europe as well pass through Kazakhstan. 3 of 4 BRIC* countries are situated next to Kazakhstan: Russia, China, and India.
Domestic policy stability is some kind of “core value” of Kazakhstan on global investment market. This issue was the foremost and topical one on the leader’s agenda.
The prime example of Kazakhstan’s domestic and foreign policy is Kazakhstan's OSCE chairmanship in 2010 associated with global community confidence in growth power of republican development trend. OSCE summit held in Astana in December 2010 is the largest forum in Post-Soviet history.
In 2011 Kazakhstan became the first country in Central Asia to host World Islamic Economic Forum.
In February 2011, Kazakhstan was invited to hold a status of member to OECD Regional Program steering Committee.
Favorable business climate
A great significant is attached to all aspects of a favorable business climate for investors in Kazakhstan: administrative barriers lowering and procedures simplification, of law enforcement and judicial systems efficiency enhancement, tax and customs administration improvement.
Kazakhstan is holding a leading position in terms of number and quality of the recent reforms among CIS countries. Over the last two years, Kazakhstan was at the top of the list of 10 countries that achieved a considerable success in creating favorable conditions for conducting business.
The international ratings serve an evidence of a favorable investment climate.
Foreign investments protection guarantees
Attraction and effective use of foreign investment is one of the main trends in mutually beneficial trade and economic ties of Kazakhstan with other countries.
A national status was assigned to International investments in Kazakhstan, in other words, foreign and domestic companies have the same conditions to conduct investment activities.
Law of the Republic of Kazakhstan dated January 8, 2003 № 373 "On Investments" stipulates various guarantees to minimize risks that investor can incur in carrying out investment activities in Kazakhstan:
- Investor activity legal protection around the Republic of Kazakhstan
- Income use warranty
- Transparency of state body activities with regard to investors
- Investor rights warranty when nationalization and requisition take place
Besides, Kazakhstan concluded Investment’s Mutual Protection and Encouragement Agreement with 45 countries and one Agreement within the framework of Eurasian Economic Community that provide collateral warranties of investor rights protection: discrimination protection, requisition and nationalization, the right to settle of investment disputes in international arbitration courts in case arbitration agreement missing.
Availability of transnational corporations
Thanks to favorable conditions provided to conduct business throughout Kazakhstan, multinational and foreign companies started to operate in RK.
Foreign Direct Investments in Kazakhstan
Favorable business climate and political stability promoted a considerable FDI inflow to Kazakhstan. Since 1993 Kazakhstan has attracted FDI of over 160 billion USD.
Thanks to elaborated policy and attracted FDI, Kazakh economy is steadily growing. Over the last decade, GDP demonstrated an 8-fold growth (from USD 24.6 bln to USD 188.05 bln).
Customs Union Markets
As Kazakhstan entered Customs Union with a market value of 170 mln, an individual opens new doors and perspectives to efficiently implement investment projects around Kazakhstan. Investors will have a chance to freely promote their products to Russia and Belarus markets.
Industrial and Innovative Development
Main institutions were created in Kazakhstan to facilitate industrial development:
- National fund that provides economic stability;
- Samruk-Kazyna NWF JSC consolidates state potential at implementing breakthroughs;
- Development institutions running the diversification process.
In 2010, the State Program of Accelerated Industrial-Innovative Development for 2010-2014 was adopted; its main objectives are to create new export-oriented high-tech manufacturing; infrastructure development; national innovative system strengthening; local personnel development.