Kazakhstan attracts record amount of foreign investment in 2016
In 2016, the gross inflow of the foreign direct investments in Kazakhstan reached new heights, growing 40 percent compared to 2015 and surpassing the previous record from 2008, according to the National Bank of Kazakhstan, Astana Times reports.
According to the financial regulator, in 2016 the gross inflow of FDI to Kazakhstan was $20.6 billion, while in 2015 it was $14.8 billion.
The gross inflow of FDI has been growing steadily since 2007 but declined by 17 percent in 2013. In 2014, the decrease slowed by 2 percent and in 2015 it fell even more – by 38 percent. So, last year’s result was particularly significant.
“One of the components of the FDI inflow was the earnings reinvested by non-residents. And their volume exceeded $4.9 billion in 2016. With the growth of incomes of joint Kazakhstan enterprises, foreign investors increased the share of their income left in the country to finance the production activity of enterprises,” the National Bank noted. In 2015, investors’ losses were $272 million.
During the last year, the participation of investors in the capital of Kazakh enterprises by direct investment increased $5.1 billion against $3.8 billion in 2015, which is a 35 percent decrease, according to ranking.kz.
The volume of debts of Kazakh companies to foreign investors is $10.6 billion, or 5 percent less than in the previous year.
The main recipients of FDI were the mining industry, geological exploration, and processing.
The top four investors include the Netherlands, the United States, Switzerland, and France.