Kazakhstan has increased income of foreign direct investments

Kazakhstan has increased income of foreign direct investments

Kazakhstan demonstrates an excellent performance in attracting foreign direct investments in fixed capital. The volume of foreign investments in Kazakhstan has increased by almost a quarter, totalling 24 per cent in the first seven months of this year. According to analysts, the mining industry remains as the most attractive sector for investors. The industry accounts for almost half of the foreign investments.

AIZHAN MUKHYSHBAYEVA, EXPERT, INSTITUTE OF WORLD ECONOMICS AND POLITICS:

 - The most attractive industries for foreign investors in Kazakhstan include mining industry, geological exploration, real estate operations as well as transportation and warehousing. Kazakhstan is the leader in attracting foreign direct investments in the Central Asian region. Based on estimates, about 70 per cent of investments in Central Asia are aimed at Kazakhstan. The main contributing factor is the presence of raw materials in Kazakhstan, as well as environments created by the Government, such as tax exemptions and provision of production areas for investors. Our corporate tax rate makes up 20 per cent which is 1.5-2 times lower compared to many countries and the VAT rate in Kazakhstan is just 12 per cent.  

There are other factors that strengthen Kazakhstan’s position as one of the most promising countries for investments. These include Kazakhstan’s advantageous geographical location, the Government’s initiatives on regional integration and improvement of business environment.

AIZHAN MUKHYSHBAYEVA, EXPERT, INSTITUTE OF WORLD ECONOMICS AND POLITICS:

 - The business environment is improving every year in Kazakhstan. Over the recent years, Kazakhstan has been ranked 35th-36th in the Doing Business rankings which are a very good result. Kazakhstan has advanced in the ‘protecting minority investors’ indicator. There are improvements in doing business, including reduction of time for business registration, licensing, provision of services for businesses and provision of permits for construction. All these factors make the business climate more attractive. Business plays an important role in investment attraction, especially in the development of small and medium-sized businesses. The share of small and medium-sized businesses in the GDP of Kazakhstan totals about 25 per cent and the goal set in many strategic documents is to increase this share to 50 per cent.