Growing foreign direct investments in Kazakhstan

Growing foreign direct investments in Kazakhstan

The volumes of foreign investments are growing in Kazakhstan. Only in six months, the gross inflow of direct capital from abroad grew by 25% and amounted to $9.3 billion. Moreover, almost 60% of the investments accounted for mining and exploration, 15%  - for the processing industry, trade and construction. The figures were announced by the Kazakh Minister of Investments and Development Zhenis Kassymbek.

 
Zhenis KASSYMBEK, KAZAKH MINISTER OF INVESTMENTS AND DEVELOPMENT:
This year, the Committee on Investments of the Organization for Economic Cooperation and Development decided to recommend to the OECD Council to invite Kazakhstan as a member of the Committee. It is a sign of great trust to Kazakhstan and indicates that the investment climate in Kazakhstan complies with international standards, as well as high level of the business environment, competition and investors’ right protection.

 

Kazakh diplomats are also conducting the work on attraction of foreign investments into the Kazakh economy. There are many tools created with this aim. As Kazakh Minister of Foreign Affairs, Erlan Idrissov said, from January, entry into Kazakhstan will be facilitated for citizens of 55 countries.

 

Erlan IDRISSOV, KAZAKH FOREIGN MINISTER:

Starting from January 1 2017, we will launch the projects allowing a 30-day visa-free entry for citizens of EAEU, OECD, Monaco, Malaysia, United Arab Emirates, and Singapore.

 

The Kazakh officials are taking on a targeted and individual approach to cooperation with every large investor and multinational company. The plans include establishing contact with the world’s two hundred large corporations over the next two years. Active work is already under way with ten such investors. Meanwhile, Kazakhstan has launched investor service centers and from next year the principle of a single window will go an online.

 
Zhenis KASSYMBEK, KAZAKH MINISTER OF INVESTMENTS AND DEVELOPMENT:
Entry of big investors, including transnational companies, requires an individual approach. These may be tax subsidies, preferential customs tariffs, land with infrastructure, access to mineral resources, and quota for foreign labor. We are proposing to create a special working group under the leadership of the First Deputy Prime Minister for review of every transnational company’s entry conditions separately.


 
To date, the country has implemented a number of major industrial projects with foreign capital. The investment attractiveness of Kazakhstan is growing, the CEO of France Cleantech David Dornbusch says.

 

David DORNBUSCH, CEO, FRANCE CLEANTECH SAS:

Many people in France know that Kazakhstan is an excellent place to make business. I know a lot for example in the solar business, solar farm. And many people said Kazakhstan is what we call bankable; it means that bank can lend you money to develop projects. It seems that President of Kazakhstan has made some quiet place for business.

 

Kazakhstan’s investment attractiveness and other indicators suggest overall growth. Thus, in the last report Doing Business by the World Bank, Kazakhstan has improved its position, rising to 35th place. At the same time in terms of "protection of minority investors" the country has moved from 25th position to 3rd. Kazakhstan has also entered the top ten countries, by improving the legislation in business.