Kazakhstan: Investing
FDI in Figures | Why You Should Choose to Invest in Kazakhstan | Procedures Relative to Foreign Investment | Investment Opportunities
The decade of 1999-2009 witnessed the figures of FDI multiplying ten times, increasing from USD 1.852 billion to USD 18.429 billion. This had a dynamic effect on the production of oil and gas, whose level does not cease to increase. Currently, the tax laws favor more the local industries and personnel to the disadvantage of foreigners. This has not prevent FDI to continue to flow in 2008 and 2009. In 2009, the first investor was the Netherlands with USD 6.1 billion, on second place came the United States with USD 1.9 billion, then France with USD 1.3 billion, the United Kingdom with USD 958.1 million and China with USD 708.7 million. The oil and mining sectors are always the most attractive and they represent more than half of the total FDI.
| Kazakhstan | Eastern Europe & Central Asia | United States | Germany | |
| Index of Transaction Transparency* | 8.0 | 6.3 | 7.0 | 5.0 |
| Index of Manager’s Responsibility** | 1.0 | 4.0 | 9.0 | 5.0 |
| Index of Shareholders’ Power*** | 9.0 | 6.2 | 9.0 | 5.0 |
| Index of Investor Protection**** | 6.0 | 5.5 | 8.3 | 5.0 |
Source: Doing Business - Last Available Data.
Note: *The Greater the Index, the More Transparent the Conditions of Transactions. **The Greater the Index, the More the Manager is Personally Responsible. *** The Greater the Index, the Easier it Will Be For Shareholders to Take Legal Action. **** The Greater the Index, the Higher the Level of Investor Protection.
| Foreign Direct Investment | 2008 | 2009 | 2010 |
| FDI Inward Flow (million USD) | 15,775 | 13,771 | 9,961 |
| FDI Stock (million USD) | 59,646 | 72,547 | 81,352 |
| Performance Index*, Ranking on 141 Economies | 17 | 8 | - |
| Potential Index**, Ranking on 141 Economies | 44 | - | - |
| Number of Greenfield Investments*** | 60 | 46 | - |
| FDI Inwards (in % of GFCF****) | 44.0 | 7.7 | - |
| FDI Stock (in % of GDP) | 44.7 | 66.3 | - |
Source: UNCTAD - Last Available Data.
Note: * The UNCTAD Inward FDI Performance Index is Based on a Ratio of the Country's Share in Global FDI Inflows and its Share in Global GDP. ** The UNCTAD Inward FDI Potential Index is Based on 12 Economic and Structural Variables Such as GDP, Foreign Trade, FDI, Infrastructures, Energy Use, R&D, Education, Country Risk. *** Green Field Investments Are a Form of Foreign Direct Investment Where a Parent Company Starts a New Venture in a Foreign Country By Constructing New Operational Facilities From the Ground Up. **** Gross Fixed Capital Formation (GFCF) Measures the Value of Additions to Fixed Assets Purchased By Business, Government and Households Less Disposals of Fixed Assets Sold Off or Scrapped.
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Last Updates: January 2012