Kazakhstan: Investing

FDI in Figures

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.

Why You Should Choose to Invest in Kazakhstan

Strong Points

Kazakhstan needs to diversify its economy in order to reinforce its growth. It has to attract foreign investors in order to modernize the existing infrastructures, and to create new ones. The economic situation is relatively good, despite a financial sector affected by the financial crisis. Kazakhstan has a strong economic potential, a quality banking system, and remarkable political stability, since its independence.

Weak Points

Heavy constraints weaken Kazakhstan's economic potential. These are: its landlocked status, its obsolete economic structures and also a an economy which is still not diversified enough. The oil windfall has impeded the structural reforms. Corruption is a negative factor, since Kazakhstan is ranked 145th out of 180 according to Transparency International.

Government Measures to Motivate or Restrict FDI

Government policy has been encouraging foreign investment for nearly fifteen years (thanks to the December 1994 and February 1997 laws ) with measures such as reduction and even waiver of taxes for 5 years, a State subsidy, partial or total exemption from duties and taxes on equipment, raw materials and other material necessary for the establishment of the investment. The Investment Code of January 2003 guarantees equality between foreign and local investors, protection of the investors' rights and arbitration for disputes. In practice, there are stability guarantee clauses, guarantees against nationalisation or expropriation and the right to repatriation of profits. The Kazinvest agency (website in Kazakh language) plays a major role for the foreign investors who must present their project there.

Procedures Relative to Foreign Investment

Freedom of Establishment

Consult the foreign investment laws on the website Kazinvest.

Acquisition of Holdings

The acquisition of the majority shareholding of a Kazakh company is authorised under reserve of obtaining an aithorisation beforehand from Ministry of Justice.

Obligation to Declare

The Kazkhstan Investment Promotion Center in the country imparts information on the authorisations necessary for company establishment.

Competent Organization For the Declaration

Kazinvest

Requests For Specific Authorizations

Investment Opportunities

Investment Aid Agency

The Foreign Investment Council of the Ministry of Industry and Commerce of the Republic of Kazakhstan
Kazakhstan Development Bank
Kazyna Development Fund
Kazakhstan Investment Fund
Kazinvest (Kazakhstan Investment Promotion Centre)
National Investment Funds

Tenders, Projects and Public Procurement

Tenders Info, Tenders in Kazakhstan
Globaltenders, Tenders & Projects from Kazakhstan
Asian Development Bank, Proposed Projects in Asia
DgMarket, Tenders Worldwide

Other Useful Resources

Investment Fund
Center for Promotion of Investments
Department for Companies and Industries of the Karaganda region.
"Company creation" department on the website of the Uralsk city.
Department for Companies and Industries of the Kostanay region.
Department for Companies and Industries of the Atyrau region.
Department for Companies and Industries of the Pavlodar region.
Department for Companies and Industries of the Almaty region.
Department for Companies and Industries of the North-West region of Kazakhstan.
Department for Companies and Industries of the Eastern Kazakhstan region.
Department for Companies and Industries of the South Kazakhstan region.
Department for Companies and Industries of the Akmola region.
Department for Companies and Industries of the Aktioubinsk region.
Department for Companies and Industries of the Qyzylorda region.

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