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Doing business in Kazakhstan

Kazakhstan ranked 35th position in the World Bank rating "Doing Business 2017", increasing its ranking by 16 points compared to «Doing Business 2016» where the country took the 51st position. The country has been attracting overseas investors and world-renowned companies since getting independence in 1991. Below we have identified a few key advantages of investing in Kazakhstan's economy.

  • Emerging Economy - The country is ranked in the top 20 in the world for its natural reserves and production, giving investors good yield.

  • Strategic Location to the world's largest economies - Kazakhstan is the world's largest landlocked country, sharing a border with China, Russia, Kyrgyzstan, Turkmenistan, and Uzbekistan. Kazakhstan is also located right in the heart of Eurasia, The Silk Road extended throughout the whole of Kazakhstan. The major overland routes binding Asia and Pacific Region with Near East and the Middle East and Europe as well pass through Kazakhstan. 3 of 4 BRICS (Brazil, Russia, India, China, South Africa) countries are situated next to Kazakhstan: Russia, China, and India.

  • Political Stability - Domestic policy stability is some kind of “core value” of Kazakhstan on the global investment market.  This issue was the foremost and topical one on the leader’s agenda.
    The prime example of Kazakhstan’s domestic and foreign policy is Kazakhstan's OSCE chairmanship in 2010 associated with global community confidence in growth power of republican development trend. OSCE summit held in Astana in December 2010 is the largest forum in  Post-Soviet history. In 2011 Kazakhstan became the first country in Central Asia to host World Islamic Economic Forum. In February 2011, Kazakhstan was invited to hold a status of the member to  OECD Regional Program Steering Committee. Powerful confirmation for international recognition of political stability in Kazakhstan is the fact that in November 2012, the International Exhibitions Bureau decided to hold an international exhibition EXPO-2017 in Astana, the exhibition theme is "Future Energy". Scales of international events held in Kazakhstan and planned for the future indicate the strengthening of the country's image as a politically stable partner on the world map.

  • Investor Protection - Republic of Kazakhstan Law № 373-II, "On investments" provides a legal framework and various guarantees to minimize the risks that an investor may incur in making investments in Kazakhstan.

  • Eurasian Economic Union (EEU) - an international organization for regional economic integration between the states located primarily in northern Eurasia. The Member-States of the Eurasian Economic Union is the Republic of Armenia, the Republic of Belarus, the Republic of Kazakhstan and the Russian Federation. The EEU provides for free movement of goods, services, capital, and labor, pursues coordinated, harmonized and single policy in the sectors determined by the Treaty and international agreements within the Union. Eurasian Economic Union opens up for investors the market of up to 175.6 million consumers with the overall GDP of about $2,411.2 bln.

  • Industrial Development Programme - In 2010, the State Program of Accelerated Industrial-Innovative Development for 2010-2014 was adopted; its main objectives are to create new export-oriented high-tech manufacturing; infrastructure development; national innovative system strengthening; local personal development.

     

    Results:

    • The industrial output doubled – from $50,4 billion in 2009 to $98,5 billion in 2013. The same growth was accounted for the manufacturing industry in terms of industrial output – from $16.2 billion to $32.2 billion in the same years.

    • In terms of sectors of the manufacturing industry, the growth (in GVA) in the pharmaceutical branch by almost 2 times is observed between the years 2008-2013; by 1.7 times in mechanical engineering; by 1.5 times in the production of nonmetallic mineral products; by 1.3 times in the chemical branch and other sectors. 

    • The real growth of the gross value added in the materials sector and non-oil sector in 2009-2013 made 19.4% and 30.4% respectively.

    • The volume of innovative products and service increased by seven times up to $3.2 billion. Expenses of the enterprises on technological innovations also increased by the same number of times and amounted to $2.4 billion.

 

   

Aveneer Business & Investment Tour offers you an insider’s guide to doing business in Kazakhstan. Not only can we connect you with the appropriate specialists and partners in your industry, but we also offer turnkey services such as setting up your business in Kazakhstan, local nominee director services, assisting with operations, project management services and more.

For more information please contact us at info@aveneer.kz