Speech by the Prime Minister of the Republic Kazakhstan by Alikhan Smailov at VI «Kazakhstan Global Investment Roundtable

17 ноября 2023 года

Dear forum participants! 

Ladies and gentlemen!

Welcome to the 6th Kazakhstan Global Investment Roundtable! 

This platform is a unique platform for fostering effective collaboration between Kazakhstan and the international business community. 

The topic of our event today is “Investing in Sustainable Regional Growth”. It is particularly relevant in the current modern context. 

Despite the ongoing global challenges, Kazakhstan’s economy is steadily growing. 

Over the past 10 months the country’s Gross Domestic Product (GDP) increased by 4.9%.

All the major industries experience a growth trend.

Investments in fixed capital have grown by 12.6%, reaching 13.3 trillion tenge. 

Looking at the regional level, 70% of foreign investments to Central Asia is concentrated in Kazakhstan.

Last year, the total FDI increased by 18%, reaching
28 billion dollars. 

In the first 6 months of the current year, around 14 billion dollars of foreign investments were attracted. 

The stability of the country’s sovereign credit rating is confirmed by international agencies such as Fitch, S&P, and Moody’s. 

In his recent Address to the People of Kazakhstan, President Kassym-Jomart Tokayev highlighted the necessity of transitioning to a new economic model. 

The government faces a significant task of doubling the economy’s size by 2029, aiming for 450 billion dollars.

Attracting investments stands as a fundamental factor in our economic growth. 

Within the National Investment Policy and considering ESG standards, Kazakhstan aims to attract no less than
150 billion dollars in foreign investments by 2029.

To achieve this goal, we continue to create favorable conditions for investors, including improving investment support tools. 

Developing the necessary legal framework is essential in this regard. 

• Namely, a new regulatory policy is being implemented in the field of entrepreneurship. 

This year alone, 9 thousand unnecessary business requirements have been removed from legislation, and another 1 thousand will be eliminated by the end of the year. 

• As a result of automating risk management systems, inspections will be conducted without human involvement from January 1. 

This will reduce the number of inspections by 50%.

• A new Tax Code includes special measures to foster manufacturing industries, aiming to exempt investors from taxes during the first 3 years. 
• A new comprehensive program to support small and medium-sized enterprises is being developed. 
• Off-take contracts share in the regulated procurement will increase up to 10%. This is made to develop the local industrial manufacturing. 
• A program called “Tariff for Investment Exchange” is implemented to modernize engineering and utility systems. 

Within this project, an investment of around 3 trillion tenge is expected in the next 6 years.

• The National infrastructure plan is under development to provide the projects with a high quality infrastrucure. 

• A mechanism for financial stimulation within the enhanced model contract was introduced in order to attract investments into complex oil and gas projects. 
• Investment projects worth 50 million US dollars and more in the priority sectors have a right for Investment agreement. This kind of agreement guarantees stability of the Kazakh legal framework within 25 years.

Currently, 6 investment agreements with 1.5 billion dollars total investments were signed. 

• An agreement on investment obligations was introduced to ensure tax legislation stability for 10 years for investments exceeding 500 million dollars. 
• For effective project monitoring and control, a National pool of investment projects was created. 

It includes around 1000 projects worth over 69 billion dollars.

• To develop clusters for deep processing aimed at export and import substitution, work is underway to implement more than 20 major projects. 
• A National digital investment platform will be created to integrate all state entities involved in attracting and implementing investment projects into a single online system. 
• Agreements on investment encouragement and mutual protection have been signed with 53 countries.
• Presently, citizens of 83 countries can enter Kazakhstan without visas, and electronic visas are available for residents of 109 countries. 

Furthermore, special investor visas are provided.

• International Financial Center “Astana” is a unique business platform providing unprecedented services in the region. 

The center features an English-style judicial system, tax holidays, adapted employment contracts, operations in any currency, as well as mechanisms for “green” and Islamic financing.

• Active discussions with investors are held at the Foreign Investors’ Council under the President. 
• To address investors’ current issues, the Investment Office under the Government is operational. 

Additionally, in my capacity as an investment ombudsman, I perform functions that safeguard the rights and legitimate interests of investors. 

All these measures are aimed at unlocking the country’s investment potential and achieving tangible results. 

Kazakhstan will make every effort to further enhance the investment climate in line with global standards.

We will also regularly introduce additional support measures in line with investors’ requests. 

We invite you to take advantage of these opportunities and actively invest in the economy of Kazakhstan.

Dear ladies and gentlemen!

At today’s forum, more than 20 commercial agreements will be signed in various sectors of the economy, totaling over 1.6 billion dollars. 

We believe that these documents are a clear sign of mutually beneficial cooperation and one of the indications of investors’ interest in Kazakhstan. 

In this regard, the Government of Kazakhstan is ready to deepen investment ties and jointly explore new markets. 

In conclusion I would like to note that today’s forum will further enhance cooperation and unveil new opportunities and prospects. 

I wish everyone good luck, success and fruitful negotiations! 

Thank you for your attention.