This yr, Kazakhstan is marking the thirtieth anniversary of its independence.
Since 1991, the nation has risen from relative obscurity and positioned itself firmly on the world stage, with a gradual financial system and – in accordance with the IMF – GDP predicted to climb additional over the following few years.
Fashionable-day Kazakhstan has little in widespread with its storybook previous, when nomadic peoples swept throughout the huge steppes and its financial system hinged on the traditional Silk Routes.
Now the financial powerhouse of Central Asia, accounting for greater than half of the area’s GDP, the ninth-largest nation on this planet has been reworked thanks partly to its massive mineral reserves and partly to a sequence of complete reforms, and its capital, Nur-Sultan, has change into a totally fashionable metropolis.
Sustained, diversified and dynamic progress all through the nation stays one of many core targets for the nation, which hopes to change into one of many 30 most developed nations on this planet by 2050.
Attracting worldwide funding
One of many former Soviet republics worst affected by the Union’s collapse, Kazakhstan set upon surprisingly daring and impressive reforms within the early Nineteen Nineties. These had been designed and carried out by the primary president Elbasy Nursultan Nazarbayev, to encourage European, American and Asian firms to put money into what on the time was a largely struggling financial system.
International firms had been initially drawn to Kazakhstan for its mineral assets, however many have since branched out into different industries. Over the 30 years of independence, the nation has attracted greater than $380 billion in international funding, which makes it the biggest per capita recipient among the many CIS nations.
The continuing repercussions of the COVID-19 pandemic have meant a dramatic world slowdown in transboundary funding flows – a lower of 35 per cent worldwide in 2020 – however Kazakhstan’s figures have since bounced again, because of a stimulus bundle of $4,1 billion in 2020.
Within the first half of 2021, international direct funding within the nation amounted to $11,1 billion, a 30 per cent improve on the identical interval in 2020.
“The federal government prioritises supporting traders,” mentioned Kazakhstan’s president Kassym-Jomart Tokayev in a latest assembly with leaders of worldwide funding firms. “We offered tailor-made and wide-ranging help to every investor.”
Along with the federal government’s anti-crisis measures, an vital position was performed by KAZAKH INVEST, a nationwide firm arrange by the federal government in 2017, with a view to attracting main worldwide companies to the nation. Its position is two-fold: to exhibit Kazakhstan’s potential throughout a variety of industries, and to help traders at each step of the journey.
Briefly, it operates as a single negotiator on behalf of the Kazakh authorities in discussing prospects and situations for the implementation of funding initiatives. The corporate additionally promotes sustainable socio-economic growth by attracting international funding in precedence sectors.
As a one-stop store for traders on the availability of public companies, KAZAKH INVEST screens and helps the progress of funding initiatives and serves as a hotline for traders, offering 24/7 service help.
The corporate’s remit is to supply operational assist, together with the immediate decision of any administrative points, resembling these coping with visas, migration, customs, advising on logistics and venture implementation procedures. It's at the moment offering help and sensible assist to 466 initiatives, which have thus far created greater than 87,000 jobs. In 2021, 45 funding initiatives involving worldwide collaboration have been commissioned. These have raised $3,5 billion and created round 4,800 jobs.
Multinationals participating in these initiatives embrace Italian investor ENI, one of many high worldwide traders in oil, fuel and renewable power within the nation; French firm Air Liquide, which has invested within the switch of know-how within the petrochemical trade; German traders Linde, who work within the sphere of technical gases, and lots of others.
Alternatives throughout a variety of sectors
One of many aims of KAZAKH INVEST is to showcase funding alternatives throughout a variety of industries. As an enormous nation with a wide range of terrains and a low inhabitants density, Kazakhstan has an immense variety of agricultural assets. Because of the nation’s strategic geographical location and an entry to the markets of China, Russia and the Center East, Kazakhstan has distinctive potential for agribusiness, together with manufacturing and processing of each livestock and greens.
Tied to this, the federal government is injecting funds – by way of loans and tax incentives – into mechanical engineering, principally for the manufacturing of agricultural equipment and tractors. Engineering for the auto trade and electrical tools has additionally been prioritised.
Kazakhstan’s petrochemical trade has gone from energy to energy lately, with the nation’s oil reserves thought-about the twelfth most vital on this planet. State help measures within the sector embrace state-regulated costs for industrial customers.
Different regional industries already acquainted to multinationals embrace mining and metallurgy (Kazakhstan ranks among the many high nations for manufacturing of copper, gold, uranium, chromium, zinc and tungsten); infrastructure – the Belt and Street initiative creates an overland commerce route between China and Europe, virtually halving transit occasions – and commerce.
State measures to simplify funding
Throughout the COVID-19 pandemic, a legislative framework has been developed to exempt micro and small companies from paying earnings tax for a interval of three years, as much as and together with 2023. A legislative framework has been developed to exempt micro and small companies from paying earnings tax for a interval of three years, as much as and together with 2023.
13 Particular Financial Zones have been created, providing beneficial taxation, and an ‘Funding Settlement’ has been launched to supply particular situations for strategic traders. The nation as an entire has seen modifications to the legislation to assist companies, enhancements in on-line companies and an overhaul of the allow system.
Worldwide consulting firms, together with the ‘Huge 4’ (PwC, Deloitte, EY and KPMG) have been drafted in to assist put together funding proposals, and the Astana Worldwide Monetary Centre (AIFC), which performs a serious position in attracting monetary funding, has English as its official language and supplies the court docket system primarily based on the rules of widespread legislation.
In an effort to promote these initiatives, Kazakh Make investments held 10 on-line and offline funding occasions in 2021 for potential traders from the US, Switzerland, Belgium, Luxembourg, Spain, South Korea, the Netherlands, Saudi Arabia and different nations. President Kassym-Jomart Tokayev, Deputy Prime Minister - Minister of International Affairs of Kazakhstan Mukhtar Tileuberdi, and others, chaired the occasions.
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