Business in Kazakhstan
Gateway to ~600 million consumers
Occupying a vast landmass in Eurasia and boasting large oil and mineral reserves, Kazakhstan holds an important geostrategic position. The country is the gateway to 600 million consumers. Kazakhstan is the first and key country of the Silk Road Economic Belt, a geo-economic gateway of China to the West, accounting for 83% of transit traffic passing between China and Europe as well as in other directions.
Favorable investment climate
Kazakhstan is actively working to improve the investment environment in the region, with a variety of comprehensive initiatives being implemented. The country remains the second-largest recipient of FDI in the region and the largest in Central Asia. According to UNCTAD's World Investment Report 2021, FDI inflows into the country totaled USD 3.9 billion in 2020, a 35% increase from 2021 (USD 2.9 billion), despite the global health and economic crisis caused by the Covid-19 pandemic.To incorporate various investment activities, the country has established an innovative legal framework. The investor registration process has been improved, with changes in the tax regime, as well as a multi-layered infrastructure for investor support.
Gateway to ~600 million consumers
Kazakhstan has the highest internet penetration rate of 83% and an extensive 4G network in the region.
The country has a favorable geographical location in the heart of Eurasia. The capital of the country hosts 126 and Almaty hosts 55 international flights to the global financial centers, such as Frankfurt, London, Dubai, Hong Kong, and Seoul.
Kazakhstan accounts for 83% of transit traffic passing between China and Europe as well as in other directions. Kazakhstan’s land transportation system enables transits from the southeastern provinces of China to Europe in a maximum of 15 days (3 times faster than sea transits).
Western Europe - Western China Transcontinental Auto Expressway allows products to be shipped between China and Europe in just 10 days.
The seaport of Aktau (Kazakhstan) is located on the eastern coast of the Caspian Sea at the intersection of several international transport corridors, allowing for the transportation of dry cargo, crude oil, and petroleum products from east to west, from north to south and back to Iran, Turkey, Russia, Azerbaijan, Turkmenistan.
Financial center for Central Asia
Kazakhstan is actively working to improve the investment environment in the region, with a variety of comprehensive initiatives being implemented. One of the initiatives was the launch of Astana International Financial Centre which positioned itself as a global center for business and finance, connecting the economies of Central Asia, the Caucasus, EAEU, West China, Mongolia, the Middle East, and Europe. Following its strategic objective to assist Kazakhstan in attracting investment and in creating a welcoming and friendly investment environment, AIFC welcomes companies and individuals and offers additional development and growth opportunities to both large financial, industrial, and trade corporations and newcomers to the market. It also offers attractive terms to midcap companies from countries in the region.
A common law jurisdiction, a predictable and non-discriminatory regulatory environment, a friendly tax regime, relatively small service fees, and operational incentives help reduce expenses and make the cost of doing business in the AIFC attractive to clients and increase the financial center’s competitiveness.
