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Astana, Kazakhstan • 17 November, 2023 | 16:50
2 min read

Government Aims to Attract $150B in Foreign Investments by 2029

Prime Minister Alikhan Smailov underscored Kazakhstan’s significant role, constituting 70% of foreign investments in Central Asia

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On November 17, Prime Minister Alikhan Smailov announced the government's goal of attracting at least $150 billion in foreign investment by 2029 at the VI Kazakhstan Global Investment Roundtable in Astana, QazMonitor reports citing

During the forum attended by major foreign industrial enterprises and financial sector representatives from various countries, Prime Minister Smailov highlighted Kazakhstan's significant role, constituting 70% of foreign investments in Central Asia.

"Last year, the total volume of foreign direct investment increased by 18% to $28 billion. In the first six months of this year, the national economy attracted an additional $14 billion. The stability of the sovereign credit rating of the Republic is confirmed by international agencies such as Fitch, S&P, and Moody's," said Smailov.

He stressed that the government has set the ambitious task of doubling the national GDP to $450 billion by 2029.

Attracting investment is a key factor for growth. Within the framework of the National Investment Policy, taking into account ESG standards, Kazakhstan aims to attract at least $150 billion in foreign investment by 2029.

Alikhan Smailov, Prime Minister

In this context, the republic is implementing a new regulatory policy, streamlining business requirements with automated risk management systems to eliminate the human factor in inspections starting January 1, while the new Tax Code includes special measures for the development of the manufacturing sector.

According to Smailov, the government also to develop a new program supporting small and medium-sized enterprises, intending to increase the share of off-take contracts in procurement to 10%. In addition, the Tariff in Exchange for Investments program is being implemented to modernize engineering and communal systems, targeting ₸‎3 trillion of investment in the next six years.

To provide projects with quality infrastructure, a corresponding national plan until 2029 is being developed. In order to attract investment in complex oil and gas projects, a financial incentive mechanism under the Improved Model Contract has been introduced beginning this year. For investment projects in priority sectors worth over $50 million, there is an opportunity to conclude an investment agreement guaranteeing the stability of national legislation for 25 years. To date, six such agreements have been signed, amounting to $1.5 billion.

Alikhan Smailov, Prime Minister

Furthermore, Kazakhstan introduced a general Agreement on Investment Obligations, ensuring tax legislation stability for ten years for investments exceeding $500 million. A nationwide pool monitors and controls the realization of over 1000 projects worth over $69 billion.

The Prime Minister highlighted ongoing work on more than twenty major projects for deep processing clusters aimed at export and import substitution. Additionally, a National Digital Investment Platform is in progress to integrate all government agencies into a unified online system for attracting, implementing, and monitoring investment projects.

Smailov also highlighted Kazakhstan's visa policy, allowing citizens of 83 countries visa-free entry, with an addition of special investor visas. He also underscored the role of the Astana International Financial Center in providing unique services in the Central Asian region.

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