Kazakhstan is a prosperous, safe and rapidly developing country. With its future-oriented strategy to retain emphasis on acquiring greater standards and successfully implementing vastly creative potential in the present-day agile world, Kazakhstan remains one of the most stable and dynamically growing economies on the global market. Being part of the Eurasian Economic Union, Kazakhstan shall become the “financial gateway” of Eurasia and a hub for financial intermediation. It will also enhance the investment climate across the region.
Kazakhstan’s macroeconomic outlook shows steady but exceedingly ascending growth patterns, with its indicators undergoing a stable rise. The country’s GDP growth rate remains at a constant 4 % increase on average. A sectoral review of the 2016 results showed that the growth momentum was supported by the service sector 60.8 %, industry 34.4 % (oil, mining, coal, uranium, construction and machinery) and agriculture 4.8 %. Kazakhstan’s economy is now becoming less dependent on commodity sectors.
The gross inflow of FDI has been growing steadily since 2005, reaching USD 20.6 billion in 2016. One of the components of the FDI inflows are the earnings reinvested by non-residents, the total volume of which exceeded USD 4.9 billion in 2016. With the growth of incomes of joint Kazakhstan enterprises, foreign investors are focused at increasing the share of their income left in the country to finance the production activity of enterprises.
The Government of Kazakhstan reinforces investment projects by imposing strong incentives such as favourable tax regimes, simplified processes for foreign businesses, as well as greater access by local enterprises.
Kazakhstan ranks relatively high on the Global Competitiveness Index, showing significant results in 13 indicators (top 30) including government policymaking transparency and investor protection strength. Moreover, Kazakhstan is rated 18th in terms of favourable tax climate among the tax regimes of 189 economies. Great emphasis is placed upon encouraging knowledge and education, with an array of Government scholarship programs and subsidies. Kazakhstan is currently ranked 29th out of 130 economies in the level of Human Development.
Being the centerpiece of the land-based component of the New Silk Road, Kazakhstan can fully capitalise on the Belt and Road Initiative, which is oriented at enhancing trade and political relations between Europe and Asia. The initiative, deemed as the biggest project with the most regional collaboration and the largest infrastructure built-out in the history, can reshape the global trade. The AIFC, in particular, serves as a unique delivery unit for the Belt and Road Initiative infrastructure.