Recently, Kazakhstan has shown a high investment potential and there are several reasons for that:
Strategic location of state
The Great Silk Road once had passed through the territory of Kazakhstan, because Kazakhstan is located in the heart of the Eurasian continent, thereby acting as a "land bridge". Three states from the "four" BRICS countries are located near Kazakhstan: Russia, China and India.
Kazakhstan is a new strategic location at the crossroads of Europe and Asia. This also means a preferential access to the regional market of more than 500 million consumers and an access to the common market of Eurasian Economic Union of more than 180 million consumers, as well as time-efficient cargo transportation. For instance, route of Europe-China-St. Petersburg takes a 10 days period; a route to Hamburg takes a 16 days period; and a route to London takes a 18 days’ period.
Kazakhstan plays a key role in “The belt and road” initiative implementation meaning that more than 3,000 out of 10,000 km in total has passed through the territory of Kazakhstan, making it an important section of the main land corridor and significantly optimizes the transportation in terms of time and cost.
The seaports of Aktau and Kuryk, the Republic of Kazakhstan have in place infrastructure that is similar to the one of seaports in the other countries: Batumi (Georgia) and logistics Lianyungang (China).
A transcontinental highway on the route "Western Europe - Western China" will enable cargo transportation between China and Europe over a 10 day’s period.
Favorable investment climate
In Kazakhstan, a great attention is paid to all aspects of a favorable business climate for the investors such as alleviated administrative barriers and simplified procedures, improved customs and tax administration.
Favorable tax regime
The general rate of taxes and social charges. Kazakhstan ranks 5th in terms of tax policy in the IMD rating.
The simplified business start-up procedures:
There are the following state support measures:
13 special economic zones (0 per cent corporate income tax, land tax, customs duties and VAT on imports of goods into special economic zones, property tax);
24 industrial zones (availability of ready for use infrastructure, long-term land lease agreements and loan repayment schedules based on the value of land, the absence of industry restrictions, the possibility of concluding an investment contract).
A new tool for large investment projects is the investment agreement
- Reduction of tax liabilities up to 20%
- Stability of legislation (up to 25 years)
- Reimbursement of up to 20% of the cost of construction and installation works and purchase of equipment
Provision of additional preferences provided for by the Legislation of the Republic of Kazakhstan in agreement with the Government
Investor rights protection
Attraction and effective use of foreign investment is one of the main areas of mutually beneficial trade and economic cooperation of the Republic of Kazakhstan with other countries.
To date, the following industries have become priorities for the Kazakhstan’s development:
Kazakhstan is the ninth territory country in the world. More than half of the land or over 210 million hectares acts as agricultural land. The agriculture and food processing are among the most important sectors of the economy, accounting for more than 7% of the country's GVA.
The sector has advantages of natural compliance with global environmental and food safety requirements taking the first rank in the world in terms of the lowest levels of chemicals used in the crop production (just 0.1 tonnes per hectare of cultivated area).
The country has also secured the status of a grain power, annually supplying 5-8 million tons of grain to the markets of more than 70 countries, and in the flour export over the past few years Kazakhstan has taken a leading position in the world, annually exporting up to 2.5 million tonnes.
The key factors of investment attractiveness of agro-industrial complex: land resources, human capital. About 20 per cent of the active population is employed in agriculture. The 50 per cent of the population lives in rural areas and is ready to work in the agricultural and agro-industrial complex.
The livestock industry is divided into 8 main groups. The products of animal husbandry include meat, milk, eggs, etc. products obtained as a result of the economic use of livestock and poultry. About 56% of enterprises in agriculture, forestry, and fisheries are concentrated in Turkestan (25%), Almaty (17%) and Akmola (14%) regions. Due to the wide pasture lands, pasture cattle breeding is developed on the territory of Kazakhstan: sheep and goats, cattle, horses, pigs and camels graze on pastures.
Import dependence has been recorded in the production of meat and other meat offal, salted, in brine, dried or smoked, as well as fat from cattle, sheep, goats, and pigs. Moderate deficit and import dependence are noted in the production of finished or canned products and sausages and similar meat products. There is a small import dependence in the production of meat, poultry meat and food by-products.
The export potential of the livestock industry in the EAEU countries and China: meat and dairy products: beef about 480 thousand tons of beef meat per year, lamb - 100 thousand tons of lamb meat per year, pork - 86 thousand tons per year, chicken egg - 300 million pieces per year.
The plant growing industry includes 2 main segments: the cultivation of seasonal and perennial crops (wheat, barley, oats, corn, sunflower, rapeseed, soybeans, flax, rice, cucumbers, tomatoes, apples, cherries, pears and berries, as well as fertilizers for soil application).
The most promising areas also include the production of vegetable oil. The key factors of attractiveness are an access to the raw materials; the sown area for oilseeds (has reached about 3 million hectares). In addition, it is planned to increase the land for growing the oilseeds up to 5 million hectares by 2030.
It is planned to increase the land for growing the oilseeds up to 4.95 million hectares in 2030. The “Northern Soybean” program has been implemented, within the framework of which it is planned to increase the sown area of the soybeans up to 1.5 million hectares within 5 years, and to increase the gross harvest of the soybean seeds up to more than 3 million tons.
Today Kazakhstan exports more than 1 million tons of oil seeds, the main importers are Uzbekistan, China, and Belgium.
The export of the processed products has exceeded the level of 300 thousand tons. This includes the vegetable oils, sunflower, rapeseed, soybean, and flaxseed oils. It is to note that for all these items, China is one of the main importers. Also, an important export product of the oilseed processing is meal and cake which are exported to the neighboring markets such as Russia and Uzbekistan.
Light industry. The development of light industry in Kazakhstan is one of the priority areas.
The light industry is a complex industry that includes more than 20 sub-sectors, which can be grouped into three main groups.
According to the analytical data of Global Research & Data Services, there is a stable demand for textile industry products (clothing) in Kazakhstan. Half of the volume of initial processing products (cotton fiber) is exported, which indicates insufficient processing of its own raw materials. With a sufficiently rich raw material base, the country is highly import-dependent in relation to products with higher added value. According to analytical studies, the global demand for light industry products is increasing by 2.2% annually, while the Kazakh garment industry provides domestic demand by only 7%.
The structure of the textile industry in Kazakhstan consists of cotton, fabrics, textiles, materials, felt and shoes.
The chemical industry is one of the most capital-intensive industries, it can be conditionally divided into several sectors: agrochemistry, petroleum chemistry, basic chemistry and consumer chemistry.
In the structure of chemical industry production of Kazakhstan 64% accounts for basic chemistry that is production of inorganic acids, alkalis and their salts, explosives, as well as varnishes and paints; 21% accounts for agricultural chemistry (mineral fertilizers and pesticides); and 10% accounts for petrochemicals industry represented by one large enterprise in the total chemical industry production. The household chemistry is represented by enterprises producing detergents and cleaning products and it accounts for 5%.
Kazakhstan has significant potential for the production of mineral fertilizers, the main component of which is ammonia. The Republic of Kazakhstan is import dependent on ammonia, the annual import of which amounted to 20-30 thousand tons. The imported ammonia is used by agricultural enterprises as nitrogen fertilizer.
There is potential for the production of chemical products with widespread use in the petrochemical industry, including the production of caustic soda, hydrochloric acid, hypochlorite, calcium and coagulants. Kazakhstan possesses a raw material base for establishing the production of base oils, as well as components for the production of base oils. The base oils are a major component in the production of lubricants, which are widely used in the industry, transportation and a number of other sectors.
There is no production of base oils in the Republic of Kazakhstan. The production of lubricants is carried out mainly using imported raw materials from Uzbekistan.
The production of non-metallic mineral products is a priority investment project. Over the past five years, the construction industry of the Republic of Kazakhstan has increased almost 2 times. According to Marketline's forecast, the industry is expected to grow at an average annual rate of 8.4% in 2021-2023. The increase in demand for real estate is provided by population growth. Also, state programs in the field of construction and state support measures contribute to the increase in demand for real estate.
Kazakhstan has rich raw materials reserves for the production of building materials. Extraction of other minerals or raw materials increased by 68%.
For gypsum, clay bricks, refractory products, the current capacities of domestic production are able to cover 60%-85% of domestic demand. Domestic production of ready-mixed concrete, cement and mortars fully satisfies consumption, respectively, there is an unrealized potential for further increasing production volumes for export purposes.Construction materials are produced by about 1,000 enterprises in almost all regions of the country. However, the majority of enterprises are located in Akmola region (35%), Almaty region (14%) and in Astana (10%), which is explained by the dynamics of real estate construction in Almaty and Astana.
Mining and metallurgical complex
Metallurgy is the backbone of the economy, the main share of metallurgy and mining in the gross domestic product of Kazakhstan is 14.4%. The share of the country's exports comes from the mining industry, which is about $ 7.8 billion. More than 273 thousand people are employed at the enterprises of mining and metallurgical complex. Kazakhstan is ranked 11th in the copper production and 12th in the reserves available. It is also ranked 2nd in the world in terms of uranium reserves and 1st in its processing. Our country ranked 21st in gold production and 15th in reserves. Kazakhstan also has deposits of rare earth metals such as rubidium, cesium, lithium, and beryllium. The index of physical volume of production of non-ferrous metal ore increased significantly by 12%. Also, the volume index of ferrous metallurgy has shown an increase from 98.3% to 101.3%. The growth in production was due to an increase in the volume of extraction of copper and lead - zinc ore, ferroalloys, steel and products from them.
One of the priority areas of the economy of the Republic of Kazakhstan is the machine-building industry, the volume of imports of products of which occupies a significant share in the country's market - about 40% of total imports.
The most promising areas are the production of electrical equipment, oil and gas equipment, the automotive industry, as well as other machines, equipment and machine tools
The mechanical engineering industry has a significant potential for expanding production and increasing exports. Mastering the production of new products is possible on the basis of the existing production capacities of existing domestic enterprises specializing in the production of similar nomenclature.
Energy and RES (renewable energy sources)
The total installed capacity of Kazakhstan's power plants for 2021 is 23.6 GW, the available capacity is 19.1 GW.
Currently, Kazakhstan is actively implementing measures to regulate greenhouse gas emissions in order to achieve the goals of transition to a "green economy", within which the share of renewable energy sources by 2030 should be 10% of total electricity production, in 2050 - 50%, taking into account alternative energy.
The total renewable energy potential in Kazakhstan is very significant and is estimated at more than 1 trillion kWh per year. The most promising for development in Kazakhstan are: wind power , hydropower, solar energy, thermal potential of geothermal waters.
By the end of 2021, it is projected that renewable energy facilities will generate about 4 billion. kWh, which will make up 3.5% of the total electricity production in the country.
Also, at present, the development of hydrogen energy is considered as one of the key and most promising areas of transition to a low-carbon economy and decarbonization of the fuel and energy complex.
The hydrogen strategy of Kazakhstan can be initially focused on the production and consumption of predominantly "green" hydrogen, which makes the country's hydrogen strategy closely intertwined with the strategies for the development of solar and wind power generation, as well as with the strategy for the development and use of water resources.
Healthcare and Pharmaceuticals
The healthcare and pharmaceutical industries have a huge potential for further development. The availability of state support against the background of growing demand for medicines, the introduction of new standards and laws that contribute to the modernization of industries are key prerequisites for increasing the growth of production capacities of Kazakhstani enterprises, which will reduce import dependence, as well as increase exports.
About 91% of pharmaceutical production is concentrated in Shymkent (84%) and Almaty region (7%). Pharmaceutical products are produced by 85 enterprises in the country: 49 manufacturers of medicines, 27 manufacturers of medical devices, 9 manufacturers of medical equipment.
Attractive niches for investment in the healthcare and pharmaceutical industries are: vitamins, antibiotics, syringes, drugs and various medicines, cotton, gauze, bandages, human vaccines, medical devices and accessories. To date, there are 96 pharmaceutical enterprises: 33 for medicines, 41 for medical devices, 22 for medical equipment.
Geology and subsoil use
The mineral resource base of Kazakhstan is formed by deposits of the fuel and energy complex (hydrocarbons, coal, uranium), ferrous, non-ferrous, precious and rare metals, non-metallic minerals, as well as groundwater. State accounting is conducted for 113 types of minerals.
Despite the large number of deposits currently being developed, according to experts, the subsoil of Kazakhstan still has a sufficiently large potential for new discoveries.
In terms of solid minerals, a third of the area of Kostanay region, a large area between Central and Eastern Kazakhstan, and the south of Kazakhstan adjacent to Kyrgyzstan have great prospects for gold deposits.
On behalf of the Head of State, the State Program of Geological Exploration of the Republic of Kazakhstan for 2021-2025 has been developed and will be approved in the near future. The main goal of the State Program is to increase the geological knowledge of the territory of the Republic of Kazakhstan to ensure the stable development of geological exploration and replenishment of the mineral resource base.
The State Program provides for the study of "deep horizons" within mining areas. The state program will be implemented at the expense of the state budget and private investments.
Investors are interested in previously studied objects. To do this, the state finances the early stages of geological exploration of the subsurface, which will increase the investment potential of the exposed sites with subsequent transfer to subsurface use.
Within the framework of the Digital Kazakhstan state program, a project is underway - the creation and implementation of the information system "National Data Bank of Mineral Resources of the Republic of Kazakhstan" (hereinafter - NBD).
The system will allow you to collect geological reports, mineral reserves balances, field passports, data on the study of the territory and other geological information in a single database. One of the tasks of the system is to implement the principle of a "single window" for investors and existing subsoil users by simplifying access to the processes of subsoil use. As a result of the introduction of the NBD information system, it is planned to automate services in subsurface use, such as issuing licenses to subsurface users, providing the necessary reporting, monitoring the fulfillment of obligations of subsurface users (online).
And most importantly, in 2018, the new Code of the Republic of Kazakhstan "On Subsoil and Subsoil Use" came into force, which fully complies with the best world practice - the Western Australian model. The new Code opens up significant opportunities in geological exploration. The new legislation is aimed at attracting investors, including junior enterprises, which, as world practice shows, open more than 60% of new deposits.
New technologies (digitalization and IT)
64 enterprises produce electronic equipment and equipment in the country. About 20 companies (about 31%) are engaged in the production of communication equipment, 9 companies produce computer equipment.
The electronic industry has a huge potential for further development. State support and the growing demand for electronic goods are key prerequisites for increasing the growth of production capacities of Kazakhstani enterprises, which will reduce import dependence, as well as increase exports. The latter is facilitated by the territorial proximity of the markets of the Russian Federation and Central Asia.
Priority projects in the field of new technologies are such investment, investment priority and special investment projects as: electronic elements and boards, computers and peripheral equipment, communication equipment, electronic household appliances, instruments and devices for measurement and testing, electro-medical equipment, optical devices, magnetic and optical media.
Export potential is possible to countries such as Russia, Uzbekistan, Kyrgyzstan, Tajikistan and other countries. Geographical proximity and the use of the advantages of the EAEU create prerequisites for Kazakhstan to take a share in the structure of imports in the industry of new technologies.
Kazakhstan has occupying a favorable geopolitical position, possessing significant natural and recreational resources and objects of the world cultural and historical heritage (in the list of World Cultural Heritage by UNESCO were included 11 projects), as well as a unique natural diversity, has had the potential to develop new tourism products and all the basic prerequisites to become a major player on the world tourism map.
The 2019-2025 State tourism industry development program of the Republic of Kazakhstan had been approved to increase tourist traffic in the Republic of Kazakhstan, as well as to create favorable conditions for building capacity of the sector through lowered barriers and strategic planning.
The purpose of this program is to ensure the tourism proportion in the total GDP of the Republic of Kazakhstan for at least 8% by 2025.
According to the UNWTO forecasts, the ecotourism will grow at a rapid pace over the next two decades, and the global ecotourism spending will grow at a faster rate than the tourism industry as a whole.
In Kazakhstan, there are now more than 100 well-known tourist sites, so-called "tourist magnet" and "tourist growth points". In this connection, in order to make investments in the development of all these objects, the work on selecting the most significant tourist sites into the so-called Touristification map of Kazakhstan has been carried out.
The Astana International Financial Centre (AIFC) is an independent jurisdiction that began work in 2018. A unique platform for the region with a special legal status, which gives its participants special privileges. In accordance with the Development Strategy until 2025, the key task of the AIFC is to consolidate as a universal platform linking the countries of the EAEU, Central Asia and the Caucasus.
The development of the AIFC is carried out in the following strategic directions:
1) capital market;
2) asset and cash management;
3) insurance, secondary insurance;
4) banking services;
5) financial technologies;
6) green finance;
7) Islamic finance.
The Centre creates new opportunities:
- for investors (securities of public and private issuers from Kazakhstan and other countries of the region are offered, as well as business projects of various scales: from large ones, the level of the Belt and Road initiative, to small IT startups);
- for business (access to investors, including large international and regional financial institutions, as well as asset managers and representatives of the Islamic finance segment).
General advantages of AIFC:
AIFC jurisdiction (AIFC Court, IAC)
A reliable regulatory framework of the AIFC has been provided, which entered into force on January 1, 2018. Today it includes more than 80 acts of general application and financial regulation based on common law.
For the first time in Central Asia, the AIFC Court represents a judicial system based on the norms and principles of the law of England and Wales. It operates in accordance with the best international standards for the resolution of civil and commercial disputes in the AIFC and beyond. The AIFC Court has exclusive jurisdiction over disputes arising in connection with the activities of the AIFC, as well as in respect of disputes referred to its competence by agreement of the parties. The AIFC Court is independent in its activities and is not part of the judicial system of the Republic of Kazakhstan.
The International Arbitration Centre (IAC) provides an independent, cost-effective and operational alternative to litigation, providing arbitration, mediation and other alternative dispute resolution methods, and acting in accordance with the best international standards for resolving civil and commercial disputes in the AIFC.
The IAC has its own team of outstanding international arbitrators and mediators who have extensive experience, are independent, impartial and adhere to the principles of honesty.
Astana Financial Services Authority (AFSA)
Since the beginning of its activity, the AIFC regulator, Astana Financial Services Authority (AFSA), has been aimed at creating a regulatory regime that inspires confidence among foreign and domestic investors and business representatives. During the first 5 years of its activity, the Authority has registered more than 1,600 companies from 67 countries of the world. Indicative is the complete transition of company registration to an online format, as well as the reduction of the registration period of companies from 7 days to 1 day.
AFSA follows the best international standards of regulation and supervision promoted by the Basel Committee on Banking Supervision, the International Association of Insurance Supervisors, the International Organization of Securities Commissions, the Financial Action Task Force on Money Laundering, the Organisation for Economic Co-operation and Development.
AFSA, with the support of the National Bank and the Agency of the Republic of Kazakhstan for Regulation and Development of Financial Market, signed the Rules of Currency Regulation in November 2021, ensuring a favorable regulatory regime for the participants of the centre. The signing of these Rules summed up the result of lengthy negotiations and agreements reached by these agencies in the field of harmonisation of existing financial systems, the development of a List of financial services that AIFC participants will be able to provide to residents of Kazakhstan, including in the banking and insurance sectors, as well as in the securities market, as well as conditions and procedures for conducting foreign currency transactions in the territory AIFC.
Together with the National Bank of the Republic of Kazakhstan, the Ministry of Digital Development, Innovation and Aerospace Industry of the Republic of Kazakhstan, the Financial Monitoring Agency of the Republic of Kazakhstan, the Association of Financiers of the Republic of Kazakhstan, as well as AFSA, a Pilot project was launched on the interaction of the AIFC crypto exchanges and Kazakhstan's second-tier banks. Based on the results of the project, the need to amend the national legislation and the acts of the AIFC will be determined.
Astana International Exchange (AIX)
Astana International Exchange (AIX) provides ample opportunities for the global investment community. AIX was founded in 2017 as part of the development of the Astana International Financial Centre. AIX's mission is to develop an active capital market in Kazakhstan and the Central Asian region by providing clear and favorable conditions for attracting local and foreign investors, as well as creating a platform for financing the growth of private business and the economy.
The exchange provides a reliable and secure trading infrastructure with access to investments thanks to a developed ecosystem, which includes more than 20 local and international trading members.
AIX shareholders are AIFC Authority JSC, Goldman Sachs, Shanghai Stock Exchange, Silk Road Fund and NASDAQ Exchange, which provides AIX trading platform.
As part of the active attraction of retail investors to the stock market, the Astana International Exchange has carried out work to launch an updated TABYS 2.0 mobile application, where any citizen can invest in global and local stock markets, as well as participate in local IPOs.
Green Finance (GFC)
To facilitate the transition to a green economy and sustainable growth, the AIFC has carried out significant work on the development of green finance on its site. The AIFC Green Finance Centre is an AIFC organisation established on June 1, 2018 to develop and promote green finance in Kazakhstan and the Central Asia region. The Centre provides first aid to potential issuers, investors and market players on the matter of preparing for the issue of green bonds on the Astana International Exchange.
According to the proposals of the AIFC Green Finance Centre, amendments to the Environmental Code of the Republic of Kazakhstan and related amendments to the Entrepreneurial Code of the Republic of Kazakhstan were worked out and adopted, where definitions of “green projects”, “green taxonomy” and “green financing instruments” were given, as well as measures were taken to economically stimulate business in using green instruments.
To date, the GFC, created specifically to support issuers, investors and market players, has done significant comprehensive work on the development of the green and sustainable financing market in Kazakhstan.
Islamic Finance in the AIFC (AIFC Islamic Finance & Business Hub)
One of the strategic directions of the AIFC development is Islamic finance, taking into account the importance of its development, the necessary conditions have been created for the work of Islamic financial institutions in both the retail and corporate sectors. The AIFC Islamic Finance and Business Hub, with the support of the Asian Development Bank (ADB) and the Islamic Development Bank (IDB), has created a legislative framework for Islamic finance and a roadmap (Master Plan) for the development of Islamic finance in Kazakhstan and the AIFC until 2025.
To attract companies to the AIFC site, the minimum requirements for authorised capital for Islamic financial institutions have been reduced until November 2023. The AIFC provides exemption from corporate tax and VAT for licensed activities, including those related to Islamic banking, finance and insurance. Moreover, the recently adopted Rules of Currency Regulation and Provision of Information on currency Transactions in the AIFC allow Islamic banks, takaful companies and companies managing an investment account with limited profit participation on the basis of an Islamic financial contract to provide financial services to residents of Kazakhstan (individuals and corporate) in any currency.
The AIFC Islamic Finance and Business Hub is actively working to create an ecosystem of Islamic finance in the AIFC and in Kazakhstan. The created legislative framework allows opening Islamic banks (including Islamic windows of traditional banks), Islamic financial companies, asset management companies, Islamic broker-dealer companies, Islamic insurance companies (takaful and retakaful) in the AIFC.
AIFC Tech Hub – the tasks of the division include promoting the development of the startup ecosystem, the venture industry market, e-commerce, corporate innovations and new technological trends in Kazakhstan (FinTech, GovTech, Satellites, Industry 4.0, etc.). Together with international partners, Tech Hub conducts support programs for market players, promotes the structuring of venture transactions and testing of new fintech solutions within the regulatory sandbox of the AIFC jurisdiction
The Affiliated Centre of the Fourth Industrial Revolution of the World Economic Forum operates on the AIFC platform. The resources of the Affiliated Centre make it possible to form and improve the policies and principles of regulation of big data, the Internet of Things, artificial intelligence and machine learning, blockchain, etc.
At the moment, more than 200 technological, ICT and fintech companies of the world have already registered in the jurisdiction of the AIFC, and work is also continuing to attract market participants to the AIFC platform in the development of technology in the field of artificial intelligence, blockchain and big data, as well as information security from different countries.
Tech Hub is working on the development of venture capital through the Venture Rocket Eurasia platform, on which more than 100 startups have already been registered.
BCPD (Bureau for Continuing Professional Development (BCPD Ltd.)
The Bureau for Continuing Professional Development (BCPD Ltd.) operates on the basis of the AIFC, which aims to develop human capital and create conditions for lifelong learning.
The main mission of BCPD is to contribute to the sustainable, inclusive and sustainable economic development of Kazakhstan and the Central Asian region by developing opportunities and shaping the thinking of current and future leaders.
During the work of BCPD, more than 8 000 specialists have been trained in international certification programs. Many were able to get a high-paying job in large companies and/or career advancement within six months after being awarded the status of a certified professional. The AIFC personnel reserve has been formed from among professionals in the field of financial and investment management, audit, AML, project management, human resource management, etc.
The following projects operate on the basis of BCPD.
Alpharabius Academy is a school of future leaders created by BCPD in cooperation with the Republican Physics and Mathematics School of Astana. Alpharabius Academy strives to educate the leaders of the future, who, in addition to a strong school physics and mathematics base, will have developed programming, finance, law skills, as well as flexible skills.
In 2020, the BCPD team launched the QWANT programming school. Now QWANT is a successful player in the open market, on the basis of which specialists for the digital economy are trained. In 2021, the QWANT programming school entered the TOP 100 most innovative companies in the HolonIQ international rating out of more than 2,000 startups in the region.
In 2021, the BCPD was joined by the Academy of Law, an educational project of the AIFC, which is a provider of unique legal educational services based on the high standards of applicable English common law and the jurisdiction of the AIFC. The Academy of Law provides a full list of courses and certifications within the current jurisdiction based on English law, provides pro-bono consultations for participants and conducts internships for young professionals.
At the beginning of 2021, a course for digitalisation was taken. The LMS platform, the University of the Future marketplace, has been launched to train professionals with competencies in finance, law and developed flexible skills. The project implements three important areas: preparation for international certification programs, short-term business trainings and corporate business trainings.
BCPD also implements its own HR-tech solution A-PRO with a built-in machine learning module to maximize the comparison of market expectations with the profiles of the talent pool in order to employ and professionalize the market. The A-PRO platform allows you to manage candidate databases, conduct digital recruiting, create a career trajectory for employees, implement digital internships, run an HR blog and create events. The A-PRO project is aimed at the development of human capital in companies in Kazakhstan, as well as the provision of corporate services in terms of recruitment, outstaffing, outsourcing of operational processes, HR and IT services and the selection of a project integrated team.
AIFC Expat Centre
The AIFC Expat Centre is a unique platform for providing a wide range of public and social services for foreign experts and investors, on the principle of “one window” in English. In particular, the necessary state services for the entry, stay and comfortable localization of foreign experts, investors and their family members on the territory of the Republic of Kazakhstan, as well as consulting support services.
The Centre takes an active part in the working groups of government agencies on the optimisation of visa and migration procedures and their digitalization.
Continuing the digitalization of public services, digital solutions were introduced within the framework of the AIFC Expat Centre, thanks to which a number of certain services are available online.
Based on the principle of “client-centricity” and the high quality of services provided, the AIFC Expat Centre provides turnkey services for corporate clients to assist in attracting, hiring and localising foreign experts and investors.
The AIFC Expat Centre is focused on improving its infrastructure and plans to expand the range of services provided, as well as the introduction of new projects to increase the investment attractiveness of Astana city and the country as a whole.
A SEZ has been created inter alia to accelerate the region development to enhance the republic's economy entry into the world economy system as well as to create highly efficient, including high-tech and competitive industries; develop the production of new product types; attract the investments; improve the legal framework of market relations; introduce the modern methods of management and business practice; increase the tourism capacity of the region and develop a highly efficient, competitive tourism infrastructure capable of providing and satisfying the needs of the Kazakhstani and foreign tourists coming into the country as well as solve the social problems.
The Special Economic Zone (SEZ) is a part of the territory of the Republic of Kazakhstan with a special legal regime, with the required infrastructure for the operations in the priority activity types.
On the territory of the Republic of Kazakhstan, there are 13 SEZs with different economy sector orientation. They have been originating from the year of 2002. In total, 306 projects have been launched in the SEZ territories, with the creation of about 22,000 permanent jobs.
A wide range of benefits has been created for the SEZ participants in the form of government support to the business entities. In particular, the residents shall not be obliged to pay the corporate, land and property tax. There is a “0” VAT rate for the goods sold on the SEZ territory. The required infrastructure is supplied to the land plots. The land plots are provided free of charge for the entire period of the SEZ regime. The members are also exempt from paying the rent and land tax.
JSC “Kazakhstan Industry and Export Center “QazIndustry” is a coordinator of the special economic and industrial zones in Kazakhstan. The main tasks of QazIndustry represented by a Unified Coordination Center are the development, promotion and increase in investment attractiveness of the special economic and industrial zones.
An industrial zone is a territory furnished with engineering and communication infrastructure and that is provided to the private businesses for the placement and operation of the business facilities, including in the field of industry, agro-industrial complex, tourism industry, transport logistics, waste management, in the manner established by the laws of the Republic of Kazakhstan.
The industrial zone has been created for the purpose of infrastructure support or entrepreneurship development in the regions. They are created to attract the investment, promote the export, and create the import-substituting industries and new jobs.
The advantages of the enterprises’ participation in the industrial zones are as follows:
Up to date, there are 26 industrial zones in Kazakhstan.
Digital transformation involves the use of modern technologies to increase the productivity and value of an enterprise in the today's world.
The main benefits of digital transformation are cost reduction, improved service and product quality, and increased productivity.
One of the priority tasks of the “Kazakhstan Industry and Export Center “QazIndustry” is digital transformation of the manufacturing enterprises through the introduction of digital technologies into the business processes. To promote and implement the domestic digital solutions in the Kazakh industry “QazIndustry” with the assistance of the Ministry of Industry and Infrastructure Development of the Republic of Kazakhstan, the latter has developed a special platform for further interaction between the IT companies, research institutes, industrial enterprises and government agencies.
The creation of the domestic products register, as well as further interaction on the special platform, will significantly expand the possibilities for technological cooperation between the IT companies and industry and will encourage the creation of a high-quality and competitive product to meet the customer needs.
A special platform, in addition to the register of enterprises, will contain analytical information about current state of the industrial enterprises and their development projections, as well as information about IT companies and research institutes (including domestic products and scientific research).
Digital transformation platform.
An investment proposal is the tool through which you can acquaint a potential investor with your investment idea and investment project, and their development prospective.
The core and main goal of the investment proposal is to find and attract the investment funds or capital.
The success of an investment proposal in its clear presentation, in its brevity and reliability. It is also imperative that your investment proposal is compelling and meets all legal and regulatory requirements.
Attached is a PDF file of the invetment proposals.
National Company «KAZAKH INVEST» is the only negotiator on behalf of the Government of the Republic of Kazakhstan when discussing the prospects and conditions for investment projects implementation. There is a “one window” public service provision principle including the state support measures provision for the investors in the form of investment preferences, assistance in obtaining various permits required for the investment projects implementation and further operation. The work uses a specialized CRM system to monitor and control the progress of investment projects, this system allows the investors to refer their enquiries and initiatives, makes the processes transparent at all the investment stages. The further vision of the company is to become a leading agency for attracting foreign investment in the Central Asian region, the CIS countries and among a number of transition economy countries.
"KAZAKH INVEST" was founded in accordance with decree of the Government of the Republic of Kazakhstan to promote a sustainable socio-economic development of the Republic of Kazakhstan by attracting foreign investment into the economy priority sectors and providing comprehensive investment projects support.
With the Decree of the President of the Republic of Kazakhstan "On measures to further improve the public administration system of the Republic of Kazakhstan" dated December 26, 2018 No. 806, the rights to own and use a block of shares of NC Kazakh Invest JSC were transferred to the Ministry of Foreign Affairs of the Republic of Kazakhstan.
The company acts as a: