The VI Kazakhstan Global Investment Roundtable (KGIR-2023) witnessed the presence of the Prime Minister of Kazakhstan, Alikhan Smailov, who outlined the country's ambitious goal of attracting at least $150bn in foreign investment by 2029. This announcement comes as part of Kazakhstan's broader strategy to transition to a new economic model and double its economy's volume to $450bn within the same timeframe.
KGIR, an annual gathering of leaders from major industrial enterprises, financial sectors, politicians, and global experts, has become a crucial platform for fostering collaboration between Kazakhstan and the international investment community.
This year's agenda focused on various topics, including the adoption of innovative technologies, ensuring food security, advancing transport and logistics capabilities, and expanding export capacities. Notably, attendees from countries such as Great Britain, Vietnam, Germany, Canada, Qatar, China, the UAE, Saudi Arabia, the USA, Turkey, France, the Czech Republic, and several others were present at the event.
In his address, Prime Minister Smailov highlighted the nation's growing stature in the global investment landscape, noting that Kazakhstan accounted for 70% of foreign investment in Central Asia. Last year alone, foreign direct investment surged by 18% to $28bn, with an additional $14bn injected into the national economy within the first six months of this year.
Prime Minister Smailov remembered that in his recent address to the citizens of Kazakhstan, President Kasym-Zhomart Tokaev emphasized the necessity of transitioning to a new economic framework. Specifically, the government is undertaking an ambitious goal of doubling the economic output to $450bn by 2029.
Smailov emphasized the importance of investment as a key driver of economic growth and outlined the government's commitment to creating favorable conditions for investors. The National Investment Policy, aligned with ESG standards, aims to attract $150bn in foreign investment by 2029. To achieve this, the government is streamlining regulatory policies, abolishing excessive business requirements, and automating risk management systems.
The introduction of new Tax Code measures to develop the processing sector, and comprehensive support programs for small and medium-sized enterprises are among the initiatives to enhance the investment climate. Additionally, the government plans to increase the share of domestic industry in procurement, implement the "Tariff for Investment" program to modernize infrastructure and develop a national plan for project-specific infrastructure until 2029.
For oil and gas projects, a financial stimulation mechanism has been introduced, and agreements guaranteeing the stability of legislation for 25 years have been signed for projects exceeding $50mn. Currently, six such agreements totaling $1.5bn have already been signed, as announced by Alikhan Smailov. Furthermore, Smailov highlighted the introduction of investment obligations guaranteeing tax legislation stability for 10 years on investments over $500mn.
A national pool of over 1,000 projects worth more than $69bn has been formed for effective monitoring, while deep processing clusters and a digital investment platform aim to boost the investment ecosystem further. The Prime Minister also emphasized the facilitation of entry for international visitors, including visa-free access for citizens of 83 countries, electronic visas for residents of 109 states, and special investor visas.
Concluding his speech, Prime Minister Alikhan Smailov invited global investors to actively engage in Kazakhstan's economy, assuring continuous efforts to enhance the investment climate in line with international standards. Kazakhstan's commitment to transparency, regulatory efficiency, and infrastructure development positions it as a key player in attracting foreign investments in the coming years.
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