ASTANA – Kazakh Invest national company published an article on Sept. 8, presenting Kazakhstan as an attractive destination for investors in the engineering industry, one of the major drivers of economic growth.
Photo credit: eurasianet.org.
Progress
In recent years, Kazakhstan has boosted its engineering sector by fostering strategic partnerships with global giants such as Wabtec, Alstom, and Hyundai Motor Company, which has led to the introduction of vehicles from Kia, Hyundai, Lada, Renault, and Chevrolet.
Import substitution
Engineering products account for over 40% of processed goods imports, demonstrating Kazakhstan’s heavy reliance on imports. Last year, imports of engineering goods cost the country $20 billion.
This dependence provides investors a favorable environment to establish local manufacturing units, considering the domestic demand for mechanical equipment, electrical components, and vehicles.
Reducing import dependency will not only strengthen Kazakhstan’s economic resilience but also encourage technological advancement and innovation.
Diverse opportunities
Kazakhstan’s automotive industry comprises the largest 39.4% of the production volume of its engineering sector, which also focuses on electrical and railway engineering. The country’s export volumes doubled last year, reaching $3.8 billion.
The oil and gas engineering sector, supported by large-scale projects such as Tengiz, Kashagan, and Karachaganak, provides investors with opportunities to localize equipment and spare parts production.
In this regard, Kazakh Invest referred to the intention of the International Center for the Development of Oil and Gas Engineering, backed by Chevron and ExxonMobil global energy leaders, “to bolster local content and empower domestic producers.”
State support
Recognizing the importance of foreign investment, Kazakhstan has implemented various support measures to attract investors into the engineering sector.
The government offers favorable conditions for developing new industries, encouraging foreign companies to explore the country’s opportunities.
With a mission to promote Kazakhstan’s sustainable socio-economic development by attracting foreign investment, Kazakh Invest is ready to provide unwavering support to stakeholders in the engineering sector, poised for remarkable growth.
