ASTANA – Kazakhstan provides attractive investment opportunities with a rapidly expanding business and industrial sector, said President Kassym-Jomart Tokayev at the Altyn Sapa (Golden Quality) and Paryz (Duty) award ceremony on Dec. 12 in Astana, as reported by the Akorda press service.
Altyn Sapa and Paryz are annual awards recognizing entrepreneurs who have significantly contributed to the country.
According to the President, the business sphere is developing dynamically. “The share of small and medium-sized businesses has exceeded 36% of the gross domestic product (GDP). This is indeed a high indicator. The number of people working in this sector has reached 4.3 million, accounting for 45% of the country’s labor force,” he said.
Kazakhstan also presents a compelling investment opportunity, as the country’s industrial sector has grown in recent years, with manufacturing exports showing a “record figure” of $26 billion last year.
“Last year, this industry attracted 1.5 trillion tenge ($3 billion) of investments. Optimal conditions have been created for the development of processing enterprises. As a result, the taxes paid to the national budget have increased fivefold, making business representatives reliable partners of the state,” said Tokayev.
Attracting investment is a top priority for the state, aiming to double the size of the national economy to $450 billion by 2029. For these purposes, Kazakhstan intends to provide favorable conditions for investment, adhering to the principle of “zero bureaucracy – maximum concrete actions.”
“Last week, I signed a decree on measures to improve the efficiency of the investment attraction. The Investment Headquarters will now focus on the timely and unimpeded implementation of projects. The headquarters has been authorized to develop normative legal acts with legislative power,” Tokayev added.
Additionally, investors in the manufacturing sector will receive a three-year tax exemption starting next year.
The prosecuting authorities will not act as regulatory policymakers but as catalysts for boosting investment.
“A system of support for investment projects based on the ‘green corridor’ principle will be introduced. This will streamline the process for investors to obtain authorization documents, simplify land allocation, and the connection of utilities,” Tokayev said.
Over 6,000 permanent jobs have been created this year through the implementation of 91 investment projects worth 376 billion tenge ($819 million).
“Global and regional industrial giants are coming to Kazakhstan. For example, construction has recently begun on a full-cycle plant for producing Kia cars in Kostanai, with plans to produce other automobile brands as well. We have set ourselves a concrete task of real industrialization and formation of a new industrial framework of the country,” said Tokayev.
Developing a digital platform to track the real-time execution of investment projects is one of the ideas to enhance investment flow and transparency.
IT is another sector offering ample opportunities in Kazakhstan. The government aims to increase the volume of domestic IT industry exports to $1 billion by 2026.
“Our country should establish itself as a center of attraction for global digital technologies. Kazakhstan can and should become a prime location for the offices of major international IT companies,” said the President.
Support for domestic businesses
The government aims to help domestic companies grow and expand beyond the country’s borders to capture bigger markets.
“The government is opening up opportunities for developing all types of business,” said Tokayev. “Neither large projects nor small businesses will be left out. Every citizen should be able to earn due to their abilities and honest labor. Therefore, we always support enterprising and business-minded citizens.”
The government and the business community have worked to identify redundant regulations that hinder the development of entrepreneurship.
“It turned out that over 10,000 norms do not meet the basic conditions of the new regulatory policy. As of today, 90% of these have been eliminated. The remaining ones will be removed by the end of the year,” said the President. He also noted that this policy of easing will extend to taxation.
Tokayev emphasized the need for Kazakhstan to evolve into a country that not only acquires knowledge but teaches others, utilizes resources, and generates products.
“The ‘Made in Kazakhstan’ brand should become a symbol of the highest quality and the best products. This is the main goal of the Altyn Sapa contest,” he added.