ASTANA – Kazakhstan is cementing its position as a regional powerhouse for industrial growth and innovation, attracting foreign investments in logistics, green technologies, and manufacturing. During the recent Kazakhstan Global Investment Roundtable (KGIR), the country’s officials and representatives of foreign companies discussed what makes Kazakhstan an attractive investment destination.
Annually, KGIR gathers over 500 participants from 40 countries. Photo credit: Ministry of Industry and Construction
Kazakhstan is committed to creating favorable investment conditions
Opening the session, dubbed Current Trends in Global Markets and Industries and Their Impact on Investment Strategies, Kazakh Minister of Industry and Construction Kanat Sharlapaev highlighted Kazakhstan’s solid position on the international investment stage as “one of the most attractive and strategically significant platforms for investments.”
“This is largely due to our unique geographic location. We are at the crossroads of East and West. Opening up vast opportunities, our country serves as a bridge between the world’s largest markets, providing access to Europe, China, and other dynamically developing regions. This makes us an essential hub in the international trade system and allows investors to use Kazakhstan as a platform to enter promising Eurasian markets,” said Sharlapaev.
Kazakhstan’s industrial sector is growing rapidly, contributing approximately 29% to GDP and over 19% of employment. In the first nine months of this year, industrial growth reached 4.8%, or 17.1 trillion tenge (US$34.9 billion).
Kanat Sharlapaev. Photo credit: Ministry of Industry and Construction
“For the first time in our history, manufacturing and industrial production, in terms of its contribution to GDP, became almost equal to mining and oil and gas sectors,” he added.
“Kazakhstan is ready to support investors with tax incentives and preferences for creating new production facilities. Developing our manufacturing potential will reduce import dependence and secure strong positions in Central Asian markets and beyond,” he said.
Kazakhstan’s construction industry, which grew by more than 10% in 2024, also offers extensive opportunities for international investors. The growth of residential and commercial construction drives the need for infrastructure development, making this sector highly attractive.
“We will be creating more favorable conditions for companies involved in construction projects, developing transport routes, and building logistical and manufacturing centers,” the minister added.
Sharlapaev also stressed the nation’s vast potential in critical materials, adding that Kazakhstan “will play a unique role in the energy transition going forward.”
“We have a leading position in many minerals and materials, including titanium, uranium, and tungsten. We are currently strategically significant to global supply. But it does not just end there,” said the minister, emphasizing that the country is poised to become a major player in processing industries beyond resource extraction.
Currently, Kazakhstan is a leading producer of high-purity manganese sulfate and is developing the world’s second-largest and high-purity graphite deposits, which are set to serve the growing battery market.
“The mineral endowment of Kazakhstan, coupled with its unique processing capabilities, will represent a major opportunity in the green transition,” said Sharlapayev.
The government is enhancing its framework and infrastructure, and Sharlapayev particularly stressed “institutional readiness” to support this vision.
Investment dynamics in Central Asia
He Zhenwei, chairman of the China Overseas Development Association, which supports Chinese businesses in going global, discussed what could encourage investors to pay attention to Kazakhstan and the broader region of Central Asia. He pointed out that the rate cuts in the United States drive investment flows to regions better suited for investment.
“My first viewpoint is that Central Asia will become a major focus for international investment in the future,” said He.
According to him, three factors supporting this vision are the stability of the region, stable economic growth coupled with booming population rise, and China’s own industrial transition, which offers opportunities for the transfer of industries and capacities.
“China-Kazakhstan investment cooperation has already yielded excellent results and shows potential for continued growth. Over the past decade, from 2014 to 2024, bilateral cooperation in industries and investments has been remarkable,” said He.
According to data from the Kazakh Invest national company, the two countries signed 117 commercial documents worth more than $42 billion during major investment events over the past year and a half alone. Nearly 100 joint investment projects, including 45 projects worth over $14.5 billion, are included in the list of priority projects.
Booming logistics and transport sector in Kazakhstan
Gokhan Bayhan, senior vice president for Russia, the Commonwealth of Independent States (CIS), Europe, the Middle East, and Africa at Wabtec Corporation, spoke about the company’s activities in Kazakhstan, which has been present in the country for 27 years. The company also has the Lokomotiv Kurastyru Zauyty (LKZ) factory in Astana and eight service shops in Kazakhstan, providing scheduled and unscheduled maintenance of locomotives.
Bayhan stressed Kazakhstan has become a cornerstone for Wabtec operations in the CIS region, establishing itself as a center of excellence. Over the years, the company has produced and modernized over 1,000 locomotives, contributing to the renewal of Kazakhstan’s fleet.
“Why did we pick Kazakhstan 27 years ago? As a global company, when we look at investments and where we should invest, there are three elements. These are access to the market and resources, the legal framework that allows you to invest and protect your investment, and human capital. (…) When we looked at the CIS region, Kazakhstan was the most attractive place for us to come 27 years ago,” he said.
In October, Wabtec announced a $405-million agreement to supply Evolution Series locomotives to Kazakhstan Temir Zholy (KTZ), the country’s national railway company. The new locomotives will upgrade its aging fleet and support growing regional rail demand.
Bayhan emphasized Kazakhstan has become a key hub for Wabtec operations, not just for the CIS region but increasingly for global markets, including Africa.
“Over 20 years, we had invested about $100 million. Over the last 12 months, we invested over $125 million, so we doubled it. Our expectation is that over the next five years, we will probably double it again to invest another $200 million in Kazakhstan,” Bayhan told The Astana Times.
He stressed three primary factors driving the increased investment. One key reason is the growing importance of the Middle Corridor routes, as traffic shifts from northern corridors to Kazakhstan, strengthening its role as a connection between East and West. This development is expected to boost demand for locomotives in Kazakhstan and other countries involved in the Trans-Caspian corridor.
“Number two is the geopolitical pressures that are happening due to the conflicts that we have in the region. We are moving more suppliers into Kazakhstan to support our production and services here. That means we have to make more investments, qualify people, and increase our localization,” said Bayhan.
The third driver is the global shift towards sustainable rail technologies, such as liquified natural gas, hydrogen, and battery-powered systems.
The KGIR has been held annually since 2017, serving as a dialogue platform between the government and investors. The high-profile event brought together international investors, government officials, and industry leaders, all eager to explore new opportunities in Kazakhstan’s evolving investment landscape.
