ALMATY – Kazakhstan is accelerating efforts to expand its manufacturing base, advance digital transformation, and strengthen economic diversification, Prime Minister Olzhas Bektenov said during a government meeting on Dec. 2.
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The discussion also covered progress in oil refining, agricultural processing, and workforce development, reflecting a comprehensive national effort to increase economic resilience and diversify growth sources, the Prime Minister’s press service reported.
Manufacturing sector gains strategic momentum
Bektenov highlighted that Kazakhstan’s manufacturing sector has expanded significantly, with output increasing nearly one-third over the past five years. This progress has been supported by the launch of new enterprises, including joint projects with major global companies such as Kia, Sinopec, John Deere and Claas.
As a result of these ongoing efforts, the country’s manufactured exports exceeded $23 billion last year, with increasing contributions from machinery, chemical goods and food production, illustrating a more complex export structure beyond the traditional dominance of metals.
According to Bektenov, manufacturing output had surpassed 24 trillion tenge (approximately US$44.4 billion) in the January-October 2025 period, marking a 5.8% annual increase.
He stressed that manufacturing is the core generator of high-value-added products and skilled employment, as well as the foundation for Kazakhstan’s technological sovereignty.
“The sector currently accounts for about 13% of GDP, and our aim is to raise this share to 15% by 2030 and to 18–20% by 2035. These targets are realistic, given the country’s resource base, energy availability, advantageous geography and educated young workforce,” Bektenov said.
State support measures
State support measures are also playing an increasingly important role. Long-term supply and offtake contracts have provided enterprises with greater predictability in planning production and modernization. In 2024, a total of 879 such agreements were secured, and ministries have been instructed to raise the number to at least 1,000 by the end of next year.
Investment activity has strengthened as well, with capital investments in manufacturing reaching 1.7 trillion tenge (US$3.15 billion) during the first ten months of 2025, up 30% compared with the same period in 2023. A total of 190 industrial projects are being implemented this year under the Unified Industrialization Map, of which 147 are already operational.
Industry 4.0: Kazakhstan accelerates digital transformation of factories
Deputy Prime Minister and Minister of Artificial Intelligence and Digital Development Zhaslan Madiyev introduced a broad national push to digitalize the manufacturing sector. A newly approved Digital Transformation Roadmap sets a goal to transition industrial enterprises to Industry 4.0 standards by 2028.
The transition will involve introducing advanced technological platforms, such as industrial Internet of Things systems, digital twins for equipment and processes, predictive maintenance tools, and fully integrated production management solutions.
“Transitioning to such technologies is a direct path toward greater efficiency, reduced losses, optimized processes, and higher labor productivity,” Madiyev said.
Modern digital solutions in manufacturing enterprises
According to officials, advanced economies have demonstrated that predictive monitoring alone can reduce equipment maintenance costs by up to 15%, signaling significant potential benefits for the domestic industry.
In Kazakhstan, several companies have already taken notable steps toward digitalization, including Altynalmas, which is implementing digital systems to optimize logistics and equipment operations in open-pit mining.
KAZ Minerals uses artificial intelligence to process large volumes of operational data and minimize risks, and ERG has deployed multiple digital assistants to automate industrial tasks, showing how digital technologies can transform industrial processes when integrated systematically.
Digital tools reduce shadow fuel turnover by 20%
Digital solutions are also reshaping Kazakhstan’s energy sector. The Minister of Energy Yerlan Akkenzhenov reported that the launch of the Oil Transportation Management information system has automated the allocation of oil volumes for transportation, reducing approval timelines from 1 week to just 2 days.
Meanwhile, the Oil Track monitoring platform, now covering 123 oil depots nationwide, provides continuous oversight of fuel flows in real time.
This combination of digital tools has significantly improved efficiency as application processing times have been cut from three hours to about ten minutes, and the share of unaccounted or shadow fuel circulation has fallen by 20%.
“The ministry is now examining how artificial intelligence can be incorporated to forecast demand more accurately and further optimize logistics across the fuel supply chain,” Akkenzhenov said.
Oil refining capacity
Kazakhstan plans a substantial expansion of its oil refining capacity, which is expected to double over the next 15 years nearly. According to Akenzhenov, the country aims to increase refining output from 14.52 million tons today to more than 29.2 million tons by 2040.
“By 2032, the capacity of existing plants will be increased to 30 million tons through expansion projects. The strategic goal for 2040 is to launch a new large-scale refinery with a capacity of 10 million tons and a processing depth of 95%,” he said.
In addition to expanding volumes, the modernization program foresees a transition from the current K4 environmental fuel standard to K5+, thereby improving the sector’s environmental profile.
Coordinated effort for sustainable industrialization
The government defined several priority areas to sustain industrial growth and deepen digital modernization. These include expanding long-term supply mechanisms for domestic producers, accelerating the adoption of artificial intelligence across the manufacturing sector, strengthening scientific research to support industrial innovation, and improving infrastructure in industrial zones.
Bektenov reaffirmed that manufacturing, digitalization and high-tech development remain central pillars of Kazakhstan’s economic strategy.
“We have all the necessary resources, capacity and human potential. The task now is to convert these advantages into a diversified, technologically advanced and globally competitive economy,” he said.
