In life and on the investment journey, it is often said that it is the journey that counts, or it is the “journey” that is the reward.
Rainer Michael Preiss.
Kazakhstan became the first country of the former Soviet Union to receive an international investment credit rating in September 2002.
According to Bloomberg data, tenge is the sixth best performing currency in the world so far this year, and the Kazakhstan equity market has outperformed global equities.
Next year, the IMF expects Kazakhstan’s economy to expand by 4.4% in 2027, while forecasting global GDP growth of 3.4%. This implies the nation would grow approximately 1.0 percentage point faster than the world economy, continuing to outperform the global average. Global investors should take notice.
Yet Kazakhstan remains one of the most attractive yet under-owned equity markets in the emerging and frontier investment universe. Despite its abundant natural resources, improving corporate governance and strategic location between Europe and China, it continues to receive only a modest allocation in most global strategic asset allocation portfolios. For long-term private clients and family offices willing to diversify beyond traditional developed and emerging markets, Kazakhstan deserves serious consideration.
While oil made Kazakhstan rich, today’s investment story extends well beyond oil. Kazakhstan is the global leader in uranium production, a significant producer of copper, zinc and ferroalloys, and is investing heavily in logistics, manufacturing and financial services. Government reforms are aimed at diversifying the economy, encouraging foreign investment and strengthening domestic capital markets.
Valuation remains one of the market’s greatest attractions. Leading local companies have often traded at attractive earnings multiples while generating robust cash flows and paying generous dividends. For value-oriented investors, this combination of reasonable valuations and strong profitability provides an attractive long-term entry point.
The financial sector is one of the strongest investment opportunities. Halyk Bank, Kaspi.kz and Bank CenterCredit have demonstrated strong profitability, healthy capital ratios and growing digital capabilities. Kaspi.kz has built one of the world’s most successful digital financial ecosystems, while Halyk Bank continues to combine market leadership with attractive shareholder returns.
The nation also occupies a unique position in the global energy transition. As the world’s largest uranium producer, the country is strategically positioned to benefit from growing investment in nuclear energy driven by electrification, artificial intelligence and expanding data-centre demand. At the same time, the Middle Corridor linking China and Europe continues to enhance the country’s role as a logistics and transport hub.
For international investors, tenge remains influenced by commodity prices, particularly oil, together with global risk sentiment and developments in neighbouring Russia. However, substantial foreign-exchange reserves and the National Fund of Kazakhstan provide an important cushion against external shocks.
Risks include commodity-price volatility, geopolitical uncertainty, lower market liquidity and evolving governance standards. Nevertheless, these risks are balanced by attractive long-term growth prospects and improving institutional quality.
For global investors and family offices, Kazakhstan remains one of the faster-growing upper-middle-income emerging markets. However, GDP growth alone is not sufficient for investment success. Investors should also assess:
Corporate earnings growth. Valuation of listed companies, Dividend yields, Corporate governance standards, Currency outlook for tenge (KZT), Liquidity on the Kazakhstan Stock Exchange.
Given expected GDP growth of around 4–4.5%, Kazakhstan should continue to grow faster than the global economy, supporting a constructive long-term investment case—particularly in banking, energy, uranium, infrastructure, and selected consumer sectors.
Kazakhstan should not be viewed as a replacement for developed-market equities or large emerging markets. Instead, it can serve as a strategic satellite allocation providing exposure to return drivers that are often poorly represented in conventional global benchmarks.
For patient investors, this is precisely where the opportunity may lie. Markets that are under-researched, under-owned and occasionally misunderstood can offer attractive long-term opportunities when economic fundamentals and corporate performance continue to improve.
We therefore maintain a BUY recommendation on Kazakhstan equities as a strategic long-term allocation for globally diversified investment portfolios. Attractive valuations, world-class resource companies, strong financial institutions and ongoing economic reforms provide a compelling investment case for patient money and smart money investors and private clients alike.
The author is Rainer Michael Preiss, Partner & Portfolio Strategist at Das Family Office in Singapore.
Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the position of The Astana Times.
