ASTANA – Kazakhstan is considering a unified strategy to coordinate the development of three financial platforms, the Kazakhstan Stock Exchange (KASE), the Astana International Financial Center (AIFC) and Alatau City, while preserving their distinct specializations, according to the National Bank Governor Timur Suleimenov, who announced it, speaking at the 14th Congress of Financiers of Kazakhstan on Nov. 13.
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Under the proposed framework, cooperation would include mutual recognition of participants across platforms, regular exchange of supervisory information between regulators, harmonized regulatory approaches and a clear division of responsibilities, Atameken Business reported.
National Bank Governor Timur Suleimenov also emphasized the importance of keeping the three financial markets interconnected as they develop independently. He said Alatau City was emerging as another source of financial innovation, with its own regulatory and tax frameworks, alongside the capital market developing within the AIFC.
“In our view, it is extremely important to ensure synergy between these markets through mutual recognition, mutual compatibility and mutual circulation, so that they can develop while remaining interconnected,” Suleimenov said.
He stressed that the proposed strategy would not involve micromanagement or dictate specific actions to each platform. Instead, it would set common strategic priorities and define each market’s specializations.
“It is extremely important to ensure that each market does not become confined within its own jurisdiction or geographical location. Capital and money are liquid by nature; they are fluid and therefore cannot be locked in,” he said.
AIFC and Alatau City: complementary roles
The potential relationship between the AIFC and Alatau City was also discussed at the congress, amid questions about whether the new city could compete with the financial center for foreign investment.
AIFC Governor Renat Bekturov said the two jurisdictions had different objectives, including at the legislative level, according to the National Business Agency.
The AIFC focuses on attracting investment, developing the capital market and innovative financial products, and providing an independent regulatory framework. Alatau City, meanwhile, is intended to accelerate urban development through special regimes covering investment, construction, science and innovation.
“This involves special regimes for attracting investment, as well as for the construction industry, science and innovation. The foundation of Alatau City’s legal system is territoriality. Financial products, however, are extraterritorial. For example, how could you create a token linked to a specific property that would be traded only in Alatau City? Naturally, this would not be the case,” Bekturov said.
He said the AIFC did not expect competition with Alatau City but rather an exchange of experience. The regulatory and institutional practices developed by the financial center could support the new city’s future development and create opportunities for cooperation between the two jurisdictions.
“The argument that the AIFC was established solely for foreign investment is incorrect. Our task is also to facilitate the development of the capital market in Kazakhstan,” Bekturov said.
