President Kassym-Jomart Tokayev of Kazakhstan recently signed a groundbreaking decree aimed at bolstering investment in the country’s economy, facilitating economic development, and attracting foreign investors. This landmark decree, announced on December 4, empowers the Investment Promotion Council to make influential decisions that will shape the investment landscape, providing unique opportunities for both domestic and international investors.
The decree endows the Investment Promotion Council with unprecedented authority, allowing it to make binding decisions on central and local government bodies and entities in the quasi-public sector. Additionally, the Council is granted the power to develop temporary regulatory legal acts with the force of law, supporting the government’s efforts to establish an environment conducive to investment.
This significant move is a part of President Tokayev’s larger economic policy, as outlined in his state-of-the-nation address in September. The focus of this policy includes economic reforms, diversification, transparent tax policies, and fair management practices, all aimed at propelling Kazakhstan’s economic growth forward.
President Tokayev has demonstrated a proactive approach to effectively engage with investors, both locally and internationally. Notably, during the recent Conference of the Parties of the United Nations (UN) Framework Convention on Climate Change (COP28) in Dubai, the President met with UAE Minister of Investment, Mohammed Al-Suwaidi, to explore potential collaborations on various projects. The resulting agreements, totaling $4.85 billion in green energy, infrastructure, and digitization, underscore the success of Kazakhstan’s investment policy on the global stage.
The strengthened powers of the Investment Headquarters are part of a broader initiative to improve the investment climate in Kazakhstan. Recent amendments to the Tax Code and corresponding changes to the Government Decree on State Support for Investments offer increased flexibility for investors and encourage active participation in various sectors of the economy.
This robust investment policy has proven successful, as evidenced by an 83% increase in net foreign direct investment (FDI) flows, reaching $6.1 billion, despite a worldwide downturn in investment flows. Kazakhstan continues to lead in attracting FDI among post-Soviet Central Asian countries, securing an impressive 61% share, according to the World Investment Report 2023, published by the UN Conference on Trade and Development.
The President’s recent decree seeks to redirect investments into key sectors, particularly manufacturing, to ensure sustainable economic development. The measures outlined in the decree aim to streamline decision-making processes, promote accountability, and create a more favorable investment environment for both domestic and foreign investors.
Market Capital Research 