Kazakhstan has taken a significant step in its efforts to attract investments and accelerate economic growth with the signing of a landmark decree by President Kassym-Jomart Tokayev. The decree, initiated on 4 December, empowers the Investment Promotion Council (Investment Headquarters) with unprecedented authority, granting it the power to make binding decisions on central and local government bodies and entities in the quasi-public sector. This comprehensive plan reflects the country’s commitment to creating a conducive environment for investment and stimulating economic development.
President Tokayev’s economic policy, as outlined in his state-of-the-nation address in September, focuses on economic reforms, diversification, transparent tax policies, and equitable management practices. It underscores his proactive approach to attracting foreign investment and strengthening global economic ties. Notably, during the Conference of the Parties of the United Nations (UN) Framework Convention on Climate Change (COP28) in Dubai, Kazakhstan signed 20 agreements with foreign companies worth $4.85 billion in green energy, infrastructure, and digitization. These initiatives reflect a key component of President Tokayev’s broader economic strategy.
The strengthened powers of the Investment Headquarters complement recent amendments to the Tax Code and corresponding changes to the Government Decree on State Support for Investments, designed to provide investors with increased flexibility and foster active participation in various sectors of the economy. With the authority to propose disciplinary actions, the Investment Headquarters is poised to ensure strict adherence to investment initiatives and enhance investor confidence. This enhanced oversight is vital to attract investments and stimulate new job opportunities, knowledge, and technologies for the citizens of the country.
Kazakhstan’s efforts have already yielded positive results, as evidenced by an 83% increase in net foreign direct investment (FDI) flows, reaching $6.1 billion, despite a global decrease in investment flows in 2022. Leading among post-Soviet Central Asian countries, Kazakhstan has secured a 61% share of net FDI flows. The country has seen a steady influx of investments, with significant amounts directed towards sectors such as oil and gas, metallurgy, electricity, and food and beverage production.
The President’s decree aims to redirect investments into key sectors, particularly manufacturing, to ensure sustainable economic development. By streamlining decision-making processes and promoting accountability, the measures outlined are expected to create a more favorable investment environment for both domestic and foreign investors.
Market Capital Research 