Kazakhstan Overview of Economy for Foreign Investors

Key Sectors

• Oil and Gas: Kazakhstan is a major producer and exporter of oil and natural gas. This sector is a significant contributor to the country's GDP and a key driver of foreign investment.
• Mining: Kazakhstan possesses substantial reserves of various minerals, including uranium, coal, copper, zinc, and gold. The mining sector attracts foreign investment and contributes to export revenues.
• Agriculture: Kazakhstan has vast agricultural lands and is a significant producer of grains, particularly wheat. This sector has the potential for further growth and attracts investment.
• Transportation and Logistics: Due to its strategic location between Europe and Asia, Kazakhstan plays a crucial role in transportation and logistics, including railways, roads, and pipelines.
• Financial Services: The financial sector in Kazakhstan is developing, with banks, insurance companies, and other financial institutions operating in the country.

Economic Indicators

• Currency: The national currency is the Tenge (KZT).
• GDP: Kazakhstan has a middle-income economy, with GDP influenced by commodity prices, particularly oil.
• Inflation: The National Bank of Kazakhstan manages monetary policy to control inflation.
• Foreign Direct Investment (FDI): Kazakhstan has actively sought to attract FDI to diversify its economy and develop its non-resource sectors.

Trade

• Exports: Key exports include oil, gas, minerals, and metals.
• Imports: Kazakhstan imports machinery, equipment, and consumer goods.
• Trade Partners: Major trading partners include China, Russia, and European countries.

Legal and Regulatory Framework

• Legislation: Kazakhstan has laws governing foreign investment, taxation, and business activities.
• Special Economic Zones (SEZs): The government has established SEZs to attract investment in specific sectors by offering tax incentives and other benefits.
• Membership in International Organizations
• Kazakhstan is a member of the World Trade Organization (WTO).

Infrastructure

• Kazakhstan has a developing transportation infrastructure, including railways, roads, airports, and pipelines.

Important Considerations for Foreign Investors

• Political and Economic Stability: Kazakhstan generally enjoys political stability in the region.
• Natural Resources: The abundance of natural resources presents opportunities for investment.
• Developing Non-Resource Sectors: The government is focused on diversifying the economy and developing non-resource sectors.