The National Company KAZAKH INVEST is summarizing the year's results
Over the past 11 months, the National Company has ensured the launch of 36 new projects with foreign participation, the launch of production by transnational corporations, and the start of feasibility studies for 32 projects.
Today, a press conference was held at the Central Communications Service under the President of the Republic of Kazakhstan, with the participation of the Deputy Minister of Foreign Affairs of the Republic of Kazakhstan, Almaz Aidarov, and the Deputy Chairman of the Management Board of "NC "KAZAKH INVEST" JSC, Ruslan Ibrayimov. The main topic was the summary of the annual results of investment activity in the Republic of Kazakhstan.
"In these adverse external conditions, Kazakhstan continued to maintain a stable investment climate for foreign investors this year. The country remains an attractive and undisputed leader in attracting foreign investment in Central Asia. Our country accounts for about 70% of foreign investment in the region. Over the past 10 years, the annual inflow of investment into the country has averaged around $24 billion. As of 2021, Kazakhstan returned to the "post-pandemic" level of inflow of foreign direct investment, totaling $23.7 billion, and in the first half of the same year, the gross inflow of foreign direct investment (FDI) increased by 28%, to $14.5 billion (in the first half of 2021, $11.3 billion). The head of state has set a task for us to attract no less than $150 billion in the next 7 years," Almaz Aidarov noted.
According to the main investing countries in the first half of 2022, there has also been an increase in investments in Kazakhstan's economy. For example, the inflow of FDI from the Netherlands was $3.3 billion (an increase of 2% compared to the first half of 2021), the United States was $3.2 billion (an increase of 54%), Switzerland was $1.6 billion (an increase of 21%), Belgium was $1.1 billion (an increase of 2.6 times), the Russian Federation was $0.93 billion (an increase of 30%), China was $0.6 billion (an increase of 8%), and South Korea was $0.54 billion (an increase of 84%).
In terms of sectors, the largest growth in foreign investment in the first half of 2022 was seen in the following sectors: information and communication - 5.4 times ($787.5 million) compared to the first half of 2021, construction - 3.9 times ($462.3 million), agriculture, forestry, and fishery - 2.9 times ($20.1 million), processing industry - 48% ($3.1 billion), wholesale and retail trade - 43% ($2.4 billion), transport - 19% ($621.7 million), and mining - 8% ($6 billion).
"This year, "NC "KAZAKH INVEST" JSC organized 13 significant investment events both abroad and within the country. Of these, 5 investment events with the participation of the Head of State and business leaders took place in America, France, Turkey, Saudi Arabia, and Russia. These events are a key tool in promoting Kazakhstan's investment image and a platform for attracting new investors. Bilateral meetings are held within the framework of such events, the prospects and conditions for the implementation of projects in Kazakhstan are discussed. In addition, dialogue with the Head of State instills confidence in investors," said Ruslan Ibrayimov.
KAZAKH INVEST also introduced 36 new projects with foreign participation, totaling approximately $3.7 billion. This has created more than 3,600 new jobs. Nine more projects are expected to be introduced by the end of the year.
One of the most important and active areas of investment activity is renewable energy projects. Six large renewable energy projects totaling $350 million have been put into operation over the past 11 months. Given the Government of Kazakhstan's goal of achieving carbon neutrality by 2060, this trend is particularly relevant.
In addition, the launch of production by transnational corporations can be noted. Saint-Gobain, Hyundai Motor Corporation, PCM, Honeywell have opened production facilities in Kazakhstan.
With the assistance of KAZAKH INVEST, 32 projects have been initiated for a total of $3.2 billion. Companies such as Sungrow Power Supply, Iskefe Holding, and Cedar Meats have begun implementing investment projects.
Annually, the National Company prepares 70 investment proposals for foreign investors in priority sectors of the economy. The investment proposal includes a teaser, business plan, and financial model for the project.
At the same time, one of the tasks of KAZAKH INVEST is to provide support services to investors. The company provides consulting services on visa and migration and legislative issues free of charge. In addition, 183 applications for investment preferences were considered, and 48 problematic issues of various types were addressed for investors. This year, Company received 2032 oral and written appeals from investors, including through a 24/7 call center.
