On October 18, 2024, the government by its resolution approved the Concept of Investment Policy of the Republic of Kazakhstan until 2029 (the Concept). The main goals of the Concept are to attract at least US$ 150 billion of foreign direct investment and to increase the country’s investment attractiveness.
MAIN INNOVATIONS AND CHANGES
- The national digital investment platform (the Investment Platform) to be launched to ensure the digitalization of the process of attracting investments. Investors will be able to obtain permits through the platform without interacting directly with government authorities.
- The system of protection of investors' rights to be enhanced by improving the mechanism of considering and resolving investor issues. For instance, there is a plan to create a Unified Register of Investors’ Issues and Complaints, where all issues of investment projects will be recorded. The authorized investment body, the Ministry of Foreign Affairs of the Republic of Kazakhstan, will be responsible for maintaining the register.
- Regional investment headquarters to be formed in each region of the country by analogy with the existing Investment Headquarters. The regional investment headquarters will be competent to raise the issues of investment projects in the region.
- A plan to finance strategic projects aimed at energy decarbonization, industrial production, housing and utilities, agriculture, transport, and other key economic sectors.
- The mechanism of public-private partnership to be improved through creation of the fund for preparation of large-scale projects and modification of approaches to initiation and selection of projects.
- The efficiency of the Special Economic Zones (SEZ) and Industrial Zones (IZ) will be enhanced from bringing the infrastructure to full availability.
WHAT WILL CHANGE FOR INVESTORS
- A differentiated approach will apply to granting of investment preferences, taking into account specifics of the industry and region.
- All types of investment agreements providing for financial and nonfinancial preferences will establish investors’ counter obligations (labor productivity, export, etc.).
- For large industrial projects, government authorities, jointly with investors, will develop roadmaps for launching their products in foreign markets and for a high-quality labor supply.
- The counter obligations will be introduced for SEZ and IZ participants. Expansion of the permitted activities and standardization of the validity terms of the SEZ are also planned.
- Introduction of a new instrument of state support in the form of reduced-rate lending to investors through the Development Bank of Kazakhstan at 6% interest for a 10-year period. The mechanism provides for granting the reduced-rate loans for the purpose of building the necessary engineering infrastructure for new industrial projects, regardless of the volume of investments made.
2025 PLAN FOR CONCEPT IMPLEMENTATION
- Commissioning of the Investment Platform and digitalization of the process of obtaining permits by investors
- Providing access on the national investment platform invest.gov.kz to the unified state cadaster of real estate (land plots with visual maps of position and photos), database of production facilities (including SEZ, IZ, and small industrial zones) available to investors
- Development of the mechanism of counter obligations for investors when making investment agreements (contracts), and for participants of SEZ and IZ
- Aligning priority activities with priority sectors of the economy in accordance with the objectives of national development
- Expanding the activities for operating in the SEZ
CONCLUSION
The Concept is oriented on the formation of comprehensive Kazakhstan state investment policy by creating a unified system of investor support and guidance, combining all the necessary processes, tools, and resources and minimizing corruption and bureaucratic risks. The measures for implementation of the Concept will be taken according to the approved Concept Action Plan until 2029.