kazakhstan : new opportunities for investments new opportunities for investments april 14, 2011...

Kazakhstan : NEW OPPORTUNITIES

FOR INVESTMENTS

April 14, 2011 Zurich, Swiss Confederation

National export and investment agency

Agenda

I. Why Kazakhstan is attractive for investors?

II. Investing in Kazakhstan

III. Contact details


Why Kazakhstan is attractive for investors

1. Natural Resources

• Kazakhstan has the 6th largest reserve of natural resources in the world



2. Stable Macroeconomic Environment

2003 2004 2005 2006 2007 2008 20090

20

40

60

80

100

120

140

160

30.8

43.2

57.1

81

104.9

132.5 134

Kazakhstan's GDP, USD billion

Russia

Ukraine

Kazakhstan

Belarus

Azerbaijan

Uzbekistan

Turkmenistan

Armenia

Moldova

Tajikistan

Kyrgyz Republic

0 200 400 600 800 1000 1200 1400 1600

1480

153

134

60

50

30

19

10

6

5

4

GDP, 2009, USD billion

Source: National Bank of RK



2. Stable Macroeconomic Environment

Russia

Ukraine

Kazakhstan

Belarus

Azerbaijan

Uzbekistan

Turkmenistan

Armenia

Moldova

Tajikistan

Kyrgyz Republic

0 2000 4000 6000 8000 10000 12000

10873

2797

8547

6234

5814

1100

4078

2800

1809

795

951

GDP per capita, 2009, USD



3. Favorable business climate• FDI records serve as an evidence of a favorable investment

climate. • Kazakhstan attracted more than 118 bln. US dollars if FDI

since 1993.



7

Why Kazakhstan is attractive for investors?

Country Strength of investor protection index (0-10)

New Zealand 9.7

Kazakhstan 5.7

Russia 5.3

Tajikistan 5.3

Ukraine 4.7

Moldova 4.7

Investor Protection



3. Favorable business climate• International ratings also serve as an evidence of a favorable

investment climate




3. Proximity to Largest Regional Markets

• Kazakhstan is the continental bridge for goods that move from East and West, South to North.

• 3 out of 4 BRIC countries are located near Kazakhstan: Russia, China and India.

• Strategically located between European and Asian business centers

• Serves as a main transit zone in the region• Provides 3 out of 4 Eurasian railways



30-35 days

10 days

West Europe – West China – 8 445 км

Sea route – 24 000 км




5. Market capacity

• By entering the Customs Union, Kazakhstan creates for investors a more attractive market of 170 million people and opens up additional possibilities for effective investment projects

• Unified customs territory• Uniform trade policy• Uniforms customs code• Free trade of goods within the customs area• Free movement of goods, services, labor and capital


Russia

Kazakhstan

Belarus

Market capacity – around 170 mln. peopleTotal GDP of almost $ 2 trillion U.S

Kazakhstan, Russia and Belarus Customs Union from 2010

National export and investment agencyInternational Economic Cooperation CommitteeMinistry of Foreign Affairs of the Republic of Kazakhstan

Why Kazakhstan is attractive for investors?6. Kazakhstan is reducing the negative impact of current

deficiencies

• In 2010, the State program of accelerated industrial-innovative development for 2010-2014 was adopted, which aims

• Infrastructure development• Creation of new export-oriented high-tech

manufacturing• Strengthening of the national innovative system• Improvement of professional skills of local labor• State support (preference, privilege, co-financing

etc) is granted to projects in priority sectors (non raw materials sector) in order to decrease the investors' expenses


State program of accelerated industrial-innovative development for 2010-2014

INDICATORS

GDP grown up to 50% than in 2008

Increasing of labor productivity in manufacturing industry up to 50% and in some

sectors up to 100%

Increasing the share of non resource export up to 40%

Decreasing energy intensity of GDP no less than 10%

Increasing the share of innovative enterprises up to10% of active enterprises

GOAL

Ensure sustainable and balanced economic growth through diversification and

competitive recovery.


Priority sectors of economy

Based on domestic demand

Sectors of «the future economy»

Information and Communication TechnologySpace activities

Mining and Metallurgical Complex Nuclear industry

Chemical industryPetrochemicals

Traditional

MachineryConstruction industry

Pharmaceuticals

Agro-industrial complexLight industry

Tourism

BiotechnologyAlternative Energy

Export-oriented


Investing in Kazakhstan – State Support1. Foreign Investment Protection Guarantees

• Kazakhstan has signed agreements on mutual investment protection with 44 countries


Investing in Kazakhstan – State Support1. Foreign Investment Protection Guarantees

• In order to reduce investment risk and guarantee protection to foreign investments, foreign investors are given national status (foreign and domestic companies work under equal conditions)

• The Foreign investors’ Council chaired by the President of the Republic of Kazakhstan was established in 1998, 30th of June

• Purpose: promotion of direct dialogue between the Government of Kazakhstan and foreign investors in order to efficiently address key issues related to their investment activities in the country

• Council meetings address issues critical to the development of the country’s economy, investor protection and investment climate. The Council consists of 29 foreign companies.

National export and investment agency19

MAIN INSTRUMENTS OF INVESTOR SUPPORT

19

Economic incentives for investors

Special Economic Zones

Investment Preferences

Institutional Support

Special Permanent Commissionon Foreign Investment headed

by Prime Minister of Kazakhstan: «OMBUDSMEN»

for Investors

Service support for investors

National Export and Investments Promotion Agency:

“ONE STOP-SHOP”for Investors


Types of preferences:

Exemption from customs duties of imported equipment and its components for investment project implementation

Tax incentives for investors Granting of the state natural grants value of the objects of preferences and (or)

the following costs for the modernization and reconstruction can relate to deductions.

Terms of preferences:

Priority sectors of the economy

Potential and current investors

Recipients of preferences:

Investment preferences


Investing in Kazakhstan – State Support Privileges for Members of Special Economic Zones

Today, there are 6 Special Economic Zones (SEZ) in Kazakhstan


Investing in Kazakhstan – State Support Privileges for Members of Special Economic Zones

• The members of SEZ enjoy the following privileges: Corporate income tax exemption Customs-free policy VAT exemption on goods and services given on SEZ

territories, made or consumed in activities related to SEZ creation

0% to the mid-year cost of taxable objects when calculating property tax

40% in the marginal rate of depreciation used for IT software


Institutional Support for Investors

Investorwww.invest.gov.kz

Embassy of Kazakhstan in Switzerland

http://www.kazakhstan-bern.ch/

International Economic Cooperation Committee

IECC.pptx

KAZNEXINVESTwww.kaznexinvest.kz

Government of Kazakhstan (ministries,

agencies etc.

http://www.invest.gov.kz/

http://www.kazakhstan-bern.ch/

http://www.kaznexinvest.kz/


“ONE STOP-SHOP” SERVICES FOR FOREIGN INVESTORS

Information on investment opportunities and business

conditions

Assistance in a choice of projects and partners

Information on investment projects

http://www.sendspace.com/file/h57oaq

Assistance in reception of measures for state

support

Assistance in making decisions on administrative

questions

Organization of meetings with official representatives


National investment interactive website www.invest.gov.kz

Website will be available in 12 languages: English, German, French, Italian, Spanish,

Arabic, Korean, Japanese, Turkish, Kazakh and Russian.

Niche investment projects_eng.doc



More information

• Website includes information on :• Processing of requests and inquiries of investors and initiators

of the projects online• Provision of quality and daily updated information on all

aspects of investing in Kazakhstan, including: • Investment legislation of the Republic of Kazakhstan;• Business conditions in Kazakhstan;• Infrastructure conditions;• Government programs;• Government support for investors and others.• The list of investment projects


For further information:

1. Contact the Embassy of the Republic of Kazakhstan

2. Visit our website www.mfa.kz

3. Necessary information for investing in Kazakhstan visit www.invest.gov.kz

Thank you for attention!

http://www.mfa.kz/


kazakhstan : new opportunities for investments new opportunities for investments april 14, 2011...

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