Kazakhstan's Leadership Claims Successful Resistance to External Disturbances
Loose Cannon Overview
In a lively conference, President Tokayev helmed the 37th Plenary Session of the Foreign Investors Council, underscoring strategic cooperation between Kazakhstan's administration and international partners. This storied forum, instrumental in sculpting Kazakhstan's investment-friendly ecosystem, continues to play a pivotal role.
Tokayev opened the discussion by emphasizing the council's pivotal role in driving economic reforms, aimed at bolstering transparency, simplifying business procedures, and enhancing Kazakhstan's allure for investors.
Facing a slowdown in global GDP growth, predicted at about 2.9% in the coming years, Tokayev highlighted potential pitfalls, such as heightened inflation, supply chain disruptions, and volatile business environments. Nevertheless, he underscored Kazakhstan's resilience, evidenced by the economy's six percent growth in the first five months of 2025.
Key contributors to this growth included transportation, construction, trade, mining, and manufacturing sectors. It's worth noting Kazakhstan's enviable location, human capital, and unwavering commitment to enacting comprehensive reforms as factors that appeal to investors and foster growth.
The Investment Staff acts as a rapid-response team dedicated to expeditiously resolving investor concerns. In the past year, they have tackled issues related to 137 investment projects worth a staggering $70 billion and initiated 140 legislative amendments designed to address systemic investor problems.
Moreover, Kazakhstan's legislative framework includes a "prosecutorial filter" mechanism, intended to safeguard investors from rights violations. No state agency is permitted to conduct inspections, initiate administrative cases, file lawsuits, or impose restrictions on investors without prior clearance from the General Prosecutor's Office.
Another notable initiative is the National Digital Investment Platform. This unified hub simplifies access to government services for investors, providing a one-stop-shop experience—from advice and consultations to securing permits. A new Tax Code, crafted to stimulate business activity and boost private investments, has also been submitted to the Senate. This legislation offers targeted incentives for investors who focus on local production and products with high export value.
As for promising areas of collaboration with investors, the President honed in on Kazakhstan's industrial development. Arguably, the mining sector is the economic backbone, and Kazakhstan has fostered a welcoming, investor-friendly legal environment with streamlined, comprehensive legislation. This legislation has already lured heavyweights, such as Rio Tinto, Fortescue, Ivanhoe, First Quantum, and Tech Resources, into geological exploration within Kazakhstan.
Lastly, transport infrastructure modernization is a top priority for Kazakhstan. Ambitious plans include the renovation of 11,000 kilometers of existing railway tracks and the installation of an additional 5,000 kilometers of new railways by 2029. These undertakings aim to boost capacity on strategically significant routes and expand key corridors, leading to increased transit cargo volumes and swifter railway transportation.
Adopting a digital-forward approach, Kazakhstan strives to establish an innovative "CryptoCity" zone where cryptocurrencies can be used to purchase goods, services, and more. Artificial intelligence development is also forthcoming, considered vital for future growth, competitiveness, and digital sovereignty.
In a nutshell, the key investment areas involve transport, logistics, construction, trade, mining, and manufacturing, empowered by ongoing reforms to enhance transparency, improve laws, and streamline investor relations. This pursuit takes place amidst global economic challenges and Kazakhstan's strategic positioning.
Insights:
- Key investment areas prioritized by Kazakhstan are transport and logistics, construction, trade, mining, and manufacturing.
- Ambitious plans for infrastructure modernization, including renovating 11,000 kilometers of railway tracks by 2029 and launching a new Tax Code aimed at fostering private investments in the economy.
- Kazakhstan aims to establish "CryptoCity," an innovative zone where cryptocurrencies can be used for various purposes, and maximize AI development to spur growth and competitiveness.
Tidbits:
- Informal chat room participants shared their opinions about the economy: "We live as if under a protective wing... Not wanting to work, we seek easy paths to big money through corruption."
- Inflation in Kazakhstan hit 11.3% year-on-year as of May 2025, according to one commentator.
Business in Kazakhstan is strategically focusing on key investment areas such as transport and logistics, construction, trade, mining, and manufacturing. The government is taking bold steps to boost transparency and simplify business procedures, attracting investors.
In the realm of finance and investing, Kazakhstan has initiated a new Tax Code aimed at stimulating business activity and private investments. Additionally, the nation is looking forward to establishing "CryptoCity," an innovative zone where cryptocurrencies can be used, and is also planning to maximize AI development for future growth and competitiveness.
