Foreign direct investment grows in Kazakhstan’s industry

13 June 2014 16:23 (UTC+04:00)

By Aynur Jafarova

The growth inflow of foreign direct investment in Kazakhstan's manufacturing industry amounted to $14.1 billion in the first five-year plan.

The news was announced by Deputy Prime Minister and Minister of Industry and New Technologies Asset Isekeshev on June 12.

"The gross inflow of foreign direct investment in the manufacturing industry amounted to $14.1 billion during years of implementing the state program on industrial-innovative development. This includes 70 percent of all attracted foreign direct investment in the manufacturing industry since 2005," he noted.

Issekeshev also said the industrialization process launched in Kazakhstan back in 2010 gave impetus to restructuring the national economy.

Also, some active works have begun to establish new facilities with the support of domestic and foreign investors during the first five-year plan.

"Some 59 projects, only in the manufacturing industry, worth $5 billion were implemented with the participation of foreign investors. About 86 projects are at the stage of implementation with the participation of foreign investors," he added.

Experts believe Kazakhstan is in the list of countries with high level of inflow of foreign direct investment. This is proved by huge economic figures. In particular, the total volume of the foreign direct investment invested in the Kazakh economy amounted to $180 billion in 2013.

Netherlands, Germany, the U.S., the United Kingdom, France, Italy, Russia, China, Canada, Switzerland, and Japan were among the top investors in the country in 2013.

Kazakhstan's main trade partners were the European Union (41 percent), Russia (17.9 percent), China (17 percent), Switzerland (4.1 percent), and Ukraine (3.3 percent), leading to $132 billion in trade turnover in 2013.

The country also intends to attract large national companies and subsoil users to invest in geological exploration.

Earlier, Kazakhstan developed a draft law on the improvement of investment climate in the country. It plans to offer benefits to foreigners investing at least $20 million in new projects in the country.

The law is also aimed at stimulating further activities of investors, providing a mechanism for the investment incentives provision through concluding investment contracts, as well as ensuring the state support for investors and implementing investment projects in important sectors.