President of Kazakhstan Kassym-Jomart Tokayev held the 36th plenary session of the Foreign Investors Council
October 31, 2024
Welcoming the participants of the event, President Kassym-Jomart Tokayev noted that the Council has become the most important dialogue platform for discussing issues of improving the investment climate.
Referring to data from the International Institute for Management Development (IMD), he emphasized that our country has entered the top 35 competitive countries in the world.
-“We have set ourselves a rather ambitious goal – to attract an additional $150 billion in foreign direct investment by 2029. To achieve this goal, the Investment Headquarters under the Government has been granted expanded powers to promptly resolve emerging issues. In May of this year, I signed a Decree that strengthened the basis for significant liberalization of the national economy. We will continue consistent systemic steps aimed at improving the working conditions for investors in the country,” the Head of State said.
Kassym-Jomart Tokayev emphasized that Kazakhstan has a unique mineral resource base and spoke about measures to improve the efficiency and transparency of processes in the field of geological exploration and mining. According to him, over the past 6 years, Kazakhstan has attracted private investment in geological exploration in the amount of more than $ 1 billion. Currently, about 1.6 million square kilometers of the country’s territory are open for obtaining subsoil use rights for geological exploration.
– The recently adopted National Infrastructure Plan until 2029 opens a “window of opportunity” for local manufacturers. About 200 large infrastructure projects will be implemented, estimated at more than $ 86 billion. The government will form a list of goods for localization of off-take contracts. Highly skilled labor is needed for industrial growth. That is why I declared 2025 the Year of Blue-Collar Professions. We are looking for investors ready to improve the quality of technical and vocational education in Kazakhstan and develop the corresponding infrastructure, – the President said.
Describing the situation in the energy sector, the Head of State noted the merits of international oil companies, which played an important role in the development of the country.
– Foreign investors invested capital, provided advanced technologies and highly qualified labor. Their investments contributed to the growth of our energy sector: over the past 30 years, oil production has tripled. Thanks to this, Kazakhstan entered the top five countries with high rates of oil production growth. Speaking about the future, we set a goal to exceed the threshold of 100 million tons per year, – the President said.
As noted further, the expansion of the petrochemical industry is also key to diversifying the economy.
– In 2022, we launched the largest polypropylene plant in Central Asia with a capacity of 500 thousand tons per year. Currently, this enterprise covers almost 60% of domestic demand and exports products to Europe, Turkey and China. In September of this year, the construction of a polyethylene plant with a capacity of 1.2 million tons per year began. A number of petrochemical projects worth over $14 billion are being developed, – said Kassym-Jomart Tokayev.
Particular attention in the speech was paid to increasing the investment attractiveness of the “clean energy” sector. In particular, specific agreements were reached on the implementation of 43 GW of “green” projects in Kazakhstan with such global companies as Total, Svevind, ACWA Power and Masdar. In addition, Kazakhstan has enormous potential for the development of nuclear energy.
– Our country is the world’s largest uranium producer. As you know, recently in a national referendum, citizens supported the construction of the first nuclear power plant, which will serve as a long-term investment in our energy security. We are currently considering the possibility of creating an international consortium to implement this project, – added the President of Kazakhstan. The next industry worthy of the attention of investors was named the agro-industrial sector.
– The development of agriculture in Kazakhstan is a strategic priority for ensuring food security in the Central Asian region. Our country ranks sixth in the world in terms of agricultural land area, which is more than 200 million hectares. Over the past six years, industry exports have doubled, exceeding $5 billion. As we strive to transform the agro-industrial complex into a high-tech sector, more than 100 projects worth $5 billion will be implemented with the participation of foreign investors, the Head of State said.
In the transport and logistics sector, Kazakhstan aims to strengthen its position as a key Eurasian transit hub. The country plans to repair 11 thousand kilometers of old railways and build more than 5 thousand new ones. The priority is the development of the Trans-Caspian international transport route, so key attention is paid to investments aimed at developing its infrastructure through the construction of new cargo terminals and the production of transport vessels.
Kassym-Jomart Tokayev specifically focused on the issues of protecting the rights of investors and improving regulatory policy. It was noted that one of the objectives of the ongoing modernization of the legal and judicial system is to create a favorable investment climate. Digital interaction between the Government and investors is expanding. By the end of the year, it is planned to launch the National Digital Investment Platform, which will allow monitoring the implementation of projects in real time. The new Tax Code will help activate the investment cycle by establishing tax preferences, the essence of which is the right to deduct all costs associated with the purchase of machinery, equipment and software. In the context of strengthening cooperation in the financial sector, Kazakhstan places emphasis on the work of the Astana International Financial Centre. AIFC is a unique institution for the region, which brings together the best practices of the world’s leading financial centres.
In conclusion, the President stated the importance of continuing the dialogue between the Council members and government agencies aimed at improving the investment climate in the country, implementing new initiatives and specific projects. The event was also attended by EBRD President Odile Renaud-Basso, Deputy Prime Minister, Minister of National Economy Nurlan Baibazarov, Chairman of the Board of the Kazakhstan Foreign Investors Council Association Yerlan Dossymbekov, Vice President of CNPC Zhang Daowei, Chairman of the Management Board of the EDB Nikolay Podguzov, President of Alstom for Africa, Middle East and Central Asia Andrew DeLeoni, and Chief Executive Officer of PJSC Lukoil Vadim Vorobyov.