Kazakh President Kassym-Jomart Tokayev has signed a landmark decree on Dec. 4 regarding measures to increase the efficiency of attracting investment into Kazakhstan’s economy and accelerating economic growth, reported the Akorda press service. The decree outlines a comprehensive plan to empower the Investment Promotion Council (Investment Headquarters) with unprecedented authority.
The strengthened powers of the Investment Headquarters come as part of a broader strategy to enhance the investment climate in Kazakhstan. Recent amendments to the Tax Code and corresponding changes to the Government Decree on State Support for Investments have already provided investors with increased flexibility in choosing investment directions and fostering active participation in various sectors of the economy.
The Investment Headquarters has been granted the authority to propose disciplinary actions, including the dismissal of heads of government bodies and quasi-public sector entities for non-compliance with its decisions. This enhanced oversight is intended to ensure strict investment initiative adherence and bolster investor confidence.
Chebotyrev emphasized the need for appropriate legislative amendments, stating, “Investments come when investors have firm confidence in the successful completion of all plans and projects. Investments always mean new jobs, new knowledge, and new technologies. These are new opportunities for the citizens of the country.”
According to the World Investment Report 2023, published by the UN Conference on Trade and Development, Kazakhstan saw an 83% increase in net foreign direct investment (FDI) flows, reaching $6.1 billion, despite a sharp decrease in global investment flows in 2022. Kazakhstan is leading in attracting FDI among post-Soviet Central Asian countries, securing a 61% share.
Chebotyrev points to data from the National Bank, illustrating a steady FDI influx into the Kazakh economy. Specifically, in 2021, the figure reached $23.8 billion, surpassing $28 billion in 2022 and registering $13.3 billion for the first half of 2023. According to the expert, these investments are predominantly directed towards extracting raw materials.
“Breaking down the numbers for 2022, the oil and gas sector secured the lion’s share, attracting $9.6 billion in investments. Metallurgy followed with just over $4 billion, while the electricity sector received $635.6 million, and the food and beverage production sector obtained a more modest sum of $177.9 million,” he wrote.
In this regard, the President’s decree aims to redirect investment into key sectors, particularly manufacturing, to ensure the sustainable development of the economy. The measures outlined in the decree are expected to streamline decision-making processes, promote accountability, and create a more favorable investment environment for both domestic and foreign investors.
The Embassy of the Republic of Kazakhstan in the Kingdom of Sweden and in the Kingdom of Denmark was opened on March 8, 2014 by direct decree of the President of the Republic of Kazakhstan with a view to strengthening diplomatic relations. The site is introduced to keep the wide public informed on activity of the diplomatic mission in Sweden, and to provide information support for the citizens of Kazakhstan who live in Sweden and foreigners who are going to visit Kazakhstan as tourists or businessmen.