Investment climate kazakhstan

“NATIONAL EXPORT AND INVESTMENT AGENCY “KAZNEX INVEST” JSC

Ministry of Industry and New Technologies of the Republic of Kazakhstan

Factors of attractiveness of the investment climate

in Kazakhstan

KAZAKHSTAN

“NATIONAL EXPORT AND INVESTMENT AGENCY “KAZNEX INVEST” JSC | Ministry of Industry and New Technologies of the Republic of Kazakhstan

Territory: 2.7 mln. sq. km.

Population: 17 mln

GDP, 2012: $ 199,5 bill

GDP per capita, 2012: $ 12 068

Major languages• Kazakh (state language)• Russian (official, business language)• English, Chinese (young generation)

Main ethnic groups:• Kazakhs: 65%• Russian: 25%• Other: 10%

Source: The Agency of Statistics of the Republic of Kazakhstan

KAZAKHSTAN: YOUR GATEWAY TO 3/5 BRICS OR TO 3 BILLION PEOPLE


K A Z A K H S T A N

47

5 5.

4 5.

4 5.

4

T h e a v e r a g e m i n i m u m d u r a t i o n o f f l i g h t s t o m a j o r c e n t e r s o f e c o n o m i c a c t i v i t y ( i n h o u r s )

MANY FOREIGN COMPANIES HAVE ALREADY INVESTED IN KAZAKHSTAN

• SLIDE TEXT


FDI FLOWS INTO KAZAKHSTAN


Gross FDI inflows - $ 172,3 bln., from which 64% were attracted between

the period 2009 – 2q. 2013 ($ 111,6 bln.)

Structure of FDI by types of economic activities in bln. $ and %Structure of FDI by types of economic activities in bln. $ and %

1 half of 2012, bln. $ 1 half of 2012, bln. $ 1 half of 2013, bln. $ 1 half of 2013, bln. $

FDI in manufacturing for 2009 – 2q. 2013 in mln. $FDI in manufacturing for 2009 – 2q. 2013 in mln. $

7%

8%

18%

47%

Source: National Bank of the RK

Gross FDI inflows and outflows for the period 2005 – 2q. 2013, bln. $

Gross FDI inflows by countries for the period 2009 – 2q. 2013, bln. $

KAZAKHSTAN HAS ATTRACTED GREATEST FDI PER CAPITA IN CIS


Accumulated FDI in the CIS,2000-2011, bln. USD

FDI in the CIS countries per capita,2011, USD

Source: UNCTAD Stat

*Compound annual growth rate

CAGR*

WHY IS KAZAKHSTAN ATTRACTIVE FOR FOREIGN INVESTORS?


4 Springboard to circa 3 billion potential customers

▪ 3 of the 5 BRICS countries are in 4 hours flight

▪ Customs Union (Kazakhstan, Russia, Belarus) with a population of 170 million and a total GDP of 2 trillion.

▪ Open economy (trade 70% of GDP)

▪ Entry into the WTO is expected in 2014 - 2015

Political stability and good investment climate1

▪ A high level of trust in political institutions and the effective allocation of funds (WEF 2012) in comparison with the countries of the CIS.

▪ Ease of Doing Business (49 on the list of World Bank Doing Business 2013: 10 place in the investor protection and 17 place in the payment of taxes).

Stable macroeconomic indicators and high growth3

▪ GDP growth: 5.5% (IMF 2012)

▪ Low debt / GDP ratio: 15.8% (IMF 2012)

▪ Budget deficit: 2.5% (IMF 2012)

▪ Inflation rate: 6.0% (IMF 2012)

2Regionally attractive fiscal and non-fiscal regime and protection of foreign investment

▪ Attractive corporate tax rate (20%) and low VAT (12%)

▪ Fiscal and non-fiscal incentives for investors, including in SEZs

▪ 48 bilateral agreements on mutual protection of investments (US also)

▪ Main international arbitration instruments ratified

HIGH CONFIDENCE IN POLITICAL INSTITUTIONS AND EFFECTIVE MANAGEMENT OF PUBLIC FUNDS


27

37

43

44

45

47

54

63

86

88

90

106

115

120

121

126

139

8

13

19

23

29

32

56

75

79

100

105

106

109

110

122

The index of trust political institutions Place in the ranking

Government provision of services for improved business performance

Place in the ranking

Source: The Global Competitiveness Report 2012-2013

DOING BUSINESS IN KAZAKHSTAN IS MUCH EASIER THAN IN MOST EMERGING MARKETS


1

4

20

49

58

70

73

91

112

130

132

137

141

154

Doing Business 2013Country rank

Place in the ranking

Source: World Bank Doing Business 2013

INVESTMENT PREFERENCES

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LAW OF THE RK DATED AS 21.07.11 № 469 «ON INVESTMENTS»

Preferences for projects in priority sectors

Exemption from customs duties on equipment, components, raw materials and spare parts imported

for a project

In-kind state

grants

CRITERIA for investment projects:Corresponds to the List of priority activities

Tax allowances as per Tax code of the RK (deductions of

the value of the preference objects, and (or) further costs

to modernization up to 3 years)

Preferences for strategic investment projects *

Land , property tax 0% for up to 7 years

Guaranteed state orderIndustrial subsidies for areas with low

socio-economic development

Corresponds to the List of priority activities

The volume of investment exceeds 50 million USD OR

Corresponds to the List of high-technology products

SECTOR-SPECIFIC INCENTIVES IN 10 DEDICATED SEZS ACROSS COUNTRY

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SEZ “Petrochemical park”(Oil and gas industry, petrochemicals)

SEZ “Burabai”(Tourism)

SEZ “Astana new city”(construction industry)

SEZ “Pavlodar”(chemical industry)

SEZ “Saryarka”(metallurgy)

SEZ “Khorgos Eastern Gate”(Trade, logistics)

SEZ “Innovation TechnoPark”

(IT-industry, innovations)SEZ “Chemical park

Taraz” (chemical)

SEZ “Ontystik” (textile industry)

SEZ “Marine Port Aktau”

(logistics, transport)

Aktau

Atyrau

AstanaPavlodar

Karaganda

Shymkent

Taraz Almaty

ATTRACTIVE INVESTMENT INCENTIVES IN SEZS


FISCAL INCENTIVES in SEZs

• 0%Corporate Income Tax until 2020-2025 with possibility for extension

• 0% for land and property tax until 2020-2025 with possibility for extension

• VAT– 0% (for products consumed in SEZ) until 2020-2025 with possibility for extension

• Increase of marginal rate of depreciation for tax on the production of software to 40%

• For SEZ “Innovation technopark” – social tax is 0% for 5 years, under certain conditions

• For SEZ“Innovation technopark”– depreciation rate for software increased to 40 %

NON-FISCAL INCENTIVES

• Provision of free land in SEZ for a period of up to 10 years from registration time as SEZ resident

• Simplified procedure for the recruitment of foreign labor

KAZNEX INVEST: YOUR ONE-STOP-SHOP FOR INVESTING


P r o v i d i n g i n f o r m a t i o n a b o u t b u s i n e s s / i n v e s t

p r o j e c t s a n d a n a l y t i c a l i n f o r m a t i o n

A s s i s t i n t h e s e l e c t i o n o f p r o j e c t s o f A I I D H e l p i n c h o o s i n g a p a r t n e r

A s s i s t a n c e i n a d m i n i s t r a t i v e m a t t e r sO r g a n i z a t i o n o f m e e t i n g s

w i t h o f f i c i a l s

C O M P R E H E N S I V E A S S I S T A N C E T O F O R E I G N I N V E S T O R S

A s s i s t a n c e i n o b t a i n i n g s t a t e s u p p o r t f o r i n v e s t o r s

Assist in the selection of projects of State program of accelerated

industrial-innovative development of the Republic of Kazakhstan for 2010-

2014

АКЦИОНЕРНОЕ ОБЩЕСТВО «НАЦИОНАЛЬНОЕ АГЕНТСТВО ПО ЭКСПОРТУ И ИНВЕСТИЦИЯМ «KAZNEX INVEST» | МИНИСТЕРСТВО ИНДУСТРИИ И НОВЫХ ТЕХНОЛОГИЙ РЕСПУБЛИКИ КАЗАХСТАН

ЗАГОЛОВОК СЛАЙДА

• ТЕКСТ СЛАЙДА

www.invest.gov.kz

THANK YOU!

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

Investment climate kazakhstan

Economy & Finance

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