The outlook for global investment for 2019 can be described as cautiously optimistic. This year has not been straightforward for investors due to geopolitical uncertainties, economic downturns in certain regions and unpredictable decision-making from some state leaders.
Most notably, the UK’s exit from the European Union, trade wars between the U.S. and China, as well as sanctions between Russia and the EU, have created considerable barriers for international investors.
All of this means that investing in 2019 is unlikely to get easier, especially in regions where uncertainties will be felt the most.
Investors should therefore consider markets known for their long-term stability, as well as a secure and business-friendly investment climate.
One country that meets such standards is Kazakhstan. Our nation is at the crossroads between Europe and Asia. For centuries, it has been critical to East-West trade routes. With low production costs, abundant natural resources and direct access to a rapidly growing regional market of 500 million people, our nation is ready to do business.
What is more, the World Bank estimates that there are over 5,000 unexplored deposits of mineral reserves still present in Kazakhstan, valued at over $46tr. Advanced technologies are central to our modern world – high frequency lasers, x-ray machines, electric vehicles, and advanced robotics are all heavily dependent on the rare earth metals that Kazakhstan can extract and process.
As many will be aware, Kazakhstan is playing a crucial role in China’s One Belt One Road initiative, which creates many opportunities for investors in the infrastructure, logistics and transportation sectors.
Kazakhstan is central to the New Silk Road project, as major international transport corridors such as “Western Europe-Western China”, “TRACECA” and the “Trans-Caspian International Transport Route” will run through Kazakhstan, cutting the time it takes to move goods between Asia and Europe by two-thirds.
The government has placed a particular focus on agribusiness, where Kazakhstan has unparalleled potential. We are one of only a handful of countries globally with exactly the right conditions for growing wheat and grain without artificial irrigation. What is more, Kazakhstan’s arable land represents an area larger than the entire United Kingdom, meaning there is incredible potential for investors willing to think big.
Undoubtedly, the attractions are obvious. Kazakhstan offers global investors a stable political, social and economic climate with a rising, highly-educated middle class and robust GDP growth.
The government of Kazakhstan is aware that there is strong global competition for attracting high-quality investment. For this reason, investment and tax benefits are being offered to investors, especially for priority projects. These include exemptions from corporate income tax for up to 10 years, from land tax for up to 10 years and from property tax for up to eight years.
The launch of the Astana International Financial Centre (AIFC) this year is transforming Astana into a regional financial centre. It is governed by English common law and English is also the official language of the AIFC. It offers tax exemptions for participants for 50 years, a simplified visa and employment regime, and will connect Astana with other global financial centres such as Dubai, Singapore, London and New York.
Of course, it is not enough for companies to simply recognise the opportunities that are on offer, they also need to receive timely and impartial support when considering investing.
Kazakh Invest was established to meet such investor needs. We provide end-to-end support to overseas investors and businesses seeking to capitalise on Kazakhstan’s progressive, business friendly environment. Our dedicated team of specialists offer timely and impartial advice on key investment projects across a range of national industries. We have international representatives in many of the world’s leading economic centres and act as a single point of contact for businesses setting up or investing in Kazakhstan.
Even though many countries around the world are putting up barriers and creating obstacles for investors, businesses should feel confident that Kazakhstan will continue to actively facilitate and support global investment.
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