Kazakhstan looks to boost economic relations with the UAE as it eyes $1bn of bilateral trade, according to a government minister.
Arman Shakkaliyev, Minister of Trade and Integration of the Republic of Kazakhstan, stated that investment from the UAE can help boost bilateral trade relations.
“We get some great plans to unlimit our trade for three times to $1bn,” Shakkaliyev said on the sidelines of the UNCTAD’s 8th World Investment Forum, which came to a close on 20th October In Abu Dhabi.
UAE-Kazakhstan trade
During the forum, Shakkaliyev said:’’ We discussed investment in environmental, social and governance (ESG) and climate change agenda and as a representative of Kazakhstan, I showed our plans about new trade roads from the Caspian Sea to Abu Dhabi and Dubai ports in the UAE.
“It is very important that new road connects Central Asia as an agricultural hub and give us new challenges to open regional markets. I think that this type of events gives us clear understanding of what conditions under which governments invite investors.
“The key direction of Kazakhstan’s investment policy is to increase competitiveness, create optimal conditions for investors, and attract investment in non-resource-based export-oriented sectors of the economy”.
The government minister noted that last year, Kazakhstan implemented 46 investment projects with the participation of foreign capital worth $4bn, generating 6,500 jobs.
Speaking about investment environment in Kazakhstan, Shakkaliyev said a system of investment preferences has been established by law, providing for exemption from customs duties, various tax benefits (subsidies, exemption from corporate income tax, VAT, land tax and property tax), in kind grants and non-financial.
He said: “Infrastructure and a wide range of investment preferences have been created in the territories of 14 special economic zones.
“A new tool of state support has been introduced and an investment agreement, which can be concluded directly with the Government, gives individual benefits and legislative stability for up to 25 years.”
In this regard, he added: ‘’ We are focused on attracting investment in the development of transport and logistics. Kazakhstan has become a vital transport and logistics centre in Eurasia, offering 11 international transit routes, five railways and six roads.”
This has resulted in transportation time being cut by more than half compared to sea routes from Asia to Europe.
‘’We have started to work with large logistics companies such as Simatech Shipping and Forwarding and Abu Dhabi Ports Group to develop a new transport route for the supply of agricultural goods from the Kazakh port of Kuryk to the Gulf countries.
“This route will allow Kazakh exporters to deliver their goods in three days through UAE ports and onwards to all key ports in India, Pakistan, Asia-Pacific countries and the east coast of Africa.
“In addition, we are interested in implementing joint investment and technological projects in the agro-industrial complex of Kazakhstan.
“As one of the world’s largest agricultural exporters, Kazakhstan is committed to using its agricultural potential to address global food shortages.
“Kazakhstan strives to facilitate investment and trade through the application of the core principles of transparency, predictability and efficiency in trade and investment processes.
‘’Improving the investment climate, opening dialogue with investors, improving infrastructure to attract investment are the strategic directions of the Government’s work, and one of the most important conditions for the success of the modernisation course being carried out in the country”.
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