Transcript Welcome to Kazakhstan

National Export & Investment Agency “KAZNEX INVEST”
Ministry of Investment and Development
Kazakhstan’s attractiveness
for foreign investors:
current status
Stable macroeconomic indicators and high growth
GDP (bln.USD)
225.6
200.0
150.0
100.0
50.0
16.9
0.0
13.0
1.1
1999
1999 2001 2003 2005 2007 2009 2011 2013 2014f
GDP from 1999 to 2013 increased by 14 times
2001
18.1
2003
2005
2007
2009
2011
2013
Birth rate (per 1000 people)
25.0
18.8
20.0
15
15.0
8.4
22.7
2001
2003
2005
2007
2009
2011
2013
717
2007
2009
2011
2013
2014f
14.0
0.0
1999
2001
2003
2005
2007
2009
2011
1999
2013
Gross International Reserves and
Assets of the National Fund of RK
(bln.USD)
120.0
60.0
40.0
20.0
0.0
1999 2001 2003 2005 2007 2009 2011 2013
Average monthly nominal wage increased by 7.2 times
2001
2003
2005
2007
2009
2011
2013
2014f
Unemployment rate from 1999 to 2013 decreased by 8%
300
0
5.2
2.0
0.0
400
99
Unemployment rate (%)
13.5
4.0
Government External Debt to GDP (%)
95.5
20
17.1
15
80.0
500
100
2005
6.0
100.0
600
200
2003
8.0
Average monthly nominal wage (USD)
700
2001
10.0
5.0
2014f
16.0
Inflation from 1999 to 2013 decreased by 13%
800
4.6
12.0
14.6
10.0
0
1999
2.7
1999
2014f
10
5
16.0
14.0
12.0
10.0
8.0
6.0
4.0
2.0
0.0
GDP per capita from 1999 to 2013 increased by 12 times
Inflation (%)
20
GDP growth (%)
GDP per capita (ths.USD)
16.0
14.0
12.0
10.0
8.0
6.0
4.0
2.0
0.0
250.0
10
2.6
5
2.0
1999
The total amount of gross FDI from 2005 to
2013 amounted to $184 billion.
Herewith, the average annual growth rate of
gross FDI is 17.4%.
2001
0
2003
2005
2007
2009
2011
2013
Exchange rate regime - floating
2001
2003
2005
2007
2009
2011
Government External Debt decreased by 14%
Free exchange
Source: National Bank of the RK, Committee on Statistics of the Ministry of National Economy of the RK, IMF
2013
Priority sectors
1
Metallurgical Complex
2
1. Ferrous metallurgy
2. Non-ferrous
metallurgy
4
Chemical Industry
6. Agrochemistry
7. Production of
chemicals for industry
Oil refining Complex
3. Oil refining
4. Petrochemistry
5
Industrial Production
8. Manufacture of motor
vehicles
9. Electrical equipment
10. Agricultural machinery
engineering
11. Railway machinery
engineering
12. Mining equipment
13. Oil producing
equipment; oil and gas
refining equipment
3
Food processing
Industry
5. Manufacture of food
products
6
Production of
construction materials
14. Production of
construction materials
Support for investors
INVESTMENT PREFERENCES*
Tax benefits
Investment
reimbursement
Customs privileges
State in-kind grants
Migration benefits
•CIT – 0 % 10 years
•Land tax – 0% 10 years
•Property tax– 0% 8 years
Up to 30% of construction and installation
works and equipment
Customs duties 0% on the import of:
• equipment and its components,
• spare parts,
• raw materials and supplies.
Land plots, buildings, machinery and
equipment in property.
The right to employ foreign labor without
quotas and permits
Visa-free travel for citizens of 10 countries
*for priority investment projects
Priority types of activities:
1. Metallurgy
2. Oil refining
3. Food production
4. Chemical industry
5. Machinery industry
6. Production of construction materials
SPECIAL ECONOMIC ZONES
Tax benefits
Customs privileges
Exemption from customs duties
for goods imported into SEZ
territory
CIT – 0%
Land tax– 0%
Property tax– 0%
VAT – 0% (on all goods
completely consumed in the
production process)
SEZ
Other privileges
Providing the land in the territory
of the SEZ for a period of up to
10 years
Simplified procedure
for recruiting foreign workers
SEZ
SEZ
SEZ
SEZ
SEZ
SEZ
SEZ
SEZ
SEZ
The "one window" principle for the investor and
service support for investment
Assistance in obtaining the
required approvals and
permits
Provision of services to
foreign investors and
representatives of
Kazakhstan business
Information, consulting,
organizational and other
assistance to the investor
Support for investment
project till the start of the
production
Investment
SPECIAL ECONOMIC ZONES (10 ZONES)
SEZ «Burabai»
Tourism
SEZ «Pavlodar»
Petrochemistry
SEZ «Astana
New city»
Mixed
SEZ «NIPT»
Petrochemistry
SEZ «Saryarka»
Metalurgy
SEZ «Khorgos – Eastern
Gate» Logistics
SEZ «Seaport Aktau»
Mixed
SEZ «Chemical
Park Taraz»
Chemistry
SEZ «Ontustik»
Textiles
SEZ «Park of Innovative
Technologies»
IT - Innovations
Infrastructure
LOCATION AND INFRASTRUCTURE
St. Petersburg
BELARUS
9.5 mln.
RUSSIAN FEDERATION
143.5 mln.
Aktobe
KAZAKHSTAN
17 mln.
MONGOLIA
2.8 mln.
Shymkent
TURKEY
74.9 mln.
PEOPLE’S REPUBLIC
OF CHINA
1.4 bln.
IRAN
77.4 mln.
PAKISTAN
182.1 mln.
•
•
•
•
Lianyungang
INDIA
1.3 bln.
The Kazakhstan’s geographical position makes it a natural crossroads for major
transit corridors from Asia to Europe.
The transcontinental automobile road corridor “Western Europe – Western China”
passes through the territory of Kazakhstan. The corridor will allow to deliver
freights from China to Europe in 10 days.
There is a territory with population of more than 3.3 bln. people within a radius of
2 thsd. km from Kazakhstan
The flight time from most European destinations is five hours.
Western Europe – Western China
corridor (8,445 km)
Western Europe – Western China
corridor on the territory of Kazakhstan
(2,787 km)
Economy
FDI ATTRACTION
FDI in the manufacturing sector 15.4 $ bln.
FDI in the manufacturing sector 6.1 $ bln.
72%
28 %
26.5
19.4
21.3
21.4
28.9
24.0
22.2
12.4
12.1
7.9
5.7
0.3
0.7
1.1
2005
2006
2007
2.1
1.8
2.2
2008
2009
2010
Manufacturing industry
Source: National Bank of the RK
2011
Total
3.5
2.5
2012
2013
1.5
1H 2014
Economy
CUMULATIVE FDI INFLOW BY COUNTRIES 2005 – 1H 2014
Main countries USD: 149.2 billion
Total USD:
196.1 billiion
60.0
53.2
28.9%
50.0
40.0
30.0
20.0
10.0
3.1
1.7%
4.3
2.3%
4.3
2.3%
0.0
Source: National Bank of the RK
5.2
2.8%
7.9
4.3%
9.6
10.5
5.2%
5.7%
10.6
5.8%
11.2
6.1%
11.4
6.2%
17.9
9.7%
Industries
Machinery
2010-2014
•SKD assembly of motor vehicles
2015-2019
Production of car parts and accessories :
Automobile Production
•CKD assembly of motor vehicles
Railway Machinery
Production of locomotives and wagons:
Manufacture of electric motors, increasing localization:
Machinery for Mining
Production of equipment:
Aviation Machinery
Production of helicopters:
Chemical Industry
The production of chemical additives, sodium
hexametaphosphate industrial gases, sulphuric acid, ammonia
and ammonium nitrate:
The production of ethanol based on the processing of the
industrial gases, the production of bioethanol from spent grain,
mixing special chemicals for oil extraction and refining:
Professional training, production of generic products:
Professional training, production of generics and original
medicines:
Pharmaceutical Industry
Production of equipment:
Production of combines and tractors:
Assistance to foreign investors
1
Provision of information
about business/investment
projects and analytical
information
4
2
5
Foreign investors support
in regions
Assistance in obtaining
state support
for investors
Support of the National
Investment Interactive
Internet Resource
www.invest.gov.kz
3
Organization of business
forums (road show)
6
Support of the Investment
Projects Database
www.baseinvest.kz
National Export & Investment Agency “KAZNEX INVEST”
Ministry of Investment and Development
Thank you
for your attention