Transcript 1 - Switzerland Global Enterprise

Kazakhstan :
NEW OPPORTUNITIES
FOR INVESTMENTS
April 14, 2011
Zurich, Swiss Confederation
Agenda
I. Why Kazakhstan is attractive for investors?
II. Investing in Kazakhstan
III. Contact details
National export and investment agency
Why Kazakhstan is attractive for investors
1.
Natural Resources
•
Kazakhstan has the 6th largest reserve of natural resources in
the world
National export and investment agency
Why Kazakhstan is attractive for investors
2. Stable Macroeconomic Environment
Kazakhstan's GDP, USD billion
GDP, 2009, USD billion
160
132.5
140
120
134
104.9
100
81
80
57.1
60
43.2
40
30.8
20
0
2003
2004
2005
2006
2007
2008
Kyrgyz…
Tajikistan
Moldova
Armenia
Turkmenistan
Uzbekistan
Azerbaijan
Belarus
Kazakhstan
Ukraine
Russia
2009
4
5
6
10
19
30
50
60
134
0
Source: National Bank of RK
National export and investment agency
153
1480
500
1000
1500
2000
Why Kazakhstan is attractive for investors
2. Stable Macroeconomic Environment
GDP per capita, 2009, USD
Kyrgyz Republic
951
Tajikistan
795
Moldova
1809
Armenia
2800
Turkmenistan
4078
Uzbekistan
1100
Azerbaijan
5814
Belarus
6234
Kazakhstan
8547
Ukraine
2797
Russia
10873
0
National export and investment agency
2000
4000
6000
8000
10000
12000
Why Kazakhstan is attractive for investors
3.
•
•
Favorable business climate
FDI records serve as an evidence of a favorable investment
climate.
Kazakhstan attracted more than 118 bln. US dollars if FDI
since 1993.
National export and investment agency
Why Kazakhstan is attractive for investors?
Investor Protection
Country
Strength of investor
protection index (0-10)
New Zealand
9.7
Kazakhstan
5.7
Russia
5.3
Tajikistan
5.3
Ukraine
4.7
Moldova
4.7
Source: National Bank of RK
National export and investment agency
7
Why Kazakhstan is attractive for investors?
3.
•
Favorable business climate
International ratings also serve as an evidence of a favorable
investment climate
Source: National Bank of RK
National export and investment agency
Why Kazakhstan is attractive for investors?
3.
Proximity to Largest Regional Markets
•
Kazakhstan is the continental bridge for goods that move
from East and West, South to North.
3 out of 4 BRIC countries are located near Kazakhstan:
Russia, China and India.
Strategically located between European and Asian business
centers
Serves as a main transit zone in the region
Provides 3 out of 4 Eurasian railways
•
•
•
•
National export and investment agency
Why Kazakhstan is attractive for investors?
3.
Proximity to Largest Regional Markets
National export and investment agency
Why Kazakhstan is attractive for investors
3.
Proximity to Largest Regional Markets
West Europe – West China
– 8 445 км
10 days
Sea route – 24 000 км
30-35 days
National export and investment agency
Why Kazakhstan is attractive for investors?
5.
Market capacity
•
By entering the Customs Union, Kazakhstan creates for
investors a more attractive market of 170 million people and
opens up additional possibilities for effective investment
projects
Unified customs territory
Uniform trade policy
Uniforms customs code
Free trade of goods within the customs area
Free movement of goods, services, labor and capital
•
•
•
•
•
National export and investment agency
Kazakhstan, Russia and Belarus Customs
Union from 2010
Russia
Kazakhstan
Belarus
Market capacity – around 170 mln. people
Total GDP of almost $ 2 trillion U.S
National export and investment agency
Why Kazakhstan is attractive for investors?
6.
Kazakhstan is reducing the negative impact of current
deficiencies
•
In 2010, the State program of accelerated industrial-innovative
development for 2010-2014 was adopted, which aims
•
Infrastructure development
•
Creation of new export-oriented high-tech
manufacturing
•
Strengthening of the national innovative system
•
Improvement of professional skills of local labor
•
State support (preference, privilege, co-financing
etc) is granted to projects in priority sectors (non
raw materials sector) in order to decrease the
investors' expenses
International
Economic
Cooperation
Committee
National export
and investment
agency
State program of accelerated industrialinnovative development for 2010-2014
GOAL
INDICATORS
GDP grown up to 50% than in 2008
Ensure sustainable and
balanced economic growth
through diversification and
competitive recovery.
Increasing of labor productivity in
manufacturing industry up to 50% and in some
sectors up to 100%
Increasing the share of non resource export
up to 40%
Decreasing energy intensity of GDP no less
than 10%
Increasing the share of innovative enterprises
up to10% of active enterprises
National export and investment agency
Priority sectors of economy
Traditional
Mining and Metallurgical Complex
Nuclear industry
Chemical industry
Petrochemicals
Based on domestic demand
Machinery
Construction industry
Pharmaceuticals
Export-oriented
Agro-industrial complex
Light industry
Tourism
Sectors of «the future economy»
Information and Communication Technology Biotechnology
Alternative Energy
Space activities
National export and investment agency
Investing in Kazakhstan – State Support
1.
Foreign Investment Protection Guarantees
•
Kazakhstan has signed agreements on mutual investment
protection with 44 countries
National export and investment agency
Investing in Kazakhstan – State Support
1.
Foreign Investment Protection Guarantees
•
In order to reduce investment risk and guarantee protection to
foreign investments, foreign investors are given national
status (foreign and domestic companies work under equal
conditions)
The Foreign investors’ Council chaired by the President of the
Republic of Kazakhstan was established in 1998, 30th of June
Purpose: promotion of direct dialogue between the
Government of Kazakhstan and foreign investors in order to
efficiently address key issues related to their investment
activities in the country
Council meetings address issues critical to the development
of the country’s economy, investor protection and investment
climate. The Council consists of 29 foreign companies.
•
•
•
National export and investment agency
MAIN INSTRUMENTS OF INVESTOR SUPPORT
Special Economic Zones
Economic
incentives for
investors
Institutional
Support
Service
support for
investors
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Investment Preferences
Special Permanent Commission
on Foreign Investment headed
by Prime Minister of Kazakhstan:
«OMBUDSMEN»
for Investors
National Export and Investments
Promotion Agency:
“ONE STOP-SHOP”
for Investors
National export and investment agency
Investment preferences
Recipients of preferences:

Potential and current investors
Types of preferences:




Exemption from customs duties of
imported equipment and its components
for investment project implementation
Tax incentives for investors
Granting of the state natural grants
value of the objects of preferences and
(or) the following costs for the
modernization and reconstruction can
relate to deductions.
Terms of preferences:
 Priority sectors of the economy
National export and investment agency
Investing in Kazakhstan – State Support
Privileges for Members of Special Economic Zones
Today, there are 6 Special Economic Zones (SEZ) in Kazakhstan
National export and investment agency
Investing in Kazakhstan – State Support
Privileges for Members of Special Economic Zones
•





The members of SEZ enjoy the following privileges:
Corporate income tax exemption
Customs-free policy
VAT exemption on goods and services given on SEZ
territories, made or consumed in activities related to SEZ
creation
0% to the mid-year cost of taxable objects when calculating
property tax
40% in the marginal rate of depreciation used for IT software
National export and investment agency
Institutional Support for Investors
KAZNEXINVEST
www.kaznexinvest.kz
Government of
Kazakhstan (ministries,
agencies etc.
International Economic
Cooperation Committee
IECC.pptx
Embassy of Kazakhstan in
Switzerland
http://www.kazakhstan-bern.ch/
Investor
www.invest.gov.kz
National export and investment agency
“ONE STOP-SHOP” SERVICES FOR FOREIGN INVESTORS
Information on
investment projects
http://www.sendspace.com/file/h57oaq
Assistance in reception of
measures for state
support
Information on investment
opportunities and business
conditions
Assistance in making
decisions on administrative
questions
National export and investment agency
Assistance in a choice of
projects and partners
Organization of meetings
with official
representatives
National investment interactive website
www.invest.gov.kz Niche investment
projects_eng.doc
Website will be available in 12 languages:
English, German, French, Italian, Spanish,
Arabic, Korean, Japanese, Turkish,
Kazakh and Russian.
25
National export and investment agency
More information
• Website includes information on :
• Processing of requests and inquiries of investors and initiators
of the projects online
• Provision of quality and daily updated information on all
aspects of investing in Kazakhstan, including:
• Investment legislation of the Republic of Kazakhstan;
• Business conditions in Kazakhstan;
• Infrastructure conditions;
• Government programs;
• Government support for investors and others.
• The list of investment projects
26
National export and investment agency
For further information:
1.
2.
3.
27
Contact the Embassy of the Republic of Kazakhstan
Visit our website www.mfa.kz
Necessary information for investing in Kazakhstan visit
www.invest.gov.kz
National export and investment agency