Transcript Welcome to Kazakhstan - Embassy of Kazakhstan in the UK

National Export & Investment Agency “KAZNEX INVEST”
Ministry of Investment and Development
Why Kazakhstan is attractive
for foreign investors?
Stable macroeconomic indicators and high growth
GDP (bln.USD)
225.6
200.0
150.0
100.0
16.9
50.0
0.0
16.0
14.0
12.0
10.0
8.0
6.0
4.0
2.0
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
Birth rate (per 1000 people)
25.0
18.8
20.0
15
15.0
8.4
0
1999
2001
2003
2005
2007
2009
2011
22.7
2013 2014f
16.0
14.0
672
2005
2007
2009
2011
2013
2014f
Unemployment rate (%)
13.5
8.0
5.2
6.0
4.0
5.0
2.0
0.0
0.0
1999
2001
2003
2005
2007
2009
2011
1999
2013
2001
2003
2005
2007
2009
2011
2013 2014f
Unemployment rate from 1999 to 2013 decreased by 8%
Gross International Reserves and
Assets of the National Fund of RK
(bln.USD)
120.0
Government External Debt to GDP (%)
102.5
20
17.1
15
80.0
500
400
60.0
300
40.0
100
2003
100.0
600
200
2001
10.0
10.0
Average monthly nominal wage (USD)
700
4.6
12.0
14.6
Inflation from 1999 to 2013 decreased by 13%
800
2.7
1999
2013 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)
250.0
99
0
20.0
0.0
1999 2001 2003 2005 2007 2009 2011 2013 2014
Average monthly nominal wage increased by 6.8 times
10
2.6
5
2.0
1999 2001 2003 2005 2007 2009 2011 2013 2014
0
2001
2003
2005
2007
2009
2011
2013
Government External Debt decreased by 14%
The total amount of gross FDI from 2005 to
2014 amounted to $207.6 billion.
Source: National Bank of the RK, Committee on Statistics of the Ministry of National Economy of the RK, IMF
FDI attraction
FDI in the manufacturing sector
6.1 $ bln.
FDI in the manufacturing sector
17.6 $ bln.
74%
26 %
26.5
19.4
21.3
21.4
28.9
24.0
22.2
23.9
12.1
7.9
0.3
5.7
0.7
1.1
2.1
1.8
2.2
Manufacturing
3.5
2.5
3.7
Total
Since 2005, gross inflows of FDI in the manufacturing sector amounted to $ 23.7 billion, of which:
From 2010 to 2014 gross inflow of FDI in the manufacturing industry was 17.6 billion USD, which corresponds to
74% of total FDI inflows in the manufacturing industry since 2005.
Source: National Bank of the RK
Natural resources
Kazakhstan in the world ranking for reserves
1
2
8
12
5
7
10
11
12
13
14
11
Kazakhstan in the world ranking for production
1
10
18
13
3
11
12
9
12
11
10
18
Source: U.S. Geological Survey, Mineral Commodity Summaries 2014; BP Statistical Review of World
Energy, June 2014; U.S. Energy Information Administration, Independent Statistics and Analysis; The
Global Source, The Silver Institute; Thomson Reuters GFMS, Gold Survey 2013 Update 1.
Political stability and good investment climate
Doing Business 2015
The Global Competitiveness
Index 2014-2015
Italy - 56
Russia - 62
Kazakhstan – 77 rank
China - 90
China – 28
Italy – 49
Kazakhstan – 50 rank
Russia– 53
Protecting Minority Investors
Protecting Investors
Italy - 21
Kazakhstan – 25 rank
Russia – 100
China – 132
Kazakhstan – 22 rank
Italy - 45
China – 83
Russia– 98
Taxation
Trust in political institutions
index
Kazakhstan – 17 rank
Russia – 49
China – 120
Italy – 141
China – 26
Kazakhstan – 34 rank
Russia – 74
Italy – 139
Platforms for dialogue between
public authorities and investor
Foreign Investors’ Council chaired by
the President
on strategic
issues
Council for improvement of
investment climate chaired by the
Prime Minister
on systemic
issues
Investment Ombudsman chaired by
the Minister on Investments and
Development
on current
problems of
investors
Source: World Bank, Doing Business 2015;
World Economic Forum, Global Competitiveness Report 2014-2015
Priority sectors
1
Metallurgy
2
1. Ferrous metallurgy
2. Non-ferrous
metallurgy
4
Machinery
7. Manufacture of motor
vehicles
8. Electrical equipment
9. Agricultural machinery
engineering
10. Railway machinery
engineering
11. Mining equipment
12. Oil producing
equipment; oil and gas
refining equipment
Chemical Industry
3. Agricultural chemistry
4. Production of
chemicals for industry
5
Production of
construction materials
13. Production of
construction materials
3
Petrochemical Industry
5. Oil refining
6. Petrochemical industry
6
Food Industry
14. Food production
Industrial niches
MMC - $12.7 bln.
Import
Domestic
production
3.8
8.9
Chemical Industry - $1.7 bln.
Machinery Industry - $10.3 bln.
Domestic
production
2.1
8.2
Domestic
production
Foodstuffs - $3.8 bln.
Import
Import
Construction materials - $1.3 bln.
Import
0.34
2.6
Domestic
production
Petrochemicals - $0.5 bln.
0.05
Import
0.6
1.1
1.2
Domestic
production
0,6
Import
0.94
Oil refining - $1.7 bln.
Domestic
production
0.6
1.1
0.4
Domestic
production
Import
Support for investors
INVESTMENT PREFERENCES*
NEW INCENTIVES (since 2014)*
Tax benefits
•CIT – 0 % 10 years
•Land tax – 0% 10 years
•Property tax– 0% 8 years
Investment
reimbursement
Up to 30% of construction and installation
works and equipment
Migration benefits
The right to employ foreign labor without
quotas and permits
Visa-free travel for citizens of 10 countries
Stable legislation
Stability of tax legislation for all taxes except
VAT and excise (subject to investment
contract)
INCENTIVES
Customs privileges
Customs duties 0% on the import of:
• equipment and its components,
• spare parts,
• raw materials and supplies.
State in-kind grants
Land plots, buildings, machinery and
equipment in property.
*for priority investment projects
Priority types of activities:
1. Metallurgy
2. Chemical Industry
3. Petrochemical Industry
4. Machinery
5. Production of construction materials
6. Food Industry
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
Market of the macro-region
Kazakhstan is a member of the Customs Union with Russia and Belarus:
- free trading without customs duties
- access to population over 170 mln. people
1
2
1st level
Border regions of Russia
3
5
4
2nd level
 Russia
 Ukraine
 Belarus
5th level
 Iran
 Azerbaijan and other
Caucasian countries
Level of integration of the macro-region
High
Low
3d level
Western regions of
China
4th level
 China
 Uzbekistan
 Tajikistan
 Turkmenistan
 Kyrgyz Republic
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 East to West, from North to South.
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 (1,243 miles) from Kazakhstan.
The flight time from most European destinations is five hours.
Western Europe – Western China
corridor (8,445 km=5,247 miles)
Western Europe – Western China
corridor on the territory of Kazakhstan
(2,787 km=1,732 miles)
Infrastructure
CONSTRUCTION OF TRANSPORT AND LOGISTICS INFRASTRUCTURE
Petropavlosk
Kostanay
EUROPE, RUSSIAN FEDERATION
Kokshetau
Rudniy
Uralsk
Pavlodar
Ekibastus
Aktobe
Oskemen
Astana
Semey
Temirtau
Karaganda
Atyrau
Aktau
seaport
Aktau
Taldykorgan
CHINA
Kyzylorda
Khorgos dry port
Taraz
IRAN
Shymkent
TURKMENISTAN, IRAN
Population
100 000 – 200 000
200 000 – 500 000
Almaty
Turkestan
Electrified, high-speed line (1,320 km=820 miles )
500 000 – 1 000 000
> 1 000 000
Freight and passenger line
Constructed in 2010-2014
Western Europe – Western China
corridor (2,787 km)
National Export & Investment Agency “KAZNEX INVEST”
Ministry of Investment and Development
Thank you
for your attention