Transcript Kazakhstan – 50 rank

Why Kazakhstan is attractive for
investors?
Speaker:
Daniyar Zhomartov
Chief expert of the Committee on investments
of the Ministry of investments and development
of Kazakhstan
Stable macroeconomic indicators and high growth
GDP per capita
GDP
231.9
250.0
16.0
14.0
12.0
10.0
8.0
6.0
4.0
2.0
0.0
200.0
150.0
100.0
50.0
16.9
0.0
Birth rate
(per 1000 people)
1.1
2001
13.5
16.0
22.7
14.0
2003
2005
2007
2009
2011
2013
0
1999
2001
Unemployment rate
(%)
5.0
5.2
1999 2001 2003 2005 2007 2009 2011 2013
(USD)
2013
717
400
200
2.0
100
1999
2001
2003
2005
2007
2009
2011
2013
99
0
1999
2001
2003
2005
2007
2009
2011
2013
Average monthly nominal wage increased by 7.2 times
Government External Debt to GDP (%)
(bln.USD)
18
17.1
16
The total amount of gross FDI from 2005
14
12
60.0
Average monthly nominal wage
300
Gross International Reserves and
Assets of the National Fund of RK
80.0
2011
700
4.0
Unemployment rate decreased by 8%
95.5
2009
800
6.0
0.0
0.0
2007
500
8.0
10.0
2005
600
10.0
15.0
2003
Inflation decreased by 13%
12.0
14.6
100.0
4.8
5
GDP per capita increased by 12 times
20.0
120.0
15
10
GDP increased by 14 times
25.0
17.8
13.6
1999
1999 2001 2003 2005 2007 2009 2011 2013
Inflation
(%)
18.8
20
(ths.USD)
(bln.USD)
to 2013 amounted to $184 billion.
10
Herewith, the average annual growth rate
8
40.0
6
2.6
4
20.0
of gross FDI is 17.4%.
2
2.0
0.0
1999 2001 2003 2005 2007 2009 2011 2013
0
2001 2003 2005 2007 2009 2011 2013
Government External Debt decreased by 14%
Exchange rate regime - floating
Free exchange
Source: The National Bank of Kazakhstan
2
Substantial natural resources
Place of Kazakhstan in the world rankings on reserves
Molybden
13
5
Coal
Uranium
12
8
Iron ore
Chronium
10
8
3
1
2
3
Oil
Zinc
11
7
12
Gold
10
10
Silver
Copper
19
3
Bauxite
Lead
Place of Kazakhstan in the world rankings for the extraction
21
5
10
4
11
11
15
3
Political stability and good investment climate.
Protection of foreign investments
Doing Business
Kazakhstan – 50 rank
Belarus – 63
Russia– 92
Protecting Investors
Kazakhstan – 22 rank
Russia– 29
Belarus– 98
Taxation
Kazakhstan – 18 rank
Russia – 56
Belarus – 133
The Global
Competitiveness Index
Top 20 host economies
Kazakhstan– 50 rank
Russia– 64
Belarus – n/a
Russia – 9
Kazakhstan – 19 rank
Belarus– n/a
Protecting Investors
Kazakhstan – 10 rank
Russia– 100
Belarus – n/a
Trust in political
institutions index
Kazakhstan – 35 rank
Russia – 84
Belarus – n/a
The attractiveness among
the CIS countries
Russia – 1
Kazakhstan – 2 rank
Belarus – 5
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
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TNC in Kazakhstan
1992-2009
2010-2014
2015-2019
In the period from 1992 to 2009, with the
participation of foreign investors, 51
projects have been implemented amounting
to 7.2 billion USD, which include:
- Oil and gas industry;
In the period from 2010 to 2013, with the
participation of foreign investors, 63 projects
have been implemented amounting to 12.4
billion USD. For first time the following
manufacturing established was organized :
- Assembly of locomotives (diesel and
electric) and passenger carriages;
There are 190 projects that are currently in
the process of implementation in
collaboration with the leading TNC.
Implementation of projects is expected in
the such areas:
- Uranium industry;
- Financial sector;
- Production of food;
- Production of construction materials.
- Car models of "KIA", "Hyundai",
"SsangYong", "Peugeot", "Toyota";
- Assembly of helicopters;
- Pharmaceutical products and others.
- Pharmaceuticals;
- Renewable energy sources;
- MMC (Mining and metallurgical complex);
- ICT;
- Electronics and Engineering:
- Food industry.
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Support for investors
Investment preferences
Special economic zones
Tax benefits
Tax benefits
•CIT – 0 % 10 years
•Land tax – 0% 10 years
•Property tax– 0% 8 years
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
Investment
reimbursement
Up to 30% of construction and
installation works and equipment
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.
Migration
benefits
The right to employ foreign labor
without quotas and permits
SEZ
SEZ
Other privileges
SEZ
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
The "one stop shop" 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
Visa-free travel for citizens of 10
countries
6
Industry niches
MMC - $12,7 bln.
Chemical Industry - $1,7 bln.
Machinery Industry - $10,3 bln.
Domestic
production
Import
3,8
8,9
Domestic
production
2,1
0,6
0,6
1,1
8,2
Domestic
production
Import
Import
Foodstuffs - $3,8 bln.
Construction materials - $1,3 bln.
Import
Import
0,34
1,2
2,6
Domestic
production
Domestic
production
Petrochemicals - $0,5 bln.
0,05
0,94
Petroleum refining - $1,7 bln.
Domestic
production
Import
0,6
1,1
Import
0,4
Domestic
production
7
Market of the macro-region
1st
1
2
level
Border regions of Russia
3
5
3d level
4
Western regions
of China
2nd level
 Russia
 Ukraine
 Belarus
5th level
 Iran
 Azerbaijan and
other Caucasian
countries
4th level





China
Uzbekistan
Tajikistan
Turkmenistan
Kyrgyzstan
Level of integration of the macro-region
High
Low
8
Thank you for your attention
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