ASTANA – Kazakhstan attracted $10.55 billion in investment in the first six months of the year, underscoring the country’s continued investment appeal despite ongoing geopolitical instability.
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In an interview with Kazinform, the experts outlined key trends, challenges and prospects shaping Kazakhstan’s investment landscape.
Top investing countries and sectoral trends
According to the National Bank of Kazakhstan, the largest sources of investment this year were the Netherlands, Switzerland, Russia, China, and the United Arab Emirates.
The Netherlands accounted for $2.27 billion, reflecting its role as a financial hub for multinational corporations and holding companies. Much of this capital represents a legal entry point for transnational investment flowing into Kazakhstan. Over the past three years, cooperation with Eastern and Arab countries has also intensified.
China invested $1.14 billion, focusing on strategic projects such as the Trans-Caspian Transport Corridor, as well as green energy, industrial and petrochemical developments.
The United Arab Emirates and Qatar directed capital into the financial sector, petrochemicals, transport and logistics infrastructure, banking and digitalization.
Investments from Russia totaled $1.14 billion.
Investment distribution by sector reflects Kazakhstan’s economic priorities. Wholesale and retail trade attracted $2.16 billion, driven by rising domestic demand, logistics expansion and the growth of international retail chains.
Manufacturing received $2.04 billion, signaling a continued push toward economic diversification. The financial sector attracted $1.75 billion, primarily for bank capitalization, insurance market development and fintech projects.
By contrast, the construction sector received just over $157 million, reflecting a slowdown in the housing market and higher interest rates.
Policy direction and investor protection
In his address to the nation this year, President Kassym-Jomart Tokayev called for increased investment in manufacturing and instructed the government to revise its investment policy. He also emphasized the need to strengthen investor protection.
Tokayev proposed renaming the Committee for the Return of Illegally Withdrawn Assets as the Committee for the Protection of Investors’ Rights, a move experts say could improve the investment climate.
“Investment boosts labor productivity and creates conditions for value-added growth,” said Yerkat Mukazhanov, vice rector for economics and digitalization at Sarsen Amanzholov East Kazakhstan University.
Following discussions in the government and the Senate, Kazakhstan’s economic priorities for 2026-2028 became clearer through a macroeconomic stabilization and welfare growth program, along with draft budget and transfer laws.
Deputy Prime Minister and Minister of National Economy Serik Zhumangarin noted that investment currently accounts for 16-17% of gross domestic product, with a target of raising that figure to 23-24%.
“By 2029, we plan to attract around $280 billion in investment. Our strategic goal is $400 billion. The $120 billion gap will be filled through proactive economic policy implemented via the Baiterek holding,” he said.
The new investment policy includes plans to establish a national investment platform, introduce special agreements guaranteeing 25-year legislative stability, and capitalize the Baiterek holding by one trillion tenge (US$1.9 billion) to support the real sector.
Aibar Olzhayev, an economist. Photo credit: Mukhtor Holdorbekov/Kazinform
Economist Aibar Olzhayev noted that Kazakhstan has strong fundamentals to meet its investment targets.
“Investment priorities have shifted. Previously, the focus was on raw materials. Today, the strongest multiplier effect comes from deep processing, chemicals, agro-industry, food production and mechanical engineering,” he said.
He added that Kazakhstan’s investment legislation and guarantees are well developed, with British law applied and disputes resolved through international arbitration.
Olzhayev also pointed to improvements in Kazakhstan’s international standing, noting that S&P Global Ratings upgraded the country’s outlook from stable to positive.
“Institutional reforms and strict fiscal rules are reducing the budget deficit and stabilizing public debt. Economic diversification sends a strong signal to investors,” he said.
Manufacturing and logistics
Gabidulla Ospankulov, chairman of the Investment Committee at the Foreign Ministry, said manufacturing has shown significant growth.
“The sector’s share increased from 16% to 26%. Mechanical engineering is gaining momentum. A German company has launched agricultural machinery production in North Kazakhstan, while Saransk produces public transport, tires and household appliances,” he said.
According to him, agriculture remains stable. Chinese companies have begun building plants for deep wheat processing, allowing more than 200 products to be produced domestically. A corn-processing plant is under construction in the Zhambyl Region, and a coal-processing project has also been launched.
Ospankulov highlighted that logistics plays a decisive role for investors.
“Kazakhstan is at the crossroads of major transport routes. Thirteen corridors pass through the country, including the Trans-Caspian Middle Corridor. Our goal is to reduce cargo transit time to one day,” he said.
He also noted the importance of investment agreements reached during the president’s foreign visits, including projects in China, IT-sector cooperation discussed in New York, and rare earth metals projects involving deep processing and export using U.S. technologies.
“The United States has invested more than $50 billion in Kazakhstan since 2005. The implementation of such projects in the future will bring significant benefits to the economy,” he said.
Remaining obstacles
According to Ospankulov, investor complaints most often concern land allocation, infrastructure gaps and bureaucracy. The national investment center has helped unblock stalled projects, contributing to the implementation of projects worth $80 billion.
Economist Baurzhan Iskakov said Kazakhstan’s investment potential remains underused due to administrative delays, weak project execution, and limited trust in the judicial system.
Economist Baurzhan Iskakov said Kazakhstan’s investment potential remains underused due to administrative delays, weak project execution, and limited trust in the judicial system. Photo credit: Kazinform
“Raw materials are abundant, but technological renewal is slow and energy costs are high. Even with strong oil, gas and chemical bases, deep processing projects face difficulties. Tourism has great potential, but infrastructure, service quality and marketing lag behind,” he said.
Iskakov also called for stronger regional accountability, noting that weak project teams and risk aversion among local authorities discourage investors.
Despite these challenges, experts agree that consistent reforms and a stronger investment climate could ensure stable economic growth through industrialization.
The article was originally published in Kazinform.
