Investment in Kazakhstan
The Republic of Kazakhstan is located at the convergence of two continents in the middle of Eurasia. Having diverse natural resources and stable economy, the country offers an attractive environment for investment. Kazakhstan mining companies quarry minerals out of more than 5000 rich deposits located throughout the region. The key factors that influence the attractiveness of the Republic are macroeconomic, social and political stability as well as geographical position and mineral resources in Kazakhstan.
Reasons to invest in Kazakhstan
- Natural resources of Kazakhstan. As it was said earlier, mineral resources in the country are diverse and rich. More than 80 elements of periodic table found in the republic which include ferrous and non-ferrous metals. Ferrous metals include iron and iron-based alloys and constitute the majority of country’s metal production. Steel and iron industry is the basic sector of the republic’s heavy industry. Non-ferrous metals exploration in Kazakhstan constitutes 12% of all the industrial production. There are rich deposits of aluminium in Kazakhstan, the metal which is characterized by lightness and corrosion resistance. It’s widely used in the production of foil, mirrors, pyrotechnics and many other products. Other non-ferrous metals include copper, zinc, tin, lead and many others. Mining of precious metals and their further extraction in the Republic of Kazakhstan are among main sources of reserve assets replenishment. Kazakhstan gold deposits constitute 4% of world’s gold reserves. Numerous international companies make their contribution in mining in Kazakhstan. The country has the world’s sixth greatest mineral diversity. Mining metals in Kazakhstan: silver, manganese, nickel and many other minerals make the country attractive for foreign investors. Western region of the Republic has significant stockpiles of oil and gas which makes it one of the ten biggest oil-producing countries in the world playing an important part in the world’s energy market formation. An opencast mining of silicium in Kazakhstan is carried out in different parts of the country. Prospecting for mineral resources of Kazakhstan is the top priority of the republic. Therefore, numerous international companies make a decision to invest in Kazakhstan due to a favorable business environment and developing mining industry.
- Favorable location. The republic is situated in the heart of the Eurasian continent. The Great Silk Road used to pass through Kazakhstan. Main transcontinental routes which connect Asia-Pacific area with Middle East and Europe cover the country. Three of the five BRICS countries are situated near Kazakhstan: Russia, India and China.
- Political stability. Political stability is one of the main advantages of Kazakhstan. As a result of thoroughly thought out political strategy the government was able to provide equal rights and abilities to the multinational country which became a competitive advantage. Political stability contributed to clear and transparent conditions for attracting foreign investment in Kazakhstan.
- Sustained economic growth. Nominal GDP of Kazakhstan is steadily growing. It reached $ 216.3 billion in 2014. Starting from 2000 the GDP growth is 8-10% annually. Kazakhstan has one of the best GDP rates per capita among CIS countries.
- Protection of investors’ rights. In order to attract foreign funds in Kazakhstan economics and decrease investment risks, foreign investors are provided with the national resident status which guarantees the protection of foreign investments. Therefore, foreign and domestic companies have equal rights on the territory of Kazakhstan for implementation of investment activity.
The interest in the mineral industry of Kazakhstan is increasing constantly as well as the number of foreign projects aimed at exploiting the rich Kazakhstan resources. The most popular projects of metal exploration companies involve mining gold, copper, rare minerals as well as uranium. Due to the favorable environment for foreign investors as well as numerous other advantages including natural minerals Kazakhstan is one of the most attractive countries for investments nowadays.
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