At the outset of the covid epidemic, foreign investment in Kazakh enterprises decreased by 30%, a loss that has been somewhat mitigated this year. However, the administration expects foreign investment to return to pre-pandemic levels only in the new year. Kazakhstan’s leaders described how the country draws investment.
Vice Minister of National Economy Alisher ABDYKADYROV said at a briefing that worldwide foreign investment flows will fall by 35 percent in 2020, the most in the previous 30 years.
Kazakhstan’s investment inflows declined by 30% in 2020, below a target of $ 17 billion. There is a strong trend this year: $ 11.1 billion was drawn in the first half of the year. Officials are optimistic, believing that we will achieve pre-pandemic investment levels in the coming year, i.e., we will be able to attract $ 24 billion, as we did in 2019. Kazakhstan, by the way, was attracting roughly $ 20 billion per year before to the outbreak.
Political and economic stability, our country’s strategic geographical position between Europe and Asia, natural resources, undeveloped niches in our country, and a relatively cheap and qualified labor force are the most appealing factors for investors, according to Yerlan ZEYNESHEV, Deputy Chairman of the Foreign Ministry’s Investment Committee.
At the same time, he saw that investors occasionally abandon the market: Yes, investors in our nation occasionally confront difficulties. These include a lack of infrastructure owing to our country’s vast area, and investors continue to confront customs and tax administration concerns, as well as migration and visa issues. These are the locations where we are working.
The mining industry continues to receive a large amount of direct investment. Officials were pleased to hear during a briefing that foreigners have begun to express interest in Kazakhstan’s production of “green” hydrogen.
Experts predict that hydrogen will become the next oil! In this respect, our country’s enormous lands, as well as the quality and density of wind and sun, will enable us to claim the position of a significant hydrogen generator in the future, – Zeyneshev stated.
The Netherlands, the United States, Switzerland, Russia, and the United Kingdom are now Kazakhstan’s major investors.
