1. NEW OPPORTUNITIES FOR INVESTMENTS
Kazakhstan :
NEW OPPORTUNITIES FOR INVESTMENTS
April 14, 2011
Zurich, Swiss Confederation

2. Agenda
Why Kazakhstan is attractive for investors?
II. Investing in Kazakhstan
Contact details

3. Why Kazakhstan is attractive for investors
1. Natural Resources
Kazakhstan has the 6th largest reserve of natural resources in the world

4. Why Kazakhstan is attractive for investors
2. Stable Macroeconomic Environment
Source: National Bank of RK

5. Why Kazakhstan is attractive for investors
2. Stable Macroeconomic Environment

6. Why Kazakhstan is attractive for investors
Favorable business climate
FDI records serve as an evidence of a favorable investment climate.
Kazakhstan attracted more than 118 bln. US dollars if FDI since 1993.

7. Why Kazakhstan is attractive for investors?
Investor Protection
Country
Strength of investor protection index (0-10)
New Zealand
9.7
Kazakhstan
5.7
Russia
5.3
Tajikistan
Ukraine
4.7
Moldova
Source: National Bank of RK

8. Why Kazakhstan is attractive for investors?
Favorable business climate
International ratings also serve as an evidence of a favorable investment climate
Source: National Bank of RK

9. Why Kazakhstan is attractive for investors?
Proximity to Largest Regional Markets
Kazakhstan is the continental bridge for goods that move from East and West, South to North.
3 out of 4 BRIC countries are located near Kazakhstan: Russia, China and India.
Strategically located between European and Asian business centers
Serves as a main transit zone in the region
Provides 3 out of 4 Eurasian railways

10. Why Kazakhstan is attractive for investors?
Proximity to Largest Regional Markets

11. Why Kazakhstan is attractive for investors
Proximity to Largest Regional Markets
West Europe – West China – км
10 days
30-35 days
Sea route – км

12. Why Kazakhstan is attractive for investors?
Market capacity
By entering the Customs Union, Kazakhstan creates for investors a more attractive market of 170 million people and opens up additional possibilities for effective investment projects
Unified customs territory
Uniform trade policy
Uniforms customs code
Free trade of goods within the customs area
Free movement of goods, services, labor and capital
Dear participants of the Forum,
Ladies and gentlemen!
Thank you for participating in today’s event!
My presentation is about NEW OPPORTUNITIES FOR INVESTMENTS in Kazakhstan.

13. Kazakhstan, Russia and Belarus Customs Union from 2010
Market capacity – around 170 mln. people
Total GDP of almost $ 2 trillion U.S

14. Why Kazakhstan is attractive for investors?
Kazakhstan is reducing the negative impact of current deficiencies
In 2010, the State program of accelerated industrial-innovative development for was adopted, which aims
Infrastructure development
Creation of new export-oriented high-tech manufacturing
Strengthening of the national innovative system
Improvement of professional skills of local labor
State support (preference, privilege, co-financing etc) is granted to projects in priority sectors (non raw materials sector) in order to decrease the investors' expenses
International Economic Cooperation Committee
Ministry of Foreign Affairs of the Republic of Kazakhstan

15. State program of accelerated industrial-innovative development for 2010-2014
GOAL
INDICATORS
GDP grown up to 50% than in 2008
Increasing of labor productivity in manufacturing industry up to 50% and in some sectors up to 100%
Ensure sustainable and balanced economic growth through diversification and competitive recovery.
Increasing the share of non resource export up to 40%
Decreasing energy intensity of GDP no less than 10%
Increasing the share of innovative enterprises up to10% of active enterprises

16. Based on domestic demand Sectors of «the future economy»
Priority sectors of economy
Traditional
Mining and Metallurgical Complex
Nuclear industry
Chemical industry
Petrochemicals
Based on domestic demand
Machinery
Construction industry
Pharmaceuticals
Export-oriented
Agro-industrial complex
Light industry
Tourism
Sectors of «the future economy»
Biotechnology
Alternative Energy
Information and Communication Technology
Space activities

17. Investing in Kazakhstan – State Support
Foreign Investment Protection Guarantees
Kazakhstan has signed agreements on mutual investment protection with 44 countries

18. Investing in Kazakhstan – State Support
Foreign Investment Protection Guarantees
In order to reduce investment risk and guarantee protection to foreign investments, foreign investors are given national status (foreign and domestic companies work under equal conditions)
The Foreign investors’ Council chaired by the President of the Republic of Kazakhstan was established in 1998, 30th of June
Purpose: promotion of direct dialogue between the Government of Kazakhstan and foreign investors in order to efficiently address key issues related to their investment activities in the country
Council meetings address issues critical to the development of the country’s economy, investor protection and investment climate. The Council consists of 29 foreign companies.

19. Main instruments of investor support
Special Economic Zones
Investment Preferences
Economic incentives for investors
Special Permanent Commission on Foreign Investment headed by Prime Minister of Kazakhstan:
«OMBUDSMEN» for Investors
Institutional Support
National Export and Investments Promotion Agency:
“ONE STOP-SHOP”
for Investors
Service support for investors 19

20. Investment preferences
Recipients of preferences:
Potential and current investors
Types of preferences:
Exemption from customs duties of imported equipment and its components for investment project implementation
Tax incentives for investors
Granting of the state natural grants
value of the objects of preferences and (or) the following costs for the modernization and reconstruction can relate to deductions.
Terms of preferences:
Priority sectors of the economy

21. Investing in Kazakhstan – State Support
Privileges for Members of Special Economic Zones
Today, there are 6 Special Economic Zones (SEZ) in Kazakhstan
SEZ «Burabay»
SEZ «Astana -
New city»
SEZ
«Ontystik»
SEZ «Marine Port
Aqtau»
SEZ «Petrochemical
park»
SEZ «IT Park»

22. Investing in Kazakhstan – State Support
Privileges for Members of Special Economic Zones
The members of SEZ enjoy the following privileges:
Corporate income tax exemption
Customs-free policy
VAT exemption on goods and services given on SEZ territories, made or consumed in activities related to SEZ creation
0% to the mid-year cost of taxable objects when calculating property tax
40% in the marginal rate of depreciation used for IT software

23. Institutional Support for Investors
KAZNEXINVEST
Government of Kazakhstan (ministries, agencies etc.
International Economic Cooperation Committee
IECC.pptx
Embassy of Kazakhstan in Switzerland
Investor

24. “ONE STOP-SHOP” SERVICES FOR FOREIGN INVESTORS
Information on investment opportunities and business conditions
Information on investment projects
Assistance in a choice of projects and partners
Assistance in reception of measures for state support
Organization of meetings
with official representatives
Assistance in making decisions on administrative questions

25. National investment interactive website www.invest.gov.kz
Niche investment projects_eng.doc
Website will be available in 12 languages: English, German, French, Italian, Spanish, Arabic, Korean, Japanese, Turkish, Kazakh and Russian.

26. More information Website includes information on :
Processing of requests and inquiries of investors and initiators of the projects online
Provision of quality and daily updated information on all aspects of investing in Kazakhstan, including:
Investment legislation of the Republic of Kazakhstan;
Business conditions in Kazakhstan;
Infrastructure conditions;
Government programs;
Government support for investors and others.
The list of investment projects

27. For further information:
Contact the Embassy of the Republic of Kazakhstan
Visit our website
Necessary information for investing in Kazakhstan visit
Thank you for attention!