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Arab News
7 days ago
- Business
- Arab News
Kazakhstan positions itself as major player with key partners in Middle East
ASTANA: As Kazakhstan positions itself to be a major player in the logistical, technological, and energy sectors, the Middle East could be a key partner for riding that train forward. The Astana International Forum took place in May, hosting dialogue on critical global issues. On the sidelines of the forum, Arab News spoke to several high-level Kazakh officials to discuss the country's collaboration with Middle Eastern countries in finance, energy and foreign policy. The largest economy in Central Asia, Kazakhstan's geopolitical profile provides immense global transit potential. With abundant natural and agricultural resources and a growing middle class, the nation has all the fundamentals for further growth and diversification, according to Nurlan Zhakupov, chief executive officer of sovereign wealth fund Samruk-Kazyna. Kazakhstan has attracted over $24 billion in foreign direct investment from strategic partnerships around the world, including Qatar and the UAE. In addition to being key partners in the oil and gas sectors, Middle Eastern countries provide opportunities in a range of other areas. Deputy Minister of Foreign Affairs Alibek Kuantyrov said: 'In general, GCC (Gulf Cooperation Council) countries are very important to (us). 'We have a lot of productive talks about mutual projects, from Kazakhstan to Saudi Arabia and Saudi Arabian investors to Kazakhstan.' Earlier this year, Mobile Telecom-Service LLP, one of two mobile communications subsidiaries of Kazakhstan's largest telecom company Kazakhtelecom, was acquired by Qatar's Power International Holding for $1.1 billion. Samruk-Kazyna is also in close talks with Saudi Arabia's Public Investment Fund, 'and we hope that soon these discussions will materialize into concrete projects,' Zhakupov said. The Kazakh fund's next big focus is logistics and transportation, aiming to double its cargo volume. Kazakhstan is additionally expanding its international transit capacity by building more ports across parts of Asia and Europe, including one in Abu Dhabi. Together with Abu Dhabi Ports, Samruk-Kazyna's subsidiary oil and gas company, KazMunayGas, operates a fleet of vessels in the Caspian Sea. This partnership is part of a bigger goal to expand China-Europe trade capacity through the Trans-Caspian Trade Route that connects Central Asia to the Caspian Sea; a path similar to the ancient Silk Road and through which 90 percent of Chinese cargo passes Kazakhstan. The Central Asian nation also has a strong focus on digitalization and renewable energy. Zhaslan Madiyev, the minister of digital development, innovation, and aerospace industry, said that a new artificial intelligence and cryptocurrency committee has been established. Kazakhstan is also one of the world's top 10 countries in crypto mining, with 60 operating mining firms and several mining pools. By amending laws and adding crypto ATMs, exchange shops and cards, 'the president's idea is to define a crypto city that will be completely crypto friendly,' the minister said. One of the major projects the ministry is working on is an International AI Center, a location for excellence focused on talent development, innovation, and economic growth in AI. The 20,000 sq. meters sphere-shaped center will be a regional hub for attracting international technological collaboration. The project will be part of a bigger ecosystem hoping to replicate the success of Astana Hub, an international technology park with 1,500 startups under its belt and an outreach across 20 cities worldwide, including a joint innovation hub in Riyadh, Saudi Arabia. Riyadh's Al-Farabi Innovation Hub opened in March 2024 with the intention of bridging startups from Kazakhstan, Central Asia and the Caucasus with the Middle East and North Africa markets. That same month, Kazakhstan's ed-tech startup CodiPlay partnered with Saudi Arabia's Artificially Intelligent Learning Assistant to bring digital education solutions to 200 Saudi schools, an initiative that aims to enhance IT literacy among students. Madiyev said: 'I believe there is a huge potential for bringing Saudi investments here and expanding Kazakhstan innovative startups and technologies to Saudi as well. 'With their startups and technologies, Saudi can access the whole Central Asia region through Kazakhstan, and we will be glad to access the Saudi market and the broader Middle Eastern region.' He also noted that another hub and acceleration program is set to open in Dubai in the fall of this year. When asked about plans to balance the environmental effects of AI and technology, the president's special representative on the environment told Arab News that nuclear power was a potential solution. 'It's really a big question of where your energy comes from. If it comes from coal, then there will definitely be a huge impact on the environment,' said Zulfiya Suleimenova, special representative of the president on international environmental cooperation. The country aims to have its share of nuclear in the national generation mix hit 5 percent by 2035. The first plant, expected to be completed in eight years, will be built in the Almaty region and is one of three planned nuclear power plants. One of the largest projects Kazakhstan has in the Middle East is an agreement with Masdar, the Emirati state-owned renewable energy company, signed between Samruk-Kazyna and the UAE's Prince Sheikh Khaled bin Mohamed bin Zayed Al-Nahyan in May this year. The agreement is two-fold. It will include the development of a 1 gigawatt wind farm in the Jambyl Region with a 600 megawatt-hour battery energy storage system, positioned to be one of the largest wind initiatives in Central Asia. Additionally, a 24/7 renewable energy project plans to provide up to 500 megawatts of baseload renewable energy with a capacity of up to 2 gigawatts. Kazakhstan aims to generate 15 percent of its electricity from renewable sources by 2030 and 50 percent by 2035. Other opportunities for joint environmental efforts in the Middle East are in water cooperation, Suleimenova said. The idea of the One Water Summit which took place in Riyadh last year was to drive more political momentum around water-related issues that otherwise do not get the same attention as other climate concerns. At the summit, nine international development banks committed to increase financing into water infrastructure and water-related projects — particularly in vulnerable regions — including the European Investment Bank. 'Back in 2023 when I was minister of ecology, I had the pleasure of meeting the Saudi minister of water, environment and agriculture, and am very (much) looking forward to continuing these discussions and cooperation and hopefully joint efforts,' said Suleimenova. The president's special representative noted that falcon and eagle diplomacy and the protection of these species was another key focus of collaboration between Kazakhstan and Saudi Arabia, and added: 'We hope to further our efforts and cooperation in biodiversity … including the preservation of eagles. They are the pride of our country and our people but also of your countries, of Saudi Arabia, the UAE, and others.' Discussions with Saudi Arabia's ACWA Power over the possibility of developing a 1GW wind energy and battery storage plant in Kazakhstan are also ongoing.
Al Jazeera
01-05-2025
- Business
- Al Jazeera
Kazakhstan's quiet ascent: A new frontier for robust investment
In today's increasingly fractured global economy, the search for stability has become paramount. As trade barriers rise, supply chains fragment, and geopolitical tensions reshape global alliances, markets that once felt secure are more and more vulnerable to disruption. The OECD warns that global growth is expected to slow to just 3.1% in 2025, while inflation remains elevated – driven by climate disruptions, energy volatility, and ongoing trade restrictions. For global investors, the challenge is not simply about chasing returns; it's about identifying markets that offer both resilience and long-term strategic value. More and more, that answer lies not in traditional financial centres, but in emerging markets that have quietly – and deliberately – positioned themselves for long-term relevance. Kazakhstan is one such country. While advanced economies wrestle with debt and political uncertainty, Kazakhstan has steadily reinforced its position as a Eurasian anchor for trade and investment. Strategically located between China and Russia, and along the Silk Route, the country is fast becoming a reliable gateway for regional commerce. Its modernising infrastructure, investor-focused reforms, and economic diversification efforts have turned it into one of the most attractive investment destinations in Central Asia. In 2024 alone, Kazakhstan secured $15.7 billion in new investment projects – an 88% increase compared to the previous year, and a clear signal that its appeal is both broad-based and accelerating. Kazakhstan's ascent as an investment hub is not accidental. It is built on a foundation of deliberate, forward-looking reforms. Central to this strategy is the government's Investment Policy Concept through 2029, which aims to eliminate red tape, guarantee equal treatment for foreign investors, and prioritise high-potential sectors such as advanced manufacturing, agribusiness, and green energy. But these reforms are not just aspirational – they are being implemented with discipline and purpose. A notable example is the national digital investment platform, a fully operational system that enhances transparency and streamlines collaboration between investors and government agencies. Rather than serving as a bureaucratic filter, the platform acts as a facilitator – enabling both speed and accountability in investment decisions. 'Kazakhstan's investment strategy is grounded in predictability and openness. We are creating not just opportunities, but the right conditions for long-term, mutually beneficial partnerships,' says Alibek Kuantyrov, Deputy Minister of Foreign Affairs of the Republic of Kazakhstan. Major global companies are already reaping the benefits. PepsiCo, for instance, is investing $160 million to strengthen Kazakhstan's agricultural value chain – sourcing potatoes locally and training farmers in sustainable practices. Meanwhile, KIA has decided to invest in the construction of another factory outside South Korea, this time in Kazakhstan, committing $250 million to expand its production footprint and tap into the region's growing industrial capabilities. These are not just investments in Kazakhstan – they're bets on the country's long-term stability and potential. This vote of confidence from global corporations builds on a long-standing trend. Since 1993, Kazakhstan has attracted $441 billion in foreign direct investment, with major contributions from the Netherlands, the United States, France, the UK, Switzerland, among many others. International interest is also deepening. Countries such as Qatar, China, Turkiye, Australia, and Germany have significantly increased their investment in Kazakhstan's infrastructure, energy, and logistics sectors throughout 2024. What truly distinguishes Kazakhstan is its alignment with global economic and environmental priorities. With rich reserves of rare earth elements and a growing petrochemicals sector, the country is strategically positioned to support the global green transition. Through clean energy partnerships with the EU, Kazakhstan is helping build the foundations for a more sustainable and secure energy future. Over $10 billion in ongoing construction projects – including logistics corridors, solar farms, and wind facilities – underscores the country's ambition to serve as a vital trade and energy hub between East and West. Crucially, Kazakhstan's transformation is as institutional as it is economic. Government incentives are now tied directly to job creation, skills development, technology transfer, and environmental sustainability. This ensures that growth is not only robust, but inclusive and forward-looking. This commitment to global integration and openness will take centre stage at the upcoming Astana International Forum, scheduled for May 29–30 under the theme 'Connecting Minds, Shaping the Future'. The Forum will convene heads of state, ministers, CEOs, policymakers, and leaders from international organisations and NGOs to engage on the most pressing global challenges — from sustainable development to investment cooperation. More than a symbolic gathering, the Forum represents Kazakhstan's vision for a more interconnected, transparent, and opportunity-rich future. 'The Astana International Forum reflects Kazakhstan's ambition to serve as a bridge between regions, sectors, and ideas. We believe in dialogue, openness, and joint solutions to global challenges,' says DFM Alibek Kuantyrov. In an age of economic turbulence and shifting alliances, Kazakhstan offers a compelling alternative: a market anchored by strategic clarity, policy consistency, and a proactive, partnership-driven approach to investment. For global businesses and investors searching for the next frontier of stable, sustainable growth, Kazakhstan is no longer an emerging story – it's a present opportunity. And the time to act is now.
