Kazakhstan in the Heart of Eurasia

7/28/2019 Kazakhstan in the Heart of Eurasia

1/14

inistry of Industry and Trade of the Republic of Kazakhstaninistry of Industry and Trade of the Republic of Kazakhstan

Kazakhstan

in the heart

of Eurasia


2/14

Map of Kazakhstan TerritoryTerritory: 2,7: 2,7 mln.mln.

sq. km.sq. km. PopulationPopulation: 16: 16

mln.mln. ReligionsReligions: 65%: 65%--

MuslimsMuslims, 30%, 30%--Christians etcChristians etc..

Urbanization rateUrbanization rate::

Literacy rateLiteracy rate:: 98%98% Motor roadsMotor roads::

9090,000,000 kmkm.. RailroadsRailroads: 14,000: 14,000

kmkm.. GDP per capitaGDP per capita::

7,7,550000 $$

1


3/14

Domestic Natural Resources Natural Gas

Oil

Coal

Iron ore

Manganese

Chrome

Ore

General Figures:

3.2% of global oil reserves (7th ranked)

18.0% of global U reserves (2nd ranked)

Kazakhstan ranked:

2nd in Cr and P

3rd in Ag, Cu, Zn

Cobalt

Copper

Molybdenu

m

Lead Zinc

Bauxite

Gold

Uranium etc.

4th in Mo

6th in Au, coal

8th in Fe ore

VAST NATURALRESOURCESARE THE FOUNDATIONOF KAZAKHSTAN'SWEALTH

2


4/14

Kazakhstan Economy ProfileGDP: 135 bln. USD

GDP growth: 1% (3 quart.2009)

Industry Production: 84 bln.$Trade turnover: 109 bln. USD

Export (FOB): 71.2 bln. USD

18 3

30,8

57,1

80,4

105,0

135,0

40

60

80

100

120

140

Import (FOB): 37.9 bln. USDLiberal taxation regime

No restrictions for foreign investors

Multi-vector external policiesMost reformed economy in CIS

Favorable regulatory regime

0

20

2000 2003 2005 2006 2007 2008

3


5/14

Foreign Direct Investments to

KazakhstanGreat

Britain; 8,8%

Italy;

4,5%

France;

5,1%Other;

4,7%

Gross inflow of FDI to Kazakhstan

98 bln. USD

FDI, bln.$

Netherlands

; 17,0%

USA;

20,2% 2,84,6 4,1 4,6

8,36,6

10,6

18,5

21,3

2000 2001 2002 2003 2004 2005 2006 2007 2008

Main investors by gross inflow

of FDI in 1993 2008

4


6/14

CUSTOMS UNION (since 01.01.10)Customs Union alleges free-trade zone functioning plusapplying of unified customtariff and unified trade policy

regarding relations towardthird states that not enteredinto Customs Union.

Belarus, Kazakhstan andBelarus, Kazakhstan and

Russia Customs Union:Russia Customs Union:advantages for the potentialadvantages for the potentialinvestorsinvestors

INCENTIVES FOR THE INVESTORSExemption from import customs duties on import of non-produced

equipment and raw materials in the implementation of investmentprojects

-- Market capacityMarket capacity around 170 mln. peoplearound 170 mln. people-- Total GDP of almost $ 2 trillion USTotal GDP of almost $ 2 trillion US

5


7/14

Development Bankof Kazakhstanwww.brk.kz

Investment Fundof Kazakhstanwww.ifk.kzKazyna Capital

Managementwww.kcm-kazyna.kz


8/14

Real Estate FundSamruk Kazyna

2 billion USD Assets underManagement

100 million fully paid inCapital

(100 % state owned)

www.kazproperty.kz

KazakhstanDevelopment Bank9 billion USD total Assets

The Fund is buying out shell and coreresidential and commercial property for thehistorically low closed price on theconstruction stage and exit by renting, leasingor resell on the market with premium.More than 4 000 applications for the Fundsproperty and ready to sign off-take agreements

Gosman Amrin

CEO,

Member of BoD

The First Bank in Kazakhstan which portfolio iswholly concentrated in manufacturing industryand infrastructure projects. Recently hasraised 5 bn. USD from Chinese ExIm Bank,

2.8 billion Paid in Capital(100% state owned)

www.kdb.kz

Alliance Bank4.5 billion USD total Assets

Closing the deal to be stateowned

www.alb.kz

Berik Otemuran

Member of

Executive Board,

MD

.

The Bank is planned to be bought out by

the State and has recently agreed on therestructuring terms. Proving furtherprospects of profitable opportunities andsustainable growth.

Maksat Kabashev

CEO,Member of BoD7


9/14

Special economic zones

Company established in Special economic zone is exempted frompaying corporate, land and property taxes.

8


10/14

KazakhstanKazakhstan Forced Industrial DevelopmentForced Industrial Development ProgramProgram::

1010 basic sectorsbasic sectorsKazakhstan Strategic Development Plan for 2020 year

National Forced Industrial DevelopmentNational Forced Industrial Development ProgramProgram

Agroindustrial

complex

development

Construction

industry and

production of

Oil-Refinery

branch and

oil and gas

Chemical and

pharmaceutical

industry

Metallurgy

and finished

program

materialsdevelopment

program

sector

infrastructure

development

program

developmentprogram

metal products

development

program

Spacecraft branch

Machinery construction

TourismTransport and

telecommunication

infrastructure

development program

Energetic

development

program

9


11/14

Projects in priority sectors of economyProjects in priority sectors of economy ff KazakhstanKazakhstan

Branch Numberof

projects

Value ofprojects

mln.

US$

Main projects

AIC and agricultural revision. 102 1 202 Modem well-fed grounds, birds mill, hothouse, farm, factories for

processing of agricultural material.

Building industrial and production of

building materials.

38 1 794 Cements factories

Oil processing and infrastructure of

gas oil sector.

20 15 079 Gas chemical complex. Bitumen factory

Metallurgy and production of 42 14 382 Metallurgy factory, mountain-enriches plant. Factories for production of

metallic products. metallic product.

Chemical, pharmaceutical and

defending industry.

35 7 140 Pharmaceutical factory.

Plant for production chemical produce.

Energetic 26 9 607 Power stations, Substations. Lines of power gear.

Transport and communication

infrastructure.

18 12 074 Auto ways, railway. Terminal. Airports.

Engineering 16 1 204 Production of agricultural techniques. Light car, buses, buildings

techniques, locomotives.

Cosmic activity. 4 1 048 Power stations, substations lines of power gear. Production of cosmic

apparatus. System of sounding earth.

Tourist branch. 5 25 346 Tourist centers - Borovoe, Chimbulak, Kenderli.

Other branches. 16 583 Leather, textile production.

Total 322 89 45910


12/14

Islamic finance (IF) in Kazakhstan:Islamic finance (IF) in Kazakhstan:

Law of 12.02.2009Law of 12.02.20091) Title Introduction of amendments in some legislative acts of the Republic

of Kazakhstan in questions for organization and activities of Islamic banks

and organizations for Islamic financing ( 133-IV )

2) Package of laws - Putting forward amendments in Civil Code (General andSpecial Parts), Tax Code, Law About banks and bank activities in

Kazakhstan, About the securities market, About limited and extended

, , ,

registration of the rights for immobile properties and arrange the deals etc.

3) Normative Basis Under p.2 of decree of the Prime-Minister of theRepublic of Kazakhstan (14.03.2009) 40- On measures for realization of

RK Law 12.02.2009 (above mentioned) Financial Supervision Agency

passed 11 enactments that are necessary for implementation of present Law.

4) In July 2009 Parliament of the Republic of Kazakhstan ratified an Agreement

(11th July 2009) between the Government of Kazakhstan and Abu-Dhabi

Investment Council to open a first Islamic Bank Al-Hilal in Almaty city.

11


13/14

Islamic FinanceIslamic Finance in Kazakhstanin Kazakhstan::

IF system model based on Your experienceIF system model based on Your experience

1) Expectations for investors from Middle East

countries as main partners2) Absence of Islamic windows at activities of

ordinar commercial banks

3) Licensing of Islamic banks as separate entities

4) Establishing only corporate Shariah councils

5) Preferential taxation regime for Islamicfinance institutions

12


14/14

Ministry of Industry and Trade

of the Republic of Kazakhstan

www.mit.kz

Thank you for the attention!

13

Documents

Kazakhstan in the Heart of Eurasia