ALMATY – Kazakhstan has entered the group of countries with a high level of investment activity, according to World Bank indicators presented by government officials this week, as officials look to launch a new investment cycle focused on infrastructure, technology and productivity growth.
The World Bank and Kazakhstan discussed new strategies to boost investment flows on 18 May. Photo credit: PM’s press service.
Speaking during a government session in the Senate, the upper house of parliament, on May 18, Deputy Minister of National Economy Arman Kasyanov said Kazakhstan outperforms most countries globally in several key investment metrics.
According to him, Kazakhstan’s gross capital formation is 27% of GDP, which puts the country ahead of 75% of countries around the world.
“According to another metric, gross fixed capital formation as a share of GDP, Kazakhstan stands at 24%, which is higher than 68% of the world’s countries,” he said, highlighting that these indicators form the basis for maintaining strong economic growth rates in the coming years.
“At the same time, we intend to continue increasing the volume of investments to strengthen the economy and improve the well-being of citizens,” he said.
According to Kasyanov, investment in fixed capital accounts for 14% of Kazakhstan’s GDP, while the government aims to increase this figure to 23%.
new investment cycle
The investment figures came days after Prime Minister Olzhas Bektenov spoke with World Bank experts in Astana on May 16 to discuss what officials describe as part of a broader effort to usher in a new investment-driven phase of economic growth.
The meeting was attended by World Bank Regional Director for Central Asia Naji Benhassin, President of the National Bank Timur Suleymanov, Presidential Advisor and Chairman of the Strategic Planning and Reform Agency Aset Irgaliyev, Deputy Prime Minister and Minister of National Economy Serik Dzumangarin and other senior officials.
Discussions focused on Kazakhstan’s transition toward a high-income economy, including measures aimed at boosting productivity, modernizing infrastructure, accelerating digitalization, and expanding artificial intelligence and innovative financing instruments.
Opening the meeting, Bektenov said President Kassym-Jomart Tokayev has made economic diversification and investment attraction one of the country’s central priorities.
“Competitiveness increasingly depends on the quality of economic policy, the speed of institutional change and the ability to create a predictable and attractive business environment,” Bektenov said.
According to him, Kazakhstan is building a comprehensive architecture for working with investors, from strengthening external mechanisms to attract capital abroad to improving domestic project support and investor rights protection.
“All the measures being taken are aimed at increasing the income of Kazakhstan’s citizens and improving their quality of life,” he said.
Focus on productivity and technology
World Bank representatives positively assessed Kazakhstan’s economic reforms and investment attractiveness, stressing the need for deep structural transformation.
Benhasin said Kazakhstan maintains strong investment appeal but noted that the transition to a high-income economy will require improvements in productivity and investment efficiency.
According to World Bank chief economist Christos Kostopoulos, Kazakhstan’s GDP growth remains on par with many fast-growing economies.
“Using market mechanisms, companies should be encouraged to actively implement modern technologies, thereby increasing the competitiveness of the country’s economy,” he said.
Digital infrastructure projects also featured prominently in the discussion. World Bank Digital Development Practice Manager Isabel Neto highlighted the importance of the Data Center Valley project planned in the Pavlodar region, calling it an initiative capable of strengthening Kazakhstan’s regional investment attractiveness.
According to officials, the project is expected to support the country’s ambitions to become a regional digital and AI hub.
Infrastructure and PPP Projects
Transport infrastructure and public-private partnerships were also identified as key areas for future investment growth.
Shomik Raj Mehndiratta, the World Bank’s Transport Practice Manager for Europe and Central Asia, outlined opportunities to attract additional foreign direct investment in airports, ports, railways, roads and urban transportation systems.
Michael Opagi, regional manager for Central Asia at the International Finance Corporation (IFC), stressed that public-private partnership projects must remain commercially attractive to unlock large amounts of private capital.
Irgaliyev said Kazakhstan plans to further improve the structure of PPP projects, taking advantage of international experience and World Bank practices.
“These tools should be used to achieve strategic goals and build new infrastructure,” he said.
Government has set a target of investment momentum of $20.5 billion
According to Zhumangarin, Kazakhstan will attract $20.5 billion of investments in 2025, compared to $17.9 billion last year. He said the current priorities of the government include petrochemicals, gas chemicals, metallurgy, agro-processing, tourism and pharmaceuticals.
Suleymenov stressed that macroeconomic stability and inflation control remain necessary conditions for attracting long-term foreign investment.
“For investors, the predictable macroeconomic environment and low inflation risks are extremely important to ensure sustainable returns,” he said.
Concluding the meeting, Bektenov instructed government agencies to incorporate the World Bank’s recommendations into Kazakhstan’s comprehensive socioeconomic reform agenda.
“Sustainable economic growth is impossible today without active participation of the private sector, high-quality institutional environment, competition and innovation,” he said.