Investment climate Kazakhstan.ppt

8/10/2019 Investment climate Kazakhstan.ppt

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NATIONAL EXPORT AND INVESTMENT AGENCY KAZNEX INVEST JSC

Ministry of Industry and New Technologies of the Republic of Kazakhstan

Factors of attractiveness

of the investment climatein Kazakhstan


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KAZAKHSTAN

NATIONAL EXPORT AND INVESTMENT AGENCY KAZNEX INVEST JSC | Ministry of Industry and New Technologies of the Republic of Kazakhstan

Territory: 2.7 mln. sq. km.

Population: 17 mln

GDP, 2012: $ 199,5 bill

GDP per capita, 2012: $ 12 068

Major languagesKazakh (state language)Russian (official, business language)English, Chinese (young generation)

Main ethnic groups:Kazakhs: 65%Russian: 25%Other: 10%

Source: The Agency of Statistics

of the Republic of Kazakhstan


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KAZAKHSTAN: YOUR GATEWAY TO 3/5 BRICS OR TO 3 BILLION PEOPLE


KAZAKHSTAN

4

7

5 5.

4 5.

4 5.

4

The average minimum duration of flights to

major centers of economic activity (in hours)


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MANY FOREIGN COMPANIES HAVE ALREADY INVESTED IN KAZAKHSTAN

SLIDE TEXT



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FDI FLOWS INTO KAZAKHSTAN


Gross FDI inflows - $ 172,3 bln.,from which64% were attracted between the

period 20092q. 2013 ($ 111,6 bln.)

Structure of FDI by types of economic activities in bln. $ and %

1 half of 2012, bln. $ 1 half of 2013, bln. $

FDI in manufacturing for 20092q. 2013 in mln. $

7%

8%

18%

47%

Source: National Bank of the RK

Gross FDI inflows and outflows for the period20052q. 2013, bln. $

Gross FDI inflows by countries forthe period 20092q. 2013, bln. $

3.7

1.64.3

2.94.5

1.5

4.7

5.5

2.9

3.7

4.3

5.2

6.2

7.9

8.1

8.8

35.4

Italy

British Virgin Islands

Russia

UK

France

China

USA

Switzerland

Netherlands

7.9

12.1

19.421.3 21.4 22.2

26.528.8

12.6

0.3 1.33.2

5.0 5.4

10.58.0

3.0 2.3

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

2005 2006 2007 2008 2009 2010 2011 2012 2 q.

2013Gross inflow of direct investment in Kazakhstan from foreign direct investors

Gross outflow of direct investment abroad from Kazakhstani direct investors

42.2

14.727.9

26.6Professional,

scientific and

technical activities

Manufacturing

Mining and

quarrying

Other activities

1,008

6.8%

12,210

82.8%

668

4.5%

854

5.8% Manufacture of food

products, beverages and

tobacco products

Manufacture of basic metals

and fabricated metal

products

Manufacture of computer,

electronic and optical

products

Other sectors


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KAZAKHSTAN HAS ATTRACTED GREATEST FDI PER CAPITA IN CIS


Accumulated FDI in the CIS,2000-2011, bln. USD

1.0

1.3

3.2

5.0

6.8

9.1

13.0

16.6

65.2

93.6

457.5

-6%

63%

7%

14%

28%

22%

34%

30%

23%

21%

28%

Tajikistan

Kyrgyzstan

Moldova

Armenia

Uzbekistan

Azerbaijan

Belarus

Turkmenistan

Ukraine

Kazakhstan

Russian

FDI in the CIS countries per capita,2011, USD

142

244

236

892

1359

1443

1628

979

3257

3203

5777

Tajikistan

Uzbekistan

Kyrgyzstan

Moldova

Belarus

Ukraine

Armenia

Azerbaijan

Turkmenistan

Russian

Kazakhstan

Source: UNCTAD Stat

*Compound annual growth rate

CAGR*


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WHY IS KAZAKHSTAN ATTRACTIVE FOR FOREIGN INVESTORS?


4Springboard to circa 3 billionpotential customers

3 of the 5 BRICS countries are in 4hours flight

Customs Union (Kazakhstan, Russia,Belarus) with a population of 170million and a total GDP of 2 trillion.

Open economy (trade 70% of GDP) Entry into the WTO is expected in

2014 - 2015

Political stability and goodinvestment climate

1 A high level of trust in politicalinstitutions and the effective allocationof funds (WEF 2012) in comparisonwith the countries of the CIS.

Ease of Doing Business (49 on the listof World Bank Doing Business 2013:10 place in the investor protection and17 place in the payment of taxes).

Stable macroeconomicindicators and high growth3

GDP growth: 5.5% (IMF 2012) Low debt / GDP ratio: 15.8% (IMF

2012)

Budget deficit: 2.5% (IMF 2012) Inflation rate: 6.0% (IMF 2012)

2

Regionally attractive fiscal andnon-fiscal regime and protection

of foreign investment

Attractive corporate tax rate (20%) andlow VAT (12%)

Fiscal and non-fiscal incentives forinvestors, including in SEZs

48 bilateral agreements on mutualprotection of investments (US also)

Main international arbitrationinstruments ratified


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HIGH CONFIDENCE IN POLITICAL INSTITUTIONS AND EFFECTIVEMANAGEMENT OF PUBLIC FUNDS


1.6

1.9

2.0

2.0

2.1

2.2

2.4

2.4

2.5

3.0

3.1

3.3

3.4

3.4

3.4

3.7

4.0

CzechRepublic

KyrgyzRepublic

Brazil

Ukraine

Croatia

India

Poland

SouthAfrica

RussianFederation

Georgia

United States

Azerbaijan

Jordan

France

Turkey

Kazakhstan

Australia 27

37

43

44

45

47

54

63

86

88

90

106

115

120

121

126

139 2.9

3.0

3.0

3.1

3.1

3.2

3.6

3.6

3.9

4.3

4.3

4.4

4.5

4.6

4.8

KyrgyzRepublic

RussianFederation

Ukraine

SouthAfrica

Poland

CzechRepublic

Brazil

India

Australia

China

Jordan

Tadjikistan

Turkey

Kazakhstan

Finland 8

13

19

23

29

32

56

75

79

100

105

106

109

110

122

The index of trust political institutions Place in theranking

Government provision of servicesfor improved business performance

Place in theranking

Source: The Global Competitiveness Report 2012-2013


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DOING BUSINESS IN KAZAKHSTAN IS MUCH EASIER THAN IN MOSTEMERGING MARKETS


0 20 40 60 80 100 120 140 160

Uzbekistan

Tajikistan

Ukraine

India

Brazil

Russian Federation

China

Italy

Kyrgyz Republic

Belarus

Kazakhstan

Germany

United States

Singapore 1

4

20

49

58

70

73

91

112

130

132

137

141

154

Doing Business 2013Country rank

Place in theranking

Source: World Bank Doing Business 2013


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INVESTMENT PREFERENCES

SLIDE TEXT


LAW OF THE RK DATED AS 21.07.11 469 ON INVESTMENTS

Preferences for projects in priority sectors

Exemption from customs dutieson equipment,components, raw materials and spare parts imported

for a project

In-kindstate

grants

CRITERIA for investment projects:

Corresponds to the List of priority activities

Tax allowances as per Taxcode of the RK (deductions of

the value of the preferenceobjects, and (or) further costs

to modernization up to 3years)

Preferences for strategic investment projects *

Land , property tax 0%for up to7years

Guaranteed state orderIndustrial subsidies for areas with low

socio-economic development

Corresponds to the List of priority activities

The volume of investment exceeds50 million USD OR

Corresponds to the List of high-technology products


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SECTOR-SPECIFIC INCENTIVES IN 10 DEDICATED SEZS ACROSS COUNTRY

SLIDE TEXT


SEZ Petrochemical park(Oil and gas industry, petrochemicals)

SEZ Burabai(Tourism)

SEZ Astana new city

(construction industry)

SEZ Pavlodar(chemical industry)

SEZ Saryarka(metallurgy)

SEZ Khorgos

Eastern Gate

(Trade, logistics)

SEZ Innovation

TechnoPark(IT-industry, innovations)

SEZ Chemicalpark

Taraz(chemical)

SEZ Ontystik(textile industry)

SEZ Marine Port

Aktau(logistics, transport)

Aktau

Atyrau

AstanaPavlodar

Karaganda

Shymkent

Taraz Almaty


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ATTRACTIVE INVESTMENT INCENTIVES IN SEZS


FISCAL INCENTIVES in SEZs

0%Corporate Income Tax until 2020-2025 with possibility for extension

0% for land and property tax until 2020-2025 with possibility for extension

VAT0% (for products consumed in SEZ) until 2020-2025 with possibility for extension

Increase of marginal rate of depreciation for tax on the production of software to 40%

For SEZ Innovationtechnoparksocial tax is 0% for 5 years, under certain conditions

For SEZInnovationtechnoparkdepreciation rate for software increased to 40 %

NON-FISCAL INCENTIVES

Provision of free land in SEZ for a period of up to 10 years from registration time as SEZ resident

Simplified procedure for the recruitment of foreign labor


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KAZNEX INVEST: YOUR ONE-STOP-SHOP FOR INVESTING


Providing information aboutbusiness / invest

projects and analytical information

Assist in the selection ofprojects of AIID

Help in choosing a partner

Assistance in administrative

mattersOrganization of meetings

with officials

COMPREHENSIVE ASSISTANCE

TO FOREIGN INVESTORS

Assistance in obtaining

state support for investors

Assist in the selection of projects of

State program of acceleratedindustrial-innovative development ofthe Republic of Kazakhstan for 2010-

2014


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KAZNEX INVEST |

www.invest.gov.kz

THANK YOU!
http://www.invest.gov.kz/http://www.invest.gov.kz/

Investment climate Kazakhstan.ppt

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