Kazakhstan to attract $40.5 billion of investments in fixed capital this year

Kazakhstani businesses are going to invest about $40.5 billion in fixed capital this year, according to Alikhan Smailov, who attended a meeting on the social and economic development of the country.

«The integrated Future Growth Project – Wellhead Pressure Management Project (FGP – WPMP) have been implemented (at Tengiz), a fifth gas reinjection compressor is about to start operating (at Karachaganak field) and the designing of two natural gas processing plants with a capacity of four billion cubic meters at Karachaganak and one billion cubic meters at Kashagan is underway,» Smailov said.

He also noted that Kazakhstan will launch 170 industrial projects this year worth $2.2 billion in total. Overall, the country is working on 873 investment projects ($62 billion).

Smailov also noted that 24 foreign companies have relocated to Kazakhstan and 43 more will do so in the near future.

In the first quarter of 2023, the fixed capital investments in Kazakhstan reached $5.9 billion, which is 16.1% more than the same period last year. More than half of these investments have been consumed by the industrial sector, including the mining industry.

In order to attract more investments, the government of Kazakhstan usually offers middle-sized and big companies to sign long-term agreements that oblige businesses to guarantee such investments on the one hand, and on the other hand, the government guarantees these businesses tax stability for at least ten years to come.

The national legislation allows the authorities to sign investment agreements primarily in the sphere of mining and ore processing while prohibiting the government from doing so in the oil and gas industry.