Kazakhstan attracts a record-high amount of investments from EU

Last year, Kazakhstan attracted $12.5 billion in direct foreign investments from the European Union (EU), which is a quarter more than in 2021. This is a record high over the past ten years, Prime Minister Alikhan Smailov stated.

«We are interested in applying every option in order to expand our potential for further investment cooperation,» Smailov said during the EU-Central Asia economic summit in Almaty.

On May 19, Kazakhstan and the EU signed an agreement that implies the implementation of a range of projects for nine million euros in total. The EU is the biggest foreign investor in Kazakhstan, accounting for 48% of all foreign direct investments in the country.

According to Smailov, Kazakhstan’s authorities are aiming at a target of $150 billion FDI by 2029. Over its 32 years of independence, the country has attracted more than $410 billion from foreign companies. In 2022, Kazakhstan received about $28 billion in FDI, which is a historic record over the past ten years. The Netherlands accounts for 30% of these investments ($8.3 billion), and the U.S. and Switzerland account for a third with $5.1 billion and $2.8 billion in investments, respectively. Last year, foreign businesses invested primarily in the mining industry.

In June 2022, Kazakhstan’s government approved a new concept for investment policy, which is expected to be a guide for the government until 2026 when investments in capital stock should account for 25.1% of the GDP while FDI will reach $25.5 billion in 2026.

In turn, the EU is interested in developing new logistical routes between Central Asia and Europe. European Commissioner for Trade Valdis Dombrovskis said that this goal would require attracting many new investors who will work in the region to eliminate bottlenecks and facilitate developing infrastructure.

«Relations between the EU and Kazakhstan are very dynamic thanks to the Enhanced Partnership and Cooperation Agreement and memorandum of understanding on sustainable raw materials, batteries and renewable hydrogen value chains,» the EU official said.

During the bilateral summit in Almaty, the two sides approved a plan of action for the implementation of a memorandum that was signed last year at the UN COP 27. At the time, President of the EU Ursula von der Leyen said that Kazakhstan and the EU would cooperate in the sphere of rare metals, batteries and green hydrogen. The agreement also promotes information transparency associated with investments.