Kazakhstan wants to create five unicorns valued at over $1 billion. Uzbekistan already has one

By 2029, Kazakhstan aims to create five domestic unicorns, boost its IT exports to $5 billion and implement at least 25 AI products in various economic sectors per year. These goals are part of the Concept for AI Development recently presented by Digital Minister Zhaslan Madiyev at a cabinet meeting.

The term «unicorn» is typically applied to a company valued at over $1 billion. So far, there is not a single unicorn in Kazakhstan, although, according to Yersultan Yermanov, head of the IT Sector Development Department of the Digital Ministry, «it wouldn’t take long» for such a company to arise.

As the official noted, unicorns in Kazakhstan would emerge with the help of Astana Hub, an international technopark for IT startups established in 2018. To promote this growth, the government has been creating all necessary conditions for the rapid development of businesses. For instance, technopark residents are exempt from paying income tax. The main criterion for these businesses is that they must profit from priority activities in the IT sphere.

Meanwhile, neighboring Uzbekistan already has one unicorn called Uzum. This company operates several businesses, including an online store, fintech and a food delivery service, and is valued at $1.16 billion. The platform was launched in October 2022 and currently has more than 8 million active customers. In its first year of operation, the company reported $150 million in gross merchandise value (GMV). This year, Uzum’s GMV is expected to be no less than $300 million. In 2020, there were about 1,200 startups in Uzbekistan, with 85% at the initial stage of capital raising.

In 2023, Kazakhstan’s exports of «computer services» reached $529 million, a 57% increase over 2022 ($337 million). More broadly, IT exports from Kazakhstan have risen tenfold over the past three years, from just $50 million in 2020. Key export markets for Kazakhstani IT companies include the U.S., Russia, the UAE and Cyprus.

President of Kazakhstan Kassym-Jomart Tokayev wants IT exports to reach $1 billion by 2026, while the Concept for AI Development prepared by the Digital Ministry is aiming for $5 billion by 2029. Notably, in 2023, Kazakhstan’s IT exports exceeded the import of IT services ($493 million) for the first time.