Qatar expands its investment projects in Kazakhstan

Qatar is investing $20 billion in Kazakhstan’s economy. Members of the Senate, the upper house of Kazakhstan’s parliament, have ratified an agreement between the two countries aimed at establishing a long-term relationship. All in all, nine projects are expected to be implemented, providing jobs for 14,000 people during construction and 3,000 permanent jobs once the projects commence their regular operation, said Senator Shakarim Buktugutov. 

Qatari investors will establish a new communication provider, construct a gas processing plant at the Kashagan Field and complete the second line of the Beineu-Bozoy-Shymkent gas pipeline. They will also build a power plant in the Kyzylorda region and a hydroelectric power station on the Irtysh River. 

The agreement also protects Qatari companies investing in Kazakhstan from customs duties on equipment, raw materials and component imports. They will also benefit from tax incentives provided by Kazakh legislation. Furthermore, any new taxes introduced after the agreement takes effect will not apply to these investors.

During the implementation of the projects and for the next 20 years, Kazakhstani regulations for transfer pricing will not apply to the investors. Furthermore, Qatari investments cannot be expropriated (seized by the state without compensation), nationalized (transferred to state ownership with minimal compensation), or requisitioned (temporarily taken for state use). Exceptions are only allowed when these actions are necessary for national or public purposes, and even then, they must come with prompt, fair and effective compensation.

Previously, QazaqGaz and Qatari UCC Holding arranged to build two gas processing plants with capacities of 1 billion cubic meters and 2.5 billion cubic meters with a combined value of $5.7 billion. Moreover, they are set to launch a new CS-14 compressor station, the Kostanay-Aktobe main gas line and the second line of Beineu-Bozoy-Shymkent worth 7.7 billion.

Media have earlier reported that Power International Holding is looking to buy Kazakhstani Mobile Telecom-Service, a mobile operator represented by Tele2 and Altel brands. 

On Oct. 8, 2024, Baiterek National Holding announced the completion of a deal with Qatar’s Lesha Bank to acquire Kazakhstani Bereke Bank for $134.9 million.