The government of Kazakhstan has abandoned its earlier plan to merge the Kazakhstan Stock Exchange (KASE) and the Astana International Exchange (AIX) under the Astana International Financial Centre (AIFC). According to Timur Suleimenov, chair of the National Bank, the decision is part of a broader reform of the AIFC that the authorities are preparing to implement.
Suleimenov noted that changing the tax regime within the AIFC is not on the table, as numerous Kazakhstani and foreign companies have joined the center in recent years specifically to benefit from tax incentives. This concern even led Deputy Prime Minister Serik Zhumangarin to warn MPs that the AIFC could risk becoming a tax haven within Kazakhstan.
«The time has come to ensure our tax and currency perimeter has no loopholes,» Suleimenov said, emphasizing the importance of doing so without altering existing tax regimes or revoking any benefits. «There is a clear understanding from both the government and the AIFC — we are going to address this issue very soon.»
He explained that the primary goal of the reform is to redefine how the AIFC’s jurisdiction, which is based on English law, interacts with Kazakhstan’s broader legal and regulatory framework, particularly concerning taxation, capital outflows and financial stability.
«We believe we need to enhance operational coordination among AIFC’s governing bodies — such as the Financial Services Regulatory Committee, the ARDFM, the Ministry of Finance and the National Bank,» he said. «In other words, we must strengthen the overall interaction between the AIFC and the jurisdiction of the Republic of Kazakhstan. The relationship between KASE and AIX is just one aspect of this broader issue.»
He also clarified that the government had always intended to combine the potential of the two exchanges in a complementary way, avoiding direct competition, not simply merge them.
«We plan to finalize this issue and present it for review by the Financial Stability Council in the third quarter,» Suleimenov said. «That means we will discuss it internally sometime in September,» he added, noting that the process will involve the government, the AIFC and the National Bank. «After that, we’ll communicate the decisions to experts and the media.»
Suleimenov also emphasized that the decision to suspend the merger had nothing to do with the Moscow Exchange’s previous stake in KASE, noting, «That’s no longer relevant.»
«This isn’t just about the exchanges themselves — it’s about ensuring the smooth integration of the AIFC into Kazakhstan’s overall financial regulation framework. While the AIFC is significant, it remains only a part of the country’s financial system. Some issues require closer coordination around financial flows, instruments and tax matters. That’s why we’re taking a comprehensive approach, which includes how the two exchanges interact.»
Back in September 2023, President Kassym-Jomart Tokayev proposed consolidating the potential of KASE and AIX under a single management, citing significant overlap in their functions.
By April 2024, Suleimenov had stated that a strategy for integration had already been developed, and that joint operations could begin as early as 2025 — if approved by the presidential administration. However, in January 2025, former KASE head Alina Aldambergen revealed that no negotiations with AIX regarding a merger had taken place.
