Kazakhstan experienced a dramatic reversal in foreign direct investment (FDI) in 2025, shifting from a net inflow of $2.8 billion in the first quarter to a net outflow of $1.9 billion in the second quarter. Economist Ruslan Sultanov attributed the decline primarily to U.S. companies reinvesting profits into production rather than bringing in new capital.
Notably, Kazakhstan recorded a $893.6 million net FDI inflow in the first half of 2025, primarily driven by strong investment in the first quarter.
By country, the largest declines in investment were from the U.S. (-$1.65 billion) and China (-$486 million). In contrast, Russia, Luxembourg and Germany each saw moderate investment growth. Sultanov explained that in FDI reporting, when foreign-owned companies transfer profits from Kazakhstan to shareholders as dividends, those outflows are recorded as negative FDI, even if production and investment plans remain unchanged.
As a result, some U.S. and foreign companies have withdrawn part of their profits from Kazakhstan instead of reinvesting them. This is called negative reinvested income.
