Invest in Kazakhstan | Investment project support

Invest in Kazakhstan: Your Gateway to Central Asia

Kazakhstan stands as the top destination for Foreign Direct Investment (FDI) in Central Asia, having attracted a total of $425 billion since gaining independence in 1991. This figure represents 60% of all FDI inflows into Central Asia. With the recent adoption of the “Concept of Investment Policy,” Kazakhstan’s annual FDI inflow is expected to climb to $25.5 billion by 2026, following a record $28 billion in 2022—the highest in a decade.
Kazakhstan is dedicated to improving its attractiveness to investors by fostering a diversified, sustainable economy. The country aims to become one of the world’s top 30 developed nations by 2030.
While Kazakhstan is renowned for its hydrocarbon industry, it is increasingly becoming a prime location for investments in sectors such as agriculture, food processing, and high-value manufacturing, including automotive, electronics, and a broad range of consumer goods.

Strategic Location: Access to Major Markets

Kazakhstan’s strategic position as a neighbor to China, Russia, and other Asian markets makes it a hub for accessing large consumer bases. Its well-developed infrastructure connects investors to Europe and the Middle East via the New Silk Road.

Global Companies Investing in Kazakhstan

Kazakhstan is home to leading international investors such as:
  • Chevron, Total, Shell, Eni – Oil and gas exploration, production, and processing
  • Knauf – Construction materials manufacturing
  • The Linde Group – Gas production and processing
  • Glencore – Mining of zinc, lead, and precious metals
  • Wilo – Pump systems production and testing
  • Cameco – Uranium mining and processing
  • CNPC – Oil and gas exploration and the Kazakhstan-China oil pipeline
  • Stadler – Railway passenger carriage production
  • Svevind – Renewable energy and green hydrogen projects
  • EuroChem – Phosphate ore production
  • Halliburton – Oil and gas well drilling
  • Rio Tinto – Copper ore mining
  • Hyundai, KIA – Automotive manufacturing
  • Air Liquide – Hydrogen production and oil refinery operations
  • Coca-Cola – Beverage production
  • CLAAS – Agricultural machinery manufacturing
  • ALSTOM – Electric locomotive manufacturing
  • BASF – Chemicals for construction and agriculture
  • Schneider Electric – Solar power and electricity automation solutions
  • Risen Solar – Solar energy projects
  • YDA Holding – Construction development, real estate, and infrastructure projects
  • LUKOIL – Oil and gas operations, lubricants production
  • VICAT Group – Cement production
  • Selena Group – Construction chemicals and insulation systems
  • SWISSGROW – Fertilizer production for agriculture

Foreign Investment in Kazakhstan: A Comprehensive Guide

Investment Authorities in Kazakhstan

Kazakhstan’s primary investment authority is the Committee on Investments, operating under the Ministry of Foreign Affairs. The Committee is responsible for negotiating and concluding investment contracts under the provisions of the Entrepreneurship Code (refer to Section 2.3). Additionally, the Ministry of Energy oversees subsoil use contracts for oil, gas, and uranium, following the abolition of contracts for other solid minerals.
In June 2014, Kazakhstan introduced the role of an investment ombudsman, tasked with addressing investment-related issues and disputes between investors and the government. While the ombudsman cannot enforce solutions, it can recommend them. The Committee on Investments offers administrative support to this office, currently overseen by the Prime Minister.

Investor Protections in Kazakhstan

The Entrepreneurship Code, introduced in October 2015, replaced the previous Law on Investments and upheld many key investment protections. These include the stability of contracts (with limited exceptions), transparency of state investment policies, stability in tax and foreign labor laws for priority investment contracts, free use of income, compensation for losses in cases of nationalization, and other protections.

Government Support for Direct Investments

Kazakhstan encourages direct investments in key industries to drive industrialization and diversify its economy. The Entrepreneurship Code outlines a set of incentives for investments in sectors such as equipment production, pharmaceuticals, food, metallurgy, agriculture, and construction. The government maintains an official list of eligible industries for these incentives.
To access these benefits, investors—usually Kazakhstani entities—must sign an investment contract with the government, which the Committee on Investments registers to make it valid. Investment projects are categorized as follows:

Ordinary Investment Projects

Ordinary investment projects focus on creating new production facilities or expanding and modernizing existing ones in eligible sectors. Investors in these projects are entitled to:
  • exemption from customs duties for up to five years
  • Import VAT exemptions for certain products for up to five years
  • state in-kind grants, such as land, buildings, and equipment, which become the investor’s property upon fulfilling contractual obligations (grants are limited to 30% of the total investment in fixed assets)

Investment priority project

Priority investment projects target more specific industries and require higher investment amounts. Projects must involve at least KZT 7.3 billion (~USD 16.26 million) for new facilities or KZT 18.4 billion (~USD 40.66 million) for modernizing existing ones. In addition to benefits provided for ordinary projects, these projects receive:

Special investment project

Special investment projects meet one of the following criteria:
  • Conducted by a Kazakhstani entity registered in a Special Economic Zone (SEZ)
  • Managed by a free warehouse owner
  • Involved in motor vehicle assembly through an agreement with the government
These projects are eligible for customs and VAT exemptions on imported materials for up to 15 years.

Investment Agreements

For investments exceeding KZT 27.6 billion (~USD 60 million) in various sectors (excluding subsoil use, banking, and securities), investors can sign investment agreements with the government for up to 25 years. Benefits include:
  • Corporate income, land, and property tax exemptions for up to 10 years
  • Tax liability reductions by up to 20% for investments over KZT 55.3 billion (~USD 121 million)
  • Stability in tax laws for certain taxes

Investment Commitment Agreements

Manufacturing companies that plan to invest at least KZT 276.9 billion (~USD 609.9 million) may enter into investment commitment agreements with the government. These agreements offer 10-year tax stability, excluding VAT and certain other taxes.

Additional Investment Benefits

Investors can also seek one-stop administrative assistance from the Committee on Investments for liaison with government agencies. Furthermore, local companies have automatic access to accelerated tax depreciation for fixed assets, provided they meet specific conditions. Financial support measures are also available, including interest rate subsidies and state-backed guarantees for bank loans.

Kazakhstan’s Bilateral Investment Treaties

Kazakhstan has signed bilateral investment treaties (BITs) with 49 countries, offering investor protections such as most-favored-nation treatment, protection from discrimination, and the right to resolve disputes through international arbitration. These BITs ensure that investors can operate in Kazakhstan under favorable and transparent conditions. The country is also a party to multilateral investment agreements, such as the Energy Charter Treaty.

Foreign Investment Restrictions

Some sectors in Kazakhstan have foreign ownership limitations. For example, foreign investors are restricted from owning more than 20% of shares in local mass media companies.

BOND STONE’s Expertise in Investment Projects

At BOND STONE, we have extensive experience in supporting investment projects in Kazakhstan. As a trusted legal partner, we work closely with Kazakhstan’s Government Investment Agency and National Company KAZAKH INVEST to provide comprehensive legal support for investment initiatives.
Our team of specialized investment attorneys will guide you through the legal intricacies to ensure your project benefits from the most favorable incentives available, helping you achieve your investment goals efficiently.

Start Your Investment Journey Today

Contact BOND STONE to learn how we can support your investment in Kazakhstan. Our expertise in legal strategy, government relations, and project execution will ensure your success in this dynamic and fast-growing market.