Leading countries in terms of amounts of investment in Kazakhstan named
10 states account for 92% of foreign investment in Kazakhstan.
For the first six months, the top ten investor countries have financed projects for US $11.3 billion in Kazakhstan. The top three includes the Netherlands, the USA, Switzerland, ranking.kz reports.
Kazakhstan has attracted US $12.3 billion to the national economy for the first six months, a 15.4% increase compared to last year - US $10.6 billion, with 10 states accounting for 92.4% (US 11.3 billion) of the total investment flow to the country.
The absolute long-standing leader in terms of investment is the Netherlands, the volume of investment is US $3.8 billion (last year - US $3.1 billion) for six months. The second strategic partner is the USA - US $2.8 billion (last year - US $2.3 billion). And Switzerland - US $1.3 billion (for six months of last year - US $1.2 billion). The closest neighboring country - Russia has invested joint projects for US $821 million in 2018, US $586.3 million in last year.
The multi-year trend indicates the growth in interest in Kazakhstan. After the sharp decline in global investment flows in 2014 (to US $1.3 trillion), Kazakhstan also saw a 38.7% fall in investment flows in the following year. However, starting with 2006 and until now a gradual resumption of investment attractiveness of the country in the background of the modernization of the country's investment climate in favor of 'efficient' investment aiming at increasing volumes of production and trade turnover has been carried out.
Representatives of the 10 largest investor countries have formed a pool of the most attractive sectors. Dutch investors have invested US $54.2 billion in the mining sector (75.8% of the total investment) over the entire history of economic relations with Kazakhstan. US $5.3 billion and US $5 billion (totally 14.5% of the total investment) have been invested in the processing industry, vocational, scientific and technical activities.
US investors account for the same sectoral portfolio of investment: the mining industry accounts for 91.6% (US $28.2 billion) of the total investment. Also, American investors find a potential in the financial sector of Kazakhstan, with a cumulative investment amount of US $1.3 billion (4.3%). Investments in vocational, scientific and technical activities account for US $479.6 million (1.6%).
The investment preferences of Swiss active investors completely differ from representatives of the two previous states. Thus, the processing industry is the main sector for Swiss investors: US $3.1 billion (65.8%) of accumulated investments. The next is retail and wholesale trading, car and motorbike repairs: US $480.1 million (10.1%). And the third is information and communication - US $408.2 million (8.6%). The total amount of investments from Switzerland has made up US $4.7 billion by the end of the first six months of 2018.
The closest neighboring country - Russia is not only one of the key investors in the national economy, but also the most important strategic partner. The flow of investments from Russia to Kazakhstan has equaled US $12.2 billion over the years of interaction. Russian investors, unlike their colleagues (top ten investor countries), have the most diversified portfolio by disseminating investments relatively equally. The processing industry accounts for 24.3% (US $3 billion) of the total investment. The mining industry has attracted US $2.6 billion (21.2%) of Russian assets. The third potential sector includes retail and wholesale, car and motorbike repairs: US $1.9 billion.
Gross flows of direct foreign investment are expected to grow by 26% (of the 2016 level) by 2022, and its percentage of GDP is expected to be at the level of 19%, considering that this figure is 16.5% to date.
Given the investment restructuring and the orientation of investments in the service sector of the economy, the number of foreign investments in the main capital of the non-commodity sector of the economy should rise to 50% (of the 2016 level) by 2022.
Kazakhstan's foreign trade with the top ten investor countries has made up US $38.4 billion for nine months of the present year, which is 56.3% of the total trade turnover with all states (US $68.2 billion). Russian leads in trade relations with Kazakhstan, taking into account the country's investment activity. The states have exchanged goods and services for US %12.8 billion for January-September. It is followed by China (US $8.2 billion), and the third is the Netherlands (US $5 billion).