Investors are confident to invest in Kazakhstan
Today we watch Kazakhstan's economy to have adapted to "new normality". According to the Ministry of National Economy, the volume of investment into the fixed capital has increased by 4.7%.
"During 11 months of 2016 the volume of investment has grown to KZT 6 trillion. Such growth was fostered by implementation of government projects of industrial-innovative and infrastructure development and anti-recessionary programs", - Minister of National Economy Kuandyk Bishimbayev said in the Government meeting today.
The Minister also noted positive dynamics of direct foreign investments since the beginning of the year. Net inflow of direct foreign investments during January-September 2016 equaled USD 12,1 bln which is 4,4 times higher than for the same period of 2015.
According to the official data, businesses' own funds remain the main source of investment financing - KZT 3,5 trillion (60.5%). Bank loans amount to KZT 355,2 billion (6.2%). Borrowed funds amount to KZT 1 061,2 billion (18.5%).
By industries the essential growth of investments is observed in agricultural industry. According to the Vice-Minister of Agriculture, during 11 months of 2016 the volume of investment into agriculture has increased by 48% and equaled KZT 228 billion.
"For comparison, for the same period of the last year the volume of investments amounted to KZT 148 billion ", - Kayrat Aytuganov added.
In the sphere of trade the volume of investment have increased by 33.5% and equaled KZT 122,8 billion. In mining industry - 14.9%, and KZT 2 102,6 billion. In processing industry - 3.3 % and KZT 595,2 billion.
As noted by many experts, Kazakhstan has the most optimum business climate among nearby countries. Kazakhstan offers investors low tax rates, unprecedented packet of incentives (exemption of a number of taxes, provision of lands, natural grants, visa-free regime, etc.). In the last Doing Business report Kazakhstan's position rose from the 41st to the 35th. In the "Protection of minority investors" index Kazakhstan has improved its positions from the 25th to the 3rd. In addition Kazakhstan is among 10 countries which have made significant achievements in improvement of the business legislation. Another factor that makes Kazakhstan attractive for investors is the geographical location.
USA, China and other countries are actively investing their money into Kazakhstan's economy. As said by Vice-Minister of Investments and Development Yerlan Khairov, Kazakhstan competes with 189 countries of the world for the direct foreign investments.
According to the ministry, today the quality of investment projects is regulated by the government, which also ensures balance in the amounts of investment from various countries into Kazakhstan.
It should be noted that China is an important and large investor on the world scene. Even the developed countries of the European Union aim to attract Chinese investors, creating special programs. In September, 2016 Kazakhstan and China signed the agreement on construction of 51 modern enterprises with five year investments amounting to $26 billion.
In general, according to the Investment Committee of the RoK Ministry, ever year Kazakhstan attracts about USD 20 billion of foreign investments.
It should be noted that for investor protection in Kazakhstan the investment law had been applied earlier. In 2015 all its provisions were transferred to the Entrepreneurial code. These regulations are aimed at protection of the rights of investors during implementation of investments, use of income, settlement of investment disputes, and state support of investments.