Opportunities in Kazakhstan

by Alice Arandia, Commercial Director

A land of opportunities that surprised me..

In 2017 I moved to Kazakhstan and discovered a fascinating country, rich in history and wonderful people, and yes; nothing like any comedy relating to the country that you might have seen. It is a country I was shamefully ignorant of, but I quickly learned that it is rich in natural resources, and has a huge growth potential with an abundance of business opportunities.. so, if you haven’t already, forget any preconceptions you might have, and learn more about what Kazakhstan really has to offer. Here are a few of the things I learned:

·       Great location – remember the stories of the old silk road, that ancient trade route between China and Europe? Well, it passes right through Kazakhstan and the government are currently part of a project to reconstruct that very route with an aim to develop Kazakhstan further as an international logistical hub between China and Europe. Large amounts of freight already travel by road and rail across the country every day, connecting Russia, China and Europe.

·       Economic and Political Stability - Kazakh government is actively working on improving business environment for foreign investors.  It’s ranking in the World Bank’s Ease of Doing Business Index has improved considerably over the last 10 years to it’s current position at 25th out of 190 countries (2020 Index).

·       UK FDI on the increase - UK Trade and Industry recently confirmed that British direct investment in Kazakhstan had increased this year (2020) by over 30%, despite all the problems caused by the ongoing pandemic.

·       Its the 9th biggest oil producer in the world - not only that, Kazakhstan has the world deepest supergiant oil field, Tengiz, 6 miles from the Caspian Sea.   Many significant projects, such as Chevron’s $45 billion future growth project, create a vast range of opportunities for drilling and service companies.

·       It’s not just oil and gas - The Kazakh government has reported a desire to expand foreign investment, and shown interest most specifically in investments in agro industry, mining and metallurgy, manufacturing, finance, engineering, construction, healthcare and pharmaceuticals.

·       Renewable Energy - The steppe, covering huge areas of northern and central Kazakhstan, is seen as an ideal location for wind farms and solar panel developments.

·       Manufacturing Potential - FDI Intelligence listed Kazakhstan as the number one future location for manufacturing in 2019, and recognised it as having one of the top Global Free Zones in 2020.

After all that, if you still think of Kazakhstan as an underdeveloped country you definitely need to visit the capital city, Nur-sultan: futuristic architecture lines wide avenues, a glistening presidential palace, opened in 2004, sits grandly in the city centre, and an enormous tent structure, home to shops, cinemas, restaurants and even an indoor beach and pool area, are but a few of the amazing constructions that you will find in this city. It was described by a CNN reporter as the “weirdest city in the world”. I found it fascinating.  Only one other note - unless you are a fan of Siberian temperatures, visit in the summer. Temperatures in Nur-Sultan can plummet to -40c in winter. Though if you need warming up you can always escape to the haven of the tropical beach in the enormous Khan Shatyr entertainment centre where you can enjoy +30c. (apparently the world’s largest tent).

Finally, of course, like everywhere, this country has problems, and there are significant cultural differences to what we are used to in the UK, so irrespective of the industry you are interested in, you must find local contacts, learn about business norms and the culture. That is your key to success, and it is where we can help. My recommendation to clients is to never underestimate the value of local knowledge, and to Remember the 3Ls.. take time to listen, learn and liaise. 

ALSO try and do better than me and learn the language too! That is a big help.. it is still on my to do list… but along with identifying local partners for you, providing project management, training and/or orientation services we can even find you a language teacher if required.

Also, don’t you love the colour of the Kazakh flag too? I do!