1. National Export and Investment Agency
TOP REASONS TO
INVEST IN KAZAKHSTAN
National Export and Investment Agency
Gaukhar Zainullina
Regional Director

2. Country overview 2 Area of land: 2.7 mln. sq. km Capital city: Astana
Political status: Republic
Area of land: 2.7 mln. sq. km
Capital city: Astana
Population: 16,5 million
Key Economy Information, 2009
GDP/GDP per capita: USD 134 bln/USD 8,547
Industry Production: 85 bln. USD
Trade turnover: 109 bln. USD
Export: 71.2 bln. USD
Import: 37.9 bln. USD
Main religions: Islam, Russian Orthodox
Main languages
Kazakh (state language)
Russian (official/business language)
Key ethnic groups
Kazakh: 65%
Russian: 25%
Ukrainian: 2.9%
Uzbek: 2.8%
German: 1.5%
Korean:0.7%
Currency: Tenge (KZT, USD 1 = ~ KZT 150) 2
Source: KazStat

3. Preferable Geographic Location: Gateway between Europe and Asia
Strategic location between European and Asian business centers
Main transit area in region
Surrounded by attractive markets – China and Russia
3 out of 4 Eurasian rail corridors go through Kazakhstan
Location features
Gate to Russian and European market
Russia
Europe
Kazakhstan
China
Middle East
India
Gate to China, India and South-East Asia

4. Stable Macroeconomic Environment
Source: KazStat

5. Inward FDI Performance
Gross inflow of FDI to Kazakhstan from 1993 – 102,9 bln. USD
Investor Protection
Country
Strength of investor protection index (0-10)
New Zealand
9.7
Kazakhstan
5.7
Russia
5.3
Tajikistan
Ukraine
4.7
Moldova
Main investors by gross inflow of FDI in 1993 – 2009
Source: Doing Business 2010

6. World’s Leading Reformer
Doing business 2010
Global competitive Index
Economy
Ease of doing business
Singapore 1
Finland 14
Georgia 15
Korea 23
Austria 27
UAE 46
Mongolia 58
Kazakhstan 63
Czech Republic 75
China 83
Russia
120
Ukraine
145
Economy
Global competitiveness
Index ranking
USA 2
Finland 6
Austria 15
Korea 19
UAE 23
China 29
Czech Republic 31
Russia 63
Kazakhstan 67
Ukraine 82
Georgia 90
Kyrgyzstan
123

7. State Forced Industrial and Innovative Development Program:
Priority sectors
State Forced Industrial and Innovative Development Program
Agriculture complex and agricultural production
Construction industry and production of construction materials
Oil refining industry and oil and gas infrastructure
Chemical, pharmaceutical industries
Metallurgy development and production of final metallic products
Uranium industry
Light industry
Purpose:
To diversify and enhance the competiveness of Kazakhstan economy and increase GDP by the year of 2015 by 7 trillion tenge or approximately 50% of GDP.
Energy
Transportation and telecommunication infrastructure
Space industry
Tourism
Objectives:
Concentration country’s resources on development of economy’s priority sectors;
Creation of favorable macro and investment climate;
Enhance of national economy production;
Support of export oriented industries and innovative manufacturing.
Machinery and equipment building

8. Access to New Markets: Kazakhstan, Russia and Belarus Customs Union from January 1, 2010
Advantages for potential investors:
SIMILAR TRADE RULES
1. Single custom’s territory;
2. Single foreign trade policy;
3. Single custom’s legislation, single custom code;
4. Free goods mobility inside single
custom’s union
Russia
Kazakhstan
Market capacity – around 170 million people
Total GDP of almost 2 trillion USD
Belarus
INCENTIVES FOR THE INVESTORS
Exemption from import customs duties on import of
non-produced technological equipment and raw materials in Kazakhstan in the implementation of investment projects. Kazakhstan has more liberal taxation for opening and doing
business comparing with Russia and Belarus.

9. Developing Infrastructure: “Western Europe – Western China”
International Transit Corridor
Russia
ASTANA
Martuk
Russia
Karabutak
Khromtau
Aralsk
Saryozek
Kyzylorda
Khorgos
Baykonyr
Korday
China
Almaty
Taraz
Communicator
Base station of trunking communication
LEGEND
Operator
International Transport
Logistic Centre
Communication centre
ALMATY
Korday
Uzbekistan
Shymkent
Turkmenistan
Kyrgyzstan 9 9 9

10. Strong Partners to Cooperate: Development Institutes
National welfare fund “Samruk-Kazyna”
(national companies and development institutions in railway, energy, oil and gas, telecommunications sectors)
National holding "KazAgro"
Investment Fund of Kazakhstan
Development Bank of Kazakhstan
Entrepreneurship Development Fund
Kazyna Capital Management
State Insurance Corporation
National Innovation Fund

11. Strong Partners to Cooperate: Special Economic Zones
SEZ «Burabay»
SEZ «Astana -
New city»
SEZ
«Ontystik»
SEZ «Marine Port
Aqtau»
SEZ «Petrochemical
park»
SEZ «IT Park»
LEGEND:
construction
high-tech industries
IT, software
textile
petrochemicals
tourism 11 11

12. Incentives Given in Special Economic Zones
Operating Incentives
Proposed Incentives
guaranteeing SEZ participants tax regime stability during project implementation;
introduction of a special regime for foreign labor imports to SEZ;
introduction of “one-stop shop” service for SEZ participants.
Exemption from VAT for selling Kazakhstani goods on SEZ territory for consumption when performing SEZ-specific activity
Increasing marginal rate of depreciation for taxing software
Exemption from land rent on SEZ territory for terms determined by agreement but no longer than 10 years since receiving right of temporary use
Tax Code of RK:
exemption from corporate tax
exemption from land tax
exemption from property tax
Customs Code of RK:
Exemption from custom duties on SEZ territory

13. Additional Incentives Proposed in Special Economic Zones
For SEZ “Astana – New City”:
Decrease of existing 20 per cent corporate tax for “construction and putting into operation infrastructural objects, administrative and residential complexes in accordance with construction documents”.
Use 0 rate of land tax.
Decrease property tax rate from 0.5 per cent for individuals, 1.5 per cent for legal entities up to 0 per cent
Decrease of VAT when selling goods and equipment fully consumed for building and putting into operation infrastructural objects, administrative and residential complexes.
For SEZ “IT Park Alatau”:
Increase marginal rate of depreciation charges.

14. Investment Preferences
Machinery
Equipment
Waiving of import duties
Corporate tax rate is down to 20%
Land
Favorable tax regime
State grants in kind
VAT tax rate is down to 12%
Buildings
INVESTOR
Machinery
Reduction of taxable income for corporate income tax
Equipment
Minimal long-term
purchase contract
from state and national companies
Special order for entrance visa issue for foreign experts and for foreign labor
Support measures under the «Business – 2020» Road Map:
Subsidizing interest rates on loans
Partial loan guarantees
Development of industrial infrastructure

15. National Agency for Export and Investments «KAZNEX INVEST» – your partner in Kazakhstan
Creation of favorable climate
Promotion of investment opportunities
Ministry of Industry and New Technologies
one-stop
shop
KAZNEX INVEST
Support of foreign investors and providing services
INVESTOR
Investor protection
Export promotion
Our contacts:
Tel.: +7 (7172)
Fax: +7 (7172)

16. Thank you for your attention!
Благодарю за внимание!