1. March 2015 Mangystau Oblast, Kazakhstan Investment Destination Profile

2. Executive summary Mangystau Province, on Kazakhstan’s Caspian seacoast, is the center for the regional oil service cluster, and a transport hub on the ‘New Silk road’ between Asia and Europe, as well as a hub linking Russia, Central Asia, Iran, and the GCC countries Kazakhstan’s political and economic stability, and close economic ties to Russia, the European Union, China, Korea, and the U.S., makes it a natural location for regional manufacturing, transport and logistics, and energy investments Major planned transport, industrial, and energy infrastructure projects in Mangystau, supported by generous investment incentives, represent a compelling investment opportunity

3. Mangystau Source: Kazakhstan Statistics Agency Territory: 165,600 km² Population (2013): 568,000 (50% urban) Labour force: 272,000 Unemployment: 5.4% Gross regional product, 2012: $13.3 billion GRP per capita, 2012: $23,421 (50% higher than national average) Major languages Kazakh (state language) Russian (official, business language) English is widely spoken Produces 20% of Kazakhstan’s oil and gas

4. The New Silk Road A new high-speed version of the ancient Silk Road is under construction at a cost of $7b, funded by governments and World Bank, ADB, EBRD, IDB. Completion of this 2700-km rail corridor linking coastal China with Europe is expected in 2015. It will reduce transit time between China and Europe from 45 days (sea route) to between 20 and 25 days.

5. Mangystau is one of the principal hubs on this route Mangystau is at the crossroads of the China-Europe and Russia-Iran corridors Multimodal: Rail, sea, air, road Aktau Seaport has a 2,000-ha. Special Economic Zone immediately adjacent: an ideal platform for enhanced transport & logistics services and manufacturing

6. Highly competitive investment incentives Fiscal incentives Cash or in-kind grants Duty / VAT Exemptions Free Zones / SEZs Other 10-year profits tax exemption* 8-year property tax exemption Reimbursement of up to 30% of construction, equipment, installation costs* Duty exemptions on imported plant and equipment Exemption from all taxes and duties. Up to 10 yrs. rent- free land Guaranteed stability of tax and labour legislation *Priority projects over $20m investment, reimbursement paid on project commissioning

7. Mangystau’s Value Proposition Initially, most major FDI opportunities are likely to be based on Mangystau’s location and transport infrastructure and linked to: 1.international trade, transport and logistics – Aktau and Kuryk as the principal locations 2.supply of equipment and services to the oil and gas industry – based in Bautino, Aktau and Kuryk 3.further development of upstream oil and gas There are also cattractive Investment opportunities in other areas, including tourism, agriculture, and manufacturing