Special Economic Zone “TURANSEZ” to be established in Kazakhstan

On November 11, 2021 a conference on trade and economic cooperation between Turkey and Turkic-speaking countries titled “Common Vision in the Year of the 30^th Anniversary of Independence” was held in Istanbul (Turkey). Trade Minister of Turkey, Secretary General of Turkic Council, Head of Turkic Chamber of Commerce and Industry, Economy Ministers of Azerbaijan and Kazakhstan, Kyrgyzstan Minister of Economy and Commerce, Deputy Prime-Minister and Foreign Trade Minister of Uzbekistan made speeches at the conference.

Speaking at the conference Mr.Aset Irgaliyev, Minister of National Economy of Kazakhstan stated that SEZ “TURANSEZ” is to be established in Kazakhstan by the instruction of head of the state given during the unofficial Summit of the Cooperation Council of Turkic-speaking States in 2020.  The Minister noted that “TURANSEZ” in the Turkistan region intends to establish industrial and production cluster including processing of agricultural products, mechanical engineering, manufacturing of electrical equipment, tourist and educational clusters, and promotion of mutually beneficial trade relations”.

According to the Minister the country has attracted $380 billion direct foreign investment to Kazakhstan being 70% of the total investment inflow in the Central Asian region, but unfortunately, the pandemic has caused a number of adjustments both in trade and economic relations of all countries and in the development of the national economy.

The economy of Kazakhstan is currently in the recovery stage and according to the results of 10 months the growth of GDP amounting to 3.5% is considered to reach 4 %.

The head of MNE spoke about the measures having been taken to improve the investment opportunity in Kazakhstan. A special Coordination Centre is functioning to attract foreign investment led by the Prime Minister of the Republic of Kazakhstan. It considers and develops practical solutions of the problems associated with the realization of investment projects.

Kazakhstan provides the most convenient tax incentives, general rate on taxes and social charges being lower by 10% in comparison with the EU and OECD.  Investors in priority sectors are exempt from corporate income and land taxes for a period of 10 years, property tax for 8 years.

Besides, the activity of International Financial Centre “Astana” functioning in Nur-Sultan is based on promissory condition and creates opportunity for absolute safe investment environment in the country. At the same time, the AIFC Exchange was launched in cooperation with the Shanghai Stock Exchange and NASFDAQ.

A favourable tax regime with a zero tax rate on corporate and individual income, and a simplified visa regime existing in the territory of the Centre are great opportunities and support for investors.

A new support tool on the Investment Agreement introduced into legislation provides individual measures to support each investor in Kazakhstan.

The Minister offered the partners from the Turkic-speaking countries to form high-tech joint ventures in Kazakhstan and to use the chance of entering the market of the EAEU countries with a population of over 180 million people.

Kazakhstan has created quite favourable conditions for investors and is able to attract much more foreign investment to the country creating convenient business climate in its territory.

The reports of World Bank evaluated economic development and business climate in Kazakhstan. According to the latest World Bank annual ratings Kazakhstan is ranked 25 among 190 economies in the ease of doing business. Foreigners can establish a business in the following forms: LLP – Limited Liability Partnership, JCS – Joint Stock Company, Open Branch or Representative office.

“Kazakhstan has made doing business easier by improving business regulations over the past years”, says the World Bank report.

The government of Kazakhstan is adopting system-wide reforms aiming to improve the business climate, to reduce administrative barriers and business costs.

Kazakhstan has set itself the goal of becoming one of the 30 most developed countries in the world by 2050. We are sure Kazakhstan will reach its goal and overcome significant challenges to sustain rapid, inclusive and sustainable growth and social progress in the country.