In a context where global foreign investment increased by 10.9% in 2013, in particular in Europe (+25.2%) and in Latin America (+17.5%), FDI flows to developing economies reached a new high of US$759 billion. However macroeconomic fragility and policy uncertainties are driving investors to caution.
Starting from its independence, Kazakhstan adopted a series of reforms to benefit the liberalization of economy and make the country more accessible to foreign investment. The decade of 1999-2009 witnessed the figures of FDI multiplying ten times, increasing from USD 1.852 billion to USD 18.429 billion. This had a dynamic effect on the production of oil and gas.
Although Kazakhstan prefers national investors at the expense of foreign ones, FDI continue to flow in. In 2013 FDI reached USD 14 billion (over 13 billion in 2012). The main investors are the Netherlands, the USA, France, Great Britain and China.
The oil and mining sectors are still the most attractive since they concentrate more than half of the FDI. During the last decade, this "locomotive" of post-Soviet Central Asia has in fact tripled its oil production and became the world's second largest exporter of crude oil, after Russia.
Information on the 2013 FDI influx in this region can be accessed in the Global Investment Trade Monitor published in January 2014 by the United Nations Conference on Trade and Development (UNCTAD).
|Kazakhstan||Eastern Europe & Central Asia||United States||Germany|
|Index of Transaction Transparency*||9.0||7.0||7.0||5.0|
|Index of Manager’s Responsibility**||6.0||5.0||9.0||5.0|
|Index of Shareholders’ Power***||6.0||9.0||5.0|
|Index of Investor Protection****||8.0||5.9||8.3||5.0|
Source: Doing Business - Last Available Data.
Note: *The Greater the Index, the More Transparent the Conditions of Transactions. **The Greater the Index, the More the Manager is Personally Responsible. *** The Greater the Index, the Easier it Will Be For Shareholders to Take Legal Action. **** The Greater the Index, the Higher the Level of Investor Protection.
|Foreign Direct Investment||2011||2012||2013|
|FDI Inward Flow (million USD)||13,760||13,785||9,739|
|FDI Stock (million USD)||112,458||125,672||129,554|
|Performance Index*, Ranking on 181 Economies||7||-||-|
|Potential Index**, Ranking on 177 Economies||33||-||-|
|Number of Greenfield Investments***||50||28||29|
|FDI Inwards (in % of GFCF****)||35.0||32.6||21.2|
|FDI Stock (in % of GDP)||59.8||62.0||58.8|
Source: UNCTAD - Last Available Data.
Note: * The UNCTAD Inward FDI Performance Index is Based on a Ratio of the Country's Share in Global FDI Inflows and its Share in Global GDP. ** The UNCTAD Inward FDI Potential Index is Based on 12 Economic and Structural Variables Such as GDP, Foreign Trade, FDI, Infrastructures, Energy Use, R&D, Education, Country Risk. *** Green Field Investments Are a Form of Foreign Direct Investment Where a Parent Company Starts a New Venture in a Foreign Country By Constructing New Operational Facilities From the Ground Up. **** Gross Fixed Capital Formation (GFCF) Measures the Value of Additions to Fixed Assets Purchased By Business, Government and Households Less Disposals of Fixed Assets Sold Off or Scrapped.
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Last Updates: January 2015