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Kazakhstan, a country rich in natural resources and with ambitious growth targets, aims to double the size of its economy to $450 billion by 2029, and has called on the EU to invest in new value-added production at home.
Kazakhstan, which has traditionally relied on oil, gas and mining, is now working to diversify its economy. “We are on a clear path to diversify our economy from natural resource dependence by developing non-resource industries,” Nazira Nurbayeva, former deputy foreign minister of Kazakhstan, told European Events.
The focus is on producing high-value goods and services, attracting capital to participate in innovative projects, and promoting sustainable economic growth.
“The chemicals, industrial manufacturing, food processing, tourism and alternative energy sectors show great potential,” Nurbayeva said, adding that “cutting-edge sectors such as green hydrogen production, advanced rare earth metal processing, IT and fintech have attracted investor interest, (and) our enthusiasm for these sectors is shared.”
New investments in value-added production are expected to facilitate technology transfer, thereby raising productivity across industries.
Human capital development and innovation
The role of foreign direct investment (FDI) is not limited to economic growth. It also makes a significant contribution to the development of human capital in Kazakhstan. By creating jobs and spreading best management practices, FDI ensures broad-based improvement of the workforce.
SMEs benefit from the positive externalities of FDI, driving overall economic well-being and growth.
Furthermore, FDI creates a competitive environment that stimulates innovation and enhances the resilience and competitiveness of the Kazakh economy.
Manufacturing Progress
Kazakhstan’s proactive policy measures are producing tangible results, especially in the manufacturing sector, where foreign direct investment soared from 14% in 2019 to 23% in 2023. Notable investments include automotive and equipment production, food, and the chemical industry.
However, there is still untapped potential in many emerging areas, including deep processing of food, minerals, oil and gas, coal and other natural resources and agricultural products. Nurbayeva stressed that these untapped avenues must be explored.
Balancing foreign policy and pluralism
Kazakhstan’s balanced foreign policy aims to diversify investment sources and reduce over-dependence on a single region. Despite global geopolitical tensions, the country maintains strong international economic cooperation.
Last year, Kazakhstan’s trade volume increased by 3.5% to $41.4 billion, of which exports amounted to $31 billion. In 2023 alone, EU investments amounted to $10.4 billion, contributing to the cumulative investment that has been steadily increasing over the years.
Today, more than 3,000 European companies thrive in Kazakhstan’s dynamic business environment.
EU cooperation – transport, energy and food security
Nurbayeva highlighted to the European event three promising areas of cooperation between the EU and Kazakhstan: transport connectivity, including the development of the Central Corridor, energy transition, including green energy and critical minerals, and food security.
Kazakhstan Strategic location The Middle Corridor through Kazakhstan will become an important alternative route, ensuring uninterrupted and fast transportation of goods between Asia and Europe.
Kazakhstan is committed to connecting the Trans-Caspian international transport route with the Trans-European transport network.
Nurbayeva stressed their commitment: “We are working to reduce transit time from the current 16-20 days to 10 days. Over the past 15 years, we have invested more than $35 billion in transit infrastructure and, in cooperation with the EU, are working to further develop the Middle Corridor and ensure reliable and secure connectivity between Asia and Europe.”
Green Energy Transformation
Kazakhstan is steadily moving towards fulfilling its commitment to achieve carbon neutrality by 2060. Nurbayeva said: “By 2030, we plan to make a breakthrough and increase the share of renewable energy in the energy balance from the current 4% to 15%.”
According to UN estimates, Kazakhstan has a huge wind energy potential: the country produces 1.8 trillion kWh of electricity per year. In addition, the country has 3,000 hours of sunshine per year, especially in the south, where solar radiation reaches 1,300-1,800 kWh per square meter.
International companies such as Italy’s ENI Group, France’s Total Energy, Germany’s Svevind, China Power Corporation, UAE’s Masdar, and Saudi Arabia’s ACWA Power have all shown great interest in developing renewable energy in Kazakhstan.
Raw materials for technology
Kazakhstan ranks first in the world in mineral resources, with the largest export of uranium and the world’s top ten copper production. Kazakhstan’s titanium ore is a supplier to Boeing and Airbus, accounting for 11% of the global market share. The mining and metallurgical industries account for about 20% of the country’s exports.
To support the green transition, Kazakhstan seeks to focus on midstream industries in the production chain. Speaking of potential partners, Nurbayeva said: “We seek cooperation on the basis of ‘raw materials for technology’ and integration into the global value chain.”
Beyond technology and mining, Kazakhstan’s vast land mass (200 million hectares) holds great potential for food security through cropping and grazing. Nurbayeva hopes that EU-Kazakhstan cooperation will be not only strategic but also transformative, leveraging transport, sustainable energy and resource exchange while paving the way for Kazakhstan’s prosperity and resilience on the global stage.
(Author: Nicole Verbeeck I Editor: Brian Maguire | Euractiv Promotional Lab ）
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