Dubai: While the Republic of Kazakhstan is looking to enter the top 30 club of most developed states in the world by 2050, changes in the economic climate are required.
And the UAE is one of the most desired countries to cooperate with to complete this mission, Askar Shokybayev, Consul General of the Republic of Kazakhstan in Dubai told Gulf News in an interview.
“For over 20 years, Kazakhstan-UAE relations have proved to be exemplary and can rightly assert itself as an example of an intensive and mutually beneficial cooperation,” he said.
“Since Kazakhstan is looking to boost foreign investments and improve trade relations, special focus is on the UAE as it is one the world’s potential markets to have experienced powerful economic, commercial, financial, investments that our country can benefit form.”
He added that oil & gas, mining, nuclear energy, machinery, construction, agro-industrial, tourism, and technology are main business sectors that the government of Kazakhstan is looking to develop.
The UAE has an investment project in Kazakhstan worth around $3 billion, Shokybayev said, adding that some of it was implemented with the help of UAE funds including Aldar Properties at a value of $1.1 billion (Dh4 billion) as well as Islamic bank Al Hilal with an investment worth $500 million.
Agreement
Moreover, during a recent official visit to Kazakhstan, a co-operation agreement was signed between a national company, Kazakhstan Temir Zholy and Dubai’s DP World to develop transport and logistics system in the Republic of Kazakhstan, said Shokybayev.
“Dubai has an extensive experience in port operation and logistics services which could play a major role in upgrading these business sectors in Kazakhstan,” he said.
He further said that despite trade volume between the two countries being relatively low, at an estimated $300 million in 2012, due to lack of proper logistics and cargo services, the intention is to double this figure in the coming years.
Highlighting the potential for development of economic cooperation with the other emirates, Shokybayev said: “There is potential cooperation with the emirates of Fujairah and Ras Al Khaimah, having large ports, highly developed free zones and all the necessary infrastructure for business development, which is of great interest and our government is seeking to establish a comprehensive mutually beneficial business, trade and investment cooperation with these emirates.”
Investment framework
Pointing to the business environment in Kazakhstan, Shokybayev said: “The country enjoys stability, economic growth and international recognition. It is a good environment for business and investment. Current law provides opportunities for investments, while the government bears investment liabilities.”
The removal of administrative barriers in trade, customs, transport and logistics would further improve the investment climate — as would liberalisation of visa procedures for foreign investors, in particular for top managers. These proposals have been addressed to the government and will have a positive impact on the economic climate overall, he added.
He also said that amid the unfavourable global economic environment the government is looking to ensure the safety of regular income and cash movement in the market as well as maintain a reasonable inflation level with respect to economic growth.
“The government is always working on upgrading its legislations that are related directly to foreign investors,” Shokybayev said. “One the main advantages the government offers to investors is that they are exempt from paying custom duties while importing equipment and material for their projects.”
Moreover, government grants freehold lands, plots, buildings, structures, machinery and equipment to investors and tax relief for a period of up to seven years for strategic investment projects, according to Shokybayev.
“Kazakhstan must become the regional magnet for investment. Our country must become the most attractive place in Eurasia for investments and technology transfer. This is crucially important. To do this we must demonstrate to investors our advantages,” Shokybayev said.
