Public Sector Voices: How sovereign funds drive investment and diversification

A Diplomat's View

Kazakhstan’s ambassador to the UAE, Rauan Zhumabek, discusses investment inflows, a $1 billion annual trade target and the 20 new agreements shaping bilateral ties.

How are Kazakhstan-UAE relations developing?

Around 20 agreements have been signed in various sectors, especially agriculture, digitalisation, IT, transport and logistics, and renewable energy – the fourth pillar of our cooperation.

We are now expecting a state visit from the President of the UAE to Kazakhstan this year. In 2023, we signed a declaration of strategic partnership, formally elevating our relations to a strategic level. My mission is to ensure the implementation.

Why is Kazakhstan attracting major UAE investment?

The UAE is currently among the top ten foreign investors in Kazakhstan, with investments totalling $4.5 billion. One key reason is Kazakhstan’s strategic geographic location. We are positioned between East and West, serving as a vital link in routes between China and Europe.

Given recent regional developments, we are revising traditional logistics routes and focusing on the Trans-Caspian International Transport Route, also known as the Middle Corridor. This route runs from China through Kazakhstan, across the Caspian Sea, Azerbaijan, the Caucasus, Turkey and Europe.

How do you aim to evolve the relationship?

Our goal is to increase annual trade between Kazakhstan and the UAE to $1 billion. To support this effort, our government has assigned two commercial attachés to the embassy. This is our clear target, which we are moving toward with our Emirati partners.

Samruk Kazyna

Managing a portfolio worth $82bn, sovereign wealth fund Samruk Kazyna is focused on creating long-term value and preparing its companies for the future. “We see ourselves as a catalyst for foreign direct investment,” says CEO Nurlan Zhakupov.

Its assets include seven listed firms, among them Kazatomprom and Air Astana on the LSE, signalling investor confidence and underscoring the fund’s scale and presence. The portfolio has grown by 22.5% since 2022, while the fund has a near-term target of reaching $100bn in assets under management.

The performance reflects disciplined financial management, strong execution and the resilience of a diversified portfolio. In 2024, net profit reached $5.3bn, up 40% year on year, while debt to EBITDA remained stable at 1.9x. Fitch, Moody’s and S&P all assign the fund ratings.

The fund is now pushing AI-led efficiency across the portfolio, with subsidiaries tasked with lifting planned 2026 EBITDA by 5% through new tools and technologies. “This is ambitious but achievable,” says Zhakupov.

AIFC

AIFC Governor Renat Bekturov outlines efforts to broaden Kazakhstan’s competitiveness beyond energy.

How is AIFC reshaping development?

One of AIFC’s roles is to develop financial instruments and sectors in response to the rise of industries such as FinTech and the challenges facing traditional banking. We are contributing to sectors of the economy that have traditionally been overlooked, as the focus has often centred on energy resources.

What progress has AIFC made?

AIFC now has over 4,500 registered companies and has created more than 10,000 jobs within the financial centre. Astana has been ranked 46th among Global Smart Centres and first in Central Asia and Eastern Europe. We aim to further strengthen our position as the region’s leading financial hub.

Baiterek Holding

Timur Onzhanov discusses investment opportunities arising from Baiterek’s latest restructuring.

What is Baiterek’s role in Kazakhstan’s economy?

Most of our subsidiaries are state-owned capital providers and financial institutions whose mandate is to diversify the economy and support companies in priority sectors. Our assets under management consistently exceed $30 billion.

Where do you see opportunities for Gulf investors?

For the UAE and the Gulf countries, Kazakhstan offers significant opportunities, particularly in food security, agro-processing and supply chains. Kazakhstan has many institutions and organisations that engage with global partners as part of the country’s broader investment architecture.

Development Bank of Kazakhstan & Qazaqstan Investment Corporation

Under Baiterek Holding, the Development Bank of Kazakhstan (DBK) and Qazaqstan Investment Corporation (QIC) play distinct but intertwined roles. While DBK provides long-term debt for large industrial schemes, QIC brings equity, with more than 140 firms backed and stakes in over 20 private equity and venture funds. Together, they give investors a route into Kazakhstan.

As Baiterek takes on a stronger investment role, both are moving towards larger projects and closer work with foreign partners. “Cooperation with sovereign funds from Gulf countries, especially from the UAE, Saudi Arabia and Oman, is very important,” says QIC Chairman Didar Karimsakov. “Historically, our portfolio was focused primarily on projects with Kazakhstan-based companies. Today, we expect a substantial increase in projects developed with international investors,” adds DBK Chairman Marat Yelibayev. DBK has backed more than 200 projects and around 150 export deals worth over $39 billion.