INVESTMENT OPPORTUNITIES OF
SOUTH KAZAKHSTAN REGION
Kazakhstan
 Capital: Astana city
 Territory : 2,7 mln sq/m2 (9th place in the world)
 Population : 17 ,2 million people. (62nd place in the world)
 Kazakhstan has borders with Russia, China, Kyrgyzstan and Uzbekistan
 Administrative structure: 14 oblasts, 2 cities of state importance
 GDP 2013 : 224,858 billion $ (45th place in the world)
 GDP per capital in2013: 12 021 $ (57th place in the world)
 Currency: tenge (1 $ – 182 tenge)
Investment climate
Business environment
According to - «Doing Business» in 2013 Kazakhstan ranked
50th place among 189 countries.
• «Taxation» - 18th place.
• «Registry of ownership» - 18th place.
• «Registry of enterprise» - 30th place.
Foreign Direct Investment
In 2012 holds 19th place among Top-20 countries on
Foreign Direct Investment.
In 2012 Gross Foreign Direct investment in Kazakhstan
achieved highest level of 28.8 billion US dollars.
In 2013 Gross Foreign Direct investment amounted 24,1
billion US dollars.
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Protection of investors rights
• According to Annual Index of Global Competitiveness
for 2013-2014, Kazakhstan is on 10th place investors
rights protection.
• Kazakhstan signed agreements on mutual protection
and stimulation with 47 countries.
Foreign Investors Board
In the country operates Foreign Investors Board under the President of Kazakhstan.
Board develops and offers recommendations for President and Government of
Kazakhstan for consideration on issues linked with investment activities in
Kazakhstan.
Investment ombudsman
In order to apply systematic approach in solving issues of investors working in
Kazakhstan, Investment ombudsman is created. Its main function – regulation of
arguments and prevention of international investigation.
Investment advantages
Customs Union (Kazakhstan, Russia and Belarus)
Volume of the market - over 170 million people with GDP sum of
2 trillion US Dollars.
United trade rules within Customs Union:
 Single customs territory;
 Single foreign trade policy;
 Single customs rule, Single customs codex;
 Free flow of goods among Customs Union.
Taxation regime
Most attractive taxation regime among CIS and Central Asian countries (Corporate Income Tax
– 20%, Value Added Tax – 12%).
When implementing an investment project in the priority sectors or investment project in
the textile industry in FEZ “Ontustik” exempt from the following taxes:
 Corporate income tax;
 Land tax;
 Property tax.
Investment preferences
Favorable location
• Center of the Eurasian continent, through the
territory of Kazakhstan was once the Great
Silk Road.
• Main transcontinental routes linking Asia
Pacific with the Middle East and Europe pass
through Kazakhstan.
• Three countries of the "quartet" of the BRICS
are located near Kazakhstan: Russia, China
and India.
Visa regime
Kazakhstan is led visa requirements for citizens of the states as:
Turkey, United States, Netherlands, United Kingdom, France, Germany,
Italy, Malaysia, UAE, South Korea and Japan
For more information about the visa regime in Kazakhstan can find on this link:
http://southkazinvest.kz/step-by-step/get-visa/?lang=en
Government support measures
When concluding an investment contract for more than $ 20 million
provides for the following preferences:
Taxation preferences
Exemptions:
 corporate income tax for 10 years;
 land tax for 10 years;
 property tax for 8 years.
Natural grants
State natural grants: land, buildings, construction, cars and equipment, computing
technologies, metrical and regulating instruments and equipment, vehicles, apart from cars,
production inventories
Release from Taxation duties
Release from taxation duties during importing equipment, accessories, raw materials and
spare parts, required for realization of investment projects.
Investment subsidies
Compensation of up to 30% of capital costs of the investor by the state after object input
in operation
Government support measures
When concluding an investment contract for more than $ 20 million
provides for the following preferences:
Involving the workforce
To investors granted the right to employ foreign labor for the entire period construction
of investment project and one year after the object input in operation, beyond the quota
without permission
Stability of tax rates
Guaranteed "stability" of tax rates (excluding VAT and excise taxes), environmental fees
and charges for a period of 10 years after the conclusion of contracts with investors
Stability of legislation of the Republic Kazakhstan
Guaranteed "stability" when changing legislation of Republic of Kazakhstan within the
framework of investment contracts concluded with investors
South Kazakhstan Region
 Area: 117 249 km2
 Population: 2 752 500 people
100% cotton-yarn
(1st place in Kazakhstan)
99,2% transformators
 Urban population: 40%
48,0% pharmaceutical
 Administrative Centre: Shymkent
products
(3rd big city in Kazakhstan)
 Oblast structure:
46,1% petrol
22,9% heating oil
4 cities (Shymkent, Kentau, Turkestan, Arys) 16,8% cement
Proportion of
and 11 districts.
15,0% flour
 Higher Education Establishments:
12 Universities, 77,7 thousand students
 Ethnic groups: over 100 nationalities
South
Kazakhstan in
Kazakhstani
production
Prioritized fields of economy
1. Agro-industrial complex
2. Light industry
3. Pharmacy
4. Machinery manufacturing
5. Construction industry
6. Energy
7. Tourism
8. Logistics
Agribusiness and Food Industry
 In agriculture of the SKO 38 %  For the period 2010-2012.  75.6% of greenhouse
occupied economically active
production of meat and
complexes are located in
population, or more than 500
meat products - grew by
the SKR
thousand people.
14.8%, dairy products 13.9%, bread and bakery
share in volume of
products
13.4%, SKOproduction
RK
 In SKO work more than 50
beverages - 26.8%.
large
and
medium-sized
enterprises in the food industry.
 In 2013, the food
produced on the $ 721
million 27.2% of total
industrial
production
and 12.7% of the national
production of food and
beverages.
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• 100% cotton;
• 71% of the grapes;
• 66% melons;
• 51% Safflower oil;
• 42% of the fruit;
• 25% vegetables.
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Agro-industrial zones
Agro-industrial zone «Garden»
Agro-industrial zone «Greenhouse»
Location: Kazygurt district
Allocated land: 1 000 ha
Government investment cost ( construction
of infrastructure): 100 million tenge
Private investment cost (expecting): 4,6
billion tenge
Location: Shymkent city
Allocated land: 62 ha
Government investment cost ( construction
of infrastructure): 555 million tenge
Private investment cost (expecting): 9,2
billion tenge
Government assistance:
- Free land;
- Ready infrastructure (heating, electricity, fruit storage, domestic placement);
- Consultation of technology election;
- Agro support;
- Support in obtaining credit in «KazAgro» JSC;
- Support in obtaining government subsidy.
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Light industry
 SKR is a center for the sale of cotton and textile cluster
 Over 50 cotton processing, weaving and sewing companies
 Is the only area in Kazakhstan where cotton is grown and annual gross harvest of 350
thousand tons of cotton.
 Cotton processing plants annually produce more than 100 tons of fiber.
 The volume of exports of cotton fiber in Russia is more than $ 30 million
 For the development of the textile industry operates FEZ "Ontustik". The territory of FEZ
"Ontustyk" 200 hectares, the SEZ infrastructure 100% complete.
Large textile company:
 JSC "Utex"
 JSC "Melange"
 LLP «SOUTH TEXTILINE KZ»
 LLP "ginneries"
 LLP «Oxi Textile»
 LLP "Garment factory" Gauhar "
 LLP "Hlopkoprom cellulose"
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Advantages of SEZ "Ontustik"
On SEZ
On the territory of
the Republic of
Kazakhstan
Corporate tax
0%
20%
Property tax
0%
1,5%
Land tax
0%
From
11,2$/ha
Customs
Release
From
5 - 20%
Administrative
support
Administrative body
FEZ tax authority
Tax and customs
support
The customs authority FEZ
Budget for infrastructure
Infrastructure
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Pharmaceutics
Kazakhstan's pharmaceuticals
market:
FASTEST GROWING INDUSTRIES AT
THE REGIONAL LEVEL
Production in RK
Cadres: South Kazakhstan State
Pharmaceutical Academy
The volume of production of
pharmaceutical products by SKR – $ 71
million U.S. dollars
52 %
SKO share in the volume of pharmaceutical
products – 48%
Level of productivity – $ 36.6 thousand
U.S. dollars
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48% SKO
Import
10%
90%
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Large manufacturers of the pharmaceutical
industry:
JSC "Chimpharm"
LLP "Zerde-Fito"
LLP SPC "Rauan"
LLP «Eco Pharm International»
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Machinery manufacturing
 Industry during for 2010-2013. demonstrates the
dynamic development. Production volume in 2013
totaled $ 172 million, which is more than 2 times in
comparison with 2010.
 Prospects for development in this sector is
characterized by high rates of domestic and foreign
trade. So, in 2012, to the area imported machinery products
for $ 417 million. Engineering companies made only 10.8%
of the imported products.
 A capacious market of agricultural machinery
projected a perspective growth in demand for it. As
of January 1, 2013 depreciation of agricultural machinery is
estimated at 85%
 Manufacturers Machinery Sector in SKO: 35 companies
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Construction Industry
• The region has a huge amount of raw
material (talc, mica, marble, feldspar, bentonite
clays,
tefritobazalt,
vermiculite,
zeolite,
wollastonite, refractory and refractory clay,
quartzite, mineral paint additives), required for
the production of various kinds of building
materials in the area.
 In the area produces more than 50 kinds of basic
building materials and structures
 There are 30 large and
enterprises and over 125 shops
medium
 Production of building bricks baked in the total
volume of the republic occupies 14.9%, cement 16.1%, lime - 9.8%
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Energetics
Support for connecting renewable energy
infrastructure facilities and transmission
networks

Mandatory connection objects to the nearest point of RES
electricity and heating networks;

Reserve areas and priority in the allocation of land plots;

Investment incentives and preferences for the
construction and operation of facilities for the use of
renewable energy (according to the legislation);

Release objects from RES connection fees and
transportation network.
Planned to implement 23 projects in the field of
renewable energy for U.S. $ 939 million with
total capacity of 577.3 MW, including:
Support for renewable energy in electricity
sales
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Mandatory and guaranteed purchase of generated
renewable energy;

Single rate for each type of RES;

Contracts for the purchase of electricity from renewable
energy sources should be for the whole period of the
project payback period RES.
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5 WP for U.S. $ 750 million, 300 MW power
7 FES U.S. 533 million, 242 MW power
11 HPS U.S. 56 million, 35.3 MW power
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Tourism
 One of the most visited tourist object in Central Asia
is the Mausoleum of Khoja Ahmed Yassawi,
which is included in the UNESCO World Heritage
List.
 There are 18 recreation centers in the famous
resort «Saryagash». Every year, these resort
complexes visited by more than 30,000 people
 The region has two reserve : «Aksu Zhabagly» and
«Karatausky».
 In order to develop tourism are created 4 tourist
zones:
 Touristic and recreation center «Kaskasu»
 Health-resort zone «Saryagash»
 Beach zone on reservoir storage «Shardara»
 Beach zone on reservoir storage «Badam»
For more information about tourism of SKO can learn on this link:
http://tourismuko.gov.kz/eng/
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Tourism zones
Name
Allocated
land:
Required
investments
Touristic and
recreation
center
«Kaskasu»
Health-resort
zone
«Saryagash»
Beach zone on
reservoir storage
«Shardara»
Beach zone on
reservoir storage
«Badam»
56 hа
12 000 ha
245 ha
900 ha
230 mln. $
120 mln. $
192 mln, $
384 mln. $
Government assistance:
- Free land;
- Ready infrastructure (ropeway, water, electricity, gas, highway);
- Support in receiving licensing documents.
- Marketing research from international consulting company.
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Logistics
«Southern Gateway» of Kazakhstan in international trade:
• Transport corridor «Western Europe – Western China», which is the shortest path
in international traffic between Europe and China;
• motorway «Tashkent - Shymkent», opening Kazakhstan southern countries;
• Trans-Asian Railway.
In Shymkent city operates an internatioanl airport, which has favorable geographical
position: (1) 100 km from Tashkent; (2) 450 km from Kyzylorda; (3) 500 km from
Bishkek ; (4) 700 km from Almaty.
Russia
Large enterprises:
CUSTOMS
UNION
 LLP «Kazakhstan Logistic Group» warehouse logistics 7 tons
 LLP «NGOs «Zerde» - storage of
pharmaceutical products
 LLP «Sanjar Trade» - a logistics center
 LLP «Keremet center» - Growers capacity 4
tons.
ASTANA
ALMATY
SHYMKENT
Turkmenistan
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Trade logistic zones
Location:
Shymkent
Saryagash
district
Turkestan
Allocated land:
92 ha
40 ha
30 ha
Government investment cost
(construction of
infrastructure):
Private investment cost
(expecting):
4,7 mln $
9,3 mln $
4,1 mln $
30 mln $
181 mln $
25 mln $
Government assistance:
- Free land;
- Ready infrastructure (water, electricity, gas, highway, dead-end tracks, airport access);
- Support in receiving licensing documents.
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Industrial zones of districts and cities of
South Kazakhstan region
 The land was allocated for Industrial zones with
total area of 835,5 ha, with IZ of the Shymkent
city total area is 1 172,5 ha.
In 2014 planned construction of infrastructure in
7 districts of the region (Kazygurt, Saryagash,
Suzak, Shardara, Tyulkubas, Baidibek and
Maktaaral)
 In districts and cities of the region are realizing
65 projects amounting 46 billion 789 million
tenge with the creation of 6407 workplaces.
Working Industrial zones
Planned construction in 2014,
documentations are designed
Allocated lands, documentation are
designing
1173
Total area of lands, ha
International Investment Forum
«New investment opportunities within the EAEC»
Event venue of the Forum:
«Rixos Shymkent» hotel, Shymkent city
Date of the Forum:
3 October 2014
Organizer of the Forum:
Akimat of South-Kazakhstan region
The purpose and objectives of the Forum:
 Presentation of new investment opportunities of Kazakhstan with the enhancements and
additions to the legislative acts of RK on improving the investment climate, and with the
creation of the Eurasian Economic Union;
 Results of development in the first five-year plan of SP FIID and presentation of the second
five-year plan of SP FIID;
 Demonstration of investment opportunities of South Kazakhstan;
 Organization of a dialogue platform for local and foreign companies to discuss opportunities
for joint investment projects on the territory of South Kazakhstan;
 Stimulation of inter-regional and inter-sectoral cooperation.
www.southkazinvest.kz
info@shymin.kz
+7 7252 36 73 38