Why
Kazakhstan?
Key factors
Why
Kazakhstan?
Key factors
IFSWF Annual Meeting 2017
9th largest country in the world
Kazakhstan is situated in the heart of Eurasia with a rich culture and history. It covers an area of 2.7 million km2, making it the 9th largest country in the world. In July 2017, the country's population was approaching 18 million.
  • Russia
    17,075,200 km²
  • Canada
    9,984,670 km²
  • USA
    9,833,520 km²
  • China
    9,596,961 km²
  • Brazil
    8,515,767 km²
  • Australia
    7,692,024 km²
  • India
    3,287,263 km²
  • Argentina
    2,780,400 km²
  • Kazakhstan
    2,724,900 km²
  • Algeria
    2,381,741 km²
9th largest country in the world
Kazakhstan is situated in the heart of Eurasia with a rich culture and history. It covers an area of 2.7 million km2, making it the 9th largest country in the world. In July 2017, the country's population was approaching 18 million.
  • Russia
    17,075,200 km²
  • Canada
    9,984,670 km²
  • USA
    9,833,520 km²
  • China
    9,596,961 km²
  • Brazil
    8,515,767 km²
  • Australia
    7,692,024 km²
  • India
    3,287,263 km²
  • Argentina
    2,780,400 km²
  • Kazakhstan
    2,724,900 km²
  • Algeria
    2,381,741 km²
  • 60% of the region's GDP
  • Extraction of oil and minerals
  • Machinery
  • Metalworking industry
Largest economy in Central Asia
Kazakhstan has the largest and most robust economy in Central Asia, constituting 60% of the region's GDP. The extraction of oil and minerals, machinery and metalworking industry are the country's main sources of income. Economic growth between 2000-2007 ranged from 8.9%-13.5%, as a result of increased oil production and higher prices. The average growth rate of the Kazakh economy was 8.0% between 2000-2013, roughly in line with other developing countries. Despite adverse external economic factors, the country's GDP is expected to grow by 4% in 2017.
Largest economy in Central Asia
Kazakhstan has the largest and most robust economy in Central Asia, constituting 60% of the region's GDP. The extraction of oil and minerals, machinery and metalworking industry are the country's main sources of income. Economic growth between 2000-2007 ranged from 8.9%-13.5%, as a result of increased oil production and higher prices. The average growth rate of the Kazakh economy was 8.0% between 2000-2013, roughly in line with other developing countries. Despite adverse external economic factors, the country's GDP is expected to grow by 4% in 2017.
Largest economy
in Central Asia
Kazakhstan GDP
  • Kazakhstan GDP as a year-on-year percentage change
  • Kazakhstan GDP in USD (billion)
  • Kazakhstan GDP in KZT (billion)
GDP structure for 2016
Imd
+15 positions
Doing Business
+16 positions
Gsi
Unchanged
32nd
47th
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35th
51st
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56th
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Kazakhstan’s rising position in international economic rankings
32nd in the IMD World Competitiveness Rankings 2017 35th in the Doing Business rankings 2017 56th in the Human Development Index
Kazakhstan’s rising position in international economic rankings
32nd in the IMD World Competitiveness Rankings 2017 35th in the Doing Business rankings 2017 56th in the Human Development Index
Unique location between Europe and Asia
Kazakhstan possesses huge logistics potential. In 2017, Kazakhstan's leadership supported Chinese President Xi Jinping's 'Belt and Road Initiative'. This economic integration project will help Kazakhstan to benefit from its unique geographical position. Kazakhstan’s location between Europe and Asia makes it a convenient logistical hub for transporting goods via land - it is no coincidence that the Great Silk Road passed through this area in ancient times.
Unique location between Europe and Asia
Kazakhstan possesses huge logistics potential. In 2017, Kazakhstan's leadership supported Chinese President Xi Jinping's 'Belt and Road Initiative'. This economic integration project will help Kazakhstan to benefit from its unique geographical position. Kazakhstan’s location between Europe and Asia makes it a convenient logistical hub for transporting goods via land - it is no coincidence that the Great Silk Road passed through this area in ancient times.
Zink
Zinc is an essential mineral with exceptional biologic and public health importance, especially regarding prenatal and postnatal development.
Tungsten
Tungsten is a hard, rare metal, and is found naturally on Earth almost exclusively in chemical compounds. It is the heaviest element known to be essential to any living organism.
Barite
Barite is the main source of barium, which has a wide variety of uses, including in medicine, oil and gas drilling, and paint and glass production.
Silver
Silver is found in the Earth's crust in the pure, free elemental form ("native silver"), as an alloy with gold and other metals, and in minerals such as argentite and chlorargyrite. Silver has long been valued as a precious metal.
Lead
Lead is a heavy metal with a density most common materials; it is soft, malleable, and melts at a relatively low temperature. Lead is used in batteries, ceramics and casting metals, among other applications.
Chromites
Chromite is by far the most industrially important mineral for the production of metallic chromium, used as an alloying ingredient in stainless and tool steels.
Copper
Copper is a soft, malleable, and ductile metal with very high thermal and electrical conductivity. Copper is used as a conductor of heat and electricity, as a building material, and as a constituent of various metal alloys.
Fluorite
Fluorite is used industrially as a flux for smelting, and in the production of certain glasses and enamels.
Molybdenum
Molybdenum readily forms hard, stable carbides in alloys, and for this reason most of world production of the element (about 80%) is used in steel alloys, including high-strength alloys and superalloys.
Gold
Historically, the value of gold was rooted in its relative rarity, easy handling and minting, easy smelting and fabrication, resistance to corrosion and other chemical reactions and its distinctive color.
Wealth of natural resources and minerals
Kazakhstan possesses a unique abundance of natural resources: it is home to 99 elements of the periodic table. The reserves for 70 of these elements have been explored and more than 60 elements are in production. Kazakhstan ranks first in the world for explored reserves of zinc, tungsten and barite; second in the world for silver, lead and chromite reserves; third for copper and fluorite reserves; fourth for molybdenum reserves; and sixth for gold reserves. In addition, Kazakhstan is one of the world leaders in reserves and the extraction of natural uranium. In the coming years, the country will implement a project to launch a complete cycle of uranium production. *According to the Committee of Geology and Subsoil Use, Ministry of Investment and Development of the Republic of Kazakhstan
Wealth of natural resources and minerals
Kazakhstan possesses a unique abundance of natural resources: it is home to 99 elements of the periodic table. The reserves for 70 of these elements have been explored and more than 60 elements are in production. Kazakhstan ranks first in the world for explored reserves of zinc, tungsten and barite; second in the world for silver, lead and chromite reserves; third for copper and fluorite reserves; fourth for molybdenum reserves; and sixth for gold reserves. In addition, Kazakhstan is one of the world leaders in reserves and the extraction of natural uranium. In the coming years, the country will implement a project to launch a complete cycle of uranium production. *According to the Committee of Geology and Subsoil Use, Ministry of Investment and Development of the Republic of Kazakhstan
Free economic zones are being created to facilitate more effective work, such as the Industrial Park at the Nazarbayev University in Astana. This will lead to the creation of the Scientific and Industrial Center for the Mining and Metallurgy Industry, which is being implemented by Tau-Ken Samruk.
Free economic zones are being created to facilitate more effective work, such as the Industrial Park at the Nazarbayev University in Astana. This will lead to the creation of the Scientific and Industrial Center for the Mining and Metallurgy Industry, which is being implemented by Tau-Ken Samruk.
Wealth of natural resources and minerals
Kazakhstan possesses a unique abundance of natural resources: it is home to 99 elements of the periodic table. The reserves for 70 of these elements have been explored and more than 60 elements are in production. Kazakhstan ranks first in the world for explored reserves of zinc, tungsten and barite; second in the world for silver, lead and chromite reserves; third for copper and fluorite reserves; fourth for molybdenum reserves; and sixth for gold reserves. In addition, Kazakhstan is one of the world leaders in reserves and the extraction of natural uranium. In the coming years, the country will implement a project to launch a complete cycle of uranium production. *According to the Committee of Geology and Subsoil Use, Ministry of Investment and Development of the Republic of Kazakhstan
High human development index
In 2015, Kazakhstan was ranked 56th in the Human Development Index, jumping 14 positions, and maintained this position in 2016. Kazakhstan is full of ambitious and talented young people who often study abroad and work in major international companies; when they return, Kazakhstan benefits from the skills and experience acquired by these young people.
High human development index
In 2015, Kazakhstan was ranked 56th in the Human Development Index, jumping 14 positions, and maintained this position in 2016. Kazakhstan is full of ambitious and talented young people who often study abroad and work in major international companies; when they return, Kazakhstan benefits from the skills and experience acquired by these young people.
  • Very high
  • High
  • Moderate
  • Low
  • No data available
High human development index
The Samruk-Kazyna National Welfare Fund is interested in employing qualified specialists. As part of the Transformation Programme, the Fund has hired 40% new employees in its corporate headquarters, while 50% of the senior management team has also changed. International experts have been brought into the country to share their experience and help to build effective management teams, while local staff members are constantly working on their professional development. This overall progression combines to boost the quality of the Fund’s management capabilities significantly.
High human development index
The Samruk-Kazyna National Welfare Fund is interested in employing qualified specialists. As part of the Transformation Programme, the Fund has hired 40% new employees in its corporate headquarters, while 50% of the senior management team has also changed. International experts have been brought into the country to share their experience and help to build effective management teams, while local staff members are constantly working on their professional development. This overall progression combines to boost the quality of the Fund’s management capabilities significantly.
Astana — centre of economic growth

Astana became the capital of Kazakhstan in 1997. Since then, the city has evolved into a modern metropolis with unique architecture, highly-developed infrastructure and efficient financial institutions.

The Astana International Financial Center (AIFC) has been launched, a financial hub for Central Asia, the South Caucasus, the Eurasian Economic Union, the Middle East, Western China, Mongolia and Europe. The AIFC is located at the site of Expo-2017.

The AIFC will adhere to the law of England and Wales, as well as the standards of leading global financial centers. AIFC participants will enjoy tax benefits for a period of 50 years.

Astana — centre of economic growth

Astana became the capital of Kazakhstan in 1997. Since then, the city has evolved into a modern metropolis with unique architecture, highly-developed infrastructure and efficient financial institutions.

The Astana International Financial Center (AIFC) has been launched, a financial hub for Central Asia, the South Caucasus, the Eurasian Economic Union, the Middle East, Western China, Mongolia and Europe. The AIFC is located at the site of Expo-2017.

The AIFC will adhere to the law of England and Wales, as well as the standards of leading global financial centers. AIFC participants will enjoy tax benefits for a period of 50 years.

This requires a significant increase in economic investment and marked productivity improvements. To facilitate this, one of the Strategy's objectives is to create a favorable investment climate in Kazakhstan.
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Kazakhstan is also implementing the 'Nation’s Plan — 100 Concrete Steps' program , as part of efforts to become one of the 30 most developed countries in the world. The strategy includes the optimization of tax and customs policies and procedures, as well as the establishing of joint ventures with anchor investors. Acquiring strategic international partners in target jurisdictions will help attract strategic investors to various sectors in the economy.
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Kazakhstan-2050 Strategy

One of Kazakhstan’s advantages is its long-term development strategy, which is already being implemented.

In December 2012, President Nursultan Nazarbayev presented the Development Strategy of the Republic of Kazakhstan until 2050 to the people of Kazakhstan. Its main goal is to create a welfare society based on a strong state, a developed economy and universal employment opportunities, as well as to raise Kazakhstan to the ranks of the 30 most developed countries in the world.

Kazakhstan-2050 Strategy

One of Kazakhstan’s advantages is its long-term development strategy, which is already being implemented.

In December 2012, President Nursultan Nazarbayev presented the Development Strategy of the Republic of Kazakhstan until 2050 to the people of Kazakhstan. Its main goal is to create a welfare society based on a strong state, a developed economy and universal employment opportunities, as well as to raise Kazakhstan to the ranks of the 30 most developed countries in the world.

  • China Investment Corporation
    1.
  • Abu Dhabi Investment Authority
    2.
  • Kuwait Investment Authority
    3.
  • GIC
    4.
  • Qatar Investment Authority
    5.
  • Korea Investment Corporation
    6.
  • Future Fund
    7.
  • National Development Fund
    8.
  • Samruk-Kazyna JSC
    9.
  • Libyan Investment Authority
    10.
  • Alaska Permanent Fund
    11.
  • Turkey Wealth Fund
    12.
  • State General Reserve Fund
    13.
  • State Oil Fund of Azerbaijan
    14.
  • Khazanah Nasional
    15.
  • New Zealand Superannuation Fund
    16.
  • Ireland Strategic Investment Fund
    17.
  • Petroleum Fund
    18.
  • Alberta Heritage & Savings Trust Fund
    19.
  • Economic & Social Stabilisation Fund
    20.
  • Russian Direct Investment Fund
    21.
  • Pension Reserve Fund
    22.
  • Heritage & Stabilisation Fund
    23.
  • Pula Fund
    24.
  • FEIP
    25.
  • Fundo Soberano de Angola
    26.
  • CDP Equity
    27.
  • Fondo Ahorro de Panama
    28.
  • Nigeria Investment Authority
    29.
  • Palestine Investment Fund
    30.
Samruk-Kazyna is among IFWSF-members

Samruk-Kazyna’s sole shareholder is the Government of Kazakhstan.

The Fund was founded in 2008 by Decree of the President of Kazakhstan as an investment fund with the objective of enhancing the national welfare of Kazakhstan and supporting the modernization of the national economy.

Samruk-Kazyna is gradually becoming a world-class fund. According to the Sovereign Wealth Fund Institute, Samruk-Kazyna is among the 30 largest sovereign funds in the world, with assets under management of USD 67.4 billion.

Samruk-Kazyna is among IFWSF-members

Samruk-Kazyna’s sole shareholder is the Government of Kazakhstan.

The Fund was founded in 2008 by Decree of the President of Kazakhstan as an investment fund with the objective of enhancing the national welfare of Kazakhstan and supporting the modernization of the national economy.

Samruk-Kazyna is gradually becoming a world-class fund. According to the Sovereign Wealth Fund Institute, Samruk-Kazyna is among the 30 largest sovereign funds in the world, with assets under management of USD 67.4 billion.

Samruk-Kazyna
assets in 2016
Samruk-Kazyna
assets as at Q1 2017
Estimated assets of
the Fund by 2021
Planned investments in
new and growing
companies in 2017
The cumulative investments
in new and growing companies by
the end of 2021
Samruk-Kazyna is among IFWSF-members

Samruk-Kazyna’s portfolio companies employ over 327, 000 people. At the end of 2016, the Fund's consolidated profit amounted to USD 1,678,941,000.

In the first quarter of 2017, the Fund’s assets were over USD 70 billion. It is estimated that in 2021, the Fund’s assets will amount to USD 81 billion (according to the development plan for 2017-2021).

In 2017, planned investments in new and growing companies are estimated to amount to USD 229 million. By the end of 2021, the estimated cumulative investments in new and growing companies is set to be approximately USD 783 million (according to the development plan for 2017-2021).

Samruk-Kazyna is among IFWSF-members

Samruk-Kazyna’s portfolio companies employ over 327, 000 people. At the end of 2016, the Fund's consolidated profit amounted to USD 1,678,941,000.

In the first quarter of 2017, the Fund’s assets were over USD 70 billion. It is estimated that in 2021, the Fund’s assets will amount to USD 81 billion (according to the development plan for 2017-2021).

In 2017, planned investments in new and growing companies are estimated to amount to USD 229 million. By the end of 2021, the estimated cumulative investments in new and growing companies is set to be approximately USD 783 million (according to the development plan for 2017-2021).

Transformation
Purpose The purpose of the Transformation Program is to
transition the Fund from its current position as an administrator
of state assets to the role of an active investor
Strategy To assist Kazakhstan in its efforts to join the 30 most developed countries in the world
Tactics To increase the value of the Fund’s group of companies
Approach To transform from a large quasi-state apparatus to a technologically advanced, highly profitable and efficient business structure.
Samruk-Kazyna is among the 30 largest sovereign wealth funds in the world

Samruk-Kazyna is implementing a large-scale Transformation Program to become a leading strategic holding company.

The programme includes several key areas:
- Improving asset management
- Leading the implementation of the privatization program
- Forming an investment portfolio focused on new industries
- Transforming its portfolio companies
- Transitioning the Fund's corporate center into to a new functional model
- Ensuring financial stability

The key economic sectors in which the Fund operates are oil and gas, transportation and logistics, energy, metallurgy, the chemical industry and petrochemicals.

Samruk-Kazyna is among the 30 largest sovereign wealth funds in the world

Samruk-Kazyna is implementing a large-scale Transformation Program to become a leading strategic holding company.

The programme includes several key areas:
- Improving asset management
- Leading the implementation of the privatization program
- Forming an investment portfolio focused on new industries
- Transforming its portfolio companies
- Transitioning the Fund's corporate center into to a new functional model
- Ensuring financial stability

The key economic sectors in which the Fund operates are oil and gas, transportation and logistics, energy, metallurgy, the chemical industry and petrochemicals.

Samruk-Kazyna is among the 30 largest sovereign wealth funds in the world

Since 2014, Samruk-Kazyna has been a member of the International Forum of Sovereign Wealth Funds (IFSWF). IFSWF members adhere to 24 Santiago Principles, which define sovereign wealth funds' legal and institutional framework.

Samruk-Kazyna policies are in line with most of the Santiago Principles, especially those relating to transparency: in Q1 the Fund scored 10 points (the highest possible sore) in the Linaburg-Maduell Transparency Index for transparencyrankings among sovereign wealth funds.

Samruk-Kazyna is among the 30 largest sovereign wealth funds in the world

Since 2014, Samruk-Kazyna has been a member of the International Forum of Sovereign Wealth Funds (IFSWF). IFSWF members adhere to 24 Santiago Principles, which define sovereign wealth funds' legal and institutional framework.

Samruk-Kazyna policies are in line with most of the Santiago Principles, especially those relating to transparency: in Q1 the Fund scored 10 points (the highest possible sore) in the Linaburg-Maduell Transparency Index for transparencyrankings among sovereign wealth funds.

Samruk-Energo JSC

Samruk-Energo is a strategic energy holding company with a mission to implement state policy on the electric power industry, including through the modernization of Kazakhstan's existing generating capacities, as well as introducing new capacities. Samruk-Energo JSC is a major diversified energy holding that has successfully integrated into the global energy ecosystem, delivers value to its shareholders, and aims to form a highly efficient energy supply system that provides sustainable development for all industries in Kazakhstan.

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Power sector IPO
Samruk-Energo JSC

Samruk-Energo is a strategic energy holding company with a mission to implement state policy on the electric power industry, including through the modernization of Kazakhstan's existing generating capacities, as well as introducing new capacities. Samruk-Energo JSC is a major diversified energy holding that has successfully integrated into the global energy ecosystem, delivers value to its shareholders, and aims to form a highly efficient energy supply system that provides sustainable development for all industries in Kazakhstan.

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Mechanical engineering
Kazakhtelecom JSC

Kazakhtelecom is the leading telecommunications operator in Kazakhstan, providing a wide range of information and communications services. The company provides telephony (including ISDN), data network, broadband internet access, TV, hosting, SIP-telephony, and videoconference, telegraph and intelligent communication services.

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Kazpost JSC

Kazpost JSC is the national postal operator of Kazakhstan. It represents Postal Administration of Kazakhstan at the Universal Postal Union (UPU), is a member of the UPU Council of Administration since 2016 and represents a core element of Kazakhstan's national infrastructure. Currently, Kazpost is one of the largest companies in Kazakhstan and has over 22,000 employees.

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Communication IPO
NC KazMunayGas

KazMunayGas (KMG) is the national company for the exploration, production, refining and transportation of hydrocarbons, representing the interests of the state in Kazakhstan’s oil and gas industry and comprising 220 companies. KazMunayGas has an oil and gas condensate production market share of over 25% in Kazakhstan, as well as a leading position in petroleum refining, pipeline transportation of oil and natural gas.

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Oil & Gas IPO
Air Astana JSC

Air Astana is a joint venture between Samruk-Kazyna and BAE Systems, owning 51% and 49% respectively. Air Astana commenced regular flight operations on 15 May 2002 and currently operates a network of 60 international and domestic flights from hubs in Almaty and Astana. Airline’s fleet consists of 31 aircrafts including Boeing 767-300ER, Boeing 757-200, Airbus A320, А320neo and Embraer E190.

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NC Kazakhstan Temir Zholy JSC

Kazakhstan Temir Zholy (KTZ) is a transportation and logistics holding company providing infrastructure base to support economic growth in Kazakhstan. The company comprises logistics and transportation companies, owners of terminals and infrastructure networks for all transportation methods. KTZ provides railway and sea transportation, runs centers for transportation and logistics, and manages seaports, airports, railway and highway infrastructure.

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Transportation and Logistics IPO IPO
NMC Tau-Ken Samruk JSC

Tau-Ken Samruk specializes in extraction and processing of solid minerals – ranging from base metals such as copper, iron to rare earth metals. The company also processes these metals. Successful implementation of objectives will make Tau-Ken Samruk aims to introduce the most advanced technologies and deepst global experience within the metals and mining industry.

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NAC Kazatomprom JSC

Kazatomprom is a large national importer and exporter of uranium, rare metals and nuclear fuel for nuclear power plants. A Presidential Decree established the company in 1997. Kazakhstan has the world’s largest producer of natural uranium since 2009. Samruk-Kazyna is the company's sole shareholder.

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Metals and Mining IPO
Privatization and planned listing of major national assets

Privatization is a key development strategy for Kazakhstan. The second wave of privatization of state owned companies is under way and Samruk-Kazyna, as an operator of many state assets, is an active participant in this process.

As part of the Comprehensive Privatization Plan for 2016-2020, Samruk-Kazyna plans to sell 215 assets on a competitive basis.

Samruk-Kazyna 's portfolio contains companies in a variety of sectors: KazMunayGas, Kazakhstan Temir Zholy, Air Astana and Qazaq Air, Kazatomprom, Kazpost, Samruk Energo and KEGOC, Kazakhstan Engineering.

All major Fund assets are being prepared for an IPO. Six large companies (Kazatomprom, Air Astana, Kazpost, KazMunayGas, Samruk Energo and Kazakhstan Temir Zholy) have completed the first stage of pre-sale preparation.

Privatization and planned listing of major national assets

Privatization is a key development strategy for Kazakhstan. The second wave of privatization of state owned companies is under way and Samruk-Kazyna, as an operator of many state assets, is an active participant in this process.

As part of the Comprehensive Privatization Plan for 2016-2020, Samruk-Kazyna plans to sell 215 assets on a competitive basis.

Samruk-Kazyna 's portfolio contains companies in a variety of sectors: KazMunayGas, Kazakhstan Temir Zholy, Air Astana and Qazaq Air, Kazatomprom, Kazpost, Samruk Energo and KEGOC, Kazakhstan Engineering.

All major Fund assets are being prepared for an IPO. Six large companies (Kazatomprom, Air Astana, Kazpost, KazMunayGas, Samruk Energo and Kazakhstan Temir Zholy) have completed the first stage of pre-sale preparation.

Go to the Future with Kazakhstan!

The Government of Kazakhstan and Samruk-Kazyna are interested in attracting foreign investment. At the same time, the country is working hard to create a favorable business climate for investors and to improve business conditions.

Kazakhstan is a friendly, rich, reliable and growing country. Partnering with Kazakhstan is beneficial not only in the short term, but also in the long term.

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