The future of Kazakhstan’s attractiveness
Kazakhstan needs to capitalize on its competitive advantages, which include a sound macroeconomic outlook, strong relations with major trade partners, vast natural resources and unique location at the crossroads between China, Europe, the Middle East and Russia. To unlock economic potential and reach new levels of competitiveness, the country needs to continue to enhance its business and social environment.
Forty-three percent of respondents expect Kazakhstan’s investment attractiveness to improve over the next three years.
Investors’ optimism can be explained by the growing importance of rapid-growth markets in the global economy and Kazakhstan’s positive macroeconomic outlook. Its vast natural resource base will produce ongoing export revenues. Investors expect to see the results of large-scale initiatives to develop non-extractive industries.
The future of Kazakhstan’s attractiveness profile: more transparency, more quality, more promotion and more diversity.
Only 9% of respondents believe that the country’s attractiveness will deteriorate. Their concerns are primarily around future political predictability, the consistency of economic and investment policy, perceived deterioration in the rule of law and the renewed risk of recession caused by the European sovereign debt crisis.
Thirty-three percent of respondents believe that the investment environment will stay the same. These investors see government policy as the key element driving the future direction of the investment environment.
They believe that the Government will need to continue its efficient macroeconomic policy, improve the social environment and ensure fair treatment of investors’ rights.
Investors’ expectations on enhancement of Kazakhstan’s attractiveness
- Develop a more transparent and predictable regulatory environment
- Build a quality infrastructure
- Improve professional business and innovation skills
- Implement an FDI strategy with focus on diversification, investor attraction and retention