Nearly half of assets under management by regulated funds in Kazakhstan are attributed to the AIFC

Such insights were presented at the AIFC Community event in Astana.

On November 28, the Astana International Financial Centre (AIFC) hosted another one AIFC Community event: 2024 Business Wrap-Up, exclusively for the Centre’s participant companies. This gathering, part of the ongoing AIFC Community initiative aimed at fostering collaboration among companies registered within the AIFC jurisdiction, brought together over 100 attendees.

During the meeting, leaders in asset management from AIFC participant companies (Fonte Capital Ltd, Amicorp Kazakhstan Limited), representatives from the AIFC’s regulatory body (AFSA), and the Astana International Exchange (AIX) discussed the regulatory updates introduced this year. Attendees received updates on significant changes to the asset management regulatory framework, including the launch of the first Umbrella Fund in the AIFC and the listing of the first Exempt Fund on AIX. Moreover, AFSA experts provided practical guidance on fulfilling reporting obligations by the year’s end.

Renat Bekturov, Governor of the AIFC, delivered a welcome speech:
“The AIFC Community was established in response to the demand from participants for better networking, experience exchange, and best practice sharing within the financial centre’s jurisdiction. In June of this year, we held the first such event for ASP companies, which brought together over 80 participants. Several sessions were also held as part of the AIFC Community initiative during our annual Astana Finance Days conference. Today’s event provides an opportunity to learn from global players in the fund management and administration sector, discuss the competitive advantages of the AIFC jurisdiction for business, and get acquainted with the latest updates and initiatives from the Centre. I am confident that this meeting will serve as another step towards joint growth within Kazakhstan’s financial ecosystem.”

The event also featured the unveiling of a fund management report for Kazakhstan, prepared by the AIFC Authority’s Industry Analysis Department. According to the report, as of July 1, 2024, the total assets under management (AUM) by regulated funds in Kazakhstan reached $1,8 billion. Of this, 56% is managed under national regulation, while 44% — equivalent to approximately $800 million — is regulated by the AIFC. The total number of regulated funds in Kazakhstan has doubled since 2020, reaching 135 by mid-2024, largely due to new registrations within the AIFC jurisdiction.

The AIFC jurisdiction has not only supported the growth of regulated funds in the country but has also contributed to the diversification of fund types. Currently, the AIFC hosts private equity funds, hedge funds, venture capital funds, REITs, and specialised funds (commodity, credit, cryptocurrency, bond funds, and umbrella funds). A license has also been issued for the first Non-Exempt Fund. In addition to boosting AUM and the number of funds, the AIFC jurisdiction provides new companies with the opportunity to enter the financial market. For further details of the report in English, please follow the provided link.

The event also introduced an AI-powered chatbot developed by the AIFC Authority. The chatbot is available on the AIFC website and is designed to provide users with accurate and comprehensive information about conducting business within the AIFC in accordance with the existing legal framework.

Serik Kozybaev, CEO of the Branch of Investment House Astana-Invest JSC in the AIFC:
“Networking is undoubtedly one of the most important aspects of any business, and communication with colleagues, regulators, and competitors is always valuable. It provides an opportunity to learn something new and receive first-hand information regarding upcoming regulatory norms and changes. Overall, events like this offer insights into the latest developments at the centre and the regulator, as well as fresh ideas that can be adopted. Therefore, I am glad to have been invited to this event, where AIFC participants can gather in one place, get to know each other better and exchange experiences.”

Miras Moldabaev, Commercial Director and Head of Astana Office Amicorp Kazakhstan Ltd:
“It is a great honour for us to support the AIFC in organising such valuable events for participants. The AIFC has opened up great opportunities for us: we gained access to the markets of the CIS and the Caucasus. A lot of work is already underway in these directions, we have obtained two licenses, and we have big plans for 2025. The AIFC Community event truly benefits business because it accelerates access to clients and removes barriers. All the professional participants gather in one place, where we can discuss ideas or propose partnerships.”

Andrey Grachev, Executive Director Birch International Limited: “This is my first time participating in an event for financial centre participants. I believe that such networking events are a very important initiative for all market participants and colleagues. Many centres, after registering companies, lead a passive existence. However, I think the true value of international financial centres lies in constantly supporting their participants, staying in contact with them, and developing the market. In general, our company was attracted to the AIFC jurisdiction by its international format, work based on English law, the level of organisation, and the number of licenses. I have seen many different financial centres, and I can confidently say that in the CIS space, the AIFC is one of the best.”

The meeting contributed to strengthening professional connections and addressing the information needs of AIFC participants on various aspects related to the financial centre’s activities. For any inquiries related to the AIFC jurisdiction, please contact [email protected].

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The Astana International Financial Centre (AIFC) is an independent jurisdiction with a favourable legal and regulatory environment and a developed infrastructure for starting and doing business, attracting investment, creating jobs and developing Kazakhstan’s economy. www.aifc.kz