AIFC invites investors from the UAE to Kazakhstan

Representatives of more than 100 companies took part in the AIFC Connect event in Dubai

On May 28, representatives of the Astana International Financial Centre, as part of the “AIFC Connect: UAE 2024” event, informed Dubai businessmen about the investment opportunities in Kazakhstan, its economic role in Central Asia, and the activities of the AIFC. The event brought together more than 130 representatives from over 100 companies, including investment banks, international financial firms, consulting companies and law firms.

The event included two panel sessions where speakers discussed the prospects for the development of the capital market, as well as changes in the field of financial services in the actively developing region of Central Asia. Among the speakers were Zahabia Gupta, Director of Sovereign Ratings at S&P Global Ratings, Assel Mukazhanova, Chairman of the Board of the Astana International Exchange and Temirlan Mukhanbetzhanov, Acting Chairman of the Board of the AIFC Authority. Other speakers included Farkhad Okhonov, Chairman of the Board of Halyk Finance, Diana Aryssova, Deputy Chairman of the Board of KazMunayGas, Darkhan Abdimoldayev, Financial Controller of Kazatomprom, Zamira Sundetova, Head of the AIFC branch of SkyBridge Invest, Robin Hoekjan, Chief Operating Officer at  Amicorp Fund Services, Mohammed Wassim Khayata, CEO of Al Maryah Community Bank and Vikrant Bhansali, CEO of UBA Dubai and others.

In his welcoming speech, the Ambassador Extraordinary and Plenipotentiary of the Republic of Kazakhstan to the United Arab Emirates, Nazhmedin Mukhametaliuly, noted, “We highly appreciate the dynamic cooperation we enjoy with our friends from the United Arab Emirates. The UAE is our leading and reliable strategic partner in the Islamic and Arab world. There is a strong political dialogue established between our countries, with rapidly developing trade, economic, investment and cultural-humanitarian cooperation. Economic diplomacy holds great importance for us. The Embassy of Kazakhstan is committed to attracting investments by showcasing opportunities in Kazakhstan and connecting investors with their partners and government officials. I believe that the economic partnership between our countries continues to diversify and expand across all sectors. I trust that today’s event will further stimulate economic cooperation between our two nations”.

Today 33 companies from the UAE are registered in the AIFC, operating as holding companies, project planning and construction firms, service providers, information technology companies, marketing and software development.

Discussing the benefits of the financial centre, AIFC Governor Renat Bekturov emphasised, “AIFC is an excellent platform for structuring deals within the framework of such large infrastructure initiatives as the Middle Corridor, Belt and Road. Within the Middle Corridor project, a subsidiary of the national oil and gas company KazMunayGas together with the Abu Dhabi Ports Group, established a joint venture, Caspian Integrated Maritime Solutions, within our centre”.

Additionally, the AIFC Governor noted, “Cooperation between our countries also extends to the financial sector. A significant outcome of this collaboration was the joining of the Astana International Exchange to the Tabadul Hub. This regional exchange hub, which includes members such as the Abu Dhabi Securities Exchange (ADX), Bahrain Bourse (BHB) and Muscat Securities Market (MSX), facilitates mutual access to markets”.

On May 27, the Abu Dhabi Securities Exchange (ADX) hosted a Ring the Bell ceremony to celebrate AIX joining the Tabadul Hub, established by the ADX for bilateral cross-Exchange trading. The ADX launched the Tabadul Hub in July 2022 as the first digital exchange center in the region, operating on a mutual market access model.  The platform creates a digital exchange network for trading among member exchanges at the regional and global levels, ultimately aiming to enhance cooperation and increase liquidity across participating markets.

Reference:

According to IMF forecasts, Kazakhstan’s GDP will reach 297 billion US dollars in 2024 and 370 billion US dollars by 2028. According to the Goldman Sachs “Path to 2075” report, the size of Kazakhstan’s economy will be 0,9 trillion US dollars by 2050 and 2,1 trillion US dollars by 2075.

In 2023, Kazakhstan’s foreign trade turnover increased by 3,2%, reaching almost 140 billion US dollars. Specifically, exports during this period amounted to 78,7 billion US dollars, while imports totaled 61,2 billion US dollars. Sustained economic stability, abundant natural resources, commodity markets, active political and economic reforms and the presence of 13 special economic zones with tax preferences collectively position Kazakhstan as the leading destination for foreign investment in the region.

For over 30 years, the UAE and Kazakhstan have nurtured a robust relationship. The gross inflow of FDI from the UAE to Kazakhstan from 2005 to 2023 amounted to 4,1 billion US dollars, with trade turnover in 2023 reaching 328,9 million US dollars. Presently, there are 292 UAE companies operating in Kazakhstan across diverse sectors, including wholesale and retail trade, professional services, transport and logistics, finance, ICT and construction.

The Astana International Financial Centre (AIFC) is a unique jurisdiction not only within Kazakhstan but also across Central Asia. It serves as the sole centre in the region providing businesses with a comprehensive legal framework for attracting, implementing, and safeguarding investments, grounded in the principles of the highly business-friendly law of England and Wales, along with the standards upheld by the world’s leading financial centres. Through the AIFC platform, investments totaling 11,9 billion US dollars have been attracted to the economy of Kazakhstan. Currently, the AIFC boasts more than 2700 registered companies from 78 countries.

In 2024, the AIFC maintained its leadership in the Central Asia and Eastern Europe region (according to the Global Financial Centres Index), affirming the presence of a supportive legal and regulatory environment and well-developed infrastructure for business establishment and operation, fostering a business-friendly environment, attracting investments and nurturing human capital. Thanks to the endeavors of the AIFC Green Finance Centre, Astana secured the 1st position in the Eastern Europe and Central Asia region in the Global Green Finance Index (GGFI). Moreover, in 2023, the project for Kazakhstan to undergo the FATF/EAG mutual assessment procedure was successfully concluded. The jurisdiction of the AIFC has been evaluated as compliant with international standards for combating money laundering and the financing of terrorism (AML/CFT). Furthermore, the AIFC tax regime is acknowledged for its adherence to the global tax transparency standards of the Organisation for Economic Co-operation and Development (OECD).

The AIFC Court and the International Arbitration Centre are recognised as authoritative and effective platforms for dispute resolution.

Contact information for inquiries:

Ainur Issabayeva

Press secretary of AIFC

Mob: +7 701 777 65 58

E-mail: [email protected]