Cities Generate Around 80% of Global GDP: Smart Solutions strengthen Their Economic Role – report by the AIFC Insights analytical centre
Cities are key drivers of the global economy, generating around 80% of global GDP and concentrating businesses, jobs, resources, and innovation. In this context, investment in smart city development is becoming an important tool for improving urban governance efficiency, sustainability, and investment attractiveness, according to the report “A New Wave of Urban Development: Investment in Smart City Infrastructure and Technologies” prepared by the AIFC Insights analytical centre with the support of BI Group.
Today, cities are no longer just administrative centres. They are transforming into interconnected digital ecosystems where data, the internet, and artificial intelligence are used to improve quality of life, enhance management efficiency, and create a safe and comfortable urban environment.
In Kazakhstan, the national program “Digital Kazakhstan” has laid a strong foundation for the digital transformation of cities. Astana, Almaty, and Shymkent are already implementing intelligent transport management systems, urban infrastructure monitoring, and AI-based analytics, helping to improve safety and convenience for residents.
In particular, a large-scale Smart City Astana project is being implemented in Astana in partnership with Presight AI (UAE). The project includes the creation of a modern situational center, a city data center, digital integration of key infrastructure systems, and the deployment of data analytics and AI technologies. This digital architecture elevates urban governance to a new level by ensuring process transparency, the efficiency and validity of management decisions, and improving the comfort and safety of the urban environment.
The report emphasizes that smart cities are not just about technology implementation. Success depends on the level of data integration, the development of digital infrastructure, and institutional trust. According to the UN E-Government Development Index, Kazakhstan ranks 24th globally, while Astana holds 46th place in the Smart Centres Index, demonstrating a high level of digital service development.
“Cities are becoming key platforms for economic growth and infrastructure investment, as they concentrate value creation and the main demand for transport, energy, and utility networks. According to expert estimates, the global Smart Cities market will exceed USD 1 trillion by 2027. At the AIFC, we see significant potential in this trend and are ready to continue facilitating the attraction of international technology players to the markets of Kazakhstan and Central Asia,” said Zhanbolat Kakishev, Chief Product Officer of the AIFC Administration.
The experience of leading global cities such as Zurich, Singapore, Seoul, Copenhagen, Dubai, and Amsterdam shows that the success of smart cities is determined not by the number of technologies implemented, but by the maturity of institutions, the compatibility of systems, and the level of public trust. The best results are achieved by countries and cities that move from isolated pilot projects to an integrated development model, aligning solutions at both national and city levels.
According to forecasts, around 68% of the world’s population will live in cities by 2050. Under these circumstances, urban efficiency, sustainability, and digital readiness become key factors of national competitiveness. At the same time, cities account for around 75% of global CO₂ emissions, and the 25 largest cities generate more than half of all urban greenhouse gas emissions, highlighting the importance of implementing digital and environmentally sustainable solutions.
The report is intended for government authorities and businesses interested in participating in the large-scale digital transformation of Kazakhstan’s cities and becoming part of the next wave of innovation.
The report is available via the link.
Reference:
The Astana International Financial Centre (AIFC) is an independent jurisdiction where investors and business meet emerging opportunities of Kazakhstan and Central Asia in a transparent and sustainable environment backed by the principles of English Common Law. aifc.kz
AIFC Press Office
Ainur Issabayeva, Press Secretary
E-mail: [email protected]
