From the Cape Town Convention to a Regional Leasing Hub: AIFC and AWG Discuss the Development of Aviation Finance in Kazakhstan

On 9 November 2026, the Astana International Financial Centre (AIFC) and the Aviation Working Group (AWG) held a workshop in Astana titled “Framework for Aircraft Finance and Leasing in Kazakhstan.” The event brought together representatives of government authorities, airlines, the legal and academic communities, as well as experts in aviation finance and leasing. 

The discussion focused on practical mechanisms for developing aviation finance in Kazakhstan, the implementation of the Cape Town Convention and its Aircraft Protocol, the AIFC’s potential as a platform for structuring aircraft leasing and financing, and the further development of Kazakhstan’s aircraft registration system. 

The Cape Town Convention provides an international legal framework for protecting the rights of creditors, lessors and investors in the financing of aviation assets. One of its key mechanisms is the International Registry of Mobile Assets, which enables the registration of relevant interests in aircraft objects and helps reduce risks in cross-border transactions. Kazakhstan acceded to the Convention and the Aircraft Protocol, which have been in force for the country since 2011. 

During the workshop, AWG experts and representatives of Kazakhstan discussed the current implementation of the Convention and further steps to enhance its effectiveness, including aircraft repossession and deregistration, protection of lessors’ rights, and cooperation between public authorities and the international aviation community. 

A separate session focused on the development of the AIFC Aviation Finance Hub and the opportunities the AIFC offers international lessors and financial institutions. Bakhtiyar Tleubekov, Chairman of the Management Board of the AIFC Authority, presented the Centre’s legal and institutional infrastructure based on the principles of English common law, including the independent AIFC Court and International Arbitration Centre (IAC), regulation by the Astana Financial Services Authority (AFSA), as well as opportunities for structuring and financing aircraft leasing transactions. 

In turn, Zhanbolat Kakishev, Chief Product Officer of the AIFC Authority, commented: 

“Our goal is not to replace existing international aviation finance centres, but to provide lessors and financial institutions with a regional platform based on common-law principles and located closer to the airlines they serve. The AIFC can offer infrastructure for establishing leasing companies and special-purpose vehicles, dispute resolution mechanisms, and new opportunities for raising finance. The next important step is to bring international lessors, financial institutions and Kazakhstani airlines together around the first practical transactions.” 

The development of aviation finance is becoming increasingly important amid the growth of the Central Asian and Caucasus markets. According to estimates by the AIFC Aviation Finance Hub, the region’s commercial aircraft fleet could approximately double by 2030. At present, between 55% and 80% of the region’s commercial fleet is already operated under leasing arrangements, creating significant demand for specialised financial and legal infrastructure. 

Participants also discussed new instruments for financing aircraft leasing. Since May 2026, Kazakhstan’s financial leasing legislation has provided for the possibility of raising financing through digital financial assets backed by lease receivables. This mechanism could potentially be integrated with the AIFC’s capital markets and digital asset infrastructure. 

Particular attention was paid to Kazakhstan’s standing in the AWG Cape Town Convention Compliance Index. According to AWG data for the first quarter of 2026, Kazakhstan scored 64 points, placing it in the medium category. The country is also eligible for the OECD Cape Town Convention discount. Participants discussed practical measures that could further improve compliance with international standards and reduce risks for lessors and creditors. 

As part of the development of the AIFC Aviation Finance Hub, the AIFC is also exploring further improvements to the regulatory infrastructure for aircraft leasing. Areas discussed included specialised mechanisms for leasing companies, the use of special-purpose vehicles (SPVs), access to different sources of financing, and the use of the AIFC Court and IAC for resolving disputes related to aviation finance and leasing. 

An important area of further work will be cooperation with AWG on improving the aviation finance framework. In particular, the parties discussed drawing on the expertise of AWG members in developing specialised solutions for aircraft leasing, expanding engagement with international lessors and financial institutions, and holding joint professional sessions for representatives of the AIFC Court, the IAC and aviation market participants. 

The practical implementation of the Cape Town Convention and the development of the aircraft registration system fall within the remit of Kazakhstan’s relevant government authorities. The AIFC, for its part, intends to support this work by developing the financial and legal platform for aircraft leasing and strengthening engagement between international industry participants and the Kazakhstani market. 

AWG’s visit to Astana also included meetings of the Aviation Working Group Regional Advisory Committee for Central Asia, held on 9–10 November with the participation of leading regional experts in aviation finance and law. The agenda covered the implementation of the Cape Town Convention across Central Asian countries, cross-border transferability of aircraft, the International Registry, and the further development of the regional aviation market. 

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. www.aifc.kz     

AIFC Press Office, 

Ainur Issabayeva, press secretary 

E-mail: [email protected]