New financial products, legislative initiatives, market insights and key announcements from Astana Finance Days

On September 5-6, 2024, the Astana International Financial Centre (AIFC) hosted the annual financial conference “Astana Finance Days: Innovate. Invest. Impact”. Since its inception in 2018, Astana Finance Days (AFD) has been the premier platform for uniting top financial experts, investors and business leaders from across the Eurasian region.

This year’s conference gathered over 4000 participants from 69 countries. A total of 186 international and Kazakhstani speakers engaged in 38 panel sessions, covering key themes of “Innovation”, “Investment”, “Impact”, “Women in Arbitration” and “AIFC Community”. Speakers and participants discussed cutting-edge technologies in the financial sector, Kazakhstan’s investment opportunities, and the role of finance in driving sustainable development and positive societal change.

The conference was officially opened by AIFC Governor Renat Bekturov, who delivered a keynote speech during the panel session “Finance, Law, and Development: Shaping the Future of Infrastructure Investment in the Region”. In his remarks, the Governor emphasised that the AIFC has emerged as a key hub for attracting investment into Kazakhstan’s infrastructure projects. This is evidenced by the companies established in the AIFC that are engaged in logistics, including projects related to the Middle Corridor. However, he pointed out the need to attract investment and financing for the transport and logistics sector, green infrastructure for renewable energy production, and to fulfill the country’s commitments to achieving carbon neutrality.

Hussein Ozkhan, Acting Managing Director for Central Asia at the European Bank for Reconstruction and Development (EBRD), highlighted the need for at least €17,5 billion in investments for the Middle Corridor, in addition to developing “soft” infrastructure, such as digitalisation, tariff identification and customs control, etc. Moazzam Mekan, Lead for Public-Private Partnerships in South Asia within IFC, emphasised the importance of mobilising private capital for these efforts.

During the event, the Astana International Exchange (AIX) announced the inclusion of I-REC (International Renewable Energy Certificates) in its range of responsible finance products. The I-REC certificate confirms that the energy was produced from renewable sources and corresponds to 1 MWh of clean electricity. I-REC represents 99% of the total voluntary market of renewable energy certificates in the world and is recognized in more than 50 countries.

Evgenia Bogdanova, Head of Regulation and Compliance of AIX, commented:“The launch of Environmental Instruments on AIX marks a significant step forward in integrating sustainability into the traditional financial markets. By adding products like I-REC certificates alongside our conventional capital market offerings, we help companies to meet their environmental goals while maintaining financial performance. This initiative supports our commitment to promoting sustainable development in line with global best practices. We warmly invite all interested stakeholders to join our new Environmental Instrument Market, and we plan to begin continuous trading in approved categories of environmental instruments together with our Members before the year end.”

AIFC Governor also announced the launch of the AIFC Business League, a new initiative aimed at uniting top executives, business owners and investors to foster collaboration and implement successful projects both locally and internationally. The Business League’s members already include executives and top managers from companies such as Freedom Holding Corp, DNA Payments Group, Halyk Bank, Fonte Capital, WhiteHill Capital, Dasco Consulting Group, Flagman, Yildirim Holding Kazakhstan, Semurg Invest, and Kazakhmys Smelting.

A landmark event at AFD 2024 was the adoption of the AIFC Venture Studio Rules, providing a legislative framework for the creation of venture companies. These rules establish legal clarity for financial and non-financial support for startups, facilitating collaboration between entrepreneurs and startups in the market.

In addition, a memorandum of understanding was signed between TechHub Limited (AIFC) and Truleum Venture Studio Limited, a Dubai International Financial Centre-based venture studio, aimed at launching the “Fintech Venture Studio” at the AIFC. A second memorandum was signed between Tech Hub AIFC and White Hill Capital Ltd., focusing on the joint development of digital solutions to support innovative projects.

A practical guide on AI and data protection was also presented at the event, emphasising the AIFC’s commitment to creating a secure and innovative environment for delivering financial services within Kazakhstan and beyond.

It was announced that a regional office for Chengdu and the Western China Financial Centre in Central Asia has been established within the AIFC jurisdiction by CDIC International. This office aims to promote the growth of cross-border investments between Chengdu-based companies and investors and projects in Central Asia. Additionally, TFI Securities and Futures Limited, an investment firm based in Hong Kong, has been accredited as a non-member entity of the AIFC.

Additionally, a country report on Islamic finance, prepared by the AIFC and CSQ Law with support from the Islamic Development Bank, was presented during the panel session. The report offers a comprehensive analysis of the landscape, challenges, opportunities and prospects for Islamic financial services in Kazakhstan.

The official launch of the AIFC Islamic Finance and Business Association also took place. The Association is designed to serve as a platform for uniting professionals, entrepreneurs, academics and stakeholders in the Islamic finance and business sector in Kazakhstan. Its members include Alif Islamic Bank, ITS, Tayyab Finance, Harry Qelm Baabsman, Al Saqr Finance, Tansar Capital, ShariaConsulting AFC, Amanie Advisors Astana, CSQ Law Kazakhstan Branch, and Outsource Directors.

The AIFC Academy announced the development of unique minor programmes, supported by Freedom Broker and the Freedom Shapagat Corporate Fund. These programmes, to be launched at leading universities in Kazakhstan, will cover 10 specialised areas corresponding to the evolving challenges of today’s financial and economic landscape. The initiative will offer undergraduate and graduate students a deeper understanding of asset management, fintech, financial market analysis and regulation, sustainable development and international commercial dispute resolution.

The AIFC Academy also signed a memorandum with Quantum Management Company, with plans to develop specialised educational programmes in Kazakhstan. This collaboration will focus on educational research events and implementing cutting-edge methodologies in STEM and International Baccalaureate (IB), including the launch of an “AI in Finance” laboratory at Quantum TECH School.

Additionally, the new Tabys Education app was launched, the educational module, aimed at improving financial literacy among the public. Tabys Education provides users with essential knowledge on managing personal finances and the art of investing.

For the first time in Kazakhstan, the AIFC Court and the AIFC International Arbitration Centre, in collaboration with the global organisation ArbitralWomen, hosted a “Women in Arbitration Day” at the conference. Participants also had the opportunity to meet Carolyn Lamm, a Partner at the Washington, D.C. office of the law firm White & Case, globally recognised as an expert in international arbitration.

The event’s golden partners were Visa, Freedom Broker, and KAZ Minerals Group; silver partners included Solidcore Resources, Eurasian Bank, and MYD Production. Bronze partners were Eurasian Resources Group (ERG), Allur, Bitfinex Securities, and ITS, while Mastercard served as the fintech partner.