national export and investment agency gaukhar zainullina regional director
TRANSCRIPT
National Export and Investment Agency
Gaukhar Zainullina Regional Director
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Country overview
Political status: Republic Area of land: 2.7 mln. sq. km Capital city: Astana Population: 16,5 million Key Economy Information, 2009
• GDP/GDP per capita: USD 134 bln/USD 8,547• Industry Production: 85 bln. USD• Trade turnover: 109 bln. USD• Export: 71.2 bln. USD• Import: 37.9 bln. USD
Main religions: Islam, Russian Orthodox Main languages• Kazakh (state language)• Russian (official/business language) Key ethnic groups• Kazakh: 65%• Russian: 25%• Ukrainian: 2.9%• Uzbek: 2.8%• German: 1.5%• Korean:0.7% Currency: Tenge (KZT, USD 1 = ~ KZT 150)
Political status: Republic Area of land: 2.7 mln. sq. km Capital city: Astana Population: 16,5 million Key Economy Information, 2009
• GDP/GDP per capita: USD 134 bln/USD 8,547• Industry Production: 85 bln. USD• Trade turnover: 109 bln. USD• Export: 71.2 bln. USD• Import: 37.9 bln. USD
Main religions: Islam, Russian Orthodox Main languages• Kazakh (state language)• Russian (official/business language) Key ethnic groups• Kazakh: 65%• Russian: 25%• Ukrainian: 2.9%• Uzbek: 2.8%• German: 1.5%• Korean:0.7% Currency: Tenge (KZT, USD 1 = ~ KZT 150)
Source: KazStat
Preferable Geographic Location: Gateway between Europe and Asia
Gate to China, India and South-East Asia
Gate to Russian and European market
Kazakhstan
China
Russia
Europe
Middle East
India
Stable Macroeconomic Environment
Source: KazStat
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Country Strength of investor protection index (0-10)
New Zealand 9.7
Kazakhstan 5.7
Russia 5.3
Tajikistan 5.3
Ukraine 4.7
Moldova 4.7
Inward FDI Performance
Source: Doing Business 2010
Gross inflow of FDI to Kazakhstan from 1993 – 102,9 bln. USD
Main investors by gross inflow of FDI in 1993 – 2009
Investor Protection
Economy Global competitivenessIndex ranking
USA 2
Finland 6
Austria 15
Korea 19
UAE 23
China 29
Czech Republic 31
Russia 63
Kazakhstan 67
Ukraine 82
Georgia 90
Kyrgyzstan 123
Economy Ease of doing business
Singapore 1
Finland 14
Georgia 15
Korea 23
Austria 27
UAE 46
Mongolia 58
Kazakhstan 63
Czech Republic 75
China 83
Russia 120
Ukraine 145
World’s Leading Reformer
Doing business 2010 Global competitive Index 2009-2010
State Forced Industrial and Innovative Development Program:Priority sectorsPriority sectors
State Forced Industrial and Innovative Development Program
State Forced Industrial and Innovative Development Program
Agriculture complex and agricultural production
Agriculture complex and agricultural production
Construction industry and
production of construction
materials
Construction industry and
production of construction
materials
Oil refining industry and oil and gas infrastructure
Oil refining industry and oil and gas infrastructure
Chemical, pharmaceutical
industries
Chemical, pharmaceutical
industries
Metallurgy development and production of final metallic products
Metallurgy development and production of final metallic products
Transportation and telecommunication infrastructure
Transportation and telecommunication infrastructure
EnergyEnergy
Space industry
Space industry
TourismTourism
Machinery and equipment building
Machinery and equipment building
Objectives:Concentration country’s resources on development of economy’s priority sectors;
Creation of favorable macro and investment climate;
Enhance of national economy production;
Support of export oriented industries and innovative manufacturing.
Purpose: To diversify and enhance the competiveness of Kazakhstan economy and increase GDP by the year of 2015 by 7 trillion tenge or approximately 50% of 2008 GDP.
Uranium industryUranium industry
Light industry
Light industry
Access to New Markets: Kazakhstan, Russia and Belarus Customs Union from January 1, 2010
Russia
Kazakhstan
Belarus
SIMILAR TRADE RULES
1. Single custom’s territory;2. Single foreign trade policy;3. Single custom’s legislation, single custom code;4. Free goods mobility inside single custom’s union
Advantages for potential investors:
INCENTIVES FOR THE INVESTORS
Exemption from import customs duties on import of non-produced technological equipment and raw materials in Kazakhstan in the implementation of investment projects. Kazakhstan has more liberal taxation for opening and doing business comparing with Russia and Belarus.
Almaty
ASTANA
Taraz
Khorgos
Saryozek
Korday
Communicator
Base station of trunking communication
LEGEND
Operator
International Transport Logistic Centre
Communication centre
ALMATY
Korday
Shymkent
KyzylordaBaykonyr
Aralsk
Karabutak
Khromtau
Martuk
Developing Infrastructure: “Western Europe – Western China” International Transit Corridor
China
Kyrgyzstan
Uzbekistan
Turkmenistan
Russia
Russia
Entrepreneurship Development Fund
Investment Fund of Kazakhstan
State Insurance Corporation
National welfare fund “Samruk-Kazyna”
(national companies and development institutions in railway, energy, oil and
gas, telecommunications sectors)
Kazyna Capital Management
Strong Partners to Cooperate: Development Institutes
Development Bank of Kazakhstan
National Innovation Fund
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National holding "KazAgro"
Strong Partners to Cooperate: Special Economic Zones
LEGEND:
- construction
- high-tech industries
- IT, software
- textile
- petrochemicals
- tourism
Incentives Given in Special Economic Zones
Operating Incentives Proposed Incentives
Tax Code of RK: exemption from corporate tax exemption from land tax exemption from property tax
Customs Code of RK:Exemption from custom duties on SEZ territory
- guaranteeing SEZ participants tax regime stability during project implementation;
- introduction of a special regime for foreign labor imports to SEZ;
- introduction of “one-stop shop” service for SEZ participants.
Exemption from VAT for selling Kazakhstani goods on SEZ territory for consumption when performing SEZ-specific activity
Increasing marginal rate of depreciation for taxing software
Exemption from land rent on SEZ territory for terms determined by agreement but no longer than 10 years since receiving right of temporary use
Additional Incentives Proposed in Special Economic Zones
For SEZ “Astana – New City”:1.Decrease of existing 20 per cent corporate tax for “construction and putting into operation infrastructural objects, administrative and residential complexes in accordance with construction documents”.2.Use 0 rate of land tax.3.Decrease property tax rate from 0.5 per cent for individuals, 1.5 per cent for legal entities up to 0 per cent4.Decrease of VAT when selling goods and equipment fully consumed for building and putting into operation infrastructural objects, administrative and residential complexes.
For SEZ “IT Park Alatau”:1.Increase marginal rate of depreciation charges.
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Investment Preferences
Land
Buildings
Machinery
Equipment
VAT tax rate is down to 12%
Corporate tax rate is down to 20%
INVESTOR
Waiving of import duties
Favorable tax regime
Special order for entrance visa issue for foreign experts and for
foreign labor
Minimal long-term purchase contract
from state and national companies
State grants in
kind
Support measures under the «Business – 2020» Road Map:• Subsidizing interest rates on loans• Partial loan guarantees• Development of industrial infrastructure
Machinery Equipment
Reduction of taxable income
for corporate income tax
Creation of favorable climate
Export promotion
Investor protection
INVESTOR
Promotion of investment opportunities
National Agency for Export and Investments «KAZNEX INVEST» – your partner in Kazakhstan
Support of foreign investors and providing
services
one-stopshop
Our contacts:www.kaznex.kzTel.: +7 (7172) 791-718Fax: +7 (7172) 791-719E-mail: [email protected]
Ministry of Industry and New Technologies
KAZNEX INVEST
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