In his Address “A Just Kazakhstan: Rule of Law, Economic Growth, Public Optimism”, Head of State Kassym-Jomart Tokayev instructed the Government and regional akimats to pay special attention to restructuring the economy and to introduce new mechanisms aimed at ensuring the country’s sustainable progress.

In addition, emphasizing the importance of continuous efforts to improve the investment climate and conditions for doing business, the President instructed the Government to prevent any decline in the volume of foreign direct investment in the economy.

Details on the implementation of the objectives set forth in the Address and other presidential instructions are available in the review by Primeminister.kz.

GDP and Key Economic Drivers

By the end of 2024, the target GDP growth rate of 5% was achieved. In the first half of 2025, Kazakhstan’s economic performance showed significant improvement. The President has set an ambitious goal for the Government — to double the national economy by 2029. Work in this direction continues, driven by investment stimulation, productivity growth, and the expansion of the non-resource sector.

For the first seven months of 2025, economic growth reached a record 6.3%, the highest in recent years. Growth in the real sector amounted to 8.3%, while services expanded by 5.2%. Key drivers included: transport (+22.5%), construction (+18.5%), trade (+8.6%), mining (+8.5%), and manufacturing (+6.1%).

Regional Development

To ensure balanced regional development, the Government approved the Concept for Regional Development of the Republic of Kazakhstan for 2025–2030. The document is aimed at improving quality of life and unlocking the economic potential of regions through macro-regional development and “growth points.”

Priority funding from the republican budget, based on a system of regional standards, will be directed to the most underdeveloped regions to eliminate disparities in access to social, engineering, and transport infrastructure.

Implementation of the Concept will be ensured through an Action Plan, comprehensive plans, national projects, roadmaps, and other sectoral program documents. This is expected to improve access to social benefits and services in line with regional standards.

Special measures have also been developed for the development of single-industry towns, including long-term contracts and off-take agreements between large enterprises and local producers, creation of industrial zones, domestic value programs, and SME development.

In his Address, the President emphasized the importance of stimulating productive legal employment, particularly in rural areas, so that citizens are directly involved in building their own future.

Projects such as “Auyl Amanaty” and “Auyl – El Besigi” remain central to rural development. In 2025, 1,000 projects worth 176.4 billion tenge are being implemented in 500 rural settlements as part of “Auyl – El Besigi”. Meanwhile, funding under “Auyl Amanaty” is expected to reach 450 billion tenge in 2026–2028, supporting over 25,000 projects and creating at least 30,000 jobs.

The “With a Diploma to the Village” project continues to enhance rural human resources, providing financial support and housing loans. Since 2009, more than 114,000 specialists have received relocation allowances totaling 23.6 billion tenge, while over 52,000 specialists have obtained housing loans worth 189.5 billion tenge. About 85% of recipients are young people aged 18 to 35.

Strengthening local self-government is another focus. Since the introduction of the fourth-level budget in 2018, local revenues have increased 3.5 times, reaching 29.5% self-sufficiency by 2024. Further tax decentralization is under consideration. In addition, local akim elections, piloted in 2023, are now being conducted on a rotational basis from 2025.

How Investment Projects are Transforming Kazakhstan’s Economy

Attracting investment remains a central task outlined in the President’s Address.

In the first seven months of 2025, investment in fixed assets totaled 9.9 trillion tenge, a 16.1% increase compared to the same period of the previous year. Key sectors included mining and quarrying, real estate, transport and logistics, education, agriculture, health care, and social services. Significant growth was recorded in education, finance and insurance, public administration and defense, manufacturing, water supply and waste management, and culture and entertainment.

Kazakhstan continues to demonstrate political and social stability, coupled with a favorable investment climate. The country’s sovereign credit rating, confirmed by international rating agencies such as Moody’s, Standard & Poor’s, and Fitch, has remained at investment grade since 2002. On August 23, 2024, S&P revised Kazakhstan’s outlook from “stable” to “positive,” affirming the “BBB-” rating.

Investment Policy Concept until 2029

On October 18, 2024, the Government adopted the Investment Policy Concept until 2029, aimed at increasing investment in fixed assets to 23% of GDP, raising the share of foreign investment to 30%, and attracting $150 billion in FDI.

The new approach focuses on sector-specific needs, forming “investment orders” based on the requirements of local businesses and quasi-public companies. While Kazakhstan remains open to all sectors, priority is given to diversification and transition from a resource-based model to the non-resource economy, thereby boosting productivity and export growth.

To strengthen investor confidence, Kazakhstan offers investment agreements on individual terms for large-scale projects worth over $60 million, valid for up to 25 years, and Investment Obligations Agreements guaranteeing tax stability for up to 10 years for projects worth over $600 million.

The National Digital Investment Platform (NDIP) was launched to streamline processes and minimize administrative barriers, providing a “one-stop” digital hub for investors. As of August 5, 2025, more than 1,100 projects worth 76.3 trillion tenge were registered on the platform, expected to create around 222,000 jobs.

The Investment Headquarters under the Government has reviewed 137 projects totaling more than $70 billion, leading to over 140 legislative amendments to improve the investment environment. Regional investment headquarters have also been established under akims to provide immediate on-site investor support.

Industrial and Agribusiness Projects

FDI inflows into manufacturing have grown significantly, rising from 14% of the total in 2019 to 22% in 2025. Major projects include:

• Beineu–Bozoi–Shymkent gas pipeline expansion ($6.9 billion);

• QazaqArab Sugar plant ($580 million);

• Multifunctional hospital in Kosshy by Viamedis;

• PepsiCo snack factory expansion in Almaty region ($160 million initial, doubled in 2025);

• Wheat processing industrial park by Dalian Hesheng Holdings (up to $1.8 billion);

• Corn deep-processing park by Fufeng Group in Zhambyl region ($800 million);

• Dehydrated vegetables plant by Qingdao Wanlin Food in Turkistan region ($90 million);

• Aluminum cluster by East Hope Group ($12 billion);

• Steel plant by Fujian Hengwang Investment ($756 million);

• Sanitary ware factory by Roca Group (€70 million).

These projects not only diversify the economy but also create long-term value chains, enhance export potential, and generate thousands of jobs across different regions.

Conclusion

Kazakhstan continues to build a comprehensive investment framework, combining favourable conditions, legislative guarantees, and digital tools to attract and retain foreign capital.

In early 2025 alone, 17 investment agreements worth over $17 billion were signed. By prioritising diversification and supporting transformative industrial and agribusiness projects, Kazakhstan is reinforcing its role as a leading investment hub in Central Asia.

The effective implementation of the President’s Address is aimed first and foremost at improving the well-being of the people.

Source: Primeminister.kz