TOP 10 COUNTRIES PROVIDE 89% OF ALL DIRECT INVESTMENT IN KAZAKHSTAN – RESEARCH
Following the results of the first half of 2019, the gross inflow of foreign direct investment in Kazakhstan amounted to 12.1 billion US dollars, having decreased by 3.1% compared to the same period last year (12.5 billion US dollars). The decrease was observed amid a decline in FDI flows around the world. Thus, according to the OECD, global flows of foreign direct investment in the first half of 2019 decreased by 20%, to 572 billion US dollars. In the first quarter of this year, the global FDI flow decreased by 5%, in the second quarter – by 42% per year, Strategy2050.kz has learnt from Finprom.kz.
This year, the Netherlands has become the largest investor in Kazakhstan. The FDI inflows for the six months of 2019 reached 3.4 billion US dollars (a year earlier – 3.7 billion US dollars). In general, in 2018, direct investment increased by 23.8%, to 7.3 billion US dollars (a year earlier – 5.9 billion US dollars).
The USA has taken the second place in the FDI inflow to Kazakhstan: 3 billion US dollars – 7% more than in the corresponding period a year earlier (2.8 billion US dollars).
Switzerland has closed the three largest investors: the FDI inflows amounted to 1 billion US dollars (a year earlier – 1.3 billion US dollars).
The top 5 countries have also included China (922.3 million US dollars) and Russia (632.5 million US dollars).
France (537.5 million US dollars), Belgium (516.8 million US dollars), the UK (336.5 million US dollars), Turkey (275.1 million US dollars), Japan (214.3 million US dollars) have closed the top 10 countries.
But the Netherlands reduces investment in Kazakhstan’s economy. FDI has declined by 9% in of 2019.
At the end of June of this year, the accumulated amount of investment from the Netherlands to Kazakhstan amounted to 65.4 billion US dollars – 8.3% less than a year earlier (71.4 billion US dollars).
80.6% of all Dutch investment in Kazakhstan are accounted for in mining and quarrying: 52.7 billion US dollars. In this area, there are 58 companies with capital from the Netherlands, including 38 small companies, 3 medium-sized companies, 17 large ones.
The second attractive area for investors from the Netherlands is manufacturing. The investment amounted to 4 billion US dollars, or 6.1% of the total.
Professional, scientific and technical activities close the top three industries: 3.3 billion US dollars, or 5% of the total. The three mentioned sectors are accounted for 91.8% of all Dutch investment in Kazakhstan.
In general, at the end of September this year, there were 665 companies with capital from the Netherlands in Kazakhstan, including 517 small, 62 medium, and 86 large. It should be noted that at the end of 2014, there were 931 companies operating in Kazakhstan.
At the same time, in January � August of the current year, Kazakhstan’s trade turnover with the Netherlands decreased significantly: minus 37.5% per year, to 2.9 billion US dollars. In total, over the 12 months of 2018, trade amounted to 6.5 billion US dollars.
The bulk of the turnover is traditionally exported goods and services from Kazakhstan. So, in January-August this year, export amounted to 2.7 billion US dollars, or 95.2% of the turnover. As the main investor in the mining industry, the Netherlands imported 44.2 million tons of crude oil from Kazakhstan, which amounted to 2.1 billion US dollars in cash.
Import of goods and services from the Netherlands to Kazakhstan, in turn, amounted to only 136.4 million US dollars, or 4.8% of the turnover (a year earlier – 216.7 million US dollars).
Source: Kazakhtan 2050