Why foreign investors choose Kazakhstan

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Benefits, profitable projects, good location, free niches contribute to the growth of foreign investments in the sphere of agro-industrial complex

Moreover, the possibility of opening a business, primarily in the food industry is in high demand among foreign investors. "Agro-industrial complex of Kazakhstan in this case, is very attractive for investors. They understand that the ninth-sized area in the world of investment is the key to the whole region", - said at a press conference, Managing Director of JSC “KAZNEX INVEST” Erlan Muratov.

He noted that "as for investment opportunities, the focus is primarily on import substitution, and on the neighboring markets". "For example, Russia alone imports agricultural products, raw materials for processing in the amount of 26 billion dollars annually, and with this country we have the longest in the world land border, both the markets and the standards are very similar", - said the representative of “KAZNEX INVEST”.

"Attracting investors, we try to use the situation that has developed. As you know, there is a regime of sanctions between the EU and Russia. Huge companies, that until 2014-2015 exported their products to the Russian market, are now experiencing the possession of excessive number of products, they are looking for an opportunity to resume access to one of the largest markets in the world. Therefore, we offer them all border areas between Kazakhstan and Russia, so that they could realize their projects", - said Muratov.

Kazakhstan has also great potential for the development of greenhouses and cultivation of vegetables and fruits. Speaking of this, E. Muratov noted the positive effect of the rules allowing investors "not go through long process of perennial seed certification to grow their products in the Republic of Kazakhstan". "Investors can come and start their production in Kazakhstan without a long procedure, the only thing they need – is a certificate of origin and recognition of seeds in the country of origin", - said the representative of “KAZNEX INVEST”.

Non-year around cultivation period does not interfere with getting very high returns in Kazakhstan in a short period. Yerlan Muratov said that "part of the salary and the cost of electricity and fuel in Kazakhstan is among the lowest in the world and allows investors to consider Kazakhstan as a very profitable area for placement compared with other countries".

“Large pool of production facilities in almost every region is also foreseen for foreign investors left over from the Soviet era". "This is tens, hundreds of thousands of industrial buildings with complete infrastructure, where you can come, expand production with minimal loss of time and start production in the shortest possible time. This is what the investor wants and loves, in fact, this is the base, which we have", - said Muratov.

In addition, preferences are foreseen for investment projects in the food industry in excess of 13 million. Yerlan Muratov said that it is an exemption from payment of CIT and land tax for 10 years, property tax for 8 years. In addition, imported equipment is exempt from customs duties, import of foreign labor is allowed for the entire duration of the project, and one year after the implementation of the project.

"In this regard, Kazakhstan, probably, is a prime example, because these provisions, which were originally introduced to the law "On investments", currently represent 25 th chapter of the Entrepreneurial Code. As you know, the Code, in the hierarchy of laws, is at a very high place in relation to other laws", - noted Yerlan Muratov.

Zhanar Serdalina