Kazakhstan: new partnership and opportunities Seminar for the fact-finding mission Energy to Kazakhstan The Hague, March 8, 2017
Direct flight operated by KLM The territory of Kazakhstan is over 2,7 million sq. km bigger than area of Western Europe and from one end to the other it covers the distance from London to Istanbul
Since 1991 GDP has grown till $220 bln. Gross Domestic Product Gold and foreign exchange reserves: $98 billion (45% of GDP) Income per capita increased to $10.600
World ranking by resources 1 st place by uranium, chrome, wolfram 2 nd place zinc, lead and phosphoric ore 3 rd place manganese, molybdenum 4 th place copper and fluorite resources 5 th place coal, iron, silver 10 th place gold, bauxite 12 th place oil and gas Kazakhstan has 99 of the 110 elements on the Chemical table
TOP-10 Investors in Kazakhstan, 2005-2015 Country Total, US$ bln. Netherlands 63,4 USA 23,4 Switzerland 15,4 China 12,7 France 11,8 UK 11 Russia 9,1 Italy 5,4 Japan 4,5 Canada 3,8
Strategy Kazakhstan-2050 to enter top 30 global economies by 2050 The "Nurly Zhol" State Program of Infrastructure Development (to modernize the logistical infrastructure). The Plan of the Nation 100 specific steps (professional state service, rule of law, industrial development and economic growth, national identity). The concept of transition to the green economy. The accession to the Organization for Economic Cooperation and Development (Kazakhstan is the first country in Central Asia to become a member of the OECD Competition Committee)
"Third Modernization of Kazakhstan: Global Competitiveness"
Europe Western China automobile corridor 8,445 km Delivery of goods in 10 days via Kazakhstan Delivery of goods in 14 days via Northern rout Delivery of goods in 45 days via commonly used maritime route
The EEU includes over 170 million people, covers more than 15% of the world s surface (20 million km2) generates a combined GDP of US$2700 billion EEU turned over US$932.9 million in foreign trade
Preferences under investment projects (incl. investment priority projects) Exemption from customs duties (0% up to 5 years on imported major equipment and spare parts to it) The State provides grants by the land, buildings, machinery and equipment Stable legislation One stopshop for investors (360 services) Foreign labor (without permit for the duration of construction works +1 year after commissioning of the investment project) Foreign Investors Council chaired by President Nazarbayev Investment Ombudsman Visa-free entrance (visa-free entrance for citizens of 19 OECD countries)
As from 2015: Preferences under investment priority projects Corporate income tax (10 years) Land Tax (10 years) 0 % Property Tax (8 years) Cashback of up to 30% of actual costs of construction and installation works and purchase of equipment
0% corporate income tax 0% for land and property tax VAT 0% for products consumed in FEZ Simplified procedure for the recruitment of foreign labor
100+ countries 36 international organizations 5 mln+ visitors June 22, 2017 National Day of the Netherlands at EXPO-2017 Tickets are available on: https://expo2017astana.com/en/ National pavilion of Netherlands Corporate Pavilion of Shell
Astana International Financial Centre (AIFC) - financial hub for Central Asia, the Caucasus, EAEU, the Middle East, West China, Mongolia and Europe The AIFC operates within a special legal regime based on Common Law, which regulates the relationships between AIFC participants and third parties and is aimed at the development of the financial market Applicable law of the AIFC is guided by principles, norms and precedents of England and Wales`s law and standards of the leading international financial centers Justice based on English law in AIFC will be rendered by independent AIFC`s Courts. An attractive environment for investing in the financial, insurance, banking services
Kazakh-Dutch cooperation Frequent mutual visits by top officials (President Nazarbayev in 2014, Prime Minister Rutte in 2015) Netherlands is one of the key partners of Kazakhstan in EU #1 investor into the economy of Kazakhstan ($60 bln) In 2015 trade between KZ and NL - more than $5 bln. Direct flight by KLM - 4 times a week Free visa regime for Dutch citizens (since January 1, 2017 up to 30 days) More than 800 Dutch companies successfully operate in Kazakhstan September 2017 25 anniversary of diplomatic relations
Kazakhstan in global energy One of the largest producers of hydrocarbons in the world Reliable partner in the sphere of transit of energy resources in all directions Oil extraction 2035 2014 1,6 3,1 Kazakhstan 12 place in the world oil reserves 17 place in the world in oil production 20 place in the world gas reserves 34 place in the world gas production = 2% global oil reserves = 2% global oil production = 0,8% global gas reserves = 0,5% global gas production mln. bbl. / day 18
Largest oil gas projects in Kazakhstan 0,6 Total oil reserves Bln. Tons of Oil 2014 2025 11 7,4 output (mln. tons) Karachaganak Tengiz Kashagan 2014 2025 0 36,7 1,2 Total oil reserves Bln. Tons of Oil 2014 2025 26,7 38,5 output (mln. tons) output (mln. tons) 2,1 Total oil reserves Bln. Tons of Oil 19
Oil transportation routes Russia Samara Omsk Pavlodar Novorossiysk Atyrau Kenkiyak Kazakhstan Atasu Alashankou Kumkol China Aktau Turkey Turkmenistan Uzbekistan Shymkent «Caspian pipeline consortium» Length: 1 510 km, incl. Kazakhstan 452 km Capacity: 28,2 mln. tons/per year, after extension: 67 mln. tons/per year Cost: $5,4 bln. Period of realization: 2011-2015 «Kazakhstan-China» (2 nd stage of step 2) Length : Atyrau-Alashankou - 2 834 km Capacity: 12 mln. tons/per year, after extension: 20 mln. tons/per year Cost: $840 mln. Period of realization: 2010-2015 20