Astana International Financial Centre to bring economic prosperity to Kazakhstan

KUALA LUMPUR. KAZINFORM The Astana International Financial Centre (AIFC), part of Kazakhstan's "100 Concrete Steps" initiative to be opened in 2017, is poised to bring economic prosperity to the young nation.

The establishment of the AIFC is attract more foreign direct investments (FDIs), open up Kazakhstan's banking sector and increase the ease of doing business for insurance companies and Islamic finance institutions.

In a statement, The Kazakh embassy in Malaysia said the AIFC would add vibrancy to the financial services sector in Astana, which in turn, would support Kazakhstan's aim of becoming a top 30 global economy by 2050.

Among the benefits of investing in the AIFC included attractive tax incentives such as zero tax for corporate income (10 years) for foreign companies that start up operations there.

Furthermore, it said investors could also get reimbursement of up to 30 per cent of actual cost of construction and installation works and purchase of equipment.

To attract more FDIs into Kazakhstan, the former soviet country had also allowed exemption from customs duties up to five years on imports of major equipment and spare parts, as well as, accessories and raw materials.

Geographically, the country's position also presents itself with some advantages as it is located in the heart of Eurasia, between Europe and China, providing major transit potential.

Kazakhstan's membership in the Eurasian Economic Union provides investors with access to the Russian market with more than 140 million people and a common market of the Union with more than 180 million consumers.

In addition, investing in Kazakhstan would also open up access to the Central Asian markets of 49 million people, as well as, markets of the countries bordering the Caspian Sea with 235 million consumers and the market of Western China with 21 million people.

The AIFC would present a huge opportunity for Kazakhstan to strengthen its economy and attract world class international investment, as well as, a significant step forward for Kazakhstan's financial hub to join the top 20 financial centers of the world.

Source: BERNAMA 


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