Kazakhstan’s net FDI down 30fold in Q3 2024

The National Bank’s statistics indicate net foreign direct investment (FDI) in Kazakhstan fell by almost 30fold in January-September 2024 to 72.9 million US dollars from 2.3 billion US dollars in 2023. However, the drop in net FDI to the country could be temporary, according to Kazakh Invest, Kazinform News Agency reports.

investment
Photo: internationalwealth.in

This fall was primarily triggered by a 93.4% ($6.4bn) decline in the share of reinvested earnings in Kazakhstan’s FDI financial flows, attributable to either lower enterprise profits or higher dividends paid to foreign shareholders.

Kazakhstan’s gross foreign direct investment (FDI) in three quarters of 2024 stood at 12.7 billion US dollars, as the country completed its largest oil and gas project at Tengiz, which accounted for the bulk of investment and is expected to bring in 2.8 billion US dollars in tax revenues per year.

In 2024, Kazakhstan took up 63% of all investments in new projects in North and Central Asia, totaling 15.7 billion US dollars.

In general, the drop in net FDI to the country in 2024 should be viewed as temporary, resulting from objective economic and cyclical factors. Kazakhstan remains attractive to foreign investment, as the country leads North and Central Asia in terms of investment in new projects. Completion of major initiatives such as the TCO Future Growth Project opens up opportunities to focus on other promising sectors, including renewable energy, agribusiness, transport and logistics as well as digitalization, said Kazakh Invest.

Earlier, Kazakh President Kassym-Jomart Tokayev had stressed the need to intensify the Government’s investment activities. 

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