The Prime Minister of Kazakhstan

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Turkish holdings are intended to invest $590 million in Kazakhstan

09 September 2017, 14:00

Today, with the support of the Embassy of Kazakhstan in Turkey and the Kazakh Invest NC, nine investment documents were signed for a total of $590 million. Agreements and memoranda were signed with the largest Turkish holdings, such as Calik Holding, Yildirim Holding, Yildizlar SSS Holding, Agrobest Group and others.

Within the framework of the documents, it is planned to implement projects for the production of building materials, machine-building products, the chemical industry, the mining and metallurgical sector, and energy in various regions of Kazakhstan.

"Turkish companies are very positive, they really want to work in Kazakhstan.We worked with them during the past year. The leaders of large Turkish companies arrived today. The total aggregate volume of their influence on the Turkish economy is about 15% of GDP. Some of them already work in Kazakhstan. Some are looking at new projects. In particular, they are interested in the sphere of agriculture, energy, privatization objects. Specific projects have already been outlined. We hope that they will make a good contribution to the economy of Kazakhstan. The task of Kazakh Invest is to help large foreign investors enter Kazakhstan, put production here, and set up a business. We understand the more successful their business in Kazakhstan is, the greater the benefit will be from them for the prosperity of our country," Chairman of the Board of Kazakh Invest Maksat Kabashev said.

It should be reminded that over the past five years, Turkish investors have implemented 18 projects worth $667.5 million. In the near future, 10 new projects are planned to be implemented.

It should be noted that after the visit of the President of Kazakhstan to Istanbul in April 2016, there has been an increase of the investment interest in Kazakhstan from representatives of Turkish small and medium businesses and transnational companies. Turkish companies consider Kazakhstan as a platform for the location of their productions with the subsequent export of finished products to the countries of the EAEU and Central Asia. In addition, over the past three years, investors from Turkey have begun actively reinvesting and increasing their production capacity in Kazakhstan.

In general, to date, a total package of Kazakh-Turkish investment initiatives includes 70 projects for a total amount of $2.7 billion, of which 31 have been implemented, and about 40 projects are feasible and promising. The inflow of FDI to the Republic of Kazakhstan from Turkey from 2005 to the 1st quarter of 2017 amounted to $2.1 billion. Foreign trade turnover for the 6 months of 2017 amounted to $925.1 million (growth with the same period of 2016 - 36.1%). As of July 1 of 2017, 4 114 legal entities were registered in Kazakhstan, of which 1831 are active.

We should also note that in the Ordabasy District of South Kazakhstan the Kazakh-Turkish industrial zone was created. The total area of the territory is 50 hectares with the possibility of expanding to 250 hectares. In the current year, it is planned to put into operation a plant for the production of profiles and translucent structures made of PVC and aluminium from Gold Aluminum LLP. In addition, it is planned to start construction of the plants by Merkez Asia Madencilik (lead concentrate) and Petronet Otomosyon (fuel dispensers) for a total of $12 million.

At the same time, negotiations are under way with eight Turkish companies, including the construction of a furniture factory of Madeyra Group LLP with an investment volume of $10.7 million.

Turkish holdings are intended to invest $590 million in Kazakhstan
Turkish holdings are intended to invest $590 million in Kazakhstan