July 4, 2018, addressing the plenary session of the Astana Finance Days forum, the Prime Minister Bakytzhan Sagintayev told about the expanding opportunities for investors in connection with the opening of the Astana International Financial Center.

Dear ladies and Gentlemen!

I am sincerely glad to welcome you at the heart of our country — the beautiful Astana, which is currently celebrating its 20th anniversary. As our President Nursultan Nazarbayev said, “Astana is the creation of the whole Kazakhstan. We have created a miracle in the 21st century. In the history of mankind, no such city has been built in 20 years. But we did it!”

The young capital represents the birth of sovereign Kazakhstan; our victories and achievements; future of the country aimed at joining the ranks of Top-30 economies of the world. And literally tomorrow Astana will host a special event — the official presentation of the Astana International Financial Center, the largest national megaproject in all the years of independence, destined to become a breakthrough in the financial markets of the future.

Today's dialogue and meeting with you are especially important for me, as the AIFC is just beginning its journey. I am convinced that our conversation, your advice and recommendations will allow us to properly adjust the work of the Financial Center, demonstrate its capabilities and advantages.

The AIFC is being established as a financial hub of new generation.

It will not only fulfill traditional functions of the world financial centers, such as development of a liquid and balanced capital market, asset management and welfare of individuals, but also provide services in the most promising development directions of global finance.

We consider the AIFC as a fintech-stepping stone to create and develop solutions in the field of financial technologies. Such work has already been started in partnership with Mastercard and Visa, Microsoft and Tai Cloud Corp.

The AIFC became a member of the R3 international consortium, which includes more than 60 major financial institutions, as well as the Global Federation of fintech-hubs.

Astana International Financial Centre could become an effective platform for introduction of tools, mechanisms and standards of green financing. In the field of cleantech the AIFC already hosts the Competence Centre of green finances, as well as the International Centre for green technologies and investment projects under the auspices of the UN.

Another feature of the AIFC financial services is promotion of the Islamic financing market. The necessary legal and regulatory environment has already been created within the AIFC in cooperation with the Asian Development Bank and the Islamic Development Bank. By the end of this year, the public issue of Islamic securities —  sukuk — will be accomplished. In the long term, we see the AIFC as a regional hub for Islamic financing.

Thus, the Astana International Financial Center is going to provide a fairly wide range of financial services. By all means, this is an advantage, but not the only one.

What are the other gains for clients and participants of the AIFC, what are the benefits and opportunities?

First, the AIFC expands opportunities to enter the promising markets of Eurasia.

Kazakhstan views the AIFC as part of the global financial system.

The global chain of financial centers, that manage world money flows, stretches almost across the globe — from Toronto to Sydney and from Tokyo to New York. Each of them has their own unique niche.

The Astana International Financial Centre with its unique geographical location will provide access to the Central Asian markets, the EAEU, the Transcaucasus, the countries of the Middle East.

It must also be considered that Astana is one of the key links in the new transcontinental routes of the global “Belt and Road” initiative.

Therefore, the AIFC will become a natural financial and economic bridge between Western China, Mongolia and European countries.

All of this opens access to a gigantic market of more than 1 billion people.

Second, independent jurisdiction of the AIFC.

The legal and judicial system, as well as in all financial centers of the world, is based on English common law.

The Arbitration Center, the International Financial Court and an independent financial regulator represented by the Astana Financial Services Authority have been established.

All these structures are headed by world-renowned and experienced lawyers. I sincerely thank you, dear Sir Woolf and distinguished members of the Court, Lady Judge, Ms. Dohmann, for accepting the invitation of the Republic of Kazakhstan and, in fact, for being the first team of the managers of the Astana International Financial Center as a new element of the world financial system.

 

Dear Ladies and Gentlemen!

Geographic and legal advantages of the AIFC are reinforced by tax incentives, simplified currency, visa and labor regimes and transport accessibility.

The AIFC bodies and participants, as well as their employees, are exempted from tax payments for 50 years. This includes corporate income tax for incomes from financial and ancillary services, individual income tax, and land tax and property tax.

The AIFC participants are free to use any currency provided for in the agreement and rules of the AIFC Stock Exchange.

A visa-free entry is established for citizens of 65 countries, including all OECD countries.

A special visa regime for up to 5 years is provided for employees of the AIFC Bodies, participants of it and their families.

Transport accessibility has been expanded. Today Astana is connected by direct flights with 9 global financial centers. In the next year to year and a half, flights from other international locations will begin to become available: Singapore, Tokyo, New York.

Thus, for today a unique mechanism of the International Financial Center has been built.

Our first major step will be the public offering of shares of our largest national companies at the AIFC Stock Exchange.

The giants of the national economy, such as Air Astana, Kazatomprom, Kazakhtelecom, are going to submit an IPO.

By the end of 2020, other major companies of our country — Kazakhstan Temir Zholy, KazMunayGas, Samruk-Energo, KazPost, Tau-Ken Samruk, and Kazakh Air — are also going to submit an IPO.

This is a unique opportunity for business and investors.

Just yesterday, Astana hosted the annual Kazakhstan Global Investment Roundtable, involving more than 500 prominent businessmen and investors from 40 countries.

Direct dialogue of investors with the Government, communication with partners showed a high investment interest in the country. On the margins of the Roundtable, about 30 different commercial documents were signed for a total amount of 4.8 billion US dollars.

 

We value this investor confidence!

The Government of Kazakhstan invites everyone to become participants of the AIFC! Kazakhstan confirms its global openness and readiness for dialogue with you.

Thank you for your attention!

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