Kazakhstan sees $20.4 billion FDI inflow as manufacturing surpasses mining
This digest was compiled by AI from multiple sources — links to the originals are below.
Kazakhstan's foreign direct investment (FDI) inflow reached $20.4 billion in 2025, marking a 14.4% increase from 2024. The manufacturing sector led the growth, overtaking mining for the first time. This shift occurred even as the oil and gas sector saw a significant decline in investments.
Sectoral Investment Shifts
In 2025, Kazakhstan's manufacturing sector attracted $4.4 billion in FDI, surpassing the mining sector, which received $3.4 billion. The oil and gas segment experienced a sharp decline, with investments dropping to $0.6 billion from $12.1 billion annually in 2018-2019. Meanwhile, the trade sector attracted $3.3 billion, financial activities $2.5 billion, and both information and communication, and transport and logistics sectors $1.3 billion each.
Investor Country Contributions
The Netherlands led foreign investments in Kazakhstan with $4.6 billion, followed by Russia with $2.9 billion and China with $2.8 billion. There was a notable increase in capital from the Middle East and Southeast Asia, with the UAE investing $1.6 billion, Singapore $1.5 billion, and Qatar increasing its investments nearly eightfold to $1.3 billion compared to 2024.
Phantom Jurisdictions in FDI
A significant portion of Kazakhstan's reported foreign direct investment is attributed to 'phantom jurisdictions,' which are often used for tax optimization. This raises questions about the actual economic impact of these investments. The discrepancy suggests that the real FDI figures may be lower than reported.
Economic Reforms and VAT Increase
Kazakhstan is implementing significant economic reforms by 2026, including reducing bureaucratic barriers and privatizing state assets. A notable policy change is the planned increase in the Value Added Tax (VAT) by 16 percent, signaling a shift away from dependency on oil revenues.
FDI Decline in Real Terms
Despite nominal growth, Kazakhstan's foreign direct investment has fallen in real terms over the past decade. Nearly a third of reported FDI originates from 'phantom jurisdictions' used for tax optimization, raising doubts about the actual economic impact.
What's Next
The focus will likely remain on diversifying investment sources and sectors. It remains unclear how the declining oil and gas investments will impact future economic strategies.
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Kazakhstan sees $20.4 billion FDI inflow as manufacturing surpasses mining
