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Astana city’s gross regional product greatly increases

Business Materials 5 September 2018 20:24

Baku, Azerbaijan, Sept.5

By Leman Zeynalova - Trend:

Gross regional product (GRP) of Kazakhstan’s Astana city has more than doubled since 2012 and amounts to 11.1 percent of Kazakhstan’s GDP, the Astana mayor’s office said in a message.

In 2014-2017, the value of implemented work in Astana increased 1.5 times - from 400 to 600 billion tenges. At the same time, the value of work implemented by foreign companies increased from 23 percent to 49 percent of the total value.

The construction industry in Astana holds 10 percent of the domestic regional product, it employs about 18 percent of the total working-age population.

The construction industry has a multiplier effect on the economy of the city.

Meanwhile, the Astana city mayor’s office continues to work on identifying and developing new growth points, optimizing administrative barriers for entrepreneurs and investors. In order to address these issues, the city adopted a corresponding road map, according to which a set of necessary measures is implemented.

In particular, the work is underway to analyze the existing business processes when issuing construction documents. Based on the results, simplification and reduction of procedures, re-engineering of public services and the transition of harmonization procedures into an electronic format will be considered.

“Astana has the potential to produce a wide range of building materials,” said Bakhytzhan Sarkeev, project director at the Center for Strategic Initiatives. “Tourism sphere is no less interesting. There are opportunities for holding low-cost annual events in the form of thematic festivals in the city. The construction of storage facilities is also promising. There is great potential for the development of IT, as well as creation of a network of service enterprises.”

The same opinion is shared by the experts of the City Development Center for Investments “Astana Invest”.

Specialists of the center identified nine priority strategic sectors of the economy, including construction, new production, trade, sports, creative cluster and others, that is, sectors where the main area of Astana city’s development will be concentrated.

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Follow the author on Twitter: @Lyaman_Zeyn

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