Baku, Azerbaijan, April 27
In 2018 the share of foreign investments in economy of Kazakhstan reached 14.2 percent instead of targeted 16.5 percent, Trend reports citing finprom.kz.
"The gross flow of foreign investments into Kazakhstan in 2018 increased by 15.8 percent reaching $24.3 billion. The interim increase of Kazakhstan’s economy amounts to 4.1 percent. Kazakhstan’s economic growth is supported by the attraction of investments and by the reduction of energy dependence. These are the conditions to help Kazakhstan’s economy to integrate into global investment flows," reads the message.
Reportedly, in 2018 FDI amounted to 14.2 percent (12.9 percent in 2017) instead of targeted 16.5. In 2022 FDI is to reach 19 percent of GDP. The low foreign investments data indicates a transitional period and economy transformation based on the new growth model.
"Another event to confirm Kazakhstan’s economy transformation according to the new growth model is the investment hub and investment coordinating council invention, as well as the Kazakh Invest state owned blocks of shares privatization by Astana International Financial Centre. These changes are to stimulate Kazakhstan’s investment attractiveness and to reaffirm the economy’s image as one open to the external capital," finprom.kz reports.
"Consolidation of companies that attract investments is necessary for the efficiency of the communication with prospective foreign investors. Kazakh Invest is among main organizations in this field and it is responsible for the foreign investments attraction in Kazakhstan," said the statement.
Reportedly, during the eight months of 2018 the company raised $5.6 billion worth of investments and proceeded to realize the projects. Negotiations with prospective foreign investors are taking place on 104 new projects. Some 188 projects worth $49.8 billion are in the Kazakh Invest’s monitoring system.
"Kazakh Invest’s own assets amounted to 2.4 billion tenge in 2017 (+19.7 percent). At the same time the amount of responsibilities almost tripled reaching 763.3 million tenge. This increase has to do with taxation (456.9 million tenge) and board members remuneration (163.1 million tenge). In addition, Kazakh Invest maintains a stock of debt before the employees worth 82.1 million tenge."
"Operating profit of 2017 decreased by 4.7 million tenge compared to 409.8 million of 2016. The decrease is related to general and administrative expenditures, as well as other types of expenditures worth 11.5 million tenge," reads the message.
Reportedly, despite the expenditures mentioned above, by the end of 2018 the net profit of Kazakh Invest totaled 93.7 million tenge. The reason is in the remuneration on bank deposits (188 million tenge in 2017).
"The further activity of Kazakh Invest is to take place under the management of AIFC. The efficiency of this management is reflected in the volume of attracted international external capital and in the number of realized joint projects. The great advantage of the fiduciary management of Kazakh Invest is the centralized management of investment hub and the successfully implemented finance center infrastructure."