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Kazakhstan reveals share of investments from EU, UK for 2021

Kazakhstan Materials 25 May 2022 10:07 (UTC +04:00)
Kazakhstan reveals share of investments from EU, UK for 2021
Nargiz Sadikhova
Nargiz Sadikhova
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BAKU, Azerbaijan, May 25. More than 3,000 enterprises with the participation of European states operate in Kazakhstan, Trend reports via finprom.kz.

The gross inflow of foreign direct investment (FDI) into Kazakhstan from the countries of the European Union (EU) and the UK in 2021 reached almost $11.2 billion, which is 23.8 percent more compared to 2020 and 0.9 percent more than in pre-pandemic 2019.

At the same time, in 2019, the share of the EU countries and the UK in the total volume of foreign investments in Kazakhstan was 45.3 percent, in 2020 it grew to 52.6 percent, and in 2021 decreased to 47.3 percent.

Besides, last year, the gross outflow of direct investments from Kazakhstan to the EU countries and the UK amounted to only $223.1 million, which is the lowest figure since 2006. Compared to 2020, the outflow of direct investments decreased by 2.3 times and compared to 2019 - by 4.8 times.

At the same time, in 2019, the share of the EU, including the UK, in the total volume of the gross outflow of direct investments from Kazakhstan was 39 percent, in 2020 - 36.2 percent, but in 2021 - a record low 8.8 percent.

In 2021, the largest gross inflow of FDI to Kazakhstan among the EU countries came from the Netherlands ($7 billion), as well as Belgium ($1.1 billion) and France ($603.1 million). Some $1 billion came from the UK.

Meanwhile, the largest gross outflow of direct investments from Kazakh direct investors accounted for the Netherlands ($102 million), Luxembourg ($24.4 million) and Spain ($20 million), while $42.1 million was invested in the UK.

At the end of March this year, the 19th meeting of the Kazakhstan-European Union Cooperation Committee was held in Brussels, where, according to the Kazakh Foreign Ministry the EU accounted for nearly 40 percent of Kazakhstan's foreign trade and accumulated foreign investments.

As of April 2022, 3,200 legal entities from the EU countries and the UK operated in Kazakhstan, which accounted for almost 12 percent of all foreign companies operating in the country.

Most of the companies (640 legal entities) accounted for Germany, which is due to the fact that, according to Kazakhstan’s Foreign Ministry, the country is one of its leading trading partners, and Kazakhstan is the main partner of German business in Central Asia.

Over the past 15 years alone, direct investment from Germany to Kazakhstan exceeded $5.3 billion, of which about 80 percent accounted for the non-resource sector.

Most of the operating companies from the EU and the UK (887 enterprises) work in the field of trade and car repair. They are followed by enterprises involved in professional, scientific and technical activities (419 companies), as well as financial and insurance activities (283 companies).

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