OSTİM hosted a bilateral business meetings event attended by Kazakh and Turkish businesspeople. Held in the OSTİM Organized Industrial Zone Conference Hall, the program saw over 200 meetings between 64 Turkish and 16 Kazakhstani investors.
OSTİM Chairman Orhan Aydın gave information about OSTİM to the Kazakhstani guests at the opening of the program. Aydın explained that there are more than 6,200 small and medium-sized enterprises in OSTİM and that almost any kind of business can be done there.
“The easiest country for us to cooperate with is Kazakhstan”
“Here, we can express ourselves better by defining what we are not doing,” said Orhan Aydın, describing OSTİM’s capabilities and potential with these words: “All the components related to the establishment of a city are present here. This cooperation is extremely important for our companies, our region, and our country. The country with which we can most easily cooperate is Kazakhstan, which is very valuable to us. Kazakhstan, where our roots and shared values lie, is extremely important for all our companies.”
Referring to OSTİM's relations in Kazakhstan, Aydın stated, "OSTİM has a liaison office in the Ontustik Region of Kazakhstan. We have put up our sign in the Organized Industrial Zone located in the Turkestan region, where Hoca Ahmet Yesevi is buried. We have also opened an office for Ontustik in our Regional Directorate building. We highly value this effort because we believe these two offices, which unite our hearts, will also develop our trade, cooperation, and unity of purpose."
A $1.7 billion deal
Kazakhstan's Ambassador to Ankara, Abzal Saparbekuly, spoke about the investment environment in his country. He described Kazakhstan's geographical advantages and the opportunities available.
Pointing to the historical ties between the Kazakh and Turkic peoples, the Ambassador recalled that investment agreements worth $1.7 billion have been signed between Kazakhstan and Türkiye, particularly in various sectors in Kazakhstan.
Providing information about his country's economic structure, Saparbekuly said, “Kazakhstan is the ninth largest country in the world. It shares borders with Russia to the north, China to the east, and Azerbaijan and Iran across the Caspian Sea. Since 2005, Kazakhstan has attracted a total of $290 billion in foreign direct investment. Over the last 10 years, Kazakhstan has attracted an average of $23-25 billion in foreign direct investment. In 2018, the amount of foreign investment reached a record level of $30 billion, representing a 30% increase.”
The Kazakh diplomat shared the information that, according to the World Bank's 2018 purchasing power parity data, Kazakhstan's per capita national income reached $26,500.
Saparbekuly noted that as a member of the Eurasian Economic Union, Kazakhstan is included in a common customs market encompassing Russia, Kyrgyzstan, Belarus, and Armenia, with a total population of 200 million. He stated, “Kazakhstan is the world's largest landlocked country. We have been able to overcome this disadvantage, especially in the last 5 years, thanks to investments of around $30 billion in transportation and logistics networks. Now, Kazakhstan is a point where East and West, North and South intersect. For example, container transportation from China to Europe and from Europe to China via Kazakhstan is increasing by 100% every year. Container train transportation, which used to be done once a week, is now done 2-3 times a day.”
Abzal Saparbekuly stated that Kazakhstan plans to invest $10 billion in transportation and logistics over the next five years, and described the investment opportunities in his country as follows: “Kazakhstan has two types of industrial zones. One is Free Economic Zones, and the other is Organized Industrial Zones. Investments made in Free Economic Zones are tax-exempt. There is also tax exemption on raw material imports. For investments in Organized Industrial Zones, there is only one condition: if the investment exceeds $14 million, the same incentives as in Free Economic Zones are also provided. There is duty-free taxation on land allocation and machinery imports.”
Agriculture is a priority sector
Saparbekuly emphasized that agriculture, livestock, and food sectors are investment priorities in his country, continuing: “There are more than 210 million hectares of agricultural land. Nearly 40% of the population lives in the agricultural sector. There is an annual growth trend of 5-6% in agriculture. The Chinese market imports $38 billion worth of oilseeds every year. China also imports over $13 billion worth of fresh fruits and vegetables and over $20 billion worth of dairy products. Considering Kazakhstan's vast agricultural lands, you have the opportunity to produce these products in Kazakhstan and export them to China.”
The Ambassador explained that 20 to 40 percent of investments in the agricultural sector are subsidized by the state, and that 70 percent of the existing agricultural machinery in Kazakhstan has reached the end of its 17-year lifespan. He added that there is a state program in place for leasing and loan-based machinery renewal to replace this equipment.
In a country aiming to be among the top 5 agricultural producers in the world within the next 10 years, one of the priority areas is the production of agricultural machinery.
Türkiye is in the top 10
Highlighting Turkey's economic potential, Saparbekuly stated, "Turkey is among the top 10 countries attracting investors to Kazakhstan. Because we know how warm the feelings of Turkish investors and businessmen are towards brotherly countries. They like taking risks. Just as Turkey has its 2023 target, I believe that the Turkish private sector should also have a similar target in the coming period. In this respect, I invite them to invest in Kazakhstan, which is located in the heart of Eurasia."
1,800 Turkish companies are in operation
Nuraly Bukeikhanov, Vice President of the Kazakhstan International Chamber of Commerce, discussed trade relations between Kazakhstan and Turkey. He stated that Turkey is one of the most important countries in Kazakhstan's economic relations, noting that Turkey ranks 9th in Kazakhstan's international turnover.
Bukeikhanov stated that there are 4,100 Turkish companies registered in Kazakhstan, and shared the information that 1,800 of these companies operate in the construction, infrastructure, food, and light industry sectors.
Nuraly Bukeikhanov stated that they wanted to establish a Kazakh-Turkish Chamber of Commerce in 2019, adding, "We will have an office in Astana as our representative in Türkiye. We will also have a representative office in Istanbul."
According to an information note shared by the Embassy of the Republic of Kazakhstan in Ankara, the country's prominent aspects are as follows:
According to a World Bank report, the country ranks 28th in the world in terms of ease of doing business.
According to the World Bank's 2017 tax report, Kazakhstan ranks 18th out of 189 countries in the world in terms of its favorable tax system.
The Astana International Financial Center is among the significant opportunities Kazakhstan offers to investors. Investors located within the center are exempt from various taxes for 50 years. They can also rent office space free of charge for two years.
Kazakhstan, which also stands out for its rich natural resources, ranks first in the world in tungsten reserves, second in chromium and uranium, and fourth in manganese and silver. The country is also the world's largest uranium producer and one of the world leaders in chromium and zinc production.
Priority sectors in the country include: Agriculture, livestock and food, chemical industry, mining and metallurgy, and the production of industrial machinery and equipment.
Photos
