inistry of Industry and Trade of the Republic of Kazakhstan

Kazakhstan in the heart of Eurasia

Map of Kazakhstan
Territory: 2,7 mln. Territory: sq. km. Population: Population : 16 mln. Religions: Religions : 65% 65%Muslims, Muslims , 30% 30%Christians etc. etc. Urbanization rate: rate: 60% Literacy rate: rate: 98% Motor roads: roads: 90,000 90,000 km. km. Railroads: Railroads : 14,000 km. km. GDP per capita: capita: 7,5 7,500 $

Domestic Natural Resources

Natural Gas Oil Coal Iron ore Manganese Chrome Ore Nickel Cobalt Copper Molybdenu m Lead Zinc Bauxite Gold Uranium etc. General Figures: 3.2% of global oil reserves (7th ranked) 18.0% of global U reserves (2nd ranked) Kazakhstan ranked: 2nd in Cr and P 3rd in Ag, Cu, Zn 4th in Mo 6th in Au, coal 8th in Fe ore VAST NATURAL RESOURCES ARE THE FOUNDATION OF KAZAKHSTAN'S WEALTH
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Kazakhstan Economy Profile

GDP: 135 bln. USD GDP growth: 1% (3 quart.2009) Industry Production: 84 bln.$ Trade turnover: 109 bln. USD Export (FOB): 71.2 bln. USD Import (FOB): 37.9 bln. USD Liberal taxation regime No restrictions for foreign investors Multi-vector external policies Most reformed economy in CIS Favorable regulatory regime
140 120 100 80 60 40 20 0 135,0 105,0

80,4 57,1

30,8 18,3

2000

2003

2005

2006

2007

2008

Foreign Direct Investments to Kazakhstan

Great Britain; 8,8% Italy; 4,5% France; 5,1% Other; 4,7%

Gross inflow of FDI to Kazakhstan 98 bln. USD

FDI, bln.$

21,3 18,5 10,6 8,3 2,8 4,6 4,1 4,6 6,6

Netherlands ; 17,0%

USA; 20,2%

2000

2001

2002

2003

2004

2005

2006

2007

2008

Main investors by gross inflow of FDI in 1993 2008

CUSTOMS UNION (since 01.01.10)

Customs Union alleges freetrade zone functioning plus applying of unified custom tariff and unified trade policy regarding relations toward third states that not entered into Customs Union. Belarus, Kazakhstan and Russia Customs Union: advantages for the potential investors investors INCENTIVES FOR THE INVESTORS Exemption from import customs duties on import of non-produced equipment and raw materials in the implementation of investment projects -

Market capacity around 170 mln. people - Total GDP of almost $ 2 trillion US
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Development Bank of Kazakhstan www.brk.kz

Kazyna Capital Management www.kcm-kazyna.kz

Investment Fund of Kazakhstan www.ifk.kz

Real Estate Fund Samruk Kazyna

2 billion USD Assets under Management 100 million fully paid in Capital (100 % state owned) www.kazproperty.kz

Gosman Amrin CEO, Member of BoD

The Fund is buying out shell and core residential and commercial property for the historically low closed price on the construction stage and exit by renting, leasing or resell on the market with premium. More than 4 000 applications for the Funds property and ready to sign off-take agreements The First Bank in Kazakhstan which portfolio is wholly concentrated in manufacturing industry and infrastructure projects. Recently has raised 5 bn. USD from Chinese ExIm Bank, and planning to additional issue of Eurobond.

Kazakhstan Development Bank

9 billion USD total Assets 2.8 billion Paid in Capital (100% state owned) www.kdb.kz Berik Otemuran Member of Executive Board, MD

Alliance Bank
4.5 billion USD total Assets Closing the deal to be state owned www.alb.kz Maksat Kabashev CEO, Member of BoD

The Bank is planned to be bought out by the State and has recently agreed on the restructuring terms. Proving further prospects of profitable opportunities and sustainable growth.

Special economic zones

Company established in Special economic zone is exempted from paying corporate, land and property taxes.
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Kazakhstan Forced Industrial Development Program Program: : 10 basic sectors

Kazakhstan Strategic Development Plan for 2020 year National Forced Industrial Development Program

Agroindustrial complex development program

Construction industry and production of construction materials development program

Oil-Refinery branch and oil and gas sector infrastructure development program

Chemical and pharmaceutical industry development program

Metallurgy and finished metal products development program

Spacecraft branch

Tourism Machinery construction

Transport and telecommunication infrastructure development program

Energetic development program

Projects in priority sectors of economy f

Branch
Number Value of of projects projects mln. US$
102 38 20 42 35 1 202 1 794 15 079 14 382 7 140

Kazakhstan

Main projects

AIC and agricultural revision. Building industrial and production of building materials. Oil processing and infrastructure of gas oil sector. Metallurgy and production of metallic products. Chemical, pharmaceutical and defending industry. Energetic Transport and communication infrastructure. Engineering Cosmic activity.

Modem well-fed grounds, birds mill, hothouse, farm, factories for processing of agricultural material. Cements factories Gas chemical complex. Bitumen factory Metallurgy factory, mountain-enriches plant. Factories for production of metallic product. Pharmaceutical factory. Plant for production chemical produce. Power stations, Substations. Lines of power gear. Auto ways, railway. Terminal. Airports. Production of agricultural techniques. Light car, buses, buildings techniques, locomotives. Power stations, substations lines of power gear. Production of cosmic apparatus. System of sounding earth. Tourist centers - Borovoe, Chimbulak, Kenderli. Leather, textile production. 10

26 18 16 4

9 607 12 074 1 204 1 048

Tourist branch. Other branches. Total

5 16 322

25 346 583 89 459

Islamic finance (IF) in Kazakhstan: Law of 12.02.2009

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Title Introduction of amendments in some legislative acts of the Republic of Kazakhstan in questions for organization and activities of Islamic banks and organizations for Islamic financing ( 133-IV ) Package of laws - Putting forward amendments in Civil Code (General and Special Parts), Tax Code, Law About banks and bank activities in Kazakhstan, About the securities market, About limited and extended partnership, About investment funds, About licensing, About national registration of the rights for immobile properties and arrange the deals etc. Normative Basis Under p.2 of decree of the Prime-Minister of the Republic of Kazakhstan (14.03.2009) 40- On measures for realization of RK Law 12.02.2009 (above mentioned) Financial Supervision Agency passed 11 enactments that are necessary for implementation of present Law. In July 2009 Parliament of the Republic of Kazakhstan ratified an Agreement (11th July 2009) between the Government of Kazakhstan and Abu-Dhabi Investment Council to open a first Islamic Bank Al-Hilal in Almaty city.
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Islamic Finance in Kazakhstan: Kazakhstan:

IF system model based on Your experience
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Expectations for investors from Middle East countries as main partners Absence of Islamic windows at activities of ordinary commercial banks Licensing of Islamic banks as separate entities Establishing only corporate Shariah councils Preferential taxation regime for Islamic finance institutions
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Ministry of Industry and Trade of the Republic of Kazakhstan www.mit.kz Thank you for the attention!

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