ALMATY ( WNAM MONITORING): The Kazakhstan Investors Association (KIA) has released an analytical report assessing the positive dynamic of the country’s investment environment and outlining recommendations to further improve the business climate.
Despite the global slowdown in foreign direct investment (FDI), Kazakhstan continues to demonstrate positive momentum.
According to the report gross FDI inflows reached $6.6 billion in January-March 2025, while net inflows returned to positive territory, totaling $2.4 billion. The structure of investments continues to diversify, with a notable shift toward non-extractive sectors.
The information and communications sector recorded a tenfold increase, while trade and manufacturing grew by 17% and 16%, respectively. Small and medium-sized enterprises (SMEs) played a key role, accounting for 58% of total fixed capital investments.
Reinvestments seen as key indicator of confidence
The share of reinvested earnings stood at 19% in January-March 2025, which the KIA describes as a litmus test of the investment climate.
Existing investors, the report emphasizes, are the most reliable barometer of long-term confidence in Kazakhstan’s business environment. Encouraging them to expand operations and reinvest locally represents a significant untapped reserve for sustainable economic growth.
Legal and regulatory issues remain a weak spot
A key concern among investors remains the stability and predictability of legislation. More than half of the surveyed companies (52%) consider the legal framework unstable, while 38% note poor quality in regulatory processes.
This environment directly affects business operations – half of companies reported delays in business processes due to bureaucracy, while more than a third said management had to divert significant time and resources to interactions with government agencies, rather than focusing on business development.
Business expects concrete measures
To improve the situation, businesses are calling for decisive steps from the government. Companies emphasize the need for stronger legal guarantees for investors, simplification of the tax and regulatory framework, and further digitalization of public services.
According to the KIA, these measures would help establish a more predictable and favorable environment for investment and enterprise growth, ensuring that reforms translate into tangible results for both domestic and foreign investors.
Proposed reforms and new initiatives
The KIA outlined several strategic reform areas to strengthen public–private cooperation. Among them is the launch of the Center for Regulatory Intelligence, which would review and modernize the legislative base to make it clearer and more transparent for business.
The association also recommends continuing comprehensive legal reforms to reinforce investor protections and signal the inviolability of property rights. The business community has also expressed support for the creation of a digital platform Government for Businesses, envisioned as an efficient mechanism for removing administrative barriers and streamlining communication between enterprises and public authorities.
Next steps: national investment report
As part of its long-term vision, the association announced the preparation of Kazakhstan’s first National Investment Report, designed to serve as the country’s business card, showcasing its openness and investment opportunities to international partners.
According to the KIA, Kazakhstan has reached a pivotal stage in its economic development – one that requires systemic reforms rather than isolated improvements.
