Trade & Commerce

Kazakhstan is the most efficient and investment-friendly transit hub for the greater Eurasia region. By 2020 the country aims to become a key logistics hub for Eurasia and beyond by developing transportation and export centers on the territory. In addition to its logistical preeminence, its relatively stable macroeconomic environment, wealth of natural resources, and enabling regulatory environment, as well as proximity to largest regional markets make Kazakhstan relatively successful in attracting FDI since its independence.

Proximity to Large Markets and Market Capacity
Kazakhstan is the most efficient and investment-friendly transit hub for the greater Eurasia region. By 2020 the country aims to become a key logistics hub for Eurasia and beyond by developing transportation and export centers on the territory. Kazakhstan is setting up the Western Europe - Western China International Transportation Corridor, which will cut ground transportation time from China to Europe in third (from 30 to 10 days) and multiply the transit cargo volume by 1,000%, to 170 million tons from the current 16 million tons, allowing the country to jump from the 86th spot on the World Bank’s Logistics Performance Index to 40th place. This will increase Kazakhstan’s GDP by 68% above a 2010 baseline while also boosting the GDP of neighboring countries by 43%, providing an additional boost to Kazkahstan’s export economy. Kazakhstan’s integration into the EEU has already reduced border crossing times and gives Kazakhstan access to a wider market of more than 171 million people with $2.7 trillion annual GDP.


Kazakhstan is the Eurasian Hub
The continental bridge for goods that move from East and West, South to North. By 2020 the country aims to become a key transit hub for Eurasia and beyond by developing transportation, logistics, and export centers on the territory and neighboring foreign countries. Kazakhstan is setting up the Western Europe - Western China International Transportation Corridor, which will cut the transportation time from China to Europe in third (from 30 to 10 days), will multiply the transit cargo volume by 1,000 percent, to 170mil tons from the current 16mil, allowing the country to jump from the current 86th spot on the World Bank’s Logistics Performance Index to 40th place by increasing cargo transport. This will increase Kazakhstan’s GDP by 68 per cent above the 2010 baseline, while boosting the GDP of neighboring countries by 43 per cent. Kazakhstan’s integration into the customs union with Russia and Belarus, which took full effect in January 2012, has cut border-crossing time in half and significantly reduced pilferage. The deeper integration under the umbrella of the Eurasian Economic Union (EEU) promises to further reduce transportation costs and transaction costs.

EEU builds on the successes of the Customs Union (CU) and Common Economic Space (CES) to establish a market for more than 171 million people with $2.7tn annual GDP. The objective of the union is to form a legal framework for a united economic zone, establish a common energy market, and enable the free movement of people within the community. With the current size of 76.8mil people, the middle class accounts for around 30 per cent of total population in Kazakhstan and more than 55 per cent in Russia. Both are both growing at an annual rate of 7 per cent, which makes both of them attractive for importation of consumer goods. Russia is the 6th biggest middle class consumer in the world.

For many investors Kazakhstan is a great springboard for expanding not only into the member countries of EEU but also the entire Central Asian region. It shares borders with all the other Central Asian countries and lies close to the Caucasus region. Central Asia and Caucasus offer a combined disposable income of over $260 billion.

Projects in the transportation and energy sectors supported by the Central Asia Regional Economic Cooperation (CAREC) Program will give additional impetus to the development of intra-regional trade relations as well as connectivity with China and Europe.