Kazakhstan is drawing foreign direct investment, even as global FDI flows slow. Here’s how: – Euronews.com

Report on Foreign Direct Investment in Kazakhstan and Alignment with Sustainable Development Goals

Recent FDI Performance and Market Context

An analysis of Kazakhstan’s economic performance reveals a notable trend in Foreign Direct Investment (FDI). Despite a global and domestic slowdown, the nation continues to be a significant destination for foreign capital. In 2024, FDI inflows experienced a cyclical adjustment, decreasing by approximately 30% to a total of €14.5 billion. Authorities clarify that this decline represents a natural shift from investment phases to return generation, rather than a decrease in investor confidence.

• 2024 FDI Inflow: €14.5 billion
• Year-on-Year Change: Approximately -30%
• Official Rationale: Cyclical shift from investment to returns

Strategic Investments and Long-Term Growth

Kazakhstan’s strategic positioning is underscored by its success in securing major regional projects. The nation has attracted four of Central Asia’s five largest greenfield projects, representing a combined investment of €6 billion. These initiatives are pivotal for advancing industrial capacity and infrastructure, directly contributing to long-term economic resilience.

The country’s sovereign wealth fund, Samruk-Kazyna, is instrumental in this strategy, managing a portfolio of over 130 projects valued at €87 billion. Since its independence in 1991, Kazakhstan has successfully attracted nearly €130 billion in total FDI, establishing itself as the premier investment hub in the region.

Alignment with Sustainable Development Goals (SDGs)

Kazakhstan’s FDI strategy demonstrates a strong alignment with the United Nations Sustainable Development Goals (SDGs), particularly through its focus on large-scale and greenfield projects.

1. SDG 8: Decent Work and Economic Growth: The cumulative FDI of nearly €130 billion and the ongoing projects managed by Samruk-Kazyna are fundamental drivers of job creation, economic diversification, and sustained economic growth for the nation.
2. SDG 9: Industry, Innovation, and Infrastructure: The €6 billion allocated to greenfield projects directly supports the development of resilient infrastructure, promotes inclusive and sustainable industrialization, and fosters innovation. These projects are essential for building a modern and competitive economy.
3. SDG 17: Partnerships for the Goals: Kazakhstan’s ability to consistently attract significant FDI showcases its effective implementation of global partnerships for sustainable development. These international collaborations are crucial for mobilizing financial resources to achieve ambitious development targets.

SDGs Addressed in the Article

• SDG 8: Decent Work and Economic Growth – The article’s core focus on Foreign Direct Investment (FDI) as a driver for the national economy directly relates to this goal.
• SDG 9: Industry, Innovation and Infrastructure – The mention of “greenfield projects” and the large-scale projects managed by the sovereign wealth fund points to significant investments in new infrastructure.
• SDG 17: Partnerships for the Goals – FDI inherently represents a financial partnership between a country and foreign entities to achieve development objectives.

Specific Targets Identified

SDG 8: Decent Work and Economic Growth

1. Target 8.1: Sustain per capita economic growth. The article discusses the flow of FDI (€14.5 billion in 2024), which is a critical component for sustaining economic growth. Although a specific GDP growth rate isn’t mentioned, the large sums of investment are aimed at bolstering the economy.

SDG 9: Industry, Innovation and Infrastructure

1. Target 9.a: Facilitate sustainable and resilient infrastructure development in developing countries through enhanced financial support. As a landlocked developing country, Kazakhstan’s success in securing “four of Central Asia’s five largest greenfield projects, totalling 6 billion euros” and executing “over 130 projects worth 87 billion euros” through its sovereign wealth fund is a direct example of this target in action.

SDG 17: Partnerships for the Goals

1. Target 17.3: Mobilize additional financial resources for developing countries from multiple sources. The article is entirely about Kazakhstan’s success in mobilizing FDI, stating it has “drawn nearly 130 billion euros in FDI” since 1991, positioning it as the “region’s leading investment hub.” This highlights the mobilization of financial resources from foreign sources.

Indicators for Measuring Progress

• Total volume of Foreign Direct Investment (FDI) inflows: The article provides specific figures that can be used as indicators. It states that in 2024, FDI was “14.5 billion euros” and that since 1991, the country has attracted “nearly 130 billion euros in FDI.” These figures directly measure the financial flows discussed in Target 17.3.
• Investment in new infrastructure projects: The article implies this indicator by mentioning that Kazakhstan secured “four of Central Asia’s five largest greenfield projects, totalling 6 billion euros.” This value serves as a direct measure of investment in new infrastructure, relevant to Target 9.a.
• Value of development projects managed by national funds: The article notes that the sovereign wealth fund, Samruk-Kazyna, is “executing over 130 projects worth 87 billion euros.” This figure acts as an indicator of the scale of national efforts to drive development and infrastructure projects.

Summary Table of SDGs, Targets, and Indicators

Source: euronews.com