The Republic of Kazakhstan is a country with great potential. After the collapse of the Soviet Union, many people did not believe that the 2nd country by the territory size in the Commonwealth of Independent States will be able to survive the restructuring and to build a completely new development policy. But after 10 years everything has changed, and now the Republic of Kazakhstan deservedly takes the leading position among the countries of the Central Asian region on the level of social development, legal and economic development. However, having large reserves of raw materials, minerals, and, of course, the territorial advantage, Kazakhstan could play the role of locomotive in the region, aimed at turning Central Asia into a modern, prosperous, independent and most importantly an open area for the whole world.
Kazakhstan is considered to be the leader among the CIS countries to provide the most favorable conditions for investment activities. According to World Bank report rating index “Ease of Doing Business” in the 2008-2009 years, the Republic of Kazakhstan won 70th place out of 181 countries in the world, rising to 10 positions compared to last year, and among the countries of Eastern Europe and Central Asia, the Republic of Kazakhstan ranks 12th place out of 25 countries. The most positive results were achieved on index “registration of property”: the country rating has improved by 52 positions (25th place). Also, the positive dynamic seen on the “credit receiving” - 43th place (improvement of 18 positions). Relatively good result for the index of “investor protection” and “Taxation” - in the top 50 countries in the world.
According to the official data for 2008, GDP of Kazakhstan grew by 3.2% to $ 106.6 million, and GDP per capita was about $ 5 thousand.
One of the most financially active cities in the country is the city of Almaty. It is here, focusing the main part of all financial institutions. In 2008, the international rating agency “Fitch Ratings” raised the national long-term rating of Almaty from the level «A +» to «AA-». Long-term ratings of the city in foreign and local currency affirmed at the level «BB +», and its short-term foreign currency rating affirmed at level «B». For long-term ratings there is saved «Stable». In October 2000, the European Union gave Kazakhstan the status of the country of market economy.
The legislative acts and institutional arrangements have contributed to strengthening of market economy status and further development of attractive climate of the Republic of Kazakhstan.
On 8th of January, 2003 there was approved the Law of the Republic of Kazakhstan «On Investment». This law, in particular, regulates equal measures stimulating of investment, foreign and domestic investors, protection of investor rights, arbitration of disputes with foreign investors.
On July 6, 2004, there was approved the law of the Republic of Kazakhstan “On Investment Fund of Kazakhstan” regulating the activities of the Investment Fund of Kazakhstan, defines its objectives, direction of investment policy, particularly, its interaction with government bodies and other organizations.
Also, in order to increase total inflows to the country’s economy, there were approved the following laws: the Act of January 26, 1996 “On special economic zones in Kazakhstan” which defines the general legal framework of special economic zones in the territory of the Republic of Kazakhstan and the Act of July 7, 2006 “On concessions” which defines the legal terms of the concessions.
Under the new Tax Code of the Republic of Kazakhstan, with the beginning of 2009 Value Added Tax (VAT) was reduced from 13% to 12%, as corporate income tax rate (CIT) is reduced from 30% to 20%. In the 2010 and 2011 it is suggested stage reduction in rates of CIT, respectively, to 17.5% and 15%.
Taking in account the growth of the economy, Kazakhstan is not only focused on finding and creating advantages for foreign investors, but also makes investments to the economy of the other countries. According to the report by Minister of Economy and Budget Planning, in 2008 investment in Kazakhstan to European countries was $ 6 billion. Foreign investments in the share capital of Kazakhstan in 2008 were $ 2.6 million that is 4.6% more than in 2007.
In Kazakhstan there are operated a lot of state development institutions: JSC “National Innovation Fund”,” Development Bank of Kazakhstan”, fund of business and development “Damu”, Investment Fund of Kazakhstan “KAZNEX”, etc.
One of the most successful projects of the country is the establishment of Regional Financial Center in Almaty. In 2005, the Government of the Republic of Kazakhstan decided to establish RFCA, a center for domestic financial institutions. This decision was taken due to rapid development of financial sector of the Republic of Kazakhstan in comparison with other CIS countries, stable increase in the share of financial services in the composition of gross domestic product (3. 9% as of October 1, 2006), domestic savings, start investing in CIS countries and formation of staff in f financial sector.
The President of the Republic of Kazakhstan on June 5, 2006 signed the Law of the Republic of Kazakhstan № 145-III Law of the Republic of Kazakhstan «On regional financial center of Almaty» (RFCA), which is a special legal regime governing relations between the participants of the financial centers and interested individuals to promote financial market in the Republic of Kazakhstan.
