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Industrial Zones in Kazakhstan

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Industrial Zones in Kazakhstan 2 CONTENT Introduction to Kazakhstan ............................................................................................................................. 4 Support for investors ............................................................................................................................... 8 Definition of Industrial zones ................................................................................................................... 12 Industrial zones of Kazakhstan .......................................................................................................................... 14 Aktobe region’s Industrial zones ..................................................................................................................... 16 Almaty region’s Industrial zones .................................................................................................................... 18 3 Atyrau region’s Industrial zones ..................................................................................................................... 20 East Kazakhstan region’s Industrial zones ......................................................................................................................................... 22 Kyzylorda region’s Industrial zones ..................................................................................................................... 24 South Kazakhstan region’s Industrial zones ........................................................................................................................................... 28 Useful contacts........................................................................................................................ 32 4 INTRODUCTION TO KAZAKHSTAN National Flag National Emblem Area: 2,724,000 km2 (1,051,742 sq mi) 9th largest Population: 18,192,958 Official language: Kazakh, Russian Political system: Presidential Republic Head of state: President Currency: Tenge (KZT) Capital: Astana city Administrative 14 regions+2 cities division: of republican significance Member of organizations: UN, IMF, WB, OSCE, OIC, WTO 5 • The Kazakhstan’s geographical location makes it a natural crossroad for major transit corridors from East to West, form North to South. • Kazakhstan is a member of the Customs along with Russia, Belarus, Armenia and Kyrgyzstan: - Free trading without customs duties; - Access to population over 183 mln. people. • The transcontinental automobile road corridor «Western Europe – Western Chi- na» passes through the territory of Kazakhstan. The corridor will allow to deliver freights from China to Europe in 10 days. • There is a territory with population of more than 3.3 bln. people within a radi- us of 2 thsd. km (1,243 miles) from Kazakhstan. • The flight time from most European destinations is 5 hours. 6 POLITICAL STABILITY AND FAVORABLE INVESTMENT CLIMATE Platforms for dialogue between public authorities and investor Foreign Investor’s Council chaired on strategic issues by the President Council for improvement of investment climate on systemic issues chaired by the Prime Minister Investment Ombudsman chaired by the Minister on current problems of investors on Investments and Development EASE OF DOING BUSINESS Source: World Bank, Doing Business 2017 7 PROTECTING PAYING TAXES MINORITY INVESTORS RANK COUNTRY RANK COUNTRY 1 Singapore 1 UAE 3 Kazakhstan 8 Singapore 13 South Korea 40 Azerbaijan 22 Turkey 45 Russia 32 Azerbaijan 60 Kazakhstan 42 Poland 66 Belgium 53 Russia 77 Hungary 63 Belgium 88 Armenia 81 Hungary 128 Turkey 123 China 131 China Source: World Bank, Doing Business 2017 GLOBAL COMPETITIVENESS INDEX RANKINGS RANK COUNTRY Score 1 Switzerland 5,8 2 Singapore 5,7 3 USA 5,7 4 Netherlands 5,6 5 Germany 5,6 6 Sweden 5,5 ... ... ... 43 Russia 4,5 53 Kazakhstan 4,4 55 Turkey 4,4 77 Tajikistan 4,1 111 Kyrgyz Republic 3,7 Source: World Forum, Global Competitiveness Report 2016-2017 8 SUPPORT FOR INVESTORS INVESTMENT PREFERENCES* TAX - CIT – 0 % up to 10 years INCENTIVES - Land tax – 0% up to 10 years - Property tax– 0% up to 8 years INVESTMENT Up to 30% of costs associated with SUBSIDY construction and installation works and (CASHBACK) equipment MIGRATION - Free quota regime and no need in work INCENTIVES permits to employ foreign labor during construction period and 1 year after commissioning - From January 1, 2017, a 30-day visa-free regime introduced for citizens of 60 countries GUARANTEE Stability of tax legislation for all taxes except OF LAWS VAT and excise (subject to investment STABILITY contract) OTHER INCENTIVES CUSTOMS Customs duties 0% on the import of: INCENTIVES - equipment and its components; - spare parts; - raw materials and supplies. STATE Land plots, buildings, machinery and IN-KIND GRANTS equipment, etc. *for priority investment projects 9 PRIORITY TYPES OF ACTIVITIES: 1 Metallurgy (ferrous and non-ferrous) 2 Petroleum refining 3 Machinery (automotive industry and electrical engineering) 4 Chemical industry (petrochemistry and agricultural chemistry) 5 Processing industry (food production) INVESTORS SERVICE CENTRE (ONE STOP-SHOP) Provision of 363 public services for investors (investment contract, land, visa sup- port, etc.) Assistance IN obtaining OF THE REQUIRED approVALS AND PERMITS INVESTMENT law consultations Informational, organizational AND other support to THE INVestor Functioning of the Institute of Investment Ombudsman, objected at protection of the rights and legitimate interests of foreign investors, that carry out activity in the Republic of Kazakhstan. 10 EXPORT SUPPORT Kazakhstan provides a full cycle of support for the promotion of products pro- duced in Kazakhstan in foreign markets. Informational and analytical support: • Preparing and conducting country reviews; • Developing brief analyses; • Reference and information services. Export development and promotion: • Training entrepreneurs on export performance; • Creating the ideology of «export orientation»; • Organizing trade missions in foreign countries; • Organizing the participation of Kazakhstan enterprises in foreign specialized exhibitions. Partial reimbursement of costs for entities of industrial-innovative development: Support is provided through the reimbursement of 50% of the costs of entities engaged in industrial and innovation activities. The costs are reimbursed on a NON-REPAYABLE BASIS! 11 Types of refundable costs: - Costs associated with advertising of domestic products abroad; - Expenses on direct participation in international exhibitions, fairs, and festivals; - Costs for catalogues development and publication; - Costs for representations, maintenance costs of sales outlets and warehouses abroad; - Costs associated with registration of trademarks and products abroad; - Costs associated with certifying products abroad Full details on www.export.gov.kz 12 DEFINITION OF INDUSTRIAL ZONES INDUSTRIAL ZONE is a non-farm uses land with installed utility systems which is provided for private entrepreneurs by State for placement and operation of indus- trial facilities in the order established by the Land Code of the Republic of Kazakh- stan and other laws of the Republic of Kazakhstan (Article 249 of the Republic of Kazakhstan Business Code No. 375-V of October 29, 2015 ). Purpose of creating: Industrial zones are created to ensure economic and organizational conditions to develop entrepreneurship activitives of industrial zones: 1. to assure accelerated assistance in development of entrepreneurship in industry; 2. to optimize costs to create and develop new production in frastructure; 3. to improve production efficiency; 4. to provide employment of population. 13 Preferences for participants in industrial zones: • Provision of land plots; • Provision of infrastructure ready for use; • Rent-to-own options of land plots at a low price and non-competitive basis (at cadastral value). Main advantages of IZ (according to the analysis of international experience): • Reduction of infrastructure construction costs; • Lack of strict sectoral specificity; • Unlimited time operation; • Simplified issuance of permits; • Minimum demand of the main city networks; • Ecology issues solving for megacities; • Creation of conditions to produce competitive products. 14 INDUSTRIAL ZONES OF KAZAKHSTAN 15 16 AKTOBE REGION’S INDUSTRIAL ZONES AKTOBE REGION Aktobe region is the second largest region by area in the country, where all domestic chromium reserves, 55% nickel reserves, 40% titanium reserves and 34% phosphate reserves are located. Favorable geographical location of the region predetermines its specialization on transport and logistics services, also increases competitve position to promote the product of manufacturing industry to foreign market. Metal processing, chemical and food industries are developing due to do- mestic raw materials. In the region, agriculture specializes in livestock with a focus on meat and dairy. BASIC information Population, GRP, GRP per Investments per Area, km2 Major cities th.people mln $ capita, th.$. capita, $ 839,15 300600 Aktobe, Kandyagash 5,99 7,13 1230,8 17 information ABOUT IZ IN operation 75 1 50 AvAILABLE LAND, HA INDUSTRIAL ZONES IN PERMANENT JOBS OPERATION 2 4 PROJECTS IN OPERATION PROJECTS UNDER IMPLEMENTATION 75 2 4 Private IZ «Aktobe» AvAILABLE LAND, HA PROJECTS IN PROJECTS UNDER OPERATION IMPLEMENTATION 100 % HIGH QUALITY traumatic SAFE coatings WITH THE USE OF INNOVA- Infrastructure TION technologies, ANTIFREEZES AND other chemical reagents completion status PRODUCTS 18 ALMATY
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