Citigroup Continues to Invest in Kazakhstan, Drive Market Share
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+24° / +15°C WEDNESDAY, JULY 11, 2018 No 13 (151) www.astanatimes.com Kazakhstan launches AIFC, seeks Citigroup continues to invest to become regional financial hub in Kazakhstan, drive market share, revenue growth over $400 million, so that we have By Zhanna Shayakhmetova become the leading foreign investor in the country outside of the com- ASTANA – Citigroup, one of the modities sector. Since early 2000, first international banks to enter the we have helped Kazakhstan’s issu- Kazakh market, is marking its 25th ers raise more than $30 billion in anniversary in the country. It feels financing,” he said. current conditions in Kazakhstan The Citigroup franchise has es- provide ample opportunities for large tablished itself as the most reliable multinational corporations. corporate bank in the country and The Astana Times spoke exclu- become the mainstay for the vast ma- sively with Citi Chief Executive Of- jority of international corporations ficer for Europe, Middle East and Af- operating in Kazakhstan. As of April, rica (EMEA) James Cowles to learn Citibank Kazakhstan ranks first in about the bank’s priority areas and payment volumes, seventh among new initiatives in the region. Kazakh banks in capital (142.03 bil- “Kazakhstan is an important mar- lion tenge (US$414 million)) and ket for us. Over the years, we have 11th by assets with a 30.1 billion succeeded in establishing our sub- tenge (US$87 million) increase since sidiary as a key player in the coun- the beginning of the year. try’s banking industry, developed Citigroup has branches in Almaty deep relationships with the govern- and the capital and representative of- Photo credit: akorda.kz. Photo credit: ment and the largest local corpo- fices in Aktau and Atyrau. President Nursultan Nazarbayev and representatives of 50 companies registered at the AIFC at the openinig ceremony on July 5. rates and grew our capital base to Continued on Page A5 By Assel Satubaldina ceremony July 5 also attended by Abu firm Michelmores, English law is “Transparent, reliable and favour- Dhabi Crown Sheikh Prince Moham- characterised by flexibility and con- able normative base for the market, ASTANA – Kazakhstan’s ambi- med bin Zayed bin Sultan Al-Nahyan, venience encouraging countries to modern infrastructure and strong tious project to establish a financial Islamic Development Bank Chair rely on it in the finance sector. human capital will boost the poten- services centre in Astana is now Bandar Hajjar and JP Morgan Chase The AIFC stock exchange will list tial of the AIFC in reaching the scale Kazakhstan, Estonia interested real, as the country launched July International Chair Jacob Frenkel. Kazakh national companies, part of of a regional hub, an example of in- 5 the Astana International Financial Kazakhstan recognised the need the country’s Samruk Kazyna Sover- novation use, high quality services, Centre (AIFC). for long-term, sustainable institu- eign Wealth Fund, and Islamic bonds effective management and reasona- The new financial centre, in a tions, he said. Sukuk scheduled to go for initial pub- ble methods of dispute settlement,” in increased cooperation, says new part of Astana where the city “We thoroughly studied the global lic offering later this year. said Pulitzer Prize winning author hosted EXPO 2017, is set to of- experience in establishment, develop- Boston Consulting Group Chair Daniel Yergin hosting the ceremony fer financial services, including in ment and work of financial centres Hans Paul Bürkner said the IPO and as he read her letter. the country’s large-scale privatisa- Francis Maude, former U.K. Estonia ambassador financial technologies, Islamic fi- across the world including in Singa- nance, green finance, capital market pore, Dubai, Hong Kong and other tion programme will serve “another cabinet minister and member of implements its national digitisation and asset management. countries. The Kazakh model of the major accelerator for development of the AIFC consultative council, said By Meruyert Abugaliyeva programme. The centre has a management AIFC incorporated best practices of Kazakhstan and position Kazakhstan Kazakhstan is a growing market “We are very glad to share our council, a financial services regula- these structures,” said Nazarbayev. as a regional financial centre” as well with untapped potential. ASTANA – Estonia, which is experience. Our e-government pro- tor, AIFC exchange, an independent “Astana should become the main as provide a major boost to develop “The country occupies a really im- celebrating the 100th anniversary gramme is based on X-Road, an financial court involving nine judges financial hub of the region and in capital markets. portant strategic position. The poten- of its independence this year, has open source data exchange platform from the U.K. and the U.S., and an ar- the long-term perspective should be Bürkner also emphasised green tial for the financial centre is huge and established friendly relations with which we have shared with Geor- bitration centre, among other bodies. among leading Asian financial cen- finance and financial technology as this is a growing market. The centre Kazakhstan during 26 years of dip- gia, Ukraine and Finland. In Central Kazakh officials expect the cen- tres,” said the Kazakh President. growth engines for the centre. of gravity of the world’s economy is lomatic relations. Bilateral coopera- Asia, we also work with Kyrgyzstan. tre to attract $40 billion of invest- The centre enjoys a special legal re- “Boston Consulting Group had moving east over time and Eurasia is tion, which has great potential, has In terms of cooperation with Ka- ments by 2025. gime envisioned by constitutional law the privilege to be working with you key part of that,” said Maude. not yet been fully explored, said Es- zakhstan, I think we can be a help The AIFC is the brainchild of Ka- and offers incentives to companies, and team on the idea of the AIFC Investors are also interested in tonian Ambassador to Kazakhstan and assistance. Prior to this visit, two zakh President Nursultan Nazarbayev including exemption from corporate and it has become a real milestone continuing reforms in Kazakhstan, Heiti Maemees in an interview with Estonian counselors were working who voiced the idea to set up the income tax and personal income tax in the development of Kazakhstan he added. The Astana Times. with the Kazakhstan government centre in 2015 with benefits offered for 50 years, a visa-free regime for and Astana and stock financial mar- “This is a young country. Mov- “Overall, our bilateral relations on [developing] Government for the to companies, an independent court citizens of 48 countries and a simpli- kets here,” he said. ing from a command economy to have been friendly; however, it does Citizens [corporation],” he added. and English common law principles fied employment regime. International Monetary Fund Man- a genuine market economy takes not mean we cannot have better ties. E-governance, which shows that a incorporated in the work of the centre. Fifty companies have registered aging Director Christine Lagarde con- time. As the government acknowl- Recent years have not shown much government is transparent and does “The AIFC is a new chapter of in- at the AIFC so far. veyed her congratulations and said edges, there is a need for more activity, but now, I can see interest not involve the human factor in cer- dependent Kazakhstan. Its launch is English common law principles the AIFC is a “great opportunity and structural reforms in economy. You on both sides is increasing. Deputy tain processes, also establishes trust an important step in the steady and will regulate the work of the centre platform for Kazakhstan and region to need this country to be where it is Prime Minister Askar Zhumagaliyev and thus creates a more favourable sustainable development of Kazakh- and, according to Andrew Oldland, develop deeper financial market and easy to set up business, grow busi- visited Estonia this year and I think environment for business and soci- stan,” Nazarbayev told a grandiose senior partner at British law service attract investment.” ness and create jobs,” said Maude. the visit, focused on the digital agen- ety, said Maemees. da, was a success. Kazakhstan is one Trade volume between the coun- of the most important partners for Es- tries has been declining steadily in tonia, and we are looking forward to the last several years. In 2012, trade the continuation of the visit,” he said. turnover was approximately 133 mil- Known for its technological ad- lion euros (US$155.1 million); how- Multiple festivals, events mark Astana’s vances and digital solutions, particu- ever, the figure was only 27.2 million larly in e-government, Estonia is of euros (US$31.7 million) in 2017. 20th anniversary celebration special interest to Kazakhstan as it Continued on Page A8 val of circus art every day July 4-8 at Humour competition in the Barys ment, where 18 bands and more than By Meruyert Abugaliyeva the local circus venue. Arena. 120 musicians from 20 countries per- The opening ceremony of The A large wedding ceremony took formed for three days. Aligning legislation with ASTANA – The capital celebrated Astana Samaly Festival of brass place in the square in front of the The Astana Day celebrations ended the 20th Astana Day with several days orchestras took place July 4 in the Atameken Complex July 5 as 40 with the gala concert at the square of festivals, concerts and sporting Astana Concert Hall. The festival ran couples decided to get married on the near the Kazakh Eli monument fea- events across the city starting July 4. through July 6 with a concert in one of capital’s anniversary. Such a ceremo- turing Kazakh and foreign musicians. the city’s squares. ny has become an annual tradition.