1. Kazakhstan
20 Years of Independence
December 2011
GOVERNMENT OF KAZAKHSTAN

2. Kazakhstan: Country Snapshot
KEY HIGHLIGHTS
 Stable political and
macroeconomic environment:
Annual GDP growth of
approximately 9% during 2000-
2009, with GDP in 2010 reaching
US$148 billion (US$9,070 per
capita)
 Competitive geographic
location:
Located at a unique cross-roads
between Europe, three BRIC
countries (Russia, India, China)
and the Middle East
KEY FACTS KEY MACRO STATISTICS
 Significant market:
The Customs Union between Area: GDP per capita:
Kazakhstan, Russia and Belarus  2.7 million square km (1.1 million square miles)  US$ 9,070 in 2010
represents a market of 170 million Capital: GDP growth:
consumers and combined GDP c.
 Astana (0.7 million people at 01 October 2011  7% in 2010
US$ 2 trillion
Population: Currency:
 Major reforms: Market and trade  16.6 million people at 01 October 2011  Kazakhstani tenge, KZT (US$1 ≈ KZT146.6)
liberalization, administrative Language: Sovereign Credit Ratings:
reform, privatization, budget
 Kazakh is the official language, Russian is a means  Standard & Poor’s ― BBB+/Stable (achieved rating
code, pension system, new tax of inter-ethnic communication upgrade in November 2011)
code, wealth accumulation in
Key ethnic groups:  Moody’s ― Baa2/Stable
National Oil Fund
 Kazakh (63.1%), Russian (23.7%)  Fitch ― BBB−/Positive
GOVERNMENT OF KAZAKHSTAN 2

3. History of Sustainable Economic Development
KEY HIGHLIGHTS GDP STRUCTURE 2010 UNEMPLOYMENT RATE
%
 In the last decade social 12 10,4
Industry
development indicators 18% 10 9,3 8,8
Real estate operations 8,4 8,1
improved: unemployment 32% 8
7,8 7,3
Trade 6,6 6,6
declined almost twice till 5.3% 4% 5,8
5,3
Transport, telecom 6
in 2011, poverty level has 5%
dramatically decreased from 8% Construction 4
46.7% in 2001 to 5.9 in 9%
Agriculture 2
2011, GDP per capita reached 11% Financial services
13% 0
9,070 per capita in 2010. Others 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Source: The Agency on Statistics
GDP PER CAPITA OF KAZAKHSTAN, $US bn
Estimate
11 365
9 005
8 499
7 257
6 772
5 292
3 771
2 874
2 068
1 658
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Source: The Agency on Statistics, the Government of Kazakhstan
GOVERNMENT OF KAZAKHSTAN 3

4. WEALTH ACCUMULATION IN NATIONAL OIL FUND
 In 2000, Kazakhstan created a National Oil Fund, as a vehicle for
natural resource wealth accumulation and for stabilization of the state
through the commodity cycles.
 In 2009 Kazakhstan used NOF for anti-crisis programs which helped
to smooth effect of the banking crisis and decline in foreign capital
inflows.
 NOF is divided into savings and stabilization portfolios, and its
minimum level is set at 20% of GDP, while annual transfers to state
budget are limited to $8bn.
 Government expects that NOF would reach 30,4% of GDP at the level
of $90bn in 2015, from estimated level for 2011 of $49bn and 28,8% of
GDP.
GROWTH OF NATIONAL OIL FUND, , $US bn
GOVERNMENT OF KAZAKHSTAN 4

5. International Trade Dynamics
INTERNATIOINAL TRADE OF KAZAKHSTAN EXPORT STRUCTURE 9M 2011
71.1 1% 3%
3% Mineral products
47.7 60
43.2 60.1
Metals and metal products
38.2 11%
27.8 0% Chemical products
20 Food products
32.7 37.9 28.4
12.8 17.3 23.6 23.6 14 Equipment, machinery
2004 2005 2006 2007 2008 2009 2010 09M 2011 82% Other
Im port, US$ bn Export, US$ bn
MAJOR TRADE PARTNERS 9M 2011 IMPORT STRUCTURE 9M 2011
Major trade partners, 9M 2011
Export, share in total Import, share in total Equipment, machinery
32.5% Chemical products
China 19.6% China 23.3% 32.2%
Metals and metal products
Italy 18.1% Germany 9.1%
Mineral products
Netherlands 8.9% Ukraine 9.1% Food products
11.7% 9.7%
France 6.7% United States 8.0% 3.7% 10.2% Other
Switzerland 5.6% Italy 4.8%
Sources: the National Bank of Kazakhstan, the Agency on Statistics
GOVERNMENT OF KAZAKHSTAN 5

6. Foreign Direct Investments Dynamics into Kazakhstan
KEY HIGHLIGHTS FDI IN KAZAKHSTAN TOP 10 INVESTORS IN KAZAKHSTAN, 2006 – 6M2011
 Since 62% 19.8 19.6
50% 18.5 18.1 Total FDI in 2006 - 6M2011 is US$96 billion
independence, Kazakhstan has
46%
attracted over US$136 billion in Total, US$ bn Share in total
FDI, half of which has been 2 5 % 10.6
8.3 27%
invested during the last three Netherlands 61. 9 24.9%
21%
4.1 4.6
years. 6.6 19%
14% USA 35.2 14.2%
14%
 80% of total FDI per capita UK 18.0 7.3%
2002 2003 2004 2005 2006 2007 2008 2009 2010
among the CIS countries France 16.3 6.6%
FDI , US$ bn FDI in oil and gas, %
Sources: the National Bank of Kazakhstan, the Agency on Statistics
Italy 10.0 4.0%
Russia 9.9 4.0%
SHARE OF FDI IN GDP
China 8.9 3.6%
20% 19% 18%
17% 17%
15% 15% Canada 8.7 3.5%
15% 13%
12% 12% Switzerland 8.2 3.3%
10% Japan 6.9 2.8%
5%
0%
2002 2003 2004 2005 2006 2007 2008 2009 2010
GOVERNMENT OF KAZAKHSTAN 6

7. Development Programs
The Program on Accelerated Industrial and Innovative
Development of Kazakhstan for 2010–2014
Major target industries for diversification:
Objectives:
 Agriculture and agro-products processing
 Accelerated diversification of economy and promotion of
 Construction and construction materials long-term economic competitiveness
 Oil refining and services  Coordination of public and private sector efforts and
efficient allocation of state resources
 Metallurgy
 Chemical, pharmaceutical and defense
Priorities:
 Energy generation (including nuclear and alternative
energy)  Productivity gains to ensure national competitiveness
 Transportation and telecommunications  Attraction of investments, primarily FDI, to develop export
oriented industries
 Tourism
 Development of national innovation system
 Mechanical engineering
 Entrepreneurship development with increasing role of
 Biotechnology SMEs in the industrialization process
 Improved regional economic development
GOVERNMENT OF KAZAKHSTAN 8

8. NEW TAX CODE...
 Kazakhstan has introduced new tax policy with two major goals:
 Simplification of administrative procedures on tax payments
 The corporate income tax was reduced from 30% to 20%, while value added tax
was reduced to 12%
 Today, Kazakhstan has the lowest taxation for business not involved in mineral
resource extraction
…WAS APPRECIATED BY INVESTORS
ADMINISTRATIVE REFORM…
 According to the World Bank’s Ease of Doing Business Index 2012,
Kazakhstan is ranked 47th in the world, ahead of countries such as Ease of Doing Business Rank* 2012 2011 Change
Czech Republic, China, Turkey and Russia. In 2010, Kazakhstan was
judged to be the top reformer in the world, rising 15 places in the China 91 87 4
global ranking
Azerbaijan 66 54 12
Kazakhstan 47 59 12
Belarus 69 91 22
Russia 120 123 3
Hungary 51 46 5
Note: These tables do not present ranks of all CIS countries
Source: World Bank, WEF
GOVERNMENT OF KAZAKHSTAN 7