Kazakhstan calling: Astana looking to target $5 billion in investments from UAE

Kazakhstan calling: Astana looking to target $5 billion in investments from UAE
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Published March 11th, 2014 - 07:22 GMT via SyndiGate.info

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Trade between UAE-Kazakhstan is expected to touch $20 billion in the coming five years
Trade between UAE-Kazakhstan is expected to touch $20 billion in the coming five years

Kazakhstan government will call upon UAE businessmen to invest in around 77 projects at a value of $5 billion in Khairat Sharif, Kazakhstan ambassador in the UAE, told Gulf News.

“The UAE is one of the most desired countries to cooperate with and to achieve the development plan in Kazakhstan,” he said.

“Despite the fact that the UAE-Kazakhstan has a strategic relation and doing very well on the political level in addition to the economic cooperation, we need to enhance these ties further,” he said.

“It is just the beginning and we are looking to target landmark projects from the UAE,” Khairat added.

These projects will tackle investments across all business sectors, mainly petrochemical and industry.

He spoke on the side line of a seminar organized by Dubai Exports, an agency of the Department of Economic Development in Dubai (DED) under the title ‘Trade & Investment Central Asia’ to highlight businesses and investment opportunities in central Asia countries, Kazakhstan, Kyrgyz Republic, Tajikistan, Turkmenistan and Uzbekistan.

Currently, the UAE has an investment project in Kazakhstan worth around $3 billion, Sharif said, adding that some of it was implemented with the help of UAE funds including Aldar Properties at a value of $1.1 billion (Dh4 billion) as well as Islamic bank Al Hilal with an investment worth $500 million.

Abu Dhabi Abraj Plaza which include the development of the tallest tower in Central Asia at a value of $1.2 billion, Al Falah Investment Fund at $500 million are also among the huge UAE’s investments in Kazakhstan together with several investments of Mubadalah in the oil sector.

Kazakhstan is looking to boost foreign investments and improve trade relations, special focus is on the UAE as it is one the world’s potential markets to have experienced powerful economic, commercial, financial, investments that our country can benefit form, he added.

Saed Al Awadi, CEO of Dubai Exports, pointed out that business in the UAE can have a strong presence in CIS market especially in the services sector, petrochemical and finance.

Central Asia has seen unprecedented economic growth since 2000 and it continues to reflect on domestic demand. Exports and imports increased eight-fold in Kazakhstan during the past decade while in Kyrgyzstan imports grew by two-and-a-half fold. Over the same period imports more than doubled in Tajikistan and grew four-fold in Turkmenistan. In Uzbekistan imports grew by more than three times.

Trade boost

Trade between UAE-Kazakhstan is expected to touch $20 billion in the coming five years, Khairat said.

He added that this will be achieved in the light of the ongoing improvement across the logistic sector in Kazakhstan which include the mega project of rail ways.

“The government working on constructing Rail ways to connect China, Kazakhstan, Turkestan, and Iran which will be completed by the first half of 2015 and will be play a great role to boost the trade business with the UAE.” Khairat said.

While goods takes about 20 days to be export to UAE, through the railways it can go directly to Bandar Abbas Port in Iran from their can be transfer to the UAE in a short time.

Kazakhstan is also looking to recover the Silk Road which stretch from central part of China to Kazakhstan, Iran, turkey, Europe and Russia, he said

He further said that despite trade volume between the two countries being relatively low, at an estimated $150 million in 2012, due to lack of proper logistics and cargo services, the intention is to double this figure in the coming years.

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