ASTANA – Kazakhstan concluded more than 100 investment contracts totaling approximately three trillion tenge (US$5.8 billion) last year, First Deputy Prime Minister Roman Sklyar said during an investment forum on Feb. 7 in Astana, reported Kazinform. According to Sklyar, Kazakhstan ranks among the world’s top 50 leaders in foreign direct investment (FDI) and attracts over 60% of all investments in Central Asia. The government aims to double the national economy to $450 billion by 2029 and has adopted an investment policy to secure at least $150 billion in FDI.
Kazakhstan’s Investment Headquarters reviewed 115 projects worth $50 billion. Already, seven investment agreements totaling $2.5 billion were signed for 2024, and six more agreements worth over $2 billion have already been approved for 2025. Key investors include Qatar, which plans to invest $18 billion, as well as Germany, China, South Korea, the United States, Russia, Belgium, and other European countries. The extraction of minerals and rare earth metals remains one of the most popular sectors for investment, alongside logistics, with the Europe-China corridor handling over one million tons of cargo.
The processing industry is also drawing interest. Kazakhstan's car manufacturing sector is on the rise, featuring new KIA and Skoda plants in Kostanai along with a CLAAS agricultural machinery assembly plant in Petropavl. A French company has commenced production and export of railway locomotives, and there’s growing foreign investor interest in agriculture, particularly grain deep processing.
Shifting focus to the energy sector, Pearl Energy Investments has made headlines after closing its fourth fund, Pearl Energy Investments IV, L.P., reaching its $999.9 million hard cap within just four months of launching. The fund was oversubscribed, reflecting strong investor demand. Founded in 2015, Pearl specializes in providing investment capital for both the upstream and midstream energy sectors.
Managing partner William J. Quinn expressed gratitude for the sustained support from investors, attributing the firm’s success to its strong team and proven track record within the energy investment space. "We expressed gratitude for the support from investors," Quinn stated, emphasizing confidence in the current investment climate and the ability to continue delivering attractive investment opportunities. Partner Stewart Coleman credited Pearl’s achievements to the entrepreneurial mindset, technical expertise, and commercial focus of the management teams they sponsor.
Meanwhile, China recently launched a pilot program allowing select insurance companies to invest in gold, as part of their medium to long-term asset allocation strategies. This initiative aims to broaden the channels available for utilizing insurance funds, optimize the structure of their asset allocation, and bolster asset-liability management capabilities. Ten insurance companies are currently participating, engaging with gold investments through various means, including contracts on the Shanghai Gold Exchange.
The National Financial Regulatory Administration highlights this pilot program as a move to deepen reform and cultivate high-quality developments within the insurance sector.
Investments across Europe are also reflecting notable trends. According to Alpha Bank’s economic bulletin, investments increased by 2.2% from January to September 2024, still below the projected 6.7% increase noted for the entire year. This modest uptick is set against the backdrop of investments contributing steadily to Greece’s GDP, now approximately 15% of the total.
The report indicates positive changes since the pre-crisis period, during which housing made up over 40% of total investments. Now, it's expected to account for just 14.3% with significant portions occupied by industry, public administration, and real estate. The infrastructure initiatives driven by EU funds, particularly through the Recovery Fund, herald promising growth forecasts for the future.
Lastly, declines continue for foreign investments within Russia, reflecting geopolitical tensions and economic downturns. By October 2024, foreign direct investments (FDI) had plunged to their lowest levels seen over the past 15 years. Data from the Central Bank of Russia indicates foreign investors withdrew $44 billion from the Russian economy, with losses aggregately amounting to $80 billion last year alone.
Despite Kremlin leader Vladimir Putin’s advocacy for investment from BRICS nations, signs of reluctance and prohibition persist, particularly from China, unsettling longtime trade and investment dynamics and leaving Russian economic strategies uncertain.