Kazakhstan Business & Economy - The Times Of Central Asia

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Tourism

Kazakhstan’s Tourism Industry Generated More Than $1.3 Billion in Tax Revenue in 2025

Kazakhstan’s tourism sector generated more than $1.3 billion in tax revenue in 2025, an 18% increase from the previous year, as foreign visitor spending and investment in the industry continued to grow, Tourism and Sports Minister Yerbol Myrzabosynov said. Speaking at a government meeting, Myrzabosynov said foreign tourists spent approximately $2.9 billion in Kazakhstan last year, while investment in the tourism sector rose by 33% to reach $2.74 billion. The figures highlight the growing importance of tourism to Kazakhstan’s economy as authorities seek to diversify sources of growth beyond the country’s traditional resource sectors. Ecotourism was among the fastest-growing segments of the industry. Kazakhstan’s national parks attracted 3.7 million visitors in 2025, up from 2.8 million a year earlier. To manage increasing visitor numbers and protect natural ecosystems, the government updated national ecotourism standards last year and plans further investment in park infrastructure, hiking trails, and tourism routes. Medical tourism has also emerged as a strategic growth area. According to Myrzabosynov, Kazakhstan received approximately 80,000 foreign patients in 2025, benefiting from comparatively affordable healthcare services and growing international recognition of local medical facilities. Ten healthcare institutions in Kazakhstan currently hold Joint Commission International accreditation, and authorities are preparing a roadmap for the development of medical tourism for 2026-2028. Business and conference tourism is another priority sector. The minister said Kazakhstan hosted 13 major international events in 2025, generating approximately $18 million in economic activity. However, he noted that infrastructure limitations continue to constrain growth, particularly in Almaty, the country’s largest commercial center. “Almaty needs a modern international-standard convention and exhibition complex,” Myrzabosynov said, calling for a decision on the project to support further expansion of the meetings and events industry. The government is also seeking to expand tourism linked to the Baikonur Cosmodrome, one of the world’s most historic space launch facilities. Under a recently approved development concept, processing times for permits required by foreign visitors have been reduced to 10 days, making access easier for tour operators and tourists interested in both rocket launches and regular visits to the complex. Visitor numbers to Baikonur increased from 5,200 in 2024 to 7,600 in 2025, according to the ministry. Myrzabosynov said several facilities transferred to Kazakhstan’s control, including Gagarin’s Start, the launch pad used for Yuri Gagarin’s 1961 flight, a fueling and assembly complex, and a dynamic testing facility, have significant tourism potential but require modernization and substantial investment. He also emphasized the importance of developing year-round event tourism at Baikonur to attract visitors between launches and improve use of existing infrastructure. As Kazakhstan expands its tourism offerings, authorities are also looking to develop niche segments of the market. Earlier, the Ministry of Tourism and Sports said it expects the number of foreign gambling tourists visiting the country to double following the opening of new casino facilities in four regions of Kazakhstan.

Digital Governance

How Digital Public Services Are Changing Daily Life in Central Asia

Kazakhstan, Uzbekistan, and Kyrgyzstan have moved from queues at public service centers to passports in mobile apps in just a few years, compressing a transition that took many countries decades. Behind the impressive figures, however, are questions the region is still trying to answer. Not so long ago, obtaining a certificate in Central Asia meant a trip to a government office, a queue, and a stack of papers. Today, a resident of Almaty can renew a driver’s license by phone, an entrepreneur in Tashkent can register a company without leaving the office, and a doctor in Bishkek can issue an electronic sick leave certificate. The digitalization of public services has moved beyond strategic documents and become part of everyday life for tens of millions of people. The scale of change is reflected in international assessments. In the United Nations E-Government Development Index (EGDI) for 2024, Asia showed the fastest growth of any region. Kazakhstan, Uzbekistan, and Kyrgyzstan all improved their positions, each at its own pace, and each with its own model. Kazakhstan: From eGov to a Platform State Kazakhstan remains one of the region’s leaders in digital governance. In the 2024 EGDI ranking, the country rose to 24th place globally, ahead of a number of developed economies. Today, around 90% of more than 1,300 public services are available online, while the eGov.kz portal and eGov Mobile app offer access to a growing range of services. The figures speak for themselves. According to Kazakhstan’s e-government portal, citizens received more than 25.7 million services through eGov.kz in 2025, while the eGov Mobile audience exceeded 11.7 million users. The “Digital Documents” section is especially popular: the app provides access to 39 types of documents, from identity cards to driver’s licenses and student IDs. The expansion has continued. In 2025, Kazakhstan launched eGovBusiness, a single-window service for entrepreneurs that allows them to register companies, apply for subsidies, and check risks. The authorities have also moved to consolidate fragmented government apps into the unified eGov and Aitu platforms. The next frontier is artificial intelligence. In 2025, Kazakhstan established the Ministry of Artificial Intelligence and Digital Development. Through the National AI Platform, the country is developing sovereign infrastructure intended to support the use of generative AI in government and keep citizens’ data within national systems. Uzbekistan: The Fastest Leap Forward If Kazakhstan sets the regional benchmark, Uzbekistan has shown some of the fastest momentum. Over six years, the country climbed 24 positions in the EGDI ranking, from 87th place in 2018 to 63rd in 2024, and entered the category of countries with a “very high” level of e-government development for the first time. At the center of this transformation is the unified portal my.gov.uz, through which citizens and businesses access public services. More than 760 services are available on the platform, while the mobile app offers more than 540. In the first half of 2025 alone, more than 16 million services were provided through the system. The direction is set by the Digital Uzbekistan 2030...

Monetary Policy

Kazakhstan Central Bank Chief Sees No Pressure on Tenge After Rate Cut

Kazakhstan’s central bank governor has sought to calm concerns over the tenge after the National Bank cut its base rate for the first time since October 2025, saying demand for local-currency assets should remain stable despite lower returns. The National Bank of Kazakhstan lowered its base rate to 17% from 18% on June 5, citing slowing inflation and an improved economic outlook. The decision was based on updated assessments of inflation risks and key macroeconomic indicators, the bank said. Annual inflation slowed to 10.4% in May from a peak of 12.9% recorded in September last year. The central bank also raised its oil price assumption for the remainder of 2026 to $90 per barrel for Brent crude. National Bank Governor Timur Suleimenov said the rate cut would lower returns on tenge-denominated deposits but would not trigger a significant shift into foreign-currency assets. “Interest rates on tenge deposits remain substantially higher than returns on foreign-currency deposits,” Suleimenov told reporters. “A one-percentage-point reduction will not fundamentally change the attractiveness of deposits or other tenge-denominated assets such as corporate bonds and government securities.” Suleimenov said demand for local-currency assets is expected to remain stable, limiting pressure on the exchange rate. He acknowledged that the tenge could face seasonal pressure during the summer because of increased demand for foreign currency linked to overseas travel and dividend payments by Kazakhstani companies listed on international exchanges. However, he said Kazakhstan’s economic fundamentals remain supportive of the national currency. “Oil prices are rising, while metal prices have increased by an average of around 17%, with some commodities gaining as much as 40%,” Suleimenov said. “If there are no major external shocks, I see no reason for any significant weakening of the tenge.” The central bank also revised its inflation forecast for 2026 downward to a range of 9%-11%, compared with a previous estimate of 9.5%-11.5%. Its inflation forecast for 2027 remains unchanged at 5.5%-7.5%. Suleimenov said the bank expects inflation to approach its long-term target of 5% by 2028 as external inflationary pressures ease and government and central bank measures take effect. “The slowdown in inflation during April and May gave us room to lower the base rate,” he said. “But it would be premature to say inflation has been defeated. Future decisions will depend on incoming data and our assessment of risks.” The official exchange rate stood at 487.4 tenge per U.S. dollar on June 7. The outlook remains cautious. As previously reported by The Times of Central Asia, S&P Global Ratings forecast that the tenge would average around 540 per dollar in 2026, reflecting expectations of a weaker currency over the medium term.

Middle Corridor

Kazakhstan Eyes Cyprus as Middle Corridor Link to Mediterranean

Kazakh President Kassym-Jomart Tokayev has invited Cyprus to participate in the development of the Trans-Caspian International Transport Route, seeking to strengthen trade links between Central Asia and the Mediterranean through one of Eurasia’s fastest-growing trade routes. The proposal was made during talks with Cypriot President Nikos Christodoulides, who paid an official visit to Kazakhstan. The TITR, also known as the Middle Corridor, connects China and Europe through Kazakhstan, the Caspian Sea, the South Caucasus, and Turkey. The route is approximately 3,000 kilometers shorter than the traditional northern route through Russia and currently allows cargo to travel from China to Europe in 10 to 15 days, compared with roughly twice that time via the northern corridor and up to 60 days by sea. “Cyprus is a world-class maritime hub, and the Middle Corridor creates significant opportunities to effectively connect Kazakhstan’s land transport infrastructure with Cyprus’s maritime infrastructure,” Tokayev said during a joint press briefing following the talks. According to Tokayev, such cooperation could help establish a new multimodal logistics network linking Central Asia, the Caspian region, and the Mediterranean while supporting growth in bilateral trade. The two leaders discussed expanding trade and investment ties, as well as strengthening business cooperation between the two countries. Tokayev said he had proposed developing a roadmap for bilateral economic cooperation and establishing an intergovernmental commission and business council to facilitate joint projects and increase commercial exchanges. He identified logistics, finance, tourism, and digital technologies as key areas for future cooperation, adding that Cyprus has expressed interest in Kazakhstan’s e-government platform and digital public services. Kazakhstan, he said, is ready to share its experience in those areas. More than 400 companies with Cypriot capital currently operate in Kazakhstan, including around 30 registered with the Astana International Financial Centre, according to Tokayev. Kazakhstan is prepared to create favorable conditions for Cypriot businesses interested in entering its market, he added. Speaking at a Kazakhstan-Cyprus business forum following the presidential talks, Prime Minister Olzhas Bektenov said Cyprus had invested more than $5 billion in Kazakhstan since 2005, with nearly half of that amount invested during the past five years. Bektenov said both countries occupy strategic positions along trade routes linking Europe and Asia. He suggested Cyprus could serve as a regional logistics hub in the eastern Mediterranean, complementing Kazakhstan’s role as a transit gateway between China and Europe. He also highlighted new direct flights between Astana and Larnaca, which began on June 2, and Almaty and Larnaca, which began on June 4, saying the routes would improve passenger travel and cargo links. The visit also carries a wider diplomatic context as it coincided with the inauguration of Cyprus’s embassy in Astana, its first in Central Asia, and comes amid continued sensitivity in Turkey over the Cyprus issue. Ankara has denied reports that Foreign Minister Hakan Fidan canceled a planned visit to Kazakhstan because of Christodoulides’ trip. The episode follows Tokayev’s recent effort to describe the Organization of Turkic States as a forum for cooperation rather than a military alliance,...

Middle Corridor

Baku-Tbilisi-Kars Railway Boosts Kazakhstan’s Middle Corridor Role

The Baku-Tbilisi-Kars railway entered full-scale operation on June 2, a development expected to increase freight transport along the Trans-Caspian International Transport Route and support Kazakhstan’s role as a key transit hub between China and Europe. The railway is a joint strategic project of Azerbaijan, Georgia, and Turkey and serves as one of the main overland links connecting Central Asia with European markets through the South Caucasus. The 827-kilometer line has been operating at limited capacity since 2017. Full commercial operation became possible following the completion of rehabilitation and construction work on the Marabda-Kartsakhi section in Georgia. According to Georgia’s Ministry of Economy and Sustainable Development, the project included the construction and modernization of bridges, railway stations, overpasses, traction substations, a cross-border rail tunnel linking Georgia and Turkey, and upgrades to the Akhalkalaki International Railway Station, one of the corridor’s key logistics hubs. The completion of the project is expected to increase the railway’s annual cargo-handling capacity to 5 million metric tons, allowing it to accommodate growing freight volumes moving between Asia and Europe. “The full-scale operation of the Baku-Tbilisi-Kars railway is an important event not only for Georgia, Azerbaijan, and Turkey, but for the entire region and Central Asia,” Georgia’s Minister of Economy and Sustainable Development Mariam Kvrivishvili said during the inauguration ceremony. She described the railway as a critical transport link connecting Europe, Central Asia, and China. According to Kvrivishvili, container traffic through Georgia involving China and Kazakhstan increased by 33% in 2025, while the number of containers transported along the Baku-Tbilisi-Kars route was nearly six times higher than in the previous year. Kazakhstan was represented at the ceremony by Deputy Transport Minister Zhanibek Taizhanov, showing the strategic importance Astana places on the corridor. Authorities in Kazakhstan view the full launch of the Baku-Tbilisi-Kars railway as a significant step in developing the country’s transit potential and improving logistics links between China, Central Asia, the Caucasus, and Europe. The railway forms a key component of the Middle Corridor, which has gained increasing attention in recent years as governments and logistics companies seek alternatives to traditional Eurasian trade routes.

Data Centers

Financial Analyst Says Kazakhstan’s State Data Centers Are Priced Beyond Reach of Businesses

The cost of services offered by state-backed data centers in Kazakhstan is too high for many businesses, making overseas cloud providers a more economical alternative, financial analyst Rasul Rysmambetov said. His comments come as Kazakhstan invests heavily in digital infrastructure and artificial intelligence technologies. Last year, the country launched what authorities described as Central Asia’s most powerful supercomputer, saying its capacity would be made available to startups, universities, and private companies developing AI solutions. The government has also announced plans to create a Data Center Valley in the northeastern Pavlodar Region to support the digitalization of the economy. However, Rysmambetov argued that the pricing of state-supported data centers limits their appeal to the private sector. “A real digital economy is built on microservices, not giant buildings filled with computers,” Rysmambetov told the Atameken Business Forum. “Data centers depreciate at a tremendous pace. Today, state data centers in Kazakhstan charge prices so high that, as a financier, it is far cheaper and easier for me to buy cloud capacity directly in California.” Rysmambetov said that despite economic growth and rising foreign investment, many Kazakhstanis have yet to see significant improvements in living standards. In his view, the key challenge is not attracting investment but converting it into jobs and productive industries. He also argued that traditional investment incentives are losing effectiveness. “Tax breaks, subsidies, and state support measures no longer create a competitive advantage. Instead, they often generate a dangerous environment for corruption,” he said. “What matters today is the quality of institutions and the speed of decision-making.” According to Rysmambetov, Kazakhstan’s investor support system remains fragmented, with multiple agencies performing overlapping functions while coordination between central and regional authorities remains weak. As a result, some government directives are not implemented locally, requiring intervention by prosecutors to protect investors’ rights. Rysmambetov identified rare earth metals and tungsten as among the sectors attracting the greatest investor interest. However, he warned that Kazakhstan risks repeating the resource-dependent model that characterized its oil industry if it focuses primarily on exporting raw materials rather than developing domestic processing industries. “Foreign investors do not create growth, they join it,” he said. “Investors see a functioning economic model, recognize an opportunity, and participate in it. But if we ourselves do not believe in our development strategy, nobody from outside will come.” Kazakhstan aims to attract $62.7 billion in investment this year, including $25.5 billion from foreign investors, as part of its economic development strategy.