Kazakhstan Business & Economy - The Times Of Central Asia

Viewing results 13 - 18 of 889

Kazakhstan Invests in Science, But Economic Impact Remains Low

Over the past five years, Kazakhstan has nearly tripled its research and development (R&D) spending, reaching $430 million in 2024. Despite this, science's contribution to the national economy remains minimal, just 0.16% of GDP. This figure is among the lowest for countries striving toward technological advancement, according to analysts at Ranking.kz. Almaty: Kazakhstan’s Scientific Hub Nearly half of last year’s R&D spending was concentrated in Almaty, which accounted for 43.1% of total investment, equivalent to $186 million. Astana followed with 20.4% ($88 million), while other regions lagged significantly. In the Ulytau region, for instance, only $67,000 was allocated to scientific endeavors. Almaty retains its status as the country’s scientific capital thanks to its concentration of research institutions. Of the 423 organizations engaged in R&D nationwide, 142 are based in the city. Almaty hosts major institutions such as the National Academy of Sciences, the Fesenkov Astrophysical Institute, the Institute of Seismology, and the Kazakh Institute of Oncology. Human Capital and Scientist Salaries Kazakhstan’s researchers are the backbone of its scientific sector. In 2024, spending on salaries for scientific personnel rose to $226 million, marking a 32.1% increase. Almaty employed 10,600 of the country’s 27,100 researchers, representing 39.2% of the national total. This figure has grown by 20% over the past five years. A key metric of scientific engagement is the number of researchers per 10,000 employed persons. In OECD countries, this figure ranges from 40 to 238. In Kazakhstan, it stands at just 23.7. Almaty leads domestically with 83.2 researchers per 10,000 employed, underscoring its pivotal role. State Dependency and Business Apathy One of the major challenges facing Kazakh science is its overwhelming dependence on public funding. More than 77% of research financing in Kazakhstan comes from the state; in Almaty, this figure is 87.5%. In contrast, government contributions in developed countries average around 40%. This imbalance limits commercialization potential, dampens private sector interest, and constrains technological progress. As noted in a national report on science, “knowledge and innovation in Kazakhstan are separated from the economy. The state’s task is to ensure that R&D results are incorporated into the real sector, to create demand for research, and to stimulate private investment in science”. Alatau: A New Frontier for Scientific Growth One proposed solution lies in the development of Alatau, a newly emerging scientific and innovation hub. Plans are underway to build a "science city" equipped with facilities for start-ups, technology parks, and manufacturing based on R&D. The area will form part of a special economic zone offering tax incentives and large-scale investment opportunities. Combining Almaty's intellectual capital with Alatau’s potential could catalyze the development of a knowledge-based economy and position Kazakhstan competitively in the global technology race.

Home Business & Economy Kazakhstan Kazakhstan Business & Economy

Kazakh Women Increasingly Turn to IT Careers, but Face Persistent Pay Gaps

In Kazakhstan, a growing number of women are entering the IT sector, yet their salaries continue to lag behind those of their male counterparts. Women in STEM: Statistics and Trends According to a study by Ranking.kz, the number of female students enrolled in IT disciplines has more than tripled between 2019 and 2024. At the start of the 2019/2020 academic year, only 4,500 women were studying IT at universities across the country. By 2024, that number had surged to 15,300. Interest in information security has been particularly strong, with female enrolment rising 5.8-fold over this period. Despite this growth, the proportion of women among all IT students has actually declined, from 31.7% in 2019 to 24% in 2024. This shift reflects a sharp increase in male enrolment, which has skewed the overall gender balance. Women in Kazakhstan are also showing increasing interest in STEM (science, technology, engineering, and mathematics) more broadly. In the most recent academic year, they made up the majority in several scientific disciplines. In physical and chemical sciences, women represented 75% of all students, growing 6.2 times to reach 7,100. In mathematics and statistics, 61.7% of students were women. Labor Market Disparities On the employment front, progress has been less marked. From 2019 to 2024, the share of women working in the information and communications sector remained steady at around 42%. In absolute numbers, female employment in the sector rose from 68,000 to 79,100, a 16.3% increase over five years. Nearly half of these women (35,500) work in Kazakhstan’s two largest cities, Almaty and Astana, reflecting the concentration of IT firms and economic activity in these hubs. However, some regions show stronger female representation: in the Aktobe region, women account for 71.1% of information and communications sector employees; in the Kyzylorda region, the figure stands at 56.9%. The scientific research landscape has also evolved. The number of women in research and development (R&D) increased by 43.6% over the past five years, reaching 12,900. Of these, 2,600 are in engineering and 3,600 in the natural sciences. Gender parity has nearly been achieved in these fields: women constitute 45.4% of engineering researchers and 54.3% in the natural sciences. Gender Pay Gap Persists High wages remain a key draw to the IT sector. In 2024, the average monthly salary in IT stood at $1,395, nearly double the national average of $790. Yet, a significant gender pay gap persists: on average, men in ICT earn 45.4% more than women. For instance, in the field of computer programming, male professionals earn an average of $1,930, compared to $1,327 for women. Global Context and Local Barriers Kazakhstan is not unique in facing gender inequality in IT. Globally, as of 2024, 70% of men and 65% of women had internet access. The United Nations has called for equal opportunities in digital education and careers across genders. In Kazakhstan, the gender gap in internet access is minimal, 96.6% for men and 95.9% for women aged 16-74, but entrenched social stereotypes and cultural norms still hinder...

Central Asia Business & Economy Kazakhstan Kazakhstan Business & Economy

Kazakhstan Establishes New Special Economic Zone in Kyzylorda Region

Kazakhstan has launched a new special economic zone (SEZ) named "Korkyt Ata", located in the Kyzylorda region. Spanning 550 hectares, the SEZ is strategically positioned near the international transport corridor Western Europe-Western China, enhancing its potential as a hub for industrial growth and regional trade. According to the project’s developers, the SEZ aims to foster competitive industrial production, attract both domestic and foreign investment, and facilitate the introduction of advanced technologies. Its proximity to the major transport artery is expected to improve access to Central Asian markets and beyond. Korkyt Ata will operate under a special legal regime offering tax and customs incentives to investors. By 2049, it is projected to attract over 150 billion KZT ($290 million) in investment, including 80 billion KZT ($155 million) in foreign capital. Currently, Kazakhstan hosts 15 special economic zones, each with distinct industrial priorities. These include the Aktau Seaport SEZ, strategically located along the Trans-Caspian International Transport Route (TITR), also known as the Middle Corridor, which connects China to Europe through Kazakhstan. Additionally, two key SEZs are positioned along the Kazakh-Chinese border: Khorgos International Center for Border Cooperation (ICBC), facilitating cross-border trade and joint ventures; Khorgos-Eastern Gate SEZ, a logistics hub featuring industrial complexes and a dry port that links China with Central Asia and the Middle East. The establishment of Korkyt Ata underscores Kazakhstan’s ongoing strategy to strengthen its economic infrastructure through diversified SEZs. By leveraging its geographic advantages and investor-friendly policies, the country aims to solidify its role as a vital link in Eurasian trade and industrial networks.

Uncategorized

Kazakhstan Unveils Central Asia’s Most Powerful Supercomputer

Kazakhstan has taken a major step in its digital transformation with the arrival of the most powerful supercomputer in Central Asia. The system, boasting a performance of approximately 2 exaflops, was delivered as part of a strategic agreement between the Ministry of Digital Development, Innovation, and Aerospace Industry (MDDIA) and Presight AI Ltd, an ADX-listed public limited company whose majority shareholder is Abu Dhabi company G42. This milestone follows an agreement signed in February 2024 to construct a supercomputer and a dedicated data center. The latest development includes the creation of a full-scale supercomputing cluster that will be installed in a state-of-the-art Tier III data center. The facility ensures high availability through dual data redundancy, independent power supplies, and the capability to upgrade equipment without interrupting operations. The new supercomputer is powered by the latest NVIDIA H200 graphics chips, optimized for artificial intelligence and high-performance computing. With a capacity of 2 exaflops, equivalent to a billion billion (10¹⁸) floating point operations per second, the system is expected to significantly bolster Kazakhstan’s digital infrastructure and AI capabilities. According to the MDDIA, the supercomputer is intended to benefit a wide range of users, not just a narrow group of specialists. “The supercomputer’s resources will be accessible to all: startups developing neural networks, universities conducting fundamental and applied research, scientific institutions, and businesses integrating AI into their operations,” the ministry stated. The project aligns with Kazakhstan’s broader digital strategy and its ambitions to become a regional technology hub. It also reflects deepening economic ties with the United Arab Emirates. As previously reported by The Times of Central Asia, during the official visit of Crown Prince Sheikh Khalid bin Mohammed bin Zayed Al Nahyan to Kazakhstan, the two countries signed over 20 commercial agreements worth approximately US$5 billion.

Environment Kazakhstan Environment Kazakhstan Kazakhstan Business & Economy

Kazakhstan and World Bank Launch Second Phase to Revive Northern Aral Sea

In partnership with the World Bank, the Ministry of Water Resources and Irrigation of Kazakhstan has launched the second phase of a long-term initiative to restore the Northern Aral Sea. This stage aims to revive the region’s ecosystem and enhance the quality of life for local communities. Feasibility Study Underway Key objectives of this phase include reconstructing the Kokaral Dam and raising the sea level to 44 meters, measured using the Baltic height system. Plans also call for constructing a water control facility near the village of Amanotkel, designed to regulate water distribution within the Akshatau and Kamystybas lake systems in Kyzylorda Region’s Aral District. A technical feasibility study is expected to be completed by December 2025. Once implemented, these measures are projected to expand the Northern Aral Sea’s surface area to 3,913 square kilometers, increasing its total water volume to 34 cubic kilometers. The full refill process is anticipated to take four to five years, based on hydrological data from the Syr Darya River basin covering the period 1913-2019. Strategic Decisions on Dam Reconstruction The current conservation strategy was finalized following consultations with local authorities and water management experts. Minister of Water Resources and Irrigation Nurzhan Nurzhigitov stated that the plan reflects the region’s actual hydrological conditions and was selected for its balance of timeliness and efficacy. “We evaluated multiple implementation options. Discussions with residents and industry veterans helped guide our decision. The final plan was deemed optimal after all relevant factors were considered,” Nurzhigitov said. Sameh Wahba, the World Bank’s Regional Director for Europe and Central Asia, underscored the project’s ecological and economic significance. He confirmed that the World Bank not only funded the feasibility study but remains committed to supporting the project through its next stages. According to Wahba, the initiative is expected to create jobs and stimulate sectors such as fisheries, agriculture, and tourism. Progress Achieved in the First Phase The first phase of the rescue effort has already delivered tangible benefits. Water volume in the Northern Aral Sea has risen by 42%, reaching 27 billion cubic meters, while salinity has dropped nearly fourfold. Annual fish yields have climbed to 8,000 tons. In 2024 alone, a record 2.6 billion cubic meters of water were channeled into the sea, with 1 billion cubic meters allocated for irrigation. Beyond water volume and quality, the project aims to revitalize the Syr Darya River delta, curb salt deposition, and bolster the fishing industry. Employment opportunities and improved living conditions for local populations are also key targets. Long-Term Threats to Water Security The sustainability of these efforts may be challenged by regional developments. During the international conference “Water Security and Transboundary Water Use: Challenges and Solutions” in Astana, Kazakhstan’s Deputy Minister of Water Resources and Irrigation, Aslan Abdraimov, warned of the potential impact of Afghanistan’s Kosh-Tepa Canal on Central Asian water systems. Despite the absence of a direct border between Kazakhstan and Afghanistan, Abdraimov stated that the canal could eventually reduce the flow of the Syr Darya River. “No sharp fluctuations...

Uncategorized

Kazakhstan’s Crypto Aspirations Face a Power Problem

Kazakhstan’s First Deputy Minister of Digital Development, Innovation, and Aerospace Industry, Kanysh Tuleushin, believes that state-regulated cryptocurrency mining could generate substantial revenue and help modernize the country's energy infrastructure. Tuleushin argues that Kazakhstan has the potential to become Central Asia’s leading blockchain hub. However, this vision clashes with the country’s ongoing energy crisis, which continues to impact households and businesses. Optimistic Vision In an article published in the state newspaper Kazakhstanskaya Pravda, Tuleushin outlined how mining operations could contribute to the development of Kazakhstan’s power generation capabilities. He emphasized the use of associated petroleum gas (APG) to produce electricity for mining, which he claims would reduce carbon emissions and boost oil sector profits. “Miners can help modernize the power grid. In the U.S., they participate in grid balancing by consuming excess energy during low-demand periods. Kazakhstan already has a ‘70⁄30’ initiative, where foreign investors upgrade thermal power plants, allocating 70% of new capacity to the general grid and 30% to miners,” Tuleushin wrote. Tuleushin reported that cryptocurrency mining has brought 17.7 billion tenge to the national budget over the past three years. Meanwhile, trading volume on the Astana International Financial Center (AIFC) exchanges increased from $324.2 million in 2023 to $1.4 billion in 2024. From January 1, 2025, miners will be required to sell 75% of their assets through the AIFC. Despite a generally cautious regulatory stance, Kazakhstan permits digital asset trading within the AIFC. Digital assets are categorized as secured (linked to physical assets) or unsecured (such as Bitcoin and Ethereum). In 2023, digital asset transactions in Kazakhstan reached $4.1 billion, but 91.5% occurred in the “gray zone,” beyond state oversight. In 2024 alone, the Financial Monitoring Agency shut down 36 illegal crypto exchanges, froze $4.8 million in assets, and blocked over 3,500 illicit platforms. Tuleushin argues that fully legalizing and regulating these operations could add more than 190 billion tenge annually to the budget, enough to fund major public infrastructure such as schools and hospitals. He proposes extending crypto trading beyond the AIFC, authorizing crypto ATMs, and opening the market to major players, an approach akin to that of the UAE. Tuleushin also claimed that regions like Pavlodar and Karaganda have electricity surpluses and that Kazakhstan's cold climate further lowers operational costs for miners. Unchecked Consumption and Mounting Strain Despite the deputy minister's optimism, Kazakhstan’s Supreme Audit Chamber (SAC) has raised alarms over uncontrolled energy consumption by miners. According to a 2024 audit, miners consumed 901 million kWh worth 13 billion tenge, despite a national energy shortage, by bypassing RFZ LLP, the country’s sole energy purchaser. Former Prime Minister and current head of the Supreme Audit Chamber, Alikhan Smailov, warned, “Miners are consuming up to a billion kilowatt-hours. This is damaging our economy. How can we allow unchecked consumption amid such a crisis?” The audit revealed systemic issues, including deteriorating Soviet-era power plants (55% average wear), a 4,500-worker shortfall in the energy sector, and a lack of financial oversight by the Ministry of Energy. Looming Crisis In January...