Kazakhstan Business & Economy - The Times Of Central Asia

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Automobile Industry

Kazakhstan’s Auto Industry Accelerates: Vehicle Output Up Nearly 37%

Vehicle production in Kazakhstan increased by 36.8% year-on-year in January-March 2026, according to data from the Kazakhstan Automobile Union (KAU). KAU reported that 45,260 units were produced in the first three months of the year, including passenger cars, trucks, trailers, and semi-trailers. In March alone, output reached 17,462 units, up 42.8% compared to the same month last year and 19.9% higher than in February. In value terms, total automotive output amounted to approximately $1.2 billion, representing a 27.5% increase year-on-year. The sector’s share of the overall machinery industry rose to 43.1%, up from 39.7% a year earlier. “Based on the results of the first three months, Kazakhstan’s auto industry is demonstrating steady growth,” said KAU President Anar Makasheva. “The continued strong performance in March confirms positive trends in the sector. Significant growth has also been recorded in the auto components segment: over three months, production of automotive parts and accessories reached 259.8 billion tenge, increasing fourfold compared to the same period last year. Manufacturers will continue to accelerate growth in this segment.” Passenger cars continue to account for the largest share of output. During the reporting period, 42,115 units were produced, up 37.9% year-on-year. Truck production reached 1,380 units (+16.7%), buses totaled 750 units (+73.2%), and trailers and semi-trailers reached 904 units (+21%). Output of special-purpose vehicles declined to 111 units. The Kostanay-based Allur plant remained the industry leader, producing 14,234 vehicles. Astana Motors Manufacturing Kazakhstan in Almaty produced 12,778 units, while Hyundai Trans Kazakhstan manufactured 10,755 vehicles. The Kia Qazaqstan plant produced 4,640 units. Other manufacturers include QazTehna (806 units), SemAZ (627 trucks), Hyundai Trans Almaty (196 units), Daewoo Bus Kazakhstan (148 units), and KAMAZ-Engineering (135 units). Among the most popular brands produced in Kazakhstan were Hyundai (10,725 vehicles), Chevrolet (8,341), Kia (5,084), Changan (4,102), Haval (4,099), Chery (3,744), Jetour (2,250), Geely Galaxy (1,388), JAC (979), and Tank (833). The increase in output continues last year’s trend, when Kazakhstan set a record by producing more than 171,000 vehicles in 2025.

Agriculture

Kazakhstan and China’s Snow Valley Agree to Build $100-200 Million Potato Processing Complex

The administration of Kazakhstan’s Pavlodar region has signed a memorandum of cooperation with China’s Snow Valley Agricultural Group Co. Ltd. to implement a major investment project focused on potato processing, regional authorities have announced. The document outlines plans to establish a modern agro-industrial complex with an annual processing capacity of between 100,000 and 200,000 tonnes. The agreement was signed by regional governor Asain Baikhanov and representatives of the Chinese side, Wang Dengshe and Zhang Fan. The project is aimed at producing high value-added products. It includes the construction of a research and breeding center for potato cultivation and seed production, the launch of French fries manufacturing, and the development of storage, logistics, and distribution infrastructure. Total investment is estimated at between $100 million and $200 million. Regional authorities expect the project to create a full production and supply chain, reduce the shortage of deep-processing capacity in agriculture, and generate new jobs. “The regional administration is ready to support initiatives aimed at creating high-tech, high value-added production,” Baikhanov said. Founded in 2007 in Zhangjiakou, China, Snow Valley is a vertically integrated agro-industrial holding covering the entire production cycle from potato breeding and cultivation to deep processing. The company processes more than 800,000 tonnes of raw materials annually, including over 400,000 tonnes of frozen products. Its total storage capacity reaches 700,000 tonnes. The company is also engaged in breeding programs and has developed more than 80 potato varieties. Its production utilizes advanced technologies, including pulsed electric field (PEF) systems, which improve product quality and reduce oil consumption. Snow Valley exports its products to more than 40 countries. Following the visit, Chairman Wang Dengshe highlighted the strong potential of Pavlodar region and confirmed the company’s interest in long-term cooperation. “The Chinese company has confirmed its readiness to implement the project using modern technologies and local resources, while the regional administration has pledged comprehensive support, including infrastructure development, provision of resource bases, and administrative assistance,” the regional press service said. The project comes amid previous restrictions on potato exports. Kazakhstan earlier introduced a temporary ban on shipments outside the Eurasian Economic Union (EAEU) due to rising domestic prices. In autumn 2025, authorities also did not rule out reinstating such measures, although the market currently remains stable.

Foreign Investment

Kazakhstan Finance Day in New York Showcases Market Reform, IPO Ambitions, and Alatau City Pitch

At Kazakhstan Finance Day in New York, officials and executives used the panel “Investment Opportunities in Kazakhstan” to present the country as entering a new phase of market development, citing macroeconomic stability, capital-market reform, potential initial and secondary public offerings, and infrastructure tied to the Alatau City project. The panel session was held at Citigroup headquarters in Manhattan and was moderated by Stephanie von Friedeburg, global head of Citi’s Public Sector Group. Speakers included Timur Suleimenov, governor of the National Bank of Kazakhstan; Adil Mukhamejanov, chairperson of the management board of the Kazakhstan Stock Exchange (KASE); Zhandos Shaikhy, deputy chairman of the management board of Baiterek National Managing Holding; Aidar Ryskulov, managing director for economics and finance at Samruk-Kazyna; and Bayan Konirbayev, deputy CEO and chief digital officer of the Alatau City Authority. Opening the event, von Friedeburg noted that the forum’s return to Citigroup headquarters for a third time reflected the continued engagement between Kazakhstan and U.S. investors. Kazakhstan’s ambassador to the United States, Magzhan Ilyassov, linked the event to growth in bilateral economic ties, citing more than $17 billion in commercial agreements signed during President Kassym-Jomart Tokayev’s November 2025 visit to Washington, and adding that further agreements were under consideration. The first financial presentation came from Suleimenov, who reported that Kazakhstan’s economy grew 6.5% in 2025, inflation had eased to 11%, and the National Bank remained committed to returning inflation to its 5% target. He framed the country’s investment case around tighter macroeconomic coordination, fiscal discipline, and financial-sector development. “We’re also exploring the development of a national crypto reserve framework, where digital assets will gradually be accumulated and managed as part of a sovereign reserve diversification strategy,” Suleimenov explained. He also pointed to continued work on the digital tenge and national digital financial infrastructure. Suleimenov connected that financial agenda to the investment case, arguing that Kazakhstan was reducing its structural dependence on oil revenue and moving ahead with legal and tax changes aimed at improving the investment climate. He described the Middle Corridor as increasingly important and called the route through Kazakhstan, the Caspian, and the Caucasus “the only viable, reliable route” between the East and West. [caption id="attachment_47460" align="aligncenter" width="1258"] Kazakhstan Finance Day in New York; image: K. Krombie[/caption] The discussion then moved to Samruk-Kazyna’s finances and privatization plans. Aidar Ryskulov put the fund’s assets under management at $88 billion and EBITDA at $10.8 billion. He indicated that the fund intended to remain active in international debt markets this year. Ryskulov stated that Samruk-Kazyna was targeting a public-market transaction this year, with London, Hong Kong, and Astana under consideration, although timing would depend on macroeconomic conditions. He later pointed to IPO plans for the national railway company, Kazakhstan Temir Zholy (KTZ). "Our capacity is roughly 55 million tons, and we’re going to double this capacity in five to seven years,” he said. Ryskulov also characterized Kazatomprom as “one of the best assets” and presented it as undervalued and a high-dividend company. Zhandos Shaikhy focused on Baiterek’s scale and...

Nuclear Power Plant

Kazakhstan Plans to Build at Least Three Nuclear Power Plants by 2050

Kazakhstan plans to build at least three nuclear power plants (NPPs) by 2050, with implementation of the first project already underway, the country’s Atomic Energy Agency has said. The nuclear energy development strategy aims to ensure energy security, support sustainable economic growth, and meet international climate commitments, while fostering high-tech industries and strengthening Kazakhstan’s position in the global nuclear sector. “According to the Strategy, by 2050, at least three nuclear power plants will be operating in the Republic of Kazakhstan. The first NPP project is already being implemented, construction of the second is under consideration, and for the third NPP, the potential use of small modular reactor technologies is being explored,” the agency said. In addition to plant construction, the strategy provides for the rational use of uranium resources, localization of equipment and nuclear fuel production, and the development of national industrial capacity. Particular attention is being given to advancing nuclear science and applied technologies, creating a modern scientific and technological base, and establishing a system for training qualified personnel. The document also outlines measures for the safe management of radioactive waste and spent nuclear fuel to minimize environmental risks. Plans include the introduction of digital solutions and ensuring a high level of information security at nuclear facilities. “The implementation of the Strategy will enable the creation of a modern and sustainable nuclear cluster in Kazakhstan, integrated into the global nuclear ecosystem,” the agency said. A Center of Competence for NPP construction will be established on the basis of Kazakhstan Nuclear Power Plants. This entity will serve as a project office, general contractor, and holder of state equity stakes in future plants. In the longer term, the country plans to create a specialized nuclear energy holding company that will unite project and operating organizations in the sector. According to expert estimates, construction of a single nuclear power plant will require up to 10,000 workers, including more than 3,000 technical specialists. “In this regard, active work is underway to update technical and vocational education programs,” the agency said. “Particular attention is being paid to training specialists such as turbine equipment operators, electricians, NPP equipment installers, and technicians responsible for plant operation and safety.” Programs for applied bachelor’s degrees in nuclear energy are also being developed, along with new specialties, including reactor equipment operators. The first plant will use Generation III+ reactors, which feature enhanced reliability and modern safety systems, including passive protection mechanisms capable of operating without human intervention or external power supply. According to the agency, the project incorporates international experience, including lessons learned from the Fukushima Daiichi nuclear accident in Japan, and includes measures to prevent radioactive releases even in severe emergencies. Contracts for the construction of the second and third NPPs have been awarded to China National Nuclear Corporation, while the first plant will be built by Russia’s state corporation Rosatom. The site for the first plant is located in the village of Ulken in the Almaty region, on the shores of Lake Balkhash, approximately 400 km northwest...

Digital Economy

Kazakhstan Aims to Boost IT Services Exports to $5 Billion by 2030

Kazakhstan plans to increase its IT services exports nearly fivefold, to $5 billion by 2030, officials and industry participants said at a roundtable focused on positioning the country as a regional hub for international tech talent and digital nomads. According to official data, Kazakhstan exported IT services worth $471 million to 95 countries in the first nine months of 2025. In the final quarter of the year, that figure more than doubled, reaching $1.142 billion as of January 1, 2026. Export revenues also exceeded spending on imported digital solutions by more than 2.6 times, with imports totaling $429 million. The new export target is expected to be supported by workforce expansion and talent attraction initiatives. Representatives of Astana Hub said the country plans to train 10,000 specialists in AI by 2030. At the same time, Kazakhstan is promoting its Digital Nomad Residency program, launched in January 2025, aimed at attracting foreign IT professionals. To date, more than 700 applications from 30 countries have been submitted under the program, with over 120 specialists granted residency status. “Human capital development is the foundation on which Kazakhstan’s growth as a digital hub is built,” said Deputy Prime Minister and Minister for Artificial Intelligence and Digital Development Zhaslan Madiyev. “We aim to make the Digital Nomad process fully digital, transparent, fast, and convenient. The arrival of highly qualified professionals is not just a statistic, it brings international experience, new competencies, and links to global markets. Our goal is to create conditions where talented IT professionals can realize their potential here and contribute to Kazakhstan’s economy.” Participants at the roundtable, including engineers and analysts from international companies, also shared their relocation experiences and proposed improvements to digital services. Following the meeting, stakeholders agreed to continue work through a permanent working group to better adapt the program to the needs of the IT community. As previously reported by The Times of Central Asia, President Kassym-Jomart Tokayev proposed establishing a regional center for cooperation with Japan in digital transformation and artificial intelligence in Astana.

U.S.-Kazakhstan Relations

Kazakhstan Central Bank Chief Eyes Deeper U.S. Investment Links

Addressing senior executives from more than a dozen Fortune 100 companies active in Kazakhstan at a U.S. Chamber of Commerce-hosted event in Washington, D.C., on April 14, Timur Suleimenov, Governor of the National Bank of Kazakhstan, laid out the country’s economic outlook and later spoke with The Times of Central Asia on a range of related issues. He was accompanied by Erzhan Kazykhan, President Kassym-Jomart Tokayev’s Special Representative for Negotiations with the United States, Deputy Foreign Minister Alibek Kuantyrov, and Kazakhstan’s Ambassador to the United States, Magzhan Ilyassov. [caption id="attachment_47306" align="aligncenter" width="1536"] Timur Suleimenov, Governor of the National Bank of Kazakhstan, with Javier Piedra[/caption] Kazakhstan’s U.S. Financial Stakes Amid Growth and Inflation Suleimenov offered a compelling case for Kazakhstan’s economy, citing steady growth, higher investment flows, and a deepening consumer market. Kazakhstan’s economy expanded 6.5% in 2025, marking a third straight year of growth above 5%. GDP per capita surpassed $15,000 – compared to approximately $3,162 in Uzbekistan and about $2,420 in Kyrgyzstan. Fixed-income investments rose 15% year-on-year, and foreign direct investment climbed to 20.5% (from 14.5%), broadening beyond oil. Suleimenov emphasized the Central Bank’s strong stewardship, citing a new tax and budget code to enhance fiscal discipline and monetary policy that supports investment, stressing that, “We will deal with inflation pressures and external shocks simultaneously while managing cryptocurrencies and private digital payments systems, which can weaken central bank control over money and policy transmission. The markets suggest that we have been doing an excellent job in a complex environment.” The government, Suleimenov said, is on track to consolidate the budget, with the deficit projected at 2.5% this year, 1.7% next year, and 0.9% by 2028, adding that this will strengthen fiscal-monetary coordination, and noting Kazakhstan’s debt-to-GDP ratio of 24% remains low compared with countries such as the United States (125%), Japan (230%), Italy (137%). As inflation declined to 11% in March 2026 from 11.7% the previous month, Suleimenov reassured TCA that officials regard it as transitory, saying that “inflation was driven by resilient domestic demand backed by fiscal and quasi-fiscal stimulation, external price pressures (Russian inflation, global food prices), increasing regulated prices (utilities and fuel), and tax reform (a VAT increase from 12% to 16%), with volatile and elevated inflation expectations. For these reasons, we responded with rate hikes and liquidity tightening, bringing inflation down to about 11%, with a further easing expected to single digits by the end of this year.” Suleimenov reaffirmed that “the United States is integral to Kazakhstan’s financial system and long-term asset strategy.” He noted that Kazakhstan manages approximately $190 billion in long-term assets, including some $75 billion in National Bank reserves, $60 billion in the National Fund, and $55 billion in the unified pension fund. Around one-third of these assets are invested in U.S. securities, while roughly $50 billion is managed by American firms, underscoring deep financial ties beyond industrial investment. TCA asked how U.S. sanctions and export controls affect Kazakhstan, a concern that was especially acute in the initial stages of the Russo-Ukrainian...