Kazakhstan looking for investors in Defense Industry Development Fund

ASTANA (TCA) — The Ministry of Defense and Aerospace Industries of Kazakhstan has proposed creating of a Defense Industry Development Fund to develop the enterprises of the defense industry sector. The Ministry needs investors to create the Fund, the Atameken National Chamber of Entrepreneurs of Kazakhstan reported.

“Currently, the lack of a serious systemic approach to financing the defense industry enterprises as a whole hampers its development and improvement. The existing business support tools in the country do not cover the development of enterprises of the defense industry complex,” the ministry said.

The proposed Fund is expected to implement the following tasks: increase the competitiveness, market value and profitability of defense industry enterprises; stimulate the development and introduction into the defense industry of results of scientific and technological activity, innovative processes and technologies; participation in attracting investments into Kazakhstan’s defense industry; implementation of investment projects in the defense industry; participation in the modernization and diversification of domestic enterprises of the defense industry complex; assistance in the creation of laboratories, scientific centers, technological parks in the defense industry; and export support of the industry’s enterprises.

The Fund will have more than fifty percent of shares (interest in the authorized capital) owned by the state, and will be a public-private partnership.

Sergey Kwan