Kazakhstan Adds Over 4,000 New IT Companies in Two Years Amid Tech Boom

Kazakhstan’s IT sector has seen rapid expansion, with the number of registered IT companies surpassing 18,600 by the end of 2024, a 16% increase over three years, according to the Ministry of Digital Development, Innovations and Aerospace Industry (MDDIAI). In 2022, the country had around 14,000 IT firms. The surge is attributed in large part to the development of the Astana Hub international technopark, which now hosts more than 1,700 resident companies. Kazakhstan has also launched 19 regional IT hubs and established international platforms in Saudi Arabia, the United States, the United Kingdom, Dubai, and China. Astana Hub, Central Asia’s largest IT startup technopark, has attracted over 336 billion tenge ($624 million) in investments since its launch in 2018. This growth has been supported by state tax incentives totaling 130 billion tenge ($241 million). In 2024, Astana Hub residents generated 620 billion tenge ($1.33 billion) in revenue, accounting for more than half of Kazakhstan’s total IT sector revenue, which reached 1.2 trillion tenge ($2.2 billion). Export earnings contributed 140 billion tenge ($260 million). Looking ahead, the government aims to raise IT service exports to $1 billion by 2026. Support programs include AI’preneurs and the Silk Way Accelerator, which is operated in partnership with Google. More than 40 Kazakhstani startups have taken part in accelerator programs in Silicon Valley through collaborations with AlchemistX, Draper University, and the Silkroad Innovation Hub. The Tech Orda initiative aims to train 100,000 IT professionals by 2025. In parallel, the AI Qyzmet program, the first of its kind in Central Eurasia, focuses on equipping civil servants with skills in artificial intelligence to modernize public administration. Kazakhstan is also building out a national AI ecosystem. The Alem.AI International Center for Artificial Intelligence will offer research and training opportunities, while AlemLLM, the country’s largest Kazakh-language large language model, is now available to startups, academic institutions, and private companies. In July, Kazakhstan launched alem.cloud, Central Asia’s most powerful supercomputer cluster, designed to support AI development and deployment.

Kazakhstan to Establish Unified Innovation Cluster

Kazakhstan is set to create a unified national innovation cluster by merging two of its key technological institutions: the International Technopark of IT Startups, Astana Hub, and the Park of Innovative Technologies fund, also known as Tech Garden. The merger bill has passed its first reading in parliament. Officials say the initiative is aimed at accelerating the development of Kazakhstan’s digital economy and enhancing its global competitiveness. Merging Platforms for Greater Synergy Astana Hub is currently Kazakhstan’s largest platform supporting IT entrepreneurs, offering tax incentives and accelerator programs. In contrast, Tech Garden is funded through mandatory contributions from subsoil users, 1% of their income, to support digital innovation in the industrial sector. According to Member of Parliament Aituar Koshmambetov, the integration of these two entities will create powerful synergies. “We’re combining infrastructure, finances, experts, mentors, support programs, and market access opportunities,” Koshmambetov said. A Digital Marketplace for Innovation At the heart of the merged structure will be a digital platform designed to link science, business, government, and startups. “It will function as a marketplace for challenges and solutions. Residents can see where subsoil users’ contributions are being directed and propose technologies to meet those needs,” explained Minister of Digital Development Zhaslan Madiev. Another component of the initiative is the expansion of the Single Window of the National Innovation System (SW NIS), which allows IT companies and scientists to directly access the development needs of industrial firms. The platform is already operating in pilot mode at astana-hub.com. Expanded Benefits for Residents Post-merger, participants from both institutions will retain all existing benefits. Tech Garden residents will gain access to Astana Hub’s startup acceleration programs, while Astana Hub startups will have new opportunities to secure contracts from major industrial players. Officials also hope the consolidated cluster will attract greater interest from international corporations. Kazakhstan already collaborates with major tech players like Indrive and Google, and negotiations are ongoing with Telegram. “Kazakhstan has the unique advantage of being able to engage comfortably with China, the U.S., and Russia,” Koshmambetov noted. “That’s a strategic asset we should fully leverage.” Economic Impact and Future Prospects Data from 2024 show that every 1 Kazakhstani tenge (KZT) invested in Astana Hub yields: 3 KZT ($0.0060) in private investment 14 KZT ($0.028) in resident company revenue 3 KZT ($0.0060) in export earnings A trade surplus 4.6 times the input Notable successes include a Kazakh-developed game generating $18 million in annual revenue, a smart scooter management system used in 20 global cities, and Higgsfield AI, a startup ranked among Google’s global top 20. Strategic Focus on Artificial Intelligence President Kassym-Jomart Tokayev has repeatedly emphasized the importance of digital transformation and artificial intelligence (AI) in national development. “The development of artificial intelligence must be accelerated and integrated into public services and Smart City projects,” Tokayev said during a recent government meeting. Prime Minister Olzhas Bektenov has also highlighted the practical use of AI in sectors such as ecology, social protection, and industry. He has instructed ministries to digitalize systems for managing...