Capital Markets - The Times Of Central Asia

Viewing results 1 - 6 of 12

Capital Markets

Kazakhstan Capital Market Law Set for Major Overhaul

Kazakhstan is preparing to rewrite the rules governing its securities market for the first time in more than two decades. The draft Capital Market Law aims to make it easier for businesses to raise money on the stock market while strengthening protections for investors. The new law is intended to replace the Securities Market Law adopted in 2003. The draft was published for public discussion in September 2026. Kazakhstan’s stock market has expanded significantly in recent years. As of July 31, equity market capitalization on the Kazakhstan Stock Exchange (KASE) stood at KZT 47.7 trillion, or about $100.5 billion, while corporate debt in circulation had reached KZT 16.8 trillion, or about $35 billion. Despite that growth, state-owned and quasi-state companies and banks remain the main borrowers in the bond market. Private businesses rarely raise money through the exchange, while turnover in already-issued shares remains low. A Law That Grew Along With the Market Over more than two decades, the Securities Market Law has been amended by more than 60 legislative acts. The regulatory framework was built around individual financial products and procedures, and the regulatory policy consultation paper underpinning the reform proposes changing more than half of the existing provisions. Rather than introduce another large package of amendments, the authorities have decided to replace the law. More technical rules would instead be set out in secondary legislation, allowing them to be adjusted without going through the full legislative process. SMEs, the Exchange, and the Liquidity Shortage One of the main aims of the reform is to make the market more accessible to smaller businesses. Around 90% of financing for small and medium-sized businesses in Kazakhstan is linked to the banking sector, according to reform documents citing the Damu Entrepreneurship Development Fund. KASE sought to make the market more accessible to smaller companies as early as 2017 by introducing less stringent listing conditions. But while the exchange could change its own requirements, it could not simplify the state procedures governing securities issuance. A company seeking to sell shares or bonds must prepare legal and financial documentation, register the issue, and comply with disclosure requirements. For a small business, the cost of lawyers, auditors, and other advisers can be disproportionate to the amount it hopes to raise. The draft would therefore allow a separate category for SMEs with simplified listing, delisting, and disclosure rules. Smaller issuers would also be able to use an abbreviated securities prospectus, the document setting out financial information about the company, the terms of the offering, and the risks. Companies making repeat issues would no longer have to prepare the entire set of documents from scratch. Registration is also expected to be digitized and transferred from the Agency for Regulation and Development of the Financial Market (ARDFM) to the Central Securities Depository, which maintains records of securities ownership. The limited role of private companies is also visible in the bond market. At the end of 2025, outstanding corporate debt totaled KZT 16.2 trillion, or about $34 billion. According...

Astana Finance Days 2026

Astana Finance Days: Rewiring Finance at Institutional Scale – The Case for Deeper Financial Markets

Kazakhstan needs deeper financial markets and a system less dependent on banks, senior financial officials told Astana Finance Days on September 9, 2026. Speakers at the Astana International Financial Centre (AIFC) explored how digital finance could support that shift during the plenary session, "Innovation at Institutional Scale: Rewiring the Architecture of Finance." The turnout was standing-room only. Over the next fifty minutes, the panelists discussed Kazakhstan’s ambitions as a financial hub and the conditions needed to advance them. Moderator Sallianne Taylor, Bloomberg's EMEA Head of Government Relations, opened by asking what is fundamentally changing in the architecture of global finance, and what it means for Kazakhstan. There were five panelists: Timur Suleimenov, Governor of the National Bank of Kazakhstan; Renat Bekturov, Governor of the AIFC; Timur Turlov, Chief Executive of Freedom Holding Corp.; Sergio Mello, Global Head of Stablecoin Solutions at Anchorage Digital; and Balaji Srinivasan, founder of Network School and bestselling author of The Network State. The Governor's Priority: Stability Before Speed Governor Suleimenov began by naming "geopolitical tension" as the backdrop to today's discussions. "This is the elephant in the room, which we cannot ignore," he said, without further comment. He then described trade and finance flows as changing fundamentally, pointing to "division across the Atlantic. We're seeing trade wars, semi-trade wars across the world." He explained that "finance has always been a partner with trade, investment and finance." That atmosphere of uncertainty "reshapes financial flows," he said. Turning to technology, he noted that "with the invention of blockchain, cryptocurrencies, stablecoins, and everything in between, the traditional financial system has started to undergo very fundamental change. I think we're still in the rule-setting phase." As a result, he said, "There is no set of global rules for decentralized finance, for digital finance, crypto finance. Many countries are looking to strike the right balance between the traditional financial institutions such as banks or commodities or securities markets, and the new ways of doing finance that the market is offering." For Kazakhstan specifically, he argued the moment favors the country rather than threatens it. "I think for Kazakhstan, it's more of an opportunity," he said, pointing to its standing as the region's largest economy by GDP and GDP per capita, and its position as "the biggest financial system, the best financial system, the most capitalized" in Central Asia. That confidence carried into the moderator's next question: "As a central banker, how do you balance innovation with preserving that financial stability and trust?" Suleimenov called it "a never-ending story," then offered the line that framed the whole session: "When you see something new, and you don't have the rules for it, of course you have to evaluate it based on its merits and based on principles rather than rules, and then you come up with rules." He was candid about the risk that comes with new financial technology, but just as quick to put it in proportion. "What we've been seeing in Kazakhstan, I mean, it's 90% positive," he said, acknowledging...

Astana Finance Days 2026

From Transit to Capital: What Investors Were Looking for in Kazakhstan at Astana Finance Days

On the second day of Astana Finance Days, Kazakhstan was trying to answer the question that follows almost every discussion about new railways, power plants, data centers, and factories: where will the money come from? International banks, asset managers, and stock exchanges gathered in Astana, and the conversation quickly reached a point – foreign capital is interested in the country, but its domestic stock market remains too small for many large investors. From Transit to Transactions The title of the first major discussion of the second day – “From Transit to Transactions” – neatly captured the idea. Kazakhstan already earns money from its position between China and Europe and is investing billions in railways, ports, and energy infrastructure. Now Astana wants financial transactions to move alongside the freight, and some of that capital to remain in the country. The Astana International Financial Centre (AIFC), where the forum is being held, was created partly for that purpose. It is a separate financial jurisdiction within Kazakhstan, with its own regulator, court, and legal framework based on the principles of English common law. According to the center, by June 2026 its platform had helped attract $25.3 billion in investment to Kazakhstan, while the number of registered companies had exceeded 5,800. But the presence of international companies does not necessarily mean they are ready to invest. Jad Ellawn, Managing Partner for the Middle East at Brookfield, one of the world’s largest alternative asset managers, began with three conditions. “The fundamental principles for an investor looking to enter a country consist of three components. First is having the proper legislation. Second is respect for capital: a country needs to demonstrate that capital is important to it not only domestically, but beyond its borders. Third is scalability,” he said. “In addition to energy resources, Kazakhstan has many other natural resources, and your country is the ninth-largest country in the world. This means you have many potential industries that you could develop, unlike the Gulf.” Yilmaz Kocagoz of Goldman Sachs, one of the largest U.S. investment banks, looked at Kazakhstan through the lens of manufacturing and infrastructure. “For Kazakhstan to diversify its economy beyond commodities, it needs to develop manufacturing and infrastructure,” he said. Kocagoz also pointed to Kazakhstan’s relatively low government debt burden. For an investor, that means a smaller share of the country’s future revenues is already committed to servicing a large public debt. Nurlan Zhakupov, the CEO of Kazakhstan’s sovereign wealth fund Samruk-Kazyna, put a price tag on the country’s investment program: more than 100 projects worth $105 billion. “We see demand from local businesses and enormous interest from foreign partners. We are also seeing growing consumption of electricity and natural gas, as well as demand for the transportation of electricity, oil, gas, and petroleum products,” Zhakupov said. He ended with an invitation: “Overall, Kazakhstan currently has a good business climate, and now is a good time to enter the Kazakh economy.” The next discussion in the same building helped explain why that does...

Astana Finance Days 2026

Astana Finance Days: From BlackRock to Mining and Data Centers

In a trading hall in Astana, BlackRock was explaining why investors have become more cautious. A few floors away, geologists were pitching 23 mining projects, while financiers debated how many megawatts the next wave of artificial intelligence will require. That was how the first day of Astana Finance Days unfolded, as Kazakhstan brought together financial groups managing more than $26 trillion in assets – and sought to show them where that money could be put to work in Central Asia. The ninth Astana Finance Days is taking place on September 9–10 at the Astana International Financial Centre (AIFC), Kazakhstan’s special financial jurisdiction with its own regulator and a court system based on English common law principles. According to the organizers, around 8,000 participants from 90 countries registered for the forum. Institutions represented include BlackRock, Goldman Sachs, Capital Group, Brookfield, Rothschild & Co., Hong Kong Investment Corporation, and IFC Asset Management Company. The stated $26 trillion refers to the combined assets under management of participating firms worldwide – not investment pledged to Kazakhstan. More concrete signals emerged on the sidelines. Meshal Jaber AlFaras, Janus Henderson Investors’ head of the Middle East, Africa, and Central Asia, said the investment group is considering direct investments in Kazakhstan and plans to expand its presence in the country. Janus Henderson manages around $500 billion in assets. AlFaras did not disclose potential projects or investment amounts. A New Price for Risk One of the first day’s most prominent discussions took place at the Astana International Exchange (AIX), the AIFC’s stock exchange. Ben Powell, Chief Investment Strategist for the Asia-Pacific region at the BlackRock Investment Institute, spoke about how geopolitics is reshaping capital flows. “Today, we are in a structurally new regime – moving into a more complicated world where geopolitical fragmentation is intensifying, alliances are breaking down, and international relationships are changing. Of course, this affects investors. They need to completely rethink their approaches to investing,” Powell said. Higher inflation and interest rates, he continued, are changing attitudes toward risk. For smaller emerging markets, that means greater scrutiny of currency stability, regulation, and liquidity. A few halls away, that global discussion was already turning into pitches for specific mineral projects. From the Geological Map to the Investor Fifteen companies brought 23 mining projects to Astana Finance Days. Most are still at the exploration stage. In the industry, such companies are known as juniors. They search for mineral deposits and try to demonstrate that the resources they discover can eventually be mined profitably. For an ordinary bank, the risk is high: a promising area on a geological map does not yet guarantee a working mine. At the forum, companies briefly pitched their projects before moving into individual negotiations. More than ten Kazakh and international investors and strategic partners attended the pitch session. The Junior Mining Platform, launched this spring, is intended to turn this search for capital into a permanent mechanism. Private investors take on early geological risk; as reserves are confirmed and technical uncertainty declines, larger...

Fiscal Policy

Kazakhstan Bond Market Proposed Tax Changes Aim to Attract $3 Billion in Foreign Investment

Kazakhstan is preparing tax changes to make it easier for foreign investors to trade bonds issued by quasi-state entities through international depository systems. The authorities estimate potential foreign investment in the market at around $3 billion. The problem currently arises after the securities have been purchased. If a foreign investor sells the bonds on a Kazakh stock exchange, capital gains are exempt from tax. But if the same securities are sold outside a local exchange, that exemption does not apply. For international investors, this is an important distinction. Kazakhstan wants to make quasi-state sector bonds accessible through Euroclear and Clearstream, international central securities depositories and settlement systems through which major banks and funds hold and trade securities from different countries. Transactions within these systems can take place without going through a Kazakh stock exchange. National Bank Deputy Governor Aliya Moldabekova said capital gains from non-residents’ sales of quasi-public sector bonds on the Kazakhstan Stock Exchange were exempt from tax. However, the legislation did not provide the same treatment when those securities were subsequently sold outside Kazakhstani stock exchanges. The authorities propose eliminating this discrepancy by extending the tax exemption to relevant off-exchange transactions. The approach was backed on September 7 by the government’s Project Office for the implementation of the Tax Code. The Ministry of National Economy and the Ministry of Finance will now work on the necessary legislative amendments. This is a sizable market. There are currently around 17.6 trillion tenge, or roughly $39 billion, in outstanding tenge-denominated bonds issued by Kazakhstan’s quasi-public sector entities. The government estimates potential demand from non-residents at around 1.4 trillion tenge, or about $3 billion. The calculation is based on the average 8.1% share held by non-residents in Kazakhstan’s government securities market during the first eight months of 2026. It is a benchmark rather than a forecast of actual capital inflows. Expanding access to quasi-state company bonds is part of a broader overhaul of Kazakhstan’s domestic debt market. In April, the National Bank announced that Euroclear had begun a project to make Kazakhstan’s government bonds eligible for settlement through its international system. A direct link with Euroclear is planned for 2027, while an international link with Clearstream is already operating. A primary dealer system for government securities also began operating on May 4. Five banks were appointed to support demand and provide two-way quotes for selected securities on the secondary market. The National Bank expects the system to broaden the investor base and help create conditions for Kazakhstan’s government bonds eventually to be included in global debt benchmarks, including the JPMorgan GBI-EM Index. Major Kazakh borrowers, meanwhile, are already looking beyond the domestic market for financing. In August, KazMunayGas raised 3.5 billion yuan, around $490 million, through a yuan-denominated bond offering. The final issue was nearly three times the size of the company’s first yuan bond offering a year earlier.

AIFC TCA Interviews

AIFC Interview: Central Asia Investment, Middle Corridor and ESG

The Astana International Financial Centre (AIFC) positions itself as a platform for international investment in Kazakhstan and across Central Asia. In an interview with The Times of Central Asia, Zhanbolat Kakishev, Chief Product Officer at the AIFC Authority, discussed competition for investment, financing for the Middle Corridor, investor protection, ESG, and currency risks. Kakishev said the AIFC ecosystem has attracted $26.3 billion in investment to Kazakhstan and registered more than 6,000 companies from 90 countries. TCA: How does the AIFC assess the current investment climate in Central Asia amid the fragmentation of global markets, and what share of foreign direct investment into the region does the centre aim to attract in the coming years? Zhanbolat Kakishev: We assess Central Asia’s investment climate as resilient and gradually strengthening despite the fragmentation of global markets. Moreover, the restructuring of global supply chains and investors’ search for new sources of growth are creating additional opportunities for the region. International investor interest in Central Asia already rests on a solid foundation. According to UNCTAD, by the end of 2025, the stock of foreign direct investment in the region had reached approximately $235.5 billion, of which $156.4 billion was in Kazakhstan. The region combines a substantial resource base, a growing domestic market, and a strategic position between Europe and Asia. It also has significant investment potential in areas including transport and logistics, energy, critical minerals, digitalisation, and financial services. The AIFC does not set a target in the form of a fixed share of total FDI flowing into Central Asia. Our task today is to continue improving the AIFC ecosystem, its infrastructure, and the conditions that allow international capital to enter Kazakhstan effectively, as well as to participate in regional projects. To date, $26.3 billion in investment has been attracted to Kazakhstan through the AIFC ecosystem. More than 6,000 companies from 90 countries are registered in the Centre’s jurisdiction. For us, however, it is not only the volume of capital attracted that matters, but also its quality — long-term investment that contributes to economic diversification, private-sector development, and the further integration of Kazakhstan and Central Asia into global capital markets. TCA: Given the growing interest in the Middle Corridor, or Trans-Caspian International Transport Route, what investment instruments does the AIFC offer to finance major infrastructure and logistics projects in the region? Zhanbolat Kakishev: The AIFC provides comprehensive legal and financial infrastructure for structuring and attracting financing for major infrastructure and logistics projects, including those along the Middle Corridor. Depending on the structure of a project, special-purpose vehicles or companies (SPVs/SPCs), joint ventures, and investment funds can be used to pool capital from strategic, institutional, and private investors. Through the Astana International Exchange (AIX), projects can also raise debt and equity financing, including through conventional, green, and sustainability bonds, as well as Islamic finance instruments such as sukuk. For large infrastructure projects, the ability to combine different sources of capital is particularly important. These can include financing from international financial institutions and banks, funds from strategic...