Kazakhstan’s Tourism Revival Attracts International Visitors and $1.8 Billion in Investment

Kazakhstan’s tourism sector is undergoing a notable resurgence, with a growing number of both international visitors and domestic travelers exploring the country. According to analysts at Ranking.kz, this revival is not merely inflation-driven; it reflects substantial structural changes and targeted investment in tourism infrastructure. Data from the National Statistics Bureau (NSB) shows that in 2024, the total volume of services provided by hotels, motels, and other accommodation facilities reached KZT 299.8 billion (approximately $580 million), marking a 30.8% increase from the previous year. Tax revenues from tourism-related businesses rose by 25.1% year-on-year to KZT 254 billion (about $492 million), underscoring the sector’s expanding fiscal footprint. Tourism continues to attract both domestic and international investors. In 2024, capital investment in the sector totaled KZT 947.5 billion ($1.8 billion), encompassing both private funding for resort and hotel construction and public subsidies aimed at developing tourism infrastructure. Throughout 2024, investment in fixed capital across the hospitality, arts, entertainment, and recreation sectors reached KZT 321.1 billion ($622 million). Of that, KZT 163.8 billion ($317 million) was directed toward accommodation and food services. In the first quarter of 2025, investment in these areas rose by a further 6.5%. The Almaty agglomeration, home to the Zailiyskiy Alatau ski resorts and scenic natural areas, remains a top destination for investment. In 2024, it accounted for 17.4% of total capital investments in the HoReCa (Hotels, Restaurants, and Catering) and entertainment sectors. Currently, approximately 55 large-scale investment projects are in development across Kazakhstan’s tourism sector. Notable among them are the creation of a multifunctional tourist quarter in Astana, the Aqbura Resort in the Akmola region, and the expansion of the Oi-Qaragai ski resort, one of the largest in Central Asia. The Oi-Qaragai development includes the construction of a new four-star hotel and significant upgrades to tourism infrastructure. With an estimated total investment of $150 million, the project is expected to generate over 1,200 new jobs. So far, $44.5 million has been invested, with an additional $57.4 million projected by the end of 2025.

Central Asia Receives Half of Eurasian Investments from China, Turkey, Iran, and Gulf States

The Eurasian Development Bank (EDB) has released a new study analyzing mutual direct investment (MDI) flows across the Eurasian region. The report examines investment trends between 13 Eurasian countries - Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan, Kyrgyzstan, Moldova, Mongolia, Russia, Tajikistan, Turkmenistan, Ukraine, and Uzbekistan - and external partners, including China, Turkey, Iran, and the Gulf states, from 2016 to the first half of 2024. Key Findings on Investment Trends According to the EDB, total MDI stock in the region reached $90.4 billion by mid-2024, reflecting a 6.4% increase from 2023. China remains the largest investor in the Eurasian region, holding an MDI stock of $58.6 billion at the end of H1 2024, accounting for 64.8% of the total. Other major investors include: Turkey - $12.3 billion (13.6%) United Arab Emirates (UAE) - $12.2 billion (13.5%) Iran - $3.2 billion (3.5%) Saudi Arabia - $2.3 billion (2.5%) Qatar - $1.6 billion (1.8%) Among these, Iran showed the highest investment growth, doubling its investments since 2016, with 90% directed toward Azerbaijan. Turkey demonstrated broad sectoral diversification, while Saudi Arabia and Qatar emerged as new investors, making their first investments in 2021 and 2024, respectively. Investment Distribution in Eurasia The largest investment recipients in the Eurasian region include: Russia - $23.5 billion (26%) Turkmenistan - $17.5 billion (12.5%) Kazakhstan - $15.5 billion (11.1%) Mongolia - $10.3 billion (7.4%) Uzbekistan - $8.8 billion (6.3%) Central Asia received 51% of all investments from China, Turkey, Iran, and the Gulf states, totaling $46.2 billion, an increase of 25% since 2022. Outbound Investment from Eurasia The report also highlights outbound investments from the Eurasian region, which totaled $49.4 billion, doubling since 2016. Turkey received 80% of these investments, with a significant portion originating from Russia. Sectoral Trends: Energy, Manufacturing, and Greenfield Investments China continues to expand its investments in energy and manufacturing, although its traditional focus on extractive industries has declined. As of mid-2024, Chinese investment in mining and resource extraction stood at $36.2 billion, comprising 61.7% of its total investments in Eurasia. Other notable sectoral trends include: Energy sector - Chinese investment grew 2.1-fold in 18 months to $4.1 billion, with 85% directed toward Uzbekistan. Manufacturing sector - Investment increased 8% to $11.8 billion, with most projects concentrated in Central Asia. The Gulf states are also expanding their investments in the region: The UAE invested $12.2 billion, with 90% of its projects in Central Asia. Saudi Arabia increased investments from $300 million in 2021 to $2.3 billion in 2024, primarily in Uzbekistan’s power sector. Qatar made its first major investment in Kazakhstan in 2024, committing $1.6 billion to the telecom sector. Rise of Greenfield Investments Greenfield projects - new businesses and infrastructure developments - remain the dominant form of MDI, totaling $57 billion, nearly double the 2016 level. These projects now account for 63% of total investments, driven by the economic growth of Central Asia and increasing investor interest in energy, manufacturing, and extractive industries.