Kazakhstan's leader extends an invitation to Turkish business tycoons for investment opportunities within the Kazakhstani market
Kazakhstan Invites Turkish Investors to Strategic Projects
Kazakhstan is extending a warm welcome to Turkish investors, particularly in the sectors of transport and logistics, energy, and agriculture. This invitation comes as part of a high-level strategic cooperation framework between the two countries, aiming to develop large-scale, long-term projects.
Transport and Logistics
One key opportunity lies in the development of the Trans-Caspian International Transport Route, also known as the Middle Corridor. This project aims to enhance railways, roads, and maritime infrastructure on the Caspian Sea. Turkish firms are encouraged to invest in railways, dry ports, cargo terminals, and shipbuilding, with the construction of three logistics centers in Shymkent, Astana, and Almaty estimated to cost around USD 75 million.
Energy
In the energy sector, joint projects aim to increase Kazakh oil exports via pipelines such as Baku-Tbilisi-Ceyhan. Collaboration between KazMunayGas and Turkish Petroleum is also underway, focusing on energy projects to reduce electricity shortages. Kazakhstan has introduced a favorable tax code featuring a royalty regime to encourage deep processing of raw materials in minerals and energy sectors. There's also a call for Turkish investors to establish a joint fund for mining and natural resource development.
Agriculture
A significant agricultural project involves the construction of an integrated agro-industrial complex for deep processing of grain and leguminous crops. This project, estimated to cost USD 320 million, will process 250,000 tons of wheat and 80,000 tons of peas annually. Kazakhstan's Ministry of Agriculture is collaborating with Turkish firms such as Tiryaki Holding on this venture.
President Kassym-Jomart Tokayev, currently on an official visit to Turkey, emphasized Kazakhstan's interest in utilizing Turkish technologies for the digitization of agriculture, increasing labor productivity, and developing processing industries. He also expressed Kazakhstan's intention to export grain and other agricultural products to Turkey.
Turkiev Petroleum has shown interest in operating in the Kazakh market, and both sides during the negotiations highlighted the importance of cooperation in the energy sector. The leaders of Kazakhstan and Turkey held the 5th meeting of the High-Level Strategic Cooperation Council during this visit.
Tokayev invited Turkish companies to participate in large-scale, long-term projects, particularly in transport and logistics, emphasizing the strategic location of Kazakhstan. He also discussed the possibility of increasing the volumes of oil transportation to Turkey through the Baku-Tbilisi-Ceyhan pipeline and the potential for utilizing Turkish investment opportunities and expertise in diversifying energy sources and building power plants.
The development of the Trans-Caspian International Transport Route is considered crucial, as 85% of goods transported by land between Europe and China pass through Kazakhstan. The annual transportation of Kazakh oil to Turkey through this pipeline is currently 1.4 million tons.
Overall, Kazakhstan's government actively encourages Turkish companies to participate in these strategic projects by offering preferential terms, supported by their close strategic partnership framework that spans various sectors. To date, Turkish companies have been involved in projects worth around $6 billion across various sectors in Kazakhstan. President Tokayev announced that approximately 4,000 Turkish companies are currently operating in Kazakhstan, making it a significant partner in the Central Asian nation's economic development.
- The Trans-Caspian International Transport Route, a key opportunity for Turkish firms, is crucial as 85% of goods transported by land between Europe and China pass through Kazakhstan, with the construction of three logistics centers in Shymkent, Astana, and Almaty estimated to cost around USD 75 million.
- President Kassym-Jomart Tokayev emphasized Kazakhstan's interest in utilizing Turkish technologies for the digitization of agriculture, particularly to develop processing industries and increase labor productivity, following from his discussion about exporting grain and other agricultural products to Turkey.
