Dear Readers!

It has become a tradition for us annually to devote every second edition to the topic, which began the history of our magazine. This topic is the investment opportunities in Kazakhstan and its policy for foreign investment attraction. Although this issue has always been quite a topic and discussed, there are no doubts that today it deserves the closest public attention. And some reasons are listed here for this: 2012 was a record year for our country. The Kazakhstan economy spent $ 22.5 billion of the foreign direct investments, which is 7% higher than in the year-earlier period. This absolute achievement was reinforced by the outlined shift in PPC flows diversification from the mining industry to processing one.

However, today we are witness to a new international investment policy birth. The main aim of PPC attraction in the frame of this policy is the integrated growth and implementation of the sustainable development concept. This means that the governments of those countries, which are now competing with Kazakhstan for its share in the global capital market, will change their approaches to the national investment policy even more actively. As a result, our country may face the risk of rolling back to the original investment confines, which in turn would jeopardize the government’s plans for innovation and technological development of Kazakhstan. However, there is a way out: without changing the strategic guidelines, we need to implement a flexible and efficient use of new investment imperatives. In addition, we should skillfully convert our quantitative achievements in PPC sphere to the qualitative leap. That is what will give us a possibility to overcome all challenges and threats.

On behalf of Kazakhstan magazine staff, I want to wish to the Council of Foreign Investors, all members of the joint working groups and management of the Kazakhstan Council of Foreign Investors success in their efforts to contribute to the sustainable economic development of our country.

Vladimir Voloshin,Editor-in-Chief

Foreign Investment: From Quantity to Quality

In 2012, Kazakhstan reaffirmed its status as a regional leader in attracting foreign investment. A new all-time high was recorded: $22.5 billion of FDI were directed to the economy of our country that is a 7% rise compared to 2011. Moreover, judging by the statements of the government, thanks to the launch of the Accelerated Industrial and Innovative Development Program (AIIDP), positive changes were marked in redistribution of FDI flows from the extracting industries to the processing industries of the economy.

Our Main Task Is to Improve the Investment Climate

Erlan Hairov, Chairman of the Investment Committee of the Ministry of Industry and New Technologies, answers questions from the magazine Kazakhstan.

Foreign Investors’ Council: Drawing Сonclusions, Making Plans

In advance of the 26th Plenary Session of Foreign Investors’ Council chaired by President of the Republic of Kazakhstan, we asked Mr. Galymzhan Pirmatov, the Chairman of Kazakhstan Foreign Investors’ Council Association’s Governing Board and Mr. Murat Munbayev, the Co-chair of the FIC Operations Working Group to tell our magazine about the outcomes and the future plans of the Council for 2013.

Kazakhstan Machinery Industry: Initiative vs. State Support

The first Machinery in Kazakhstan Forum took place in mid-April in Astana. Debate which flared up at its work, clearly demonstrated that if the domestic mechanical engineering enterprises insist on the state support increasing, the government expects them to be more self-reliance in solving their problems.

Innovations Are More than a Priority for ENRC

It wouldn’t be an exaggeration to state that the largest industrial construction works take place in the west of the country – in Aktobe. The construction of new ferroalloys plant is carried out here on 47 hectares. The future production is unique with its “hearts” – furnaces. Such powerful equipment has never been used in world mining and metallurgical industry before. This “project of the future” is one of the projects implemented by ENRC (Eurasian Natural Resources Corporation) under the State Program of industrial and innovative development.

TOTAL in Kazakhstan: 20 Years of Partnership

Interview of Brendan McMahon, Managing Director of TOTAL E&P Kazakhstan.

The Green Alternative

For Kazakhstan, with its vast oil, gas and coal reserves, the problem of access to the cheap energy resources, generally, is not relevant. Nevertheless, the Government repeatedly states its commitment to the principles of the “green economy” as the alternative energy development of creating a completely new technological and industrial niches. This is a global trend, and, therefore, it would be short-sighted to stay away from this sphere.

European Business on the Kazakh Land

Central Asian Electric Power Corporation (CAEPCO), the largest private energy company in Kazakhstan, will celebrate its first anniversary this year: five years of operation since the company’s foundation. Today, among its shareholders there are three influential international institutions, namely the EBRD, ADB, and IDB. In addition, CAEPCO expects it will be awarded international credit rating this year, and to go for an IPO in 2016. CAEPCO President Erkyn Amirkhanov shares the key priorities and future investment projects.

KNAUF in Kazakhstan: Quality is Everything

Having successfully managed to overcome the consequences of the recession, the KNAUF Company has an optimistic glance at the future of the Kazakhstan’s construction materials market. Alexander Efimenko, General Director of KNAUF Gyps Kapchagai with DEG’s participation, shares with our magazine the new challenges and opportunities that are opening up for the largest manufacturer of gypsum plasterboards in Central Asia.

Market Leader Increases Investments in Kazakhstan

Today, Efes Kazakhstan is the undisputed leader in the domestic beer industry with a market share of about 60%. The company has two operating breweries in Karaganda and Almaty, and is going to open one more plant which makes the company one of the largest investors in the Kazakh sector of FMCG. Serkan Eris, Managing Director of Efes Kazakhstan, shares with our magazine the future business development strategy.

Global Challenges & Threats: Risks for Our Country

Questions regarding current affairs of risk management, as well as prospects for the global economy in the period of continuing uncertainty - these topics discussed by the participants of the IX International Conference on risk management. Most of the speakers of the event agreed that the global financial crisis is far from over. In these circumstances, Kazakhstan is subject to a number of negative effects of systemic risk.