investor guide ‘19

INVESTORGUIDE

‘ 19

REGIONAL CENTER

FOR DEVELOPMENT

OF ALMATY REGION

IN ASSOCIATION WITH

GOVERNMENTOF ALMATY REGION

Almaty region is one of the largest regions in Kazakhstan with huge natural potential

and a favorable geographical position for transit opportunities, which provides

sufficient possibilities for partnership and business development.

Dear friends!

All the necessary conditions for the implementation of joint business initiatives with

domestic and foreign partners are provided. We are interested in building mutually

beneficial relations, in attracting innovative projects using the latest accomplishments

and effective technologies.

Sincerely, the Governor of Almaty region

Amandyk Batalov

One of the key factors of investment attractiveness is macroeconomic, social and

political stability.

ALMATY REGION

LakesBalkhash - 16 400 km²

Alakol - 2 200 km²

Area223 911 km²

Population2 mln. people

Structure17 districts

3 cities

Regional CenterTaldykorgan

Major riversIli, Aksu, Koksu, Lepsy,

Karatal

Balkh

ash

lake

Alakollake

East

Kazakhstan

region

Zhambyl

region

Karagandy

region

Kyrgyzstan

ChinaTALDYKORGAN

ALMATY

Balkhashdistrict

Zhambyldistrict

Karataldistrict

Alakoldistrict

Sarkand district

Eskeldydistrict

Aksu district

Koksudistrict

Kerbulakdistrict

Panfilovdistrict

Uigurdistrict

Enbekshikazakh district

Iledistrict

Talgardistrict

Karasaydistrict

Kegendictrict

Raimbekdistrict

Kapshagay lake

TEKELI

KAPSHAGAY

Gamburg

Istanbul Serahs

Brest

Brest

Moscow

Moscow

Petropavlovsk Nur-Sultan

Nur-SultanOzinki

Khorgos (Almaty region)



Lianyungang

11 516 km11-13 days

10 989 km20-23 days

9 654 km12-14 days

Lianyungang

Lianyungang

ТРАНЗИТНЫЙ ПОТЕНЦИАЛ

KHORGOS

ALMATY REGION

TRANSIT POTENTIAL

Almaty region has a unique transport and logistics potential:

2 546 km – republican roads;

304 km length of the international transit corridor "Western Europe - Western China" in Almaty region;

93% of roads correspond to a good or satisfactory transport and operational condition;

1 342,9 km – operational length of railway tracks in the region;

2 railway crossings on the border with China (Altynkol-Khorgos, Dostyk-Alashankou);

8 684,6 km – the length of roads of the Almaty region: :

6 138,6 km – regional roads;

5 road crossing points: 4 points on the border with the PRC (Khorgos, Dostyk, Kolzhat, Nur Zholy), 1 point on the border with Kyrgyzstan (Kegen);

Retail turnover Investments

in fixed assets

Agriculture

products

Industrial

production

Gross regional

product

Manufacturing

industry

270,4

500,1 574,3 703,3

2 677,4

884,0761,9431,1 424,8 480,6

2013

2018

535,0

1 741,9

billion KZT

EXPORT IMPORT

DEVELOPMENT DYNAMICS

500,1

884,0

761,9

703,3

574,3

Retail turnover

Industrial production

Manufacturing

Agriculture products

Investments in fixed assets

Regional Development Indicators for 2018

INDICATOR TOTAL,

BLN. KZT

The rest of the world;

62,8%

USBEKISTAN; 16,3%

TAJIKISTAN; 11,7%

AZERBAIJAN; 4,8%

UKRAINE; 2,6%TURKMENISTAN; 1,7%

the world; 94,7%

UZBEKISTAN; 3,0%UKRAINE; 1,8% MOLDOVA; 0,4% TAJIKISTAN;

0,2%

The rest of

The growth rate of attraction

investment

Retail

turnover

2014

2014

billion KZT

Investments in fixed assets

Non-state investments

Investments in manufacturing industry

billion KZT

2015

2015

2016

2016

2018

2018

2017

2017

453,2

38,7

170,6

329,2

490,6

31,5

357,7

330,2

528,9

40,5

400,2390,2

524,2

70,9

409,4448,7

574,3

80,0

452,2

500,1

177,10 (27,8%)

Agriculture

2014

billion KZT

2015 2016 20182017

482,5

551,1 597,3 633,3703,3

Almaty region is the leader in

production of soybeans, corn, sugar

beet, vegetables, potatoes, meat,

eggs, and wool in Kazakhstan.

The main share is occupied by:

- Dairy industry (23.6%)

- Meat processing (19.7%)

- Fruit and vegetable (15%)

- Bakery (12%)

- Grain processing (8%).

In the region there are 60 feedlots

and 55 dairy commodity farms.

16% of gross agricultural output in Kazakhstan

produced by Almaty region


Agriculture

Sown area

Industry

Industry structure

Manufacturing industry

Power supply

Mining

Water supply

86,3% (761,9 bln. KZT)

11,6% (102,9 bln. KZT)

1,2% (11,2 bln. KZT)

0,9% (7,8 bln. KZT)

% for 2018

884,0

761,9

11,2

102,9

7,8

Manufacturing industry

Mining industry

Electricity, gas, steam and air conditioning

Water supply, sewage, control over the collection and distribution of waste

Industry volume

Indicators of industrial development of the region for 2018

INDICATOR TOTAL,

BLN. KZT


2016 20182014

1244 ha

6 874 ha

11 200 ha

2 406 ha2 067 ha

71 ha 92 ha

345 ha

57 ha

Sugar beet

Intensive gardens

Industrial greenhouses

2015 2017

86 ha64 ha

2 244 ha

568 ha

9 212 ha

3803 ha

The volume of production

of industrial products

(goods, services)

Manufacturing structure

Total number

of industrial

enterprises

2014

Bln. KZT

Bln. KZT (2018)

2018

2015 2016 20182017

537,3553,6

645,3750,5

884,0

Food products manufacturing

Beverage production

Metallurgical industry

Manufacture of paper and paper products

Production of basic pharmaceutical products

Manufacture of finished metal products

Manufacture of electrical equipment

Other

Manufacture of other non-metallic mineral products

Manufacture of coke and refined petroleum products

Tobacco production

31,2 (39%)

13,5 (17%)

8,5 (11%)

6,2 (8%)

2,4 (3%)

2,1 (3%)

1,5 (2%)

1,5 (2%)

1,5 (2%)

8,3 (6%)

6,2 (8%)

177,10 (27,8%)

Small21 165501 Medium

Large126


There are enterprises with the participation of transnational companies in the

region: Coca-Cola Almaty Bottlers, Danone, RG BRANDS Kazahstan LLP, EFES

Malt Plant Soufle Kazakhstan, JTI, Philip Morris

Kazakhstan, Knauf, Hamle Company LTD,

Henkel, Tikkurila, Hoffmann Aluminum, Alugal.

The number of employed - more than 5

thousand people.

«DANONE» plant

«TIKKURILA» plant«COCA COLA Almaty Bottlers» plant

Trans-national companies

INDUSTRIAL POTENTIAL

Ongoing projects

2019 - 2025

Projects being realized

202

volume

bln.

bln.

Transnational

companies

2 572,9

1 505,4

Projects with foreign

capital

32Work places

27 947

9

₸

₸

Investment

The volume of investments

in projects implemented

jointly with the participation

of foreign investors

16 Transnational companies

in the Republic of Kazakhstan

9of them

in Almaty region

INVESTMENT POTENTIAL

Foreign investment projects

"MAREVEN FOOD TIAN-SHAN" LLP, Mareven (Cyprus)

15,4

523

417

2018

The construction of a factory for the production of food and semi-finished products

MLN. UNITS

(21,2 BLN. KZT)

YEAR

BLN. KZT

PERSONS

CAPACITY

COMMISSIONING

СOST

JOBS

"WILO CENTRAL ASIA" LLP, WILO (Germany)

2,1

40

2 000

2018

Plant for the production of pumping equipment

UNITS A YEAR

YEAR

BLN. KZT

PERSONS

CAPACITY

COMMISSIONING

СOST

JOBS

COMPLETED

ONGOING


LUKOIL LUBRIKANTS LLP, PJSC LUKOIL (Russia)

27,2

200

100 000

2019

Construction of a plant for the lubricants production

TONS OF LUBRICANT

MATERIALS A YEAR

YEAR

BLN. KZT

PERSONS

CAPACITY

COMMISSIONING

СOST

JOBS

PHOENIX FEED MILLS LLP, Phoenix Commodities DMCC (UAE)

4,8

87

60 000

2019

Construction of feed mill

TONS A YEAR

YEAR

BLN. KZT

PERSONS

CAPACITY

COMMISSIONING

СOST

JOBS

ONGOING



ENEVERSE KUNKUAT LLP, Eneverse Kunkuat PTE. LTD (Singapore)

30

32

150

2019

Construction of a solar power plant with a capacity of 150 MW

Mwh

YEAR

BLN. KZT

PERSONS

CAPACITY

COMMISSIONING

СOST

JOBS

ALACEM LLP, Kazakhstan-Singapore

Joint Venture

47,0

360

1,2

2019

Construction of a cement plant

MILLION TONS

OF CEMENT A YEAR

YEAR

BLN. KZT

PERSONS

CAPACITY

COMMISSIONING

СOST

JOBS

«FARM FRITES EURASIA” LLP, FARM FRITES (Netherlands)

43,1

450

70 000

2020

Food processing and production of french fries

TONS OF FROZEN

POTATOES A YEAR

YEAR

BLN. KZT

PERSONS

CAPACITY

COMMISSIONING

СOST

JOBS

ONGOING



"ZHETYSU KOY" LLP, Baumann Gmbh & Co.KG (Germany)

7,2

450

30 000

2020

Meat processing plant, slaughter and deep processing of small cattle

TONS A YEAR

YEAR

BLN. KZT

PERSONS

CAPACITY

COMMISSIONING

СOST

JOBS

«GREEN LAND ALATAU» LLP , AIC "ECO CULTURE" (Russia)

66,4

1 500

45 000

2020

Construction of a greenhouse complex

TONS OF VEGETABLES

A YEAR

YEAR

BLN. KZT

PERSONS

CAPACITY

COMMISSIONING

СOST

JOBS

ONGOING

«INALCA EURASIA KAZAKHSTAN» LLP, Inalca S.p.A (Cremonini, Italy)

15,0

280

40 000

2022

Construction of feedlots, production and processing

of meat products

TONS OF MEAT A YEAR

YEAR

BLN. KZT

PERSONS

CAPACITY

COMMISSIONING

СOST

JOBS



DOSTAR LLP, RUNGIS KAZAKHSTAN (France)

32,3

7 000

1 000

2022

Construction of a trade and logistics hub

CARGO CARS PER DAY

YEAR

BLN. KZT

PERSONS

CAPACITY

COMMISSIONING

СOST

JOBS

«GLOBAL GENERATION» LLP

115,5

500

400

2024

Construction of a thermal power plant

Mwh

YEAR

BLN. KZT

PERSONS

CAPACITY

COMMISSIONING

СOST

JOBS

Total area of SEZ «Khorgos – Eastern Gate» is

4591.5 ha. The territory consists of the following:

Dry port -129.8 ha;

Logistic zone -224.9 ha;

Reserve area - 4 012.4 ha.

Anchor investors - PBP CAPITAL LTD (DUBAI,

United Arab Emirates) and CMA CGM are

involved in the logistics area.

Industrial zone - 224.4 ha;

As of 2018, 78 participants are registered in the unified register. Particularly, 15 companies are

currently members of the SEZ (KTZE - Khorgos Gateway LLP, Zarya ltd LLP, Hubei Kelison LLP, East

Gate Partners LLP, Profood LLP, ImPex Gate LLP, Phoenix Feed Mills LLP, Agroproductsnabservis

LLP, Neptune Corporation LLP, Alatau Logistics LLP, VernoGroup / PNK Group, "PBP CAPITAL LTD",

"CMA CGM"), occupying more than 247 hectares of SEZ «Khorgos-Eastern Gate» territory and

involving investments more than 392 billion tenge.

Dry port of SEZ «Khorgos - Eastern Gate»

International Center for Border Cooperation

(ICBC) «Khorgos»

Almaty region

China

SEZ "Khorgos - Eastern Gate"

1

3

Kyrgyzstan

China

«Kairat»

іndustrial zone

«Kazbek bek»

іndustrial zone

Area: 594,9 ha Area: 1 303 ha

Area: 198 ha Area: 961 ha

3 6

«Bereke»

іndustrial zone

«Boraldai»

іndustrial zoneArea: 535 ha Area: 601,8 ha

2 5

2

4

56

Taldykorgan

Almaty

INDUSTRIAL ZONES

«Taldykorgan»

іndustrial zone

«Arna»

іndustrial zone1 4

«Taldykorgan»

industrial zone (594,9 ha)

«Bereke»

industrial zone (535 ha)

Free area Free area

Water pipes Water pipesLocation Location

Taldykorgan Ile district

245 ha 535 ha

16,6 km 20,2 km

5,4 km 5,4 km

15,5 km 200 Gcal/h

11,5 km 10,3 km

19,4 km 15 km

40 MW/h 60,4 km

4,3 km

construction work

is underway

10,2 kmRoads Roads

Communication cables Communication cablesRailways Railways

Sewage Heat supply

Power supply Power supply

Street Lighting

Gas supply

Gas supply

INDUSTRIAL ZONES

«Kairat»


Free area

Water pipesLocation

Talgar district

97,9 ha

3 *1 935 m /h

2,9 km

3 *1 000 m /h

*10 MW/h

3 *12 978 m /day Railways

Sewage

Power supply

Gas supply

* - projection or construction work is underway

Completed projects: 35

Ongoing projects: 5


Ongoing projects: 5


Ongoing projects: 4

Ongoing projects: 10

Ongoing projects: 10

«Boraldai»

industrial zone (601,8 ha)

3 *665 m /h Sewage

* - projection or construction work is underway

Water pipesLocation

Ile district 3 *1 300 m /h

2,5 km

*21 Gcal/h

*126 MW/h

19,89 km

Railways

Heat supply

Power supply

Gas supply

«Kazbek bek»


3 *4 500 m /h Sewage

Water pipesLocation

Zhambyl district3 *

4 800 m /h

5,92 km

*19 MW/h

3 *20 000 m /day

Railways

Power supply

Gas supply

«Arna»

industrial zone (1 303 ha)

3 *21 090 m /h Sewage

Water pipesLocation

Kapshagai3 *33 967 m /h

9,11 km

*130 MW/h

3 *16 600 m /day

Railways

Power supply

Gas supply

* - projection or construction work is underway * - projection or construction work is underway

RENEWABLE ENERGY

SOURCES

Operating

Renewable Energy

Development Plan

17Hydro

power plants

Up to 2020

Up to 2025

31

46

734,3

2 512

4Wind

power stations

1Solar

power station

QUANTITYPERIOD CAPACITY,

MWh

Among the projects until 2025:

- Aktogay HPP, HPP - 220 MW.

- Eneverse Kunkuat SES LLP - 150 MW;

- JSC “Birlik” VES - 18 MW;

Total capacity : 775,75 MWh

Share in total electricity production: 39%

Total electricity

production

Plan to 2025

60%

Тurgen

waterfalls

Kaindy

lake

Singing

sand dunes

Beshatyr

mound

Taldykorgan

Almaty

Alakol

lake

Balkhash

lake

Kapshagay

reservoir

Charyn

canyon

TOURISM

TOURISM

- «Kolsay koldery»

- "Dzhungar Alatau»

Zhetysu is the pearl of Kazakhstan

The region has national parks:

- «Altyn Emel»

- “Charyn Canyon»

Lakes: Alakol, Balkhash, Kapshagai

Wellness centers: Alma-Arasan, Kapal-Arasan, Zharkent-Arasan

Mountain ski resort: Akbulak

- «Eli-Alatau»

- Almaty and Alakol reserves

The growth of tourist flow was 27.6% in 2017, and in 2018 - 22.2%. In 2018, 1.9 million people

visited the Almaty region for tourist purposes. Up to 2.5 million visitors are expected this year,

which characterizes the growth of this indicator by 31.6% compared to last year.

In 2018, 30 investment projects worth 5.5 billion tenge of private investment were implemented,

including the five-star Koktem Grand Resort hotel on the shores of Lake Alakol (2.3 billion tenge)

with 500 beds.

The volume of services rendered by locations in 2018 amounted to 12.9 billion tenge, for four

years this figure increased three times (2015 - 4.3 billion tenge). In the region there are 729

placements, an increase from last year’s level by 7.2%, they have 9607 rooms, while the one-time

capacity is 25,929 beds.

The index of physical volume (IFO) of the tourism industry of the Almaty region according to

official statistics in 2018 for 9 months (January-September) was 133.4%.

10priority tourist areas

within the Republican map

of Kazakhstan touristization

2are in Almaty region

ROAD BUSINESS MAP

AGRIBUSINESS SUPPORT

PROGRAM

PRODUCTIVITY SUPPORT

PROGRAM

EXPORT SUPPORT

PROGRAM

PROGRAM OF SUPPORT

RENEWABLE ENERGY

SOURCES

Subsidizing loan interest rates, insurance

and guaranteeing loans, infrastructure

laying, service support, etc.

Subsidies for a part of investment costs,

costs for sowing and harvesting,

subsidies for livestock breeding, etc.

Leasing financing, reimbursement of part

of expenses of 40-50%, as well as costs

of subjects of industrial and innovative

activities to promote domestic processed

goods, works and services in the domestic

market.

The program provides service,

financial and informational support

for exporters.

Preferential fixed tariffs for electricity

for renewable energy facilities

for a period of 15 years with annual

indexation of inflation, etc.

PROGRAMS OF STATE

SUPPORT

TAX PRIVILEGES

INVESTMENT SUBSIDIES

(CASHBACK)

MIGRATION

BENEFITS

GUARANTEE

OF STABILITY

OF LEGISLATION

CUSTOM PRIVILEGES

NATURAL GRANTS

CIT - 0% up to 10 years.

Land tax - 0% up to 10 years.

Property tax - 0% up to 8 years.

Up to 30% of the costs associated

with the implementation

of construction and installation

works and equipment

The regime without quotas

and permits to attract foreign labor

during the construction period

and 1 year after commissioning.

Since January 1, 2017, a 30-day

visa-free regime has been introduced

for citizens of 60 countries.

Stability of tax legislation for all taxes,

except for VAT and excises (subject

to an investment agreement).

Exemption from customs duties on imports:

- equipment and their components;

- spare parts;

- raw materials.

Land plots, buildings, cars,

equipment, etc.

PREFERENCES

FOR INVESTMENT

PRIORITY PROJECTS

Other benefits

CONTACT INFORMATION

OF STATE BODIES

AND ORGANIZATIONS

GOVERNMENT OF ALMATY REGION

(http://zhetysu.gov.kz)

040000, Taldykorgan city,

Navarbayev Ave., 38

Phone: +7 (7282) 24-74-29

E-mail: [email protected]

040000, Taldykorgan,

113, Ablay Khan str., 1st floor, left wing

Phone: +7 (7282) 40-04-94;

+7 (7282) 32-95-14;

+7 (7282) 32-97-33;


DEPARTMENT OF ENTREPRENEURS

AND INDUSTRIAL-INNOVATIVE DEVELOPMENT

OF ALMATY REGION

(http://industry.gov.kz)

040000, Taldykorgan city,

Kabanbay batyr str., 26

Phone: +7 (7282) 32-95-58

Fax: +7 (7282) 32-95-61


LOCAL AUTHORITIES OF ALMATY REGION

SERVICE CENTER FOR INVESTORS OF ALMATY REGION

REGIONAL CENTER FOR DEVELOPMENT OF ALMATY REGION, LLP

(invest.alm-reg.kz)

050000, Almaty,

112, Zheltoksan str., room 516

Phone: +7 (727) 390-48-84

invest.alm-reg.kz

investor guide ‘19

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