Kazakhstan tops regional investment with USD 15.7 billion in 2024
Kazakhstan: A Leading Investment Hub in North and Central Asia
In 2024, Kazakhstan has emerged as the top investment destination in North and Central Asia, securing USD 15.7 billion in new projects. This represents an 88% increase from the previous year, with Kazakhstan accounting for 63% of the region's total investments, according to a report by the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP).
Key Investments and Contributors
Qatar's UCC Holding has played a significant role in this growth, committing USD 11 billion to develop crucial gas infrastructure in Kazakhstan. This includes the construction of two gas processing plants, a new compressor station, and two additional trunk gas pipelines. These projects aim to optimize raw gas usage and were formalized during President Kassym-Jomart Tokayev's visit to Qatar.
Regional Investment Trends
While Kazakhstan leads, other countries in the region also attracted foreign direct investment (FDI): Uzbekistan with USD 4 billion, the Kyrgyz Republic with USD 2.1 billion, and Azerbaijan with USD 1.2 billion. However, outward investments from the region declined by 58% in 2024, with Russia accounting for 90% of these outflows.
Asia-Pacific Investment Landscape
The broader Asia-Pacific region saw USD 292 billion in FDI from January to September 2024, a decrease from USD 339 billion in 2023. India led with USD 76 billion in inflows. ESCAP attributes the decline to global economic uncertainties and geopolitical shifts.
Sectoral Insights
The services sector dominated FDI inflows in the Asia-Pacific, while manufacturing and the primary sector saw varied trends. Investments in semiconductors and electronic components were significant, though metals investments declined due to global market conditions.
Kazakhstan's success in attracting FDI highlights its strategic approach to economic growth and sustainable development, positioning it as a key player in regional development and international collaboration.
Doubts Revealed
Kazakhstan
Kazakhstan is a country located in Central Asia. It is known for its vast landscapes and rich natural resources like oil and gas.
North and Central Asia
North and Central Asia refers to the region that includes countries like Kazakhstan, Uzbekistan, and others. It is known for its diverse cultures and economic potential.
Investment
Investment means putting money into projects or businesses to earn more money in the future. It helps countries grow their economies.
Qatar's UCC Holding
UCC Holding is a company from Qatar, a country in the Middle East. They invest in big projects like building infrastructure and developing resources.
Gas infrastructure projects
Gas infrastructure projects involve building facilities and pipelines to produce and transport natural gas. This helps in providing energy for homes and industries.
FDI inflows
FDI stands for Foreign Direct Investment. It means money coming from other countries to invest in businesses or projects in a country.
Outward investments
Outward investments are when a country invests money in businesses or projects in other countries. It is the opposite of FDI inflows.
Asia-Pacific region
The Asia-Pacific region includes countries in Asia and the Pacific Ocean area, like India, China, and Australia. It is a major hub for global trade and investment.
USD 292 billion
USD 292 billion is a large amount of money, measured in US dollars, which is used as a common currency for international trade and investment.
India leading at USD 76 billion
India received USD 76 billion in foreign investments, making it the top country in the Asia-Pacific region for attracting investment.
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