Kazakhstan is among the main countries that attract the attention of Turkish investors, with its Gross Domestic Product (GDP) of over 300 billion dollars and its position as the largest economy in Central Asia.
Kazakhstan, which has recently become a favorite of foreign investors with its strategic location on the Central Corridor between China and Europe, also stands out with its rich natural resources and the incentives it offers to investors.
World Turkish Business Council (DTİK) Kazakhstan Representative Ahmet Budan and Turkish-Kazakh Businessmen's Association (TÜKİB) President Hikmet Atalay, who have been operating for more than 20 years by establishing a company in Kazakhstan, evaluated their activities in Kazakhstan and the investment opportunities they saw in the country to the AA correspondent.
Kazakhstan is a strategic center for Turkish investors
DTİK Kazakhstan Representative and Sine Midas Stroy Chairman of the Board of Directors Budan said that when he came to Kazakhstan in 2002, he first took part in infrastructure projects and in 2006 he founded his company with Kazakh partnership.
Stating that the company operates in the field of road and transportation infrastructure, Budan stated that they have been building roads of strategic importance in terms of transportation in various regions of Kazakhstan for about 20 years.
Budan noted that considering Kazakhstan as a production, logistics and regional trade center will create greater opportunities for Turkish companies.
Stating that Kazakhstan is currently the country that attracts the most foreign investment in the region, Budan stated that Turkish investments in the country have reached approximately 6 billion dollars.
Kazakhstan offers large regional market opportunities to Turkish companies
Budan stated that companies producing in the country have access to a wide regional market and continued his words as follows:
"Kazakhstan's location between China and Europe is really valuable. Cargoes that reach Europe from China by sea in 45-60 days can be delivered to Europe in approximately 12 days, thanks to the Central Corridor passing through Turkey and Kazakhstan. This creates new opportunities for Turkish investors, not only in transportation but also in production and exports. A Turkish company producing in Kazakhstan is located in a strategic logistics center that can reach Central Asia, China and Europe. Therefore “Investment in Kazakhstan actually means investment in a much wider geography.”
Emphasizing that cultural and historical ties also play an important role in the attractiveness of Kazakhstan for Turkish investors, Budan said that Turkish companies do not feel foreign in the country.
Budan pointed out that tax incentives, ready infrastructure and investment environment for investors in Kazakhstan, as well as the English law-based structure offered by the Astana International Financial Center (AIFC), are among the important advantages.
Noting that they can increase bilateral trade by combining the production experience of Turkish companies with the raw material and investment power of Kazakhstan, Budan said, "I see a serious potential especially in the fields of agricultural technologies, modern greenhouse cultivation, mining and construction machinery, energy, food processing, air conditioning systems, informatics and automation." he said.
Budan stated that the goal of increasing the trade volume between the two countries to 15 billion dollars is achievable and that, as DTİK, they are carrying out activities to increase contacts between business people and make concrete business matches.
Stating that transportation costs, bureaucratic processes and lack of knowledge about legislation are among the main problems that investors may encounter, Budan noted that these problems can be overcome with local partnerships and correct legal planning from the beginning.
“We have completed approximately 2 million square meters of construction”
Atalay, the founder and manager of the "Kazstroypodryad" company, which has been operating in Kazakhstan since 2005 and carrying out work in the field of construction and engineering, and TÜKİB President, stated that they have completed many projects in the country to date, such as residences, business centers, hotels, factories, hospitals, heating centers and media centers.
Stating that they completed the construction of approximately 2 million square meters, Atalay said that he had the opportunity to get to know the country and the business environment closely during the more than 20 years he spent in Kazakhstan.
Atalay said, "I am here 300 days a year. I am happy to live in Kazakhstan, I love Kazakhstan and its people." he said.
Stating that Kazakhstan stands out in the region in terms of its human resources, natural riches and the importance it attaches to trade, Atalay said that the interest of Turkish business people in the country is increasing.
Atalay said, “Kazakhstan is one of the rare countries in this geography where business can be done and worked, both in terms of human capacity, underground wealth and the importance given to trade.” he said.
Stating that Kazakhstan has made significant progress in the field of education and science in recent years, Atalay said, "I invite business people in Turkey to do business in Kazakhstan." he said.
Partnership of Turkish and Kazakh companies will strengthen commercial relations
Atalay stated that TÜKİB includes companies from many sectors, including health, tourism, construction, hotel management, aviation, textile, pharmaceutical and industry, and said that the Union guides investors from Turkey in their business processes in Kazakhstan.
Stating that they support Turkish investors in company establishment, legal processes and communication with local institutions, Atalay stated that they also bring investors together with Kazakhstan National Entrepreneurs Chamber Atameken when necessary.
Atalay stated that there are important opportunities for Turkish companies that want to invest in the fields of industry, energy, electricity, water, sewerage and infrastructure in Kazakhstan, and emphasized that especially medium-sized investments should be increased.
Stating that creating production infrastructures that will also appeal to family businesses and small businesses in Kazakhstan is important for both countries, Atalay said, "More medium-sized industries and facilities from Turkey should come here." he said.
Stating that economic relations between the two countries should not be limited to the discourse of "brotherhood", Atalay said, "Turks and Kazakhs working together in Kazakhstan by establishing joint companies is very important for the future of commercial relations between the two countries." he said.
Atalay stated that business people of the two countries prioritizing each other in investment will ensure further growth of commercial relations.
Meanwhile, while approximately 3,800 companies with Turkish capital are currently operating in Kazakhstan, the activities of Turkish investors in the country extend to many sectors such as energy, health, agriculture, logistics, aviation, textile, pharmaceuticals and industry, as well as construction and infrastructure.
