Astana [Kazakhstan], December 28 (ANI): Kazakhstan has solidified its place because the main funding vacation spot in North and Central Asia, drawing USD 15.7 billion in new tasks in 2024, as per the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) report launched on Dec. 25. This marks an 88 per cent year-on-year surge, with Kazakhstan accounting for 63 per cent of the area’s complete investments, The Astana Times reported.
The area witnessed a 27 per cent rise in general international direct funding (FDI) inflows, totaling USD 24.8 billion in 2023. ESCAP highlighted Qatar’s UCC Holding as a major contributor to Kazakhstan’s FDI development, with USD 11 billion dedicated to the event of vital gasoline infrastructure tasks. “The growth in Kazakhstan now sees it attracting 63 per cent of the region’s total FDI in thus far 2024, led by investments totaling USD 11 billion from Qatar’s UCC Holding to establish two gas processing plants, a new compressor station, and two additional trunk gas pipelines throughout the country,” said the report.
The tasks embrace gasoline processing vegetation with annual capacities of 1 billion and a pair of.5 billion cubic meters, geared toward optimising uncooked gasoline utilization. Agreements for these initiatives had been formalised between QazaqGas, the nationwide gasoline firm, and Qatar’s UCC Holding throughout President Kassym-Jomart Tokayev’s go to to Qatar. Additional developments embody the development of the Aktobe-Kostanai gasoline pipeline and the growth of the Beineu-Bozoi-Shymkent pipeline, which is anticipated to reinforce Kazakhstan’s vitality infrastructure.
ESCAP emphasised the pivotal function of proactive funding methods in sustaining such momentum, significantly for rising markets. “In this context, proactive investment promotion by line ministries and investment promotion agencies (IPAs) becomes increasingly crucial, particularly in sectors contributing to sustainable development. For emerging investment destinations, success depends not only on creating the right policy environment but also on offering investors a comprehensive suite of support services and aftercare,” the report famous.
While Kazakhstan led the subregion, Uzbekistan secured USD 4 billion in FDI, adopted by the Kyrgyz Republic with USD 2.1 billion, Azerbaijan with USD 1.2 billion, Turkmenistan with USD 339 million, Georgia with USD 126 million, and Armenia with USD 67 million, reported The Astana Times.
Despite strong inflows into sure international locations, outward investments from North and Central Asia declined considerably in 2024, with complete outflows falling by 58 per cent to USD 2.3 billion. Russia accounted for 90 per cent of those outflows, channeling USD 847 million into India and Belarus’s coal, oil, and gasoline sectors.
The broader Asia-Pacific area recorded USD 292 billion in FDI between January and September 2024, down from USD 339 billion throughout the identical interval in 2023. India led the area with USD 76 billion in inflows, adopted by Australia at USD 38 billion, China at USD 28 billion, and Japan at USD 25 billion. ESCAP attributed the decline to world financial uncertainties and geopolitical shifts.
“The landscape of foreign direct investment (FDI) in Asia-Pacific continues to evolve rapidly amid global economic uncertainties, geopolitical shifts, and technological transformations. While 2024 has witnessed some moderation in investment flows following the record-breaking announcements of 2023, the region has demonstrated remarkable resilience and maintained its position as a premier destination for international capital,” the report highlighted.
The report recognized a number of components reshaping funding patterns, together with the acceleration of digital economic system investments post-COVID-19, heightened vitality safety issues, and provide chain restructuring influenced by geopolitical tensions. Experts additionally famous a transition in funding tempo as tasks introduced in 2023 moved into implementation.
The providers sector continued to dominate FDI inflows within the Asia-Pacific, accounting for 55 per cent of the overall, whereas manufacturing contributed 41 per cent. The share of the first sector declined to 4 per cent within the first three quarters of 2024, in comparison with 9 per cent throughout the identical interval in 2023.
Within manufacturing, semiconductors, digital parts, and metals attracted the best investments, with USD 28.2 billion, USD 19 billion, and USD 12.5 billion, respectively, within the first three quarters of 2024. However, metals investments noticed a steep 61 per cent decline in comparison with 2023 as a result of weakened world metal demand, falling costs, elevated Chinese exports, and decreased home consumption, The Astana Times reported.
Kazakhstan’s outstanding efficiency in attracting FDI underscores its rising attraction as a hub for regional improvement and worldwide collaboration. The investments, pushed by strategic agreements and infrastructure tasks, signify the nation’s proactive method to fostering financial development and sustainable improvement. (ANI)