Investment Opportunities in the Aktobe Region, Kazakhstan
Investment Opportunities in the Aktobe Region, Kazakhstan
The Aktobe Region is one of the largest regions in Kazakhstan in terms of population and industrial capacity.
The boundless steppe, mountains, fertile valleys, rivers and the region of the Aral Sea make up the vast Aktobe Region that occupies the territory of more than 300,000 square kilometres. Arriving to the region from the north, from neighbouring Russia, you can drive for more than a day southward and arrive in Uzbekistan. There are oil-producing regions of the country nearby, in the west.
More than 900,000 people live in these vast lands. Almost half live in Aktobe, the regional capital.
Hard working people live here. Such a unique human asset has evolved over decades. There are highly skilled and educated specialists in various industries, agriculture, science, culture, education, sports, and services sector.
Advantages of the region:
The Aktobe region is a crossing of roads and fates. A lot of traffic passes through Aktobe due to the convergence of motorways, railways, and air routes. The transit through the Aktobe region gives the opportunity to transport goods to any place in Russia, Europe, Central Asia, and Near East.
Leaders of many countries are now discussing the “New Silk Way” project. The Aktobe region is at the very centre of this road. More than 600 kilometres of “Western China – Western Europe” Road run across these lands. This road reduced the delivery of goods from China and other Asian countries to Western and Eastern Europe by 10-15 days. Some other international roads of prime importance also run across the region.
There is no other region in Kazakhstan with such convenient logistics. The region is located near other member-states of the Eurasian Economic Union (EAEU) with an overall population of more than 180 million people. There is free movement of goods, services, capital, and labour within the EAEU countries. Cities of the Volga and the Ural regions are located just 1,000 kilometres from Aktobe, 8-10 hours driving, where approximately 30 million people live. Major cities in Central Russia and Belarus are located another 1,000 km away.
The Aktobe region is famous not only for its advantageous geographic location. Nature and fate evidently favour this land. The region is rich in mineral and raw materials resources and is home to 340 mineral deposits. The Aktobe region ranks second in the world for chromite ore reserves – more than 400 million tonnes, and third in Kazakhstan for copper ores reserves – 100 million tonnes, and oil – 900 million tonnes.
There are many other treasures in the region. It is entirely self-sufficient in natural gas. The available water resources supply cities and towns, as well as industrial facilities. The region also shares its mains electricity with its neighbours.
Agriculture is developing dynamically too, allowing for meat and dairy stock farming, vegetable farming, the development of greenhouses and irrigated farming. The land is rich in grazing areas. The local meat is famous far beyond the region.
Small and Medium-Sized Businesses
The development of the mining industry, steady advance of industry giants and the large reserves of minerals are not the only factors that give confidence for the future. Small and medium-sized businesses are developing around major plants, factories, and companies. There are more than 50,000 enterprises successfully operating in the region in this sector of the economy.
The vigorous pulse of the region is best felt in the regional capital – the city of Aktobe. It is not just a city, but an urban agglomeration that comprises of 70 populated areas. Aktobe’s development plan has been approved at the government level. It is expected that by 2030 Aktobe’s population will reach one million. The regional capital is demonstrating the highest population growth alongside Kazakhstan’s capital, Astana.
Regional support measures
All roads converge in Aktobe. This provides the opportunity to spread your wings and implement the most courageous plans. The city has created the “Aktobe” industrial zone that attracts entrepreneurs with its unique opportunities for business development.
Just five kilometres from the centre, there is a railway and “Western Europe – Western Chine” Road. The Kazakh-Russian border is also nearby. The entire infrastructure has already been established on the area of 200 hectares. The utilities costs are the lowest in Kazakhstan.
Land plots are provided free-of-charge for a long period, and can be bought at a discount price or leased at a reduced rate. Where else can you find such favourable terms?
National support measures
Foreign investors are provided with other supportive measures, including:
- relief from customs duty;
- transfer of moveable and immovable property;
- relief from taxes for 8-10 years;
- reimbursements from the government of up to 30% of the costs for construction and installation works, as well as equipment.
The Investor Assistance Centre assists with all logistical matters, including arranging business meetings, executing documents and signing contracts.
This has resulted in an increase of signed commercial contracts and major investments. International businesspeople have been working in the Aktobe region for many years.
The Chinese National Oil Company that came to the region more than 20 years ago has entrusted its investments – more than US $9 billion – to the region. The Korean National Oil Corporation has invested more than US $300 million. The Russian Copper Company has been developing copper-zinc ores and has invested more than US $660 million. The Turkish Company Yildirim Group, a large producer of chrome concentrate, has invested more than US $250 million.