Kazakhstan, 10th Sep 2023, King NewsWire – Discovering Kazakhstan’s Potential
Nestled in the heart of Central Asia, Kazakhstan has emerged as a land of immense investment potential. Rich in natural resources and strategically located between Europe and Asia, the country has made significant strides in diversifying its economy and attracting foreign investments. One of the key sectors driving Kazakhstan’s economic growth is the engineering industry. With a vision for innovation, a growing domestic market, and a favorable investment climate, Kazakhstan offers compelling opportunities for investors looking to tap into the engineering sector.
Engineering Industry: A Strategic Focus
The engineering industry in Kazakhstan has experienced substantial growth in recent years, buoyed by a supportive ecosystem and strategic partnerships with global giants. Recognizing the importance of this sector, Kazakhstan has successfully attracted renowned international companies, including Wabtec, Alstom, and Hyundai Motor Company, among others. These collaborations have led to the introduction of cutting-edge products, such as Kia, Hyundai, Lada, Renault, and Chevrolet vehicles, which were previously unavailable in the country.
Amidst the remarkable growth of Kazakhstan’s engineering industry, a glaring opportunity for domestic production and import substitution emerges. The nation’s reliance on imported engineering products, which accounted for over 40% of the total imports of processed goods, signifies a significant gap waiting to be bridged. With imports of engineering goods amounting to a substantial USD 20 billion in the previous year, Kazakhstan’s ambition to bolster domestic manufacturing and decrease dependency on foreign imports becomes all the more apparent.
The absence of certain high-tech and mass production machine-building facilities has led to a heavy reliance on imports. As the engineering sector continues its upward trajectory, stakeholders are keenly aware that reducing import dependency not only strengthens economic resilience but also fosters technological advancement and innovation. The gap between domestic demand and supply creates the perfect incentive for investors to engage in collaborative ventures with the aim of revitalizing the local engineering ecosystem.
Opportunities and Challenges in the Engineering Sector
Kazakhstan’s engineering industry is marked by both opportunities and challenges. The automotive industry, constituting 39.4% of the engineering sector’s production volume, takes the lead, followed by electrical engineering and railway engineering. Notably, export volumes doubled in 2022, reaching USD 3.8 billion, a testament to the industry’s potential.
The country’s commitment to enhancing domestic manufacturing is underscored by its focus on the oil and gas engineering sector. Kazakhstan’s rich oil and gas reserves have spurred large-scale projects like Tengiz, Kashagan, and Karachaganak. This presents a golden opportunity for investors to contribute to the localization of equipment and spare parts production, in collaboration with foreign companies. The International Center for the Development of Oil and Gas Engineering, supported by global energy leaders like Chevron and ExxonMobil, seeks to bolster local content and empower domestic producers, fostering sustainable growth.
State Support Measures for Investors
Kazakhstan has established a range of support measures to facilitate investors’ entry into the engineering sector. With a keen eye on the evolving geopolitical landscape, the country is welcoming foreign companies to review their strategies and operations, offering a fertile ground for the development of new industries.
KAZAKH INVEST: Your Partner in Kazakhstan’s Growth
As investors seek to capitalize on Kazakhstan’s thriving engineering industry, KAZAKH INVEST stands ready to provide unwavering support. With their expertise and dedication, investors can leverage Kazakhstan’s potential and contribute to the nation’s remarkable economic journey.
Organization: Kazakh Invest
Contact Person: Leyla Gimranova
Release Id: 1009236232