Kazakhstan Launches $62.7 Billion Investment Plan

The Kazakh government announced an ambitious plan to attract $62.7 billion in investment by 2026, with a target of $25.5 billion in foreign investment. This figure represents a significant increase compared to the $45 billion in fixed capital investment achieved in 2025, reflecting the country's determination in economic transformation.

Prime Minister Bektenov clearly stated that the task of the national authorities is not only to increase investment flows but also to ensure the launch of high-value-added projects. To achieve this goal, Kazakhstan has updated and extended its investment policy concept to 2030, marking a further deepening of the national development strategy.

01 Investment Strategy Transformation

Kazakhstan is shifting from passively accepting investment to a proactive investment model. In 2026, the government plans to implement 475 investment projects with a total value of approximately $32 billion, expected to create more than 1,100 permanent jobs.

This figure contrasts sharply with 2025—last year only 273 projects were launched, with a total value of $5 billion. The surge in investment scale indicates that the Kazakh government is accelerating the pace of economic development. The new model focuses on investing in specific sectors and developing pre-approved portfolios of investment proposals. This more targeted investment attraction strategy aims to improve investment efficiency and quality.

Investor protection has become a top priority. Kazakhstan has transferred the responsibilities of the Investment Ombudsman to the Prosecutor General and reorganized the former Investment Committee into the Investor Rights Protection Committee. These reforms have reduced investor legal disputes by 30%.

02 Key Industry Layout

Mineral resource development is a strength of Kazakhstan. Kazakhstan's bauxite reserves are highly concentrated, with proven reserves of approximately 292 million tons and significant potential for future increases.

Kostanay Region alone accounts for 97.4% of the country's total reserves. The bauxite in these areas is characterized by "high aluminum, low silicon, and abundant associated elements," making it suitable for Bayer process alumina production.

The energy sector is also a key investment area. Kazakhstan has launched the 2025-2029 National Energy and Utilities Modernization Project, with a planned investment of over US$24 billion to upgrade existing infrastructure and construct new power generation, transmission, and water supply systems. Deputy Prime Minister Bozumbayev revealed that the funds will be used to repair and construct 86,000 kilometers of public utility pipelines and add 7.3 million kilowatts of power generation capacity.

There are also new developments in the agricultural processing sector. With the assistance of a large Turkish leather company, Kazakhstan is planning to build a new edible gelatin factory with an annual production capacity of 7,000 tons, an investment of US$43.68 million.

03 Strategic Layout for Key Minerals

Kazakhstan has ambitious plans in the field of key minerals. Eurasian Resources Group (ERG) announced that it will invest US$20 million to build its first facility for producing the key mineral gallium.

This project will make Kazakhstan potentially the world's second-largest gallium producer after China. Gallium is widely used in high-end technology fields such as 5G communications, radar systems, aerospace, and missile guidance, and is a key material in the semiconductor industry.

Kazakhstan possesses abundant bauxite resources, and gallium is extracted from a byproduct of bauxite smelting. Eurasian Resources Group already operates a large alumina processing plant, providing both the "mother ore" and the "carrier" for gallium refining.

Kazakhstan's strategic moves in key minerals coincide with China tightening export controls on rare earth elements. In December 2023, China further tightened export controls on related technologies and products, leading to supply chain disruptions in Europe and the US and accelerating the search for alternative suppliers outside of China.

The US acted swiftly, approving $900 million in funding from the Export-Import Bank of the United States in November 2025 to support key mineral development projects in Kazakhstan.

04 Energy Infrastructure Expansion

Kazakhstan also has ambitious plans in the energy sector. Plans published by the Ministry of Energy indicate a goal to increase refining capacity from the current 18 million tons to 38 million tons by 2040. This means the country's share of petroleum product exports will increase to 30% of total exports, with China, India, and neighboring Central Asian countries as primary target markets.

The confidence supporting this goal stems from Kazakhstan's proven oil reserves of 4.4 billion tons and the explosive growth in production from the Caspian Sea super-oil field. In 2025, the country's average daily oil production reached 278,400 tons, and production will further increase after the second phase of the Kashagan oil field comes online.

Green energy has become a new track for cooperation. Huantai Energy's 380MW wind power project in Kazakhstan reduces emissions by 1.41 million tons annually, and the second phase of the Zhanatas wind farm will be completed in 2026, making it the largest wind farm in Central Asia.

These projects have increased Kazakhstan's renewable energy share from 3% in 2023 to the current 6%, with a target of 15% by 2030.

05 International Capital Participation

International financial institutions have shown strong interest in Kazakhstan. The European Bank for Reconstruction and Development has become one of the most active investors in Kazakhstan, focusing its investments on key areas such as transportation, energy, climate initiatives, and finance.

The European Bank for Reconstruction and Development (EBRD) provided €449 million in financing to JSC KazAvtoZhol for the reconstruction of a 234-kilometer section of the Aktobe–Ulgaısyn highway.

The Asian Development Bank (ADB) plans to invest over $10 billion by 2030 to support projects and initiatives under the Central Asia Regional Economic Cooperation Programme (CAEC), of which Kazakhstan is a member.

The World Bank has also provided funding to Kazakhstan to develop a carbon market, enabling the country to establish an emissions trading system and prepare for carbon credit operations.

Turkey is also actively involved in Kazakhstan's economic development. Currently, the two countries have 14 joint projects worth approximately $1.1 billion, seven of which have been successfully completed.

06. Diversification of Transport Corridors

Kazakhstan is actively promoting the diversification of its transport routes. Kazakhstan's oil exports have long relied on the Caspian Pipeline Union system, which handles 80% of its exports. However, geopolitical changes have prompted Kazakhstan to accelerate the search for alternative routes.

The Baku-Tbilisi-Ceyhan and Baku-Supsa pipelines are gaining increasing attention as alternative routes. KazMunayGas and SOCAR have reached a five-year agreement to transport 1.5 million tons of Kazakh crude oil via the BTC pipeline, with plans to expand this to 6-6.5 million tons by 2026.

The modernization of Aktau Port is a key component of this strategy. The European Bank for Reconstruction and Development has provided a €35 million loan to the Aktau Port complex, which will significantly enhance its cargo handling capacity.

The port has been identified as a crucial hub for trans-Caspian international transport routes, and the EU has also provided a grant of up to €10 million for the modernization of its infrastructure.

07 Investment Environment Challenges

Despite the optimistic outlook, Kazakhstan's investment environment still faces challenges. Prime Minister Bektenov acknowledged that severe bureaucracy and delays in local procedures continue to hinder investment, causing direct economic losses.

Infrastructure deficiencies are also a major constraint. Railway and power grid coverage is insufficient in some mining areas, requiring advance planning for supporting infrastructure. Environmental pressures cannot be ignored, with mine reclamation deposits reaching 5% of investment, necessitating strengthened ESG management.

Intensified competition also presents challenges. International mining giants such as Rusal and Rio Tinto are accelerating their expansion in Kazakhstan, requiring Chinese companies to build differentiated advantages through advanced electrolytic smelting and comprehensive utilization of red mud technologies.

Geopolitical balance is another issue Kazakhstan needs to carefully address. Kazakhstan is pursuing a multilateral, balanced foreign policy strategy, maintaining traditional relations with Russia while striving to consolidate pragmatic cooperation with China and actively embracing new opportunities from Europe and the United States.

With global energy transition and supply chain restructuring, Kazakhstan's $62.7 billion investment target demonstrates its determination to transform from a "resource reserve region" into a "new production capacity carrier."

International financial institutions have responded positively to this strategy, with institutions such as the European Bank for Reconstruction and Development, the Asian Development Bank, and the World Bank providing financial support for several major projects in Kazakhstan.