Kazakhstan leads in attracting investments in Post-Soviet Space: UN
Jul 11, 2023
Astana [Kazakhstan], July 11 : According to the report by The United Nations Conference on Trade and Development (UNCTAD) on global investments for the year 2022, Kazakhstan is the highest indicator among the post-Soviet countries when it comes to net inflow of foreign direct investments (FDI). Kazakhstan amounted to USD 6.1 billion, the highest figure in the past 5 years and 83 per cent higher than in 2021. This is the highest indicator among the post-Soviet countries, reported Kazakh Invest.gov.kz.
Regarding net FDI inflows, Kazakhstan holds the first place in the post-Soviet space.
Uzbekistan follows with USD 2.5 billion, Lithuania with USD 2.2 billion, Georgia with USD 2 billion, Belarus with USD 1.6 billion, Latvia with USD 1.5 billion, Estonia with USD 1.2 billion, Armenia with USD 998 million, Turkmenistan with USD 936 million, Ukraine with USD 848 million, Moldova with USD 587 million, Kyrgyzstan with USD 291 million, and Tajikistan with USD 174 million, Kazakh Invest reported.
Azerbaijan and Russia rank at the bottom of the list, showing negative results of -USD 4.5 billion and -USD 18.7 billion, respectively.
Notably, the net FDI inflows to Central Asia increased by 39 per cent and amounted to USD 10 billion, with Kazakhstan accounting for 61 per cent of that.
Furthermore, there is a 6 per cent growth in net FDI inflows to 32 landlocked developing countries, among which Kazakhstan is also the leader. Ethiopia follows with USD 3.7 billion, Uzbekistan with USD 2.5 billion, and Mongolia with USD 2.5 billion, Kazakh Invest reported.
National Company KAZAKH INVEST JSC was established in accordance with the Resolution of the Government of the Republic of Kazakhstan No. 100 dated March 1, 2017 “On the renaming of the National Export and Investment Agency KAZNEX INVEST Joint-Stock Company in order to promote sustainable socio-economic development of the Republic of Kazakhstan by attracting foreign investment in priority sectors of the economy and comprehensive support of investment projects.
Additionally, Kazakhstan ranks 5th among developing economies in terms of attracting net investments in renewable energy projects during the period of 2015-2022, with a total of USD 56.3 billion.
The report's results show that global net FDI flows decreased by 12 per cent in 2022 to USD 1.3 trillion, following significant growth in 2021. The main reasons for this decline are the conflict in Ukraine, high food and energy prices, and increasing government debt in countries worldwide.
The decline primarily affected developed countries, where net FDI inflows decreased by 37 per cent to USD 378 billion. Meanwhile, flows to developing countries increased on average by 4 per cent.
The United Nations Conference on Trade and Development (UNCTAD) is the main body of the United Nations General Assembly in the field of trade and investment. It was established in 1964 and is headquartered in Geneva, Switzerland.
Within the UN system, UNCTAD serves as a coordinating centre for development issues and related topics in trade, finance, technology, investment, and sustainable development. Its main tasks include promoting global economic development through the development of recommendations, principles, organizational and legal conditions, and mechanisms for the functioning of modern international economic relations.
The organization conducts research and policy analysis, intergovernmental meetings, technical cooperation, and interaction with civil society and the business sector.
