Astana Development

Brief summary of social and economic development of Astana for January – September 2015.

Astana is the capital of Kazakhstan. According to the statistics department data as of 21 October 2015, the population of Astana comprised 867,790 people.

1. Industry condition

Industrial production volume within January – July, 2015, amounted to 142.8 billion tenge, and quantum index (hereinafter – QI), as compared to the same period of the previous year, reached 103.9%. Astana holds the third place in the Republic by its QI, after Karaganda (108.8%) and Atyrau (105.4%) regions.

Value of goods produced by processing industry comprised 107.3 billion tenge, with QI being 104.7%.

The main processing industry branches are engineering (15.0%), production of construction materials (33.8%), metallurgy (gold and silver production) (23.5%), food industry (11.5%) and others (16.2%).

The volume of goods production has increased in the following industry branches:

  •  in metallurgical industry the amount of produced goods and provided services constituted 25.2 billion tenge and the QI increased by 2.2 times due to extension of gold-bearing ore processing;
  •  in production of wooden and cork articles, excluding furniture, straw items and canework materials, the goods and services amounted to 572.1 million tenge, and the QI increased by 3.2 times (by virtue of enlarging orders in summer period;
  •  in textile production, the QI reached 125.8%, and the volume of manufactured goods – 97.2 million tenge.

During the 1st half of 2015, the volume of goods produced under the implemented project of Industrialization Chart rose beyond 3 billion tenge. Involvement of the planned capacity was within the range of 70 – 100%.

The processing industry labour productivity for the 1st half of 2015 comprised 20.6 thousand dollars/person.

Non-primary goods export volume for the 1st half of 2015 constituted 657.1 million US dollars, or 121.6% as compared to the referent period of the previous year.

Investment volume into processing industry within January – June, 2015, reached 6.2 billion tenge, advancing the referent period of 2014 by 36.9%.

In the framework of implementation of the second five-year plan of governmental program for industrial and innovative development of the Republic of Kazakhstan for 2015-2019, the decree of Astana Akimat approved regional Map of Industrialization of Astana for 2015–2019 No. 111-468 dated 03 April, 2015.

In the framework of the regional Map of Industrialization, 4 projects totalling 46.5 billion tenge and creating approximately 772 jobs are implemented. Therefrom within the 2nd half of 2015 it is planned to complete 2 projects amounting to 12.8 billion tenge.

Projects of Map of Industrialization commenced in December, 2015:

1) in construction industry – 1 project “Construction of house-building factory in Astana by GLB LLP”, project value 12 billion tenge (completion 75%, investments utilization – 75%).
Production capacity: 134,000 m3 of ferroconcrete products per year for building 200,000 m2 of housing per year.

2) in engineering branch – 1 project “Automated production complex KazTechExpo by Innovative Production Company “ASTANA Eutaria Ltd.” LLP, project value 0.8 billion tenge (completion 98%, investments utilization – 98%.

2. Investment options

In January – August, 2015, the capital investments comprised 426,616.3 million tenge (116.5% as compared to January – August, 2014). The investments of the republic to the main capital share volume of the City of Astana amounted to 10,7% (9,5% in January-August 2014).

Among the financing sources, in January – August, 2015, own funds of economic entities still prevail, the volume of which amounted to 233,899.7 million tenge (54,8%).

Own funds – 233.8 billion tenge, bank credits – 21.8 billion tenge, budget funds – 122.7 billion tenge, other borrowed funds – 48.1 billion tenge.

The tasks of attracting the beneficial investments are solved by the specially created economic zone “Astana – new city”. It operates as a “free economic zone” engaged worldwide as an instrument for facilitating regional investment inflow.

The free economic zone territory is 7.6 thousand ha. It includes two zones: industrial zone (Industrial park No. 1, 2) with the territory of 1,031.2 ha, and administrative and business area with the territory of 6,603.51ha.

For the years of operation of “Astana – new city” free economic zone, from 2002 till September, 2015, the volume of investment involved has reached 2.2 trillion tenge. More than 1.6 trillion tenge have been already utilised.

At present, on the territory of Industrial park No. 1 (IP), 58 industrial and innovative projects are operated with the investment volume of 173.7 billion tenge, including those participated by foreign investors: factories for assembly of locomotives GE (The USA), passenger coaches Talgo (Spain), and electric locomotives Alstom (France), for producing electronic and optical devices (Turkey), paper products for household and sanitary-hygienic application IpekKagit (Turkey), construction materials – dispersing and dry special construction mixes and buildings thermal isolation products (Poland) etc.

Therefrom, 21 production facilities have been put into operation, 24 objects are under construction, and 13 projects are at the stage of designing and obtaining permission documents.

Volume of utilised investments comprised 90.4 billion tenge.
For the whole period of work (since 2010), the operating companies of the IP have produced goods for total value of 368.9 billion tenge, including 40.8 billion tenge for the 8 months of 2015.

Export goods share amounted to 9.1 billion tenge.

The IP operating companies have paid taxes to the budget in the volume of 32 billion tenge.

The companies have created 2,447 jobs.

By results of 2015, 6 objects are scheduled for launching on the territory of Industrial park No. 1 with total value of 32.4 billion tenge, where after reaching full projected capacity more than 1,500 jobs are expected:

- construction of factory for producing metal structures and sandwich panels,
- construction of factory for producing steel metal structures,
- construction of factory for producing GEVO diesel engines,
- organisation of military and civil machinery production in Kazakhstan,
- construction of factory for ZOJE sewing equipment and textile goods production,
- construction of house-building factory after Weckenmann German equipment technology.

The launch of all implemented projects on the territory of Industrial park No. 1 is planned at the end of 2017.

It is worth mentioning, that the majority of projects are export-oriented after the internal market is full. Nowadays, since 2012 GE locomotives have been sold to such countries as Tajikistan, Uzbekistan, Ukraine and Kyrgyzstan.

The territory of administrative and business centre provides for construction of administrative, social and cultural, as well as residential objects.

At present, there are 79 projects in progress, including residential, administrative, social and cultural objects.

Since 2011 the production entities of administrative and business centre have turned out the goods for total value exceeding 54.8 billion tenge (solar modules, helicopters).

In the framework of the governmental support, the applicants are granted land plots on the industrial zone territory with the necessary infrastructure ensured by virtue of budget funds. Preferential conditions of free economic zone are also provided. Investors are exempt from value added tax on turnover of sales of goods, works and services performed on the free economic zone territory with the aim of construction. Zero tax rate is applied for sale of goods and equipment completely expended in course of objects construction. The investors are free for up to 10 years from rent payment for the land plot on which an object is being constructed.

Besides, the special economic zone area is treated as the territory on which free customs zone regime is applied.

At present, in view of occupancy of Industrial park No. 1 with different projects, the industrial area boundaries are extended –Industrial park No. 2 with the territory of 433.1 ha has been created. Currently the development of feasibility study for furnishing infrastructure is being conducted.

The nearest planned perspectives include launching of all declared projects of Industrial park No. 1, and furnishing of infrastructure of Industrial park No. 2, with bringing industrial and innovative projects to its territory.

3. Trade and foreign trade turnover

Domestic trade

Volume of retail for January – September, 2015, comprised 4,415.8 billion tenge, having increased by 2.4% as compared to January – September 2014.

The highest relative share in total Republic retail volume in January – September, 2015 belongs to Almaty (27.9%), Astana (10.6%) and Karaganda region (9.4%).

Wholesale volume for January – September, 2015, comprised 11,150.9 billion tenge, or 100% to the level in respective period of the preceding year.

Foreign trade

Kazakhstan foreign trade turnover in January – August, 2015 amounted to 52,849.8 million US dollars, thus decreasing by 35.3% as compared to January – August, 2014, including export – 32,012.9 million US dollars (less by 41.8%), import 20,836.9 million US dollars (less by 21.8%).

In January – August, 2015, the mutual trade between Kazakhstan and Eurasian Economic Union (EEU) countries comprised 10,988.9 million US dollars, being 23.1% less than in January – August, 2014, including export – 3,504.5 million US dollars (reduced by 26.9%), import – 7,484.4 million US dollars (less by 21.2%).

Within the Republic of Kazakhstan export structure, mineral products (48.7% to the total volume of export to EEU countries), chemical industry products (18.7%), metals and articles thereof (16.5%), animal and plant products, fabricated food products (7.5%) prevail.

From EEU countries, machinery and equipment (29.8% to the total volume of import from EEU countries), mineral products (14.6%), metals and articles thereof (14,5%), chemical industry products (14.4%), animal and plant products, and fabricated food products are predominantly imported (13.0%).

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4. Construction works volume in Kazakhstan in January – September, 2015

Almaty. 15 October. INTERFAX-KAZAKHSTAN: Statistic committee of Ministry of Economy informed that in January – September, 2015 the volume of construction works (services) in Kazakhstan comprised 1.854 trillion tenge (current exchange rate – 275.99/$1), which is 4.5% higher than in respective period of 2014.

The volume of construction and installation works as compared to January – September, 2014, increased by 8.4%, and reached 1.627 trillion tenge.

Capital repair construction works volume decreased by 21.6% times, current maintenance – by 9.3%.

Within the reported period 27,636 buildings have been put into operation, 25,960 of which are residential, and 1,676 are non-residential ones.

Within January – September, 2015, 528 billion tenge have been assigned for residential construction, which is by 14.4% less as compared to the same period of the preceding year. In total capital investment volume the share of utilised funds in residential construction comprised 11.3%.
The main source of financing the residential construction in the reported period are own funds of the developers, the share of which is 61.9%.

In January – September, 2015, the total area of residential buildings introduced into service comprised 6 million 329 thousand sq. m. (by 24.2% more as compared with the respective period of the previous year), 3 million 502 thousand sq. m. of which belonged to individual developers.

Average actual expenditure for residential construction of 1 sq. m. in apartment houses in January – September comprised 122.9 thousand tenge in residential houses, in those ones, built by individual developers – 72.3 thousand tenge.

5. Small and medium business monitoring

The list of registered legal entities as of 1 October, 2015 included 356,900 records, thus increasing by 1.7% as compared with the referent period of the preceding year, including 347,842 records of companies with number of employees not exceeding 100 persons. The number of operating legal entities reached 217,429. Small companies (with less than 100 people) comprise 208,701.

Source: Astana official sites,