Our goal is to join Top-10 Asian financial centres – IFCA Chief Kairat Kelimbetov
In an exclusive interview to Kazinform correspondent, he told that the IFCA is actively developing cooperation with similar structures at the regional and global levels. The institutions of the IFCA are being currently established. The experience of Chinese, Dubai and English partners is applied. This and many other issues related to the IFCA activity are touched upon in the interview below.
Mr. Kelimbetov, what is the goal of your current working trip to the People’s Republic of China?
The Constitutional Law “On Astana International Financial Centre” was signed by the Head of State in late 2015, as per which the IFCA, all its subordinate structures and institutions are being established now. The JSC IFCA, which will be responsible for its development, has already been founded. As you know, the IFCA will be based on the EXPO-2017 infrastructure.
Since the IFCA was awarded the status of the international centre, we need to build relations with the partners and regulators of those countries, to whom our services will be oriented on. Undoubtedly, these will be our neighbors – the Eurasian Economic Union, Central Asia and China. In this regard, we are currently holding a number of meetings both with the financial regulators – the People’s Bank of China, China Securities Regulatory Commission (CSRC) – and with the business structures, such as China Investment Corporation (CIC), The Silkroad Foundation (SRF) and the Asian Infrastructure Investment Bank (AIIB).
Our important governmental programs are Industrial-Innovative Development Program and Nurly Zhol which closely correlate with China’s One Belt, One Road initiative. We are presently negotiating with the SRF, AIIB and other organizations on financing of many projects. Here we can see that the Kazakh President’s initiative on establishment of the IFCA nicely fits with this work, since unprecedented preferential terms for foreign investors are provided (English law, special tax preferences for the period of up to 50 years, simplified visa and labour regimes).
What aspects of the IFCA activity are of much interest for Chinese partners?
First of all, I should note that both countries signed an agreement on implementation of many infrastructure and production projects. To finance them is an important objective for many organizations, such as the SRF, CIC and AIIB. They closely collaborate with our national managing holdings and development institutions.
The second issue is the potential of the IFCA’s new stock exchange. Some organizations would like to join it and be its stakeholders and work at the future stock exchange. We are now discussing this idea with the officials of the Shanghai and Hong Kong stock exchanges, Hong Kong Precious Metals Exchange and Shanghai Gold Exchange.
We also cooperate with the CITIC Group Corporation (formerly the China International Trust and Investment Corporation) actively working in our country and planning to invest in our financial sector. I would like to emphasize that apart from traditional energy cooperation with CNPC, Sinopec, CITIC, we predict a breakthrough in the field of innovations and financial intermediation. For instance, CITIC and IZP Technologies Co. Intend to invest in construction of big data centres in Kazakhstan and are keen on forming new niches in IFCA. Kazakhstani companies, in turn, are eager to learn the experience of such Chinese corporations as Alibaba, Xiaomi and Lenovo in creation of big databanks.
As part of this visit, you plan to visit the Shanghai and the Hong Kong stock exchanges. What areas of their experience can be useful for the IFCA?
The goal of creation of the IFCA is to attract direct foreign investment both for the development of our country and for the entire Central Asia. With the help of the financial centres, like Hong Kong and Singapore, we plan to attract new financial technologies (the so called fintech) and investors serving at these platforms.
What other countries are involved in the IFCA development?
We view Dubai as a role-model for our centre. We are presently interacting with the DIFC on establishment of the Independent Financial Court in Astana. We are cooperating with the NASDAQ Dubai Stock Exchange and consider DIFC our main partner in Persian Gulf region.
We closely cooperate with the London IFC, London Stock Exchange and the whole financial community of London. Such cooperation opens new opportunities for the development of four main areas: local capital markets, asset management, private banking and Islamic finance.
Among other partners are the financial centres based in New York, Chicago, Toronto and several European countries. Therefore, we have big chances to develop.
When will we see the practical effect of the IFCA activity? How do you view its future?
We realize that it will take many years to establish the International Financial Centre. However, we believe that in a year or two we need to create new institutions to ensure the establishment of such full-fledged structure. I mean the independent financial court, IFCA regulator and an arbitration centre. We also expect that EXPO-2017 infrastructure will be placed at the IFCA’s disposal.
As for dates, the IFCA will start its full-fledged functioning in early 2018. Some services for the investors willing to invest in Kazakhstan and other CA countries in 2017 through the IFCA will be available at the end of this year. We want to join the top-10 Asian financial centres as soon as possible. Around 18,000 job places will be created in the nearest 7-10 years. 2,000-3,000 of the employees will be Kazakhstani financers, lawyers, consultants and other specialists.
We predict the economic growth at not less that 1% of the non-oil GDP. This will hugely impact the structural reforms of Kazakhstan.
Thank you for the interview.
By Sadyk Akizhanov