Kazakhstan's first-half FDI at $10 billion

DUBAI. January 31. KAZINFORM  Net foreign direct investment, or FDI, into Kazakhstan's economy has almost touched the $10 billion mark in the first six months of 2011 as the country has aggressively developed and implemented efficient investment policies.

With these actions, the country has a defined strategic investment course, and has created a favourable investment climate that guarantees long-term investors a conducive business atmosphere Khaleej Times Online reports.

And while FDI is steadily growing and plays a key role in the rise of its economy, Kazakhstan needs to ensure a reasonable balance in the distribution of national and foreign capitals to achieve the best-possible results for economic diversification, according to Turan University rector Rakhman Alshanov.

Over the last five years, Kazakhstan has attracted over $137 billion in FDI, helping it to become the second-ranked country in terms of volumes of attracted investment in the Commonwealth of Independent States, trailing only Russia. It is also the fifth in Asia and 19^th globally.

The country also expects investments from Arab countries to hit $10 billion in the near future.

Over the past 20 years, Kazakhstan's gross domestic product, or GDP, has grown dramatically, and at present is pegged at $140 billion in real terms. The dynamics of its GDP per capita - which stood at $11,100 in 2010, exceeding the world average - has also changed; between 1996-2010, the country's GDP has grown by 370 per cent, prompting the United Nations in 2008 to include Kazakhstan in the list of countries with above-average incomes.

"If the country has managed to achieve this growth over a span of only 20 years, it has every favourable prospect to progress even further by preserving and multiplying its current potential," Alshanov said.

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