INVESTMENT OPPORTUNITIES
OF SOUTH-KAZAKHSTAN OBLAST
Kazakhstan
 Сapital: Astana
 Теrritory: 2,7 мln. square kilometers. (the 9th in the world)
 Population: 17 ,4 мln. peop...
Eurasian Economic Union (EAEU)
ЕAEU is:
 Market: 175,7 мln. people
 GDP: 2 411 bln. US dollars
The energetics:
 Gas pro...
Market and Logistics
 In the radius of 2 thd.km
away from Kazakhstan lives
a population with 3,3 bln.
people
 Three memb...
 More than 68 % of the total
turnover and 57 % of
passenger turnover make share
of the country’s railways.
 Kazakhstan r...
Energetics of Kazakhstan
Power consumption:
industry - 68, 7%
households - 9.3%
service sector - 8%
transport - 5.6%
...
Rating of the Global Competitiveness index
Global Economic Forum rated Kazakhstan 50th of the 144 countries.
• «The effici...
 According to the annual Global Competitiveness Index for 2014-
2015, Kazakhstan took the 22nd place on the degree of inv...
Investment preferences
Tax exemption
Corporate income tax for 10 years
Land tax for 10 years
Property tax for 8 years
Inve...
Criteria for investment preferences::
1.Match the list of priority activities:
 Metallurgy;
 Chemical industry;
 Petroc...
 Area: 117 249 km2
 Population: 2 788 700
(1st place in Kazakhstan)
 Economically active population:
1 267,4 people.
 ...
Economics
10 priority sectors of
SKR
Gross regional product in January-September 2014 amounted to 1546 420.1 million tenge...
SKO share of the total production in Kazakhstan by the
end of 2014
100% cottonseed oil
99,2% electric transformer
97,5% co...
In 2014, the volume of gross agricultural output
amounted to 325 bln. tenge or 1,8 bln. US dollars.
 10,3 мln. hectare or...
 One of the most visited tourist sites in Central Asia is
the mausoleum of Khoja Ahmed Yasawi, which is
included in the U...
Name
Ski resort
"Kaskasu"
Health-resort
area "Saryagash"
Beach area
"Shardara"
Beach area
"Badam"
Dedicated area 56 ha 40 ...
Minerals
№
Name of district
or city Name of minerals
1 c. Arys Bentonite clay, limestone, clay, gypsum, sand for concrete ...
Shymkent international airport operates regular flights to the following cities: Istanbul
(Turkey), Moscow (Russia), Dubai...
The map of industrial zones SKO
Industrial Zones of the South
Kazakhstan region
 19 industrial zones
Total area 1390 hect...
Endüstriyel bölgelerinin çekiciliğiThe attractiveness of industrial zones
 Ready Infrastructure: Supply of electricity, g...
More information
Cost of land:
Obtaining ownership rights - 893 tenge/m2 (4,8 USD / m2)
For Rent - 12.84 tenge/m2 per year...
Republic of Kazakhstan, South Kazakhstan Region, c.Shymkent
St. Kapal-batyr w/n, Industrial zone «Ontustik»
Tel: +77252 43...
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Presentation about South Kazakhstan Oblast

Information for investors
Published on: Mar 4, 2016
Published in: Investor Relations      
Source: www.slideshare.net


Transcripts - Presentation about South Kazakhstan Oblast

  • 1. INVESTMENT OPPORTUNITIES OF SOUTH-KAZAKHSTAN OBLAST
  • 2. Kazakhstan  Сapital: Astana  Теrritory: 2,7 мln. square kilometers. (the 9th in the world)  Population: 17 ,4 мln. people. (the 63rd in the world)  It has borders with (clockwise from the north) Russia, China, Kyrgyzstan, Uzbekistan, Turkmenistan, and Iran, Azerbaijan through the Caspian Sea.  Administrative divisions: 14 regions and two cities that have the status of State importance (Astana and Almaty)  GDP 2014: 264.894 bln. $ (43rd)  GDP per capital 2014: 15,219 $ (47th)  Currency: Tenge (1 $ – 185 tenge)  Kazakhstan has the second largest uranium, chromium, lead, and zinc reserves, the third largest manganese reserves, the fifth largest copper reserves, and ranks in the top ten for coal, iron, and gold.
  • 3. Eurasian Economic Union (EAEU) ЕAEU is:  Market: 175,7 мln. people  GDP: 2 411 bln. US dollars The energetics:  Gas production: 20,9% оf the world proportion (the 1st)  Oil production: 14,6% оf the world proportion (the 1st)  Coal production: 5,8 % оf the world proportion(the 6th)  Energy production: 11,2 % оf the world proportion (the 3rd) Industry  Steel production: 4,5% оf the world proportion (the 5th)  Min.fertilizer production: 10,8 % оf the world proportion (the 2nd) Agriculture  Potato: 11% оf the world proportion  Wheat: 9% оf the world proportion  Milk: 7% оf the world proportion  Мeat: 3,5% оf the world proportion The movement of 4 “Free’s” within EAEU : 1. Free traffic of goods 2. Free movement of services 3. Free movement of capital(fund) 4. Free movement of work force Infrastructure:  STRETCH OF ROAD: 1601,4 тhd. км (the 5 th in the world)  RAIL MILEAGE: 106,8 thd. км (the 2 nd in the world)
  • 4. Market and Logistics  In the radius of 2 thd.km away from Kazakhstan lives a population with 3,3 bln. people  Three member-countries from BRICS are situated near Kazakhstan: Russia, China and India.  The average time of the flight from many European cities amounts 5 hours. 33% (2787 км) of the transport corridor «Western Europe- Western China» passes through Kazakhstan, which is considered as the shortest cut in international transportation between Europe and China
  • 5.  More than 68 % of the total turnover and 57 % of passenger turnover make share of the country’s railways.  Kazakhstan railways border with:Russia, China, Uzbekistan, Kyrgyzstan and Turkmenistan. Road infrastructure 33% (2787 km) of the transport corridor "Western Europe- Western China" held in Kazakhstan, which is the shortest route in international traffic between Europe and China There are 5 international automobile routes with a total highway mileage of 23000 km. 1. Аlmaty-Аstana -Коstanay with a way out to Tchelyabinsk (Russia); 2. Аlmaty-Petropavlovsk with a way out to Оmsk (Russia); 3. Аlmaty -Semey -Pavlodar with a way out to Оmsk (Russia); 4. Аlmaty-Shymkent with a way out to Tashkent (Uzbekistan); 5. Shymkent-Акtobe-Uralsk with a way out to Samara (Russia). Public roads: 96,000 km. Total extent of the rail mileage - 15 341 км, 6000 of which is double-track railway and around 5000 —electrified track.
  • 6. Energetics of Kazakhstan Power consumption: industry - 68, 7% households - 9.3% service sector - 8% transport - 5.6% agriculture - 1.2%. Generation and consumption of electricity in 2013: Development: 91 972,7 KWh Consumption: 89 640, 8 KWh The main producers of electricity: 1. "ECE" JSC 16% 2. "Ekibaztuzskaya GRES-1" LLP 15% 3. "Ekibaztuzskaya Station GRES-2" JSC 7% 4. "Kazakhmys Energy" JSC 5% 5. "Almaty Electric" JSC 4.4% 6. "Pavlodarenergo" JSC 3.8% 7. "Karaganda-Power Center" LLP 3.6% Production and consumption of natural gas in the Republic of Kazakhstan 2014: Production of gas - 45-50 bln. M3 Consumption in the Republic of Kazakhstan - 18 bln. m3
  • 7. Rating of the Global Competitiveness index Global Economic Forum rated Kazakhstan 50th of the 144 countries. • «The efficiency of labor market» - 15th place • «The investor’s security rate» - 22nd place • «Macroeconomic environment» - 27th place • «Quality of the railway infrastructure» – 28th place Running a business According to an authoritative rating - «Doing Business» rated Kazakhstan 77th of the 189 countries. • «Taxation» - 17th place • «The property registration» - 18th place • «Investor protection scheme» - 25th place The country’s business climate - a rather good one thanks to favorable investment laws and a number of measures taken to support investments made it possible to attract a significant number of investments to Kazakhstan and from 2005 gross income amounted more than 203 bln.US dollars. Investment climate
  • 8.  According to the annual Global Competitiveness Index for 2014- 2015, Kazakhstan took the 22nd place on the degree of investor protection.  Kazakhstan signed an agreement on mutual protection of investments with 47 countries. INVESTMENT OMBUDSMAN An investment ombudsman was set up in order to assist in protecting the rights and legitimate interests of investors. The main functions of the investment ombudsman are:  consideration of investors’ appeals on issues arising in the course of carrying out investment activities in Kazakhstan, and to make recommendations for their resolution;  to assist investors in addressing emerging issues in extrajudicial and pre-trial procedures;  development and making recommendations to the Government of the Republic of Kazakhstan on improvement of Kazakhstan legislation. Investor protection
  • 9. Investment preferences Tax exemption Corporate income tax for 10 years Land tax for 10 years Property tax for 8 years Investment subsidy Reimbursement up to 30% of actual costs of investors for SMP and purchase of equipment from the state after commissioning Exemption from customs duties Exemption from customs duties on import of equipment, accessories and spare parts, raw materials and supplies required for implementation of the investment project Kind grants Gratuitous use: land, buildings, installations, machinery and equipment, computer engineering, measuring and control instruments and devices, transport devices
  • 10. Criteria for investment preferences:: 1.Match the list of priority activities:  Metallurgy;  Chemical industry;  Petrochemical industry;  Mechanical engineering;  Building materials industry;  Food processing industry. 2. The newly formed company (less than 12 months before the application for investment preferences) with investments of at least 2 million MCI (monthly calculation index). 1 MCI = 1 982 tenge /10,7 USD 2 000 000 MCI = 3 964 mln. tenge / 21, 427 mln. USD Simplification of the labor recruitment It does not require a work permit of foreign workers during the life of the investment project, and one year after the commissioning of the investment project Stability of the legislation the stability of the tax legislation for all tax rates, except VAT and an excise duties (subject to the conclusion of the investment contract)
  • 11.  Area: 117 249 km2  Population: 2 788 700 (1st place in Kazakhstan)  Economically active population: 1 267,4 people.  Unemployment rate: 5,3%  The average monthly salary in SKO: 82 288 tenge / 444,8 USD For reference: the average monthly salary in Kazakhstan 119 111 tenge/ $643,8  Administrative center: Shymkent (3rd largest city in Kazakhstan)  The structure of the region: 4 cities (Shymkent, Kentau, Turkestan, Arys) and 14 regions. South Kazakhstan Oblast  Uranium reserves is ranked 1st in the country, phosphorite and iron ore reserves - 3rd place.  Average statistical number of sunny days: 330 (3000 hours per year)  Average temperature: January -2°C, July +29°C.
  • 12. Economics 10 priority sectors of SKR Gross regional product in January-September 2014 amounted to 1546 420.1 million tenge (in january-september 2013 – 1 396 073,7 mln.tenge). 1. Agriculture 2. Food industry 3. Light industry 4. Pharmaceutics 5. Mechanical engineering 6. Building materials industry 7. Petrochemistry 8. Energetics 9. Tourism 10. Logistics Name GRP, mln. tg Structure of GRP, % Share of SKR in the structure of GRP in the RK, % Total 1 546 420 100 6 Agriculture, hunting and forestry 142 447 9,2 12,8 Industry 370 336 24 4,8 Mining and quarrying 43 238 2,8 1,0 Manufacturing 305 428 19,8 11,3 Building 93 407 6,0 6,4 Wholesale and retail trade 203 532 13,2 4,7 Transportation and warehousing 128 216 8,3 6,6 Real estate transactions 154 002 10 8,3 Other services 337 883 21,8 6,6
  • 13. SKO share of the total production in Kazakhstan by the end of 2014 100% cottonseed oil 99,2% electric transformer 97,5% cotton fabric 67,2% kerosene 55,0% textile 53,4% pharm.preparations 44,9% windows and doors 37,3% petrol 30,1% fuel oil 26,9% gas oil 24,5% portland cement 21,9% flour 21,4% pasta 21,2% bread 17,4% building brick 13,8% bird meat 12,3% paper 10,4% lime In 2014 industrial enterprises of SKO have produced goods 649 bn.tenge or 3,5 bln. USD. 37% of investments in fixed assets of SKO in 2014 have been invested in the industrial sector 20% of credit investments in 2014 in South Kazakhstan second-tier banks were directed to the industrial sector Industry
  • 14. In 2014, the volume of gross agricultural output amounted to 325 bln. tenge or 1,8 bln. US dollars.  10,3 мln. hectare or 87 % of the area is occupied by agricultural land  9095,8 thd. hectares of pastures, 779,0 thd. hectares of crop area, 442,3 thd. hectares of irrigated land  38%f the economically active population, or more than 500 thd. man employed in agriculture  87% of the republic’s greenhouses are located in the South Kazakhstan region  2.3 million tons of vegetables, melons and potatoes were harvested in 2014  490 thd. tons of vegetables and melons sent for export to the Customs Union, including in Russia - 310 thd. tons  The government allocated subsidies of 23 billion tenge or 125 million USD to South Kazakhstan region in 2014 on the development of agriculture, which is 1.6 times more than in 2013  64 706 tenge or 350 USD is the average monthly salary in agriculture Agriculture 100% cotton 71% grape 66% gourds 51% safflower 42% fruit 25% vegetable SKR share of the total production in Kazakhstan by the end of 2014
  • 15.  One of the most visited tourist sites in Central Asia is the mausoleum of Khoja Ahmed Yasawi, which is included in the UNESCO World Heritage List. In 2014, the Mausoleum of Khoja Ahmed Yasawi had a more than million tourists .  The resort "Saryagash" has 16 recreation centers. Every year it is visited by over 284,000 people.  The region has 2 reserve ("Aksu Zhabagly" and "Karatau") and one National Park ("Sairam-Ugam")  In order to develop tourism, there are originated 4 tourist zones:  Tourist- recreational center "Kaskasu"  Health-resort zone "Saryagash"  Beach area on the reservoir "Shardara"  Beach area on the reservoir "Badam“ For more information on tourism SKR you can find on this link: http://tourismuko.gov.kz Tourism
  • 16. Name Ski resort "Kaskasu" Health-resort area "Saryagash" Beach area "Shardara" Beach area "Badam" Dedicated area 56 ha 40 ha 106 ha 64 ha Required investments 230 mln. $ 154 mln. $ 192 мln. $ 184 mln. $ State support: - Ready-made infrastructure (water, electricity, gas, roads); - Assistance in obtaining permits; -Provision of marketing research from international consulting companies; -The ability to repurchase or lease land below market value. Tourist areas
  • 17. Minerals № Name of district or city Name of minerals 1 c. Arys Bentonite clay, limestone, clay, gypsum, sand for concrete and silicate products 2 c. Kentau Barite, limestone, copper, flasks 3 c. Turkestan Barite, limestone, gypsum, clay, gypsum, flasks and opoka-like clay, bentonite clay 4 r.Baidybek Mineral paint, marble, facing stones 5 r.Kazygurt Gypsum, clay, bentonite, clays, carbonate raw materials, perlite, obsidian 6 r. Maktaaral Gypsum 7 r. Ordabasy Mineral paint, bentonite clay 8 r. Otyrar Loam, dolomite and dolomitic limestone, construction sand 9 r. Sairam Bentonite clay and quartz sand 10 r. Saryagash Flasks and opoka-like clay, bentonite clay, limestone, carbonate raw material and quartz sand 11 r. Suzak Bentonite clay, talc, chrysotile asbestos, loam, sand quartz and feldspar 12 r. Tolebi Mineral colors, limestone, refractory clay, molding clay, wollastonite, marble, fluorspar, fluorite
  • 18. Shymkent international airport operates regular flights to the following cities: Istanbul (Turkey), Moscow (Russia), Dubai(UAE), Sharjah(UAE), Urumchi (China), Astana, Almaty, Aktau SKO is bordered by: •Republic of Uzbekistan •Jambyl region •Karaganda region •Kyzylorda region. SKO is the “Southern gateway” in EAEC in international trade, to contribute to: “Western Europe – Western China” international transport corridor which is the shortest route in international traffic between Europe and China; “Shymkent-Tashkent” highway which opens to Kazakhstan southern countries Trans-Asian Railway. Location and logistics Within a radius of 200 km from Shymkent live 10 mln.people Within a radius of 500 км – 25 mln. people. Within a radius of 700 км – 50 mln. people.
  • 19. The map of industrial zones SKO Industrial Zones of the South Kazakhstan region  19 industrial zones Total area 1390 hectares  3 active industrial zones in the cities of Shymkent, Turkestan, Suzak district Total area 490 hectares  9 industrial zones, putting into operation in 2015 Total area 485 hectares  7 industrial zones at the design stage Total area 415 hectares  130 ongoing projects The area under the project 442 hectares  13,000 employees  115 billion. tenge or 625 million. USD attract private investment
  • 20. Endüstriyel bölgelerinin çekiciliğiThe attractiveness of industrial zones  Ready Infrastructure: Supply of electricity, gas, water and other engineering and communication networks.  Fares are cheaper by 30%  Possibility to rent or purchase of land at below market value  Convenient location logistics  Maintenance of projects on the principle of "one window"  Promoting the goods and services the participants of industrial zones Submit necessary documents to the Managing Company Get the solution of the DCC Protect the project in DCC Sign a contract with the Managing Company How to become a member of the industrial zone
  • 21. More information Cost of land: Obtaining ownership rights - 893 tenge/m2 (4,8 USD / m2) For Rent - 12.84 tenge/m2 per year (7 cents/m2) Tariffs: Infrastructure Cost in Industrial zone Cost out of Industrial zone Electricity 07:00-19:00 12 tenge / kWh (6.5 cents / kWh) 19.51 tenge / kWh (11 cents / kWh) 19:00-23:00 50.46 tenge / kWh (27 cents /kWh) 23:00-07:00 8 tenge / kWh (4 cents / kWh) Gas 25 tenge /cube (13.5 cents /cube) Water Drinking 150 tenge /cube (81 cents /cube) Technical 50 tenge / cube (27 cents / cube) - Canalization 78 tenge / cube (42 cents / cube) Tax rates: CIT 20% VAT 12% Land tax 13.86 tenge / m2 (7.5 cents / m2) Property tax 1.5% The cost of fuel: Gasoline (AI 92) - 99 tenge / liter (53 cents / liter) Diesel - 96 tenge / l (52 cents / liter)
  • 22. Republic of Kazakhstan, South Kazakhstan Region, c.Shymkent St. Kapal-batyr w/n, Industrial zone «Ontustik» Tel: +77252 43 91 09 Mob: +7707 367 31 81 +7705 485 64 81 Call center: +7 7252 31 44 55 E-mail: industzona@mail.ru

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