Triple challenge for #Kazakhstan

These are heady times for the Republic of Kazakhstan with its capital, Astana, currently playing host to not one but three major international events. This year it is hosting the global exhibition EXPO 2017 (10 June - 10 September) and, on the EXPO sidelines, the 10th Astana Economic Forum and the Eurasian Media Forum, writes Colin Stevens.

One of the headaches always facing organizers of major international events such as the Olympics or world expos is the follow up use of new and large-scale purposefully built facilities afterwards such as the sprawling EXPO 2017 site in Astana. It is an issue Kazakhstan was well aware of in the run-up to the opening of the exhibition, resulting in President Nursultan Nazarbayev’s proposals to establish no less than three new institutions on the premises of EXPO, an event expected to draw 5m visitors.

One is the Future Energy International Centre for the development of green technology and investment projects to be supported by the United Nations while another is the international hub of IT start-ups.

But probably the most ambitious out of the three is a brand new financial centre, opening early next year, which is designed to turn Astana into a major financial hub in the heart of Eurasia.

The Astana International Financial Centre (AIFC) as it is called, is modelled on the Dubai financial centre, and aims to put the whole region at the heart of the financial world.

The idea of creating AIFC was first proposed by the President of Kazakhstan in May 2015 and the centre will be launched officially in January 2018.

Major new infrastructure projects that have followed major international events such as the Olympics have, in the past, notoriously fallen way behind schedule but, in an interview, AIFC governor, Kairat Kelimbetov, said he “firmly believes” the organisers are on the right path and will be “100 percent” ready on the opening day.

He explained the rationale behind the centre, saying, “Our financial centre must become a part of the global financial system. From the very beginning, the idea of the AIFC was to introduce new financial instruments and develop a non-banking financial sector, which to this day is underdeveloped and rather dominated by strong commercial banks.”

But the idea is not necessarily to become a new City of London, he said, adding, “I think it is very naïve to think that we can ever compete with London or New York or Hong Kong. Our idea was not to try to replicate New York and London of 1970s or Dubai of the 2000s

“What we are doing here is connecting East and West, just as in the example of our stock exchange, where we brought together two global stock exchanges from the U.S. and China. There aren’t many examples like this anywhere else.

“I think large international events are a part of the establishment of Astana as a truly global city and, when it opens in January, the Astana International Financial Centre will be the key driver of this process.”

The hat trick of big events kicked off this week when representatives from the world’s economic community, including heads of state, business leaders and figures from the scientific world, came together for the annual Astana Economic Forum.

The 2017 edition, being held June 15 and 16, with the participation of the President Nazarbayev, is an opportunity for international dialogue, discussion and brainstorming on a range of economic issues facing Central Asia and the rest of the world. Nearly 4,000 experts have registered to attend this year’s Forum held under the title “New Energy – New Economy”.

The 14th Eurasian Media Forum (EAMF), meantime, will take place June 22–24 also at the EXPO area. More than 600 delegates from 60 countries, including significant figures in the global media space, opinion leaders and recognized professionals in different fields, are expected to attend the event.

Eight panel sessions are scheduled featuring approximately 50-55 foreign speakers. A series of thematic master classes from world media experts and a round table dedicated to the upcoming meeting of the International Forum of Sovereign Wealth Funds (IFSWF) will be held.

The list of speakers includes former European commission president José Manuel Barroso.

So, with EXPO 2017, the Eurasian Media Forum, and the annual Astana Economic Forum all taking place in the city this month, there is a case for suggesting that Kazakhstan really is – at least for few weeks – at the heart of global debate.

Capping it all promises to be the Astana International Financial Centre. It is seen as vital that the EXPO 2017 infrastructure is all fully utilized when the stands have been taken down and visitors have dispersed.

That is exactly what the AIFC will do – provide a lasting and fitting legacy for Astana’s showpiece summer.

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