Unlocking strategic investment opportunities in a key Eurasian economy

Kazakhstan stands at a pivotal moment in its economic development — one shaped not by circumstance, but by deliberate, disciplined strategy. The country’s commitment to advancing a future of sustainable growth is reflected in its evolving policies, which aim to foster a favorable environment for long-term partnerships with global investors, writes Dipanjan Roy Chaudhury.

As the Kazakh government’s principal financial development institution, Baiterek Holding is at the forefront of this transformation: driving growth, attracting private capital, and reshaping the investment landscape in one of Eurasia’s most strategically positioned economies, according to Timur Onzhanov, Deputy CEO Baiterek National Managing Holding.

Kazakhstan’s objective is not merely to attract investors, but to actively engineer the conditions that channel investment toward the country’s long-term strategic priorities and sustainable growth.

Baiterek focuses on building a robust foundation for long-term sustainability and the goal is to create a dynamic environment where both domestic and international investors can find opportunities that align with the country’s vision for diversification, technological innovation, and infrastructural modernization, according to Onzhanov.

By 2025, Baiterek will inject €14.6 billion into housing, entrepreneurship, and national infrastructure — rising to €18.3 billion by 2027. These aren’t projections; they are backed by a robust capitalization plan requiring €1.8 billion annually. In 2024 alone, Baiterek has already delivered €7.3 billion to priority sectors, proving its role as the central force behind economic modernization. Crucially, this financing comes with reform: a unified rate of 12.6% levels the playing field, ends inefficient subsidies, and eliminates interest rate arbitrage across institutions — a key step toward de-risking the market for private capital.

Baiterek’s approach represents a true shift in the country’s economic framework, moving toward more transparent, market-driven policies. As part of this strategic initiative, Baiterek is attracting substantial investments, both domestically and internationally, to support the country’s critical industries, from logistics to energy. With clear, long-term objectives in place, Kazakhstan’s transformation is not only about growth — it is about smart, but sustainable development also, according to Onzhanov.

The result is a pipeline of opportunity: more than €46 billion in active and prospective projects spanning logistics, metallurgy, chemical manufacturing, energy, and agriculture. These are sectors not only critical to Kazakhstan’s diversification strategy, but also aligned with global investors’ interest seeking sustainable, scalable growth. Most of these projects are commercially viable under market conditions. In addition, Baiterek supports projects across various sectors by providing blended finance tools to catalyze capital — including co-investment via the Development Bank of Kazakhstan and equity participation through Qazaqstan Investment Corporation.

In 2025, Baiterek is launching a new Guarantee Fund aimed at supporting large-scale investment projects and improving credit accessibility for major enterprises. This initiative is part of a broader strategy to stimulate economic growth, increase GDP, and encourage the implementation of projects significant for the national economy. It will offer up to 30% credit guarantees to banks, improving access to financing for strategically important ventures while reducing pressure on public funds.

Meanwhile, a comparable Guarantee Fund for SMEs — operated by the Damu Fund — will mobilize contributions from second-tier banks and the state to back over 50,000 business projects annually by 2027, Onzhanov informed.

“We are also leading financing for the national project on modernization of energy and utility systems — a €8.6 billion effort over five years, designed to upgrade Kazakhstan’s water and energy infrastructure and green its energy mix. With financing tools ranging from bond purchases to leasing mechanisms, Baiterek will ensure these vital upgrades are investment-ready and bankable.”

This concerted push toward economic modernization is also reflected in the resilience of Kazakhstan’s financial sector, which is evolving to meet international standards of transparency, governance, and accountability. The institutional framework established by Baiterek provides confidence to both investors and local businesses that Kazakhstan is a country committed to sustainable and efficient development. Through its robust economic policies, innovative financing mechanisms, and strategic vision, Kazakhstan offers investors a clear, sustainable path forward, according to Onzhanov.

Photo by Eilis Garvey on Unsplash

Share this article: