BAKU, Azerbaijan, October 2. Kazakhstan has
attracted substantial foreign investment to develop its abundant
mineral and petroleum resources, the U.S. Department of State said
in its 2026 Kazakhstan Investment Climate Statement.


“Kazakhstan has made significant progress toward creating a
market economy since gaining independence from the Soviet Union in
1991. It has attracted substantial foreign investment to develop
its abundant mineral and petroleum resources. As of January 1,
2026, the stock of foreign direct investment (FDI) totaled $170
billion, including $35.5 billion from the United States, according
to official central bank statistics. Publicly available information
suggests U.S. investment in the hydrocarbons sector exceeds
official FDI statistics, likely because investments are routed
through third countries and because reinvested earnings are not
fully reflected in the bilateral FDI data,” the State Department
said.


The State Department noted that Kazakhstan has made progress
toward economic diversification and digitalization. Despite
challenges caused by Russia’s war against Ukraine and associated
sanctions, Kazakhstan’s economy has remained resilient, largely due
to favorable commodity prices. The country’s total foreign trade
continued to grow in 2025, with China replacing Russia as its top
foreign trade partner.


The statement noted that the Kazakh government actively engages
with foreign investors through formal channels, such as the
President’s Foreign Investors Council, an advisory group aimed at
improving Kazakhstan’s investment climate, a semi-annual Prime
Minister’s forum for U.S. companies, and bilateral discussions.







“Kazakhstan is also a member of the World Trade Organization
(WTO) and the Eurasian Economic Union (EAEU). Kazakhstan enacted a
new Tax Code in January 2026, which changed taxation for various
groups of taxpayers, including non-residents and small businesses,
and raised concerns about its enforcement that are still being
negotiated with the government,” the statement reads.


The statement noted that President Kassym-Jomart Tokayev’s
economic reform agenda aims to diversify Kazakhstan’s economy, spur
industrial development, and reduce state participation.


However, the report added that increasing regulation,
localization and import substitution policies, and corruption
continue to concern foreign investors. Foreign firms cite the need
for better rule of law, more predictable and transparent tax and
regulatory systems, deeper investment in human capital, and
investment in modern transport and logistics infrastructure.