World Monitor Magazine WM_November_2019_web | Page 9

DESTINATION KAZAKHSTAN
with neighboring states: the People's
Republic of China and the Republic of
Kyrgyzstan. The development of the
city’s transit potential is one of the
most important areas of international
and economic cooperation. Much
attention is paid to the creation of
transport and logistics complexes.
In 2019, the construction of the DHL
Distribution Centre and the rail yard in
the Industrial Zone of Almaty began.
Almaty has a connection with 21
countries on 30 international routes,
transit links along the corridor Western
Europe-Western
China
(highway),
freight and passenger, electric and
high-speed lines.
Our city is the undisputed leader in the
field of information, communication
and IT technologies, among cities in
the Republic of Kazakhstan and in the
region of Central Asia. In 2019, the total
industry volume amounted to 1,866,099
tenge. The city is actively promoting the
policy of the Digital State: digitalisation
of industry and electric power, transport
and
logistics,
smartphoneisation,
infrastructure through e-commerce,
Fintech and non-cash payments; Smart
City data integration and updating,
as well as digitalisation of the
agro-industrial complex, innovative
ecosystem (Astana Hub) and human
capital development.
In 2019, 31 projects with a total
value of 403.9 billion tenge were
and continue to be introduced, of
which seven are metal products in
mechanical engineering, four projects
are in the food industry, seven are
building materials,
three projects
are pharmaceutical industry, two
are in logistics and two more in the
agricultural sector.
The population of our city shows a
high and dynamically growing solvent
demand for goods, which is a positive
prerequisite for the development of
wholesale and retail trade.
A Special Economic Zone (SEZ)
‘Park of Innovative Technologies’
was created in Almaty, which is an
indicator of the benefits of investing
into our metropolis.
Firstly, these are privileges for
FEZ participants: the amount of
calculated CIT was reduced by 100%
while the land tax rate reduced by
100%, property tax rate also reduced
by 100% and the VAT rate for goods
sold on the territory of SEZ, fully
consumed in the production process.
Secondly, we implemented such
customs privilege as exemption from
customs duties for goods imported
into the territory of SEZ;
Thirdly, there are additional tax
benefits for participants in the SEZ
‘PIT’, which include 100% reduction
in the amount of social tax, provided
that labor costs are at least 70% of
the total cost.
There are other incentives, in
particular, when attracting foreign
labor from outside there are quotas
and there’s provision for projects that
have a cost of more than one million
MCI during the construction period
and one year after its commissioning
or when there’s the presence of a
ready-made infrastructure and a SEZ
governing body, which will provide
coordination and support for all
internal processes (land lease, turn-
key communal networks, and other
permits).
Given all of the above, there
will be additional benefits for
participating in Almaty’s Industrial
Zone. This applies, first of all, to
the possibility of obtaining a land
plot with infrastructure, guaranteed
promotion and informational support
for the project participants from the
state authorities of the Republic of
Kazakhstan, assistance and advice
to the management company on
the preparation and construction of
industrial territories, as well as other
benefits and assistance.
What is the role of the diplomatic
corps in the process of attracting
investments and further developing
Almaty’s investment potential?
Today, over 100 representative offices
of foreign states and international
organizations with a total staff of
more than 500 people are accredited
in Almaty. Of these: 15 consulates
general, 1 consulate, 8 embassies,
11 trade and economic missions, 24
Honorary Consulates, 16 UN missions,
7 missions of international and
regional organizations, 7 missions
of financial institutions, 14 cultural
centres of foreign countries. The city
operates the Almaty Diplomatic Club,
whose members are representatives
of the diplomatic, consular corps and
international organizations.
An important area of priority for
the Representation of the Ministry
of Foreign Affairs of the Republic
of Kazakhstan in Almaty is its work
with foreign business structures,
economizing proposals, preparing and
participating in various forums of an
economic and investment orientation,
with the participants, representing
the world and domestic business
elite, the diplomatic corps, heads of
investment corporations, financial
and academic institutions.
Representatives of the diplomatic
corps and international organizations
represented in Almaty are actively
supported by EUROBAK
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