Economic Diplomacy and Industrial Growth: Kazakhstan Strengthens Its Pillars of Development
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In the first half of August, Kazakhstan continued to strengthen its external economic position while expanding domestic production. Foreign Minister Yermek Kosherbayev’s talks with European and US partners, diplomatic efforts surrounding the Caspian Pipeline Consortium, and growth in mechanical engineering, the chemical industry and food production indicate that government policy is increasingly linking external economic security with the goal of industrial diversification. At the same time, double-digit inflation and the continued importance of the oil sector remain constraints on the resilience of this model.
Politics: Economic Interests as Part of Foreign Policy
Protecting Kazakhstan’s energy and export interests was one of the key foreign policy issues in the first half of August. Particular attention was focused on developments surrounding the Caspian Pipeline Consortium (CPC), the main export route for Kazakh oil.
Foreign Minister Yermek Kosherbayev repeatedly raised the issue of the CPC’s stability in talks with European partners. Energy cooperation and the resilience of international energy supply infrastructure were discussed with Romanian Foreign Minister Oana Țoiu, Greek Foreign Minister Giorgos Gerapetritis, EU High Representative for Foreign Affairs and Security Policy Kaja Kallas, and Austrian Foreign Minister Beate Meinl-Reisinger.
The series of contacts suggests that the CPC issue is gradually moving beyond responses to individual incidents and becoming a distinct area of Kazakhstan’s economic diplomacy. The stability of the route directly affects oil export volumes, foreign currency earnings and budget revenues, making its uninterrupted operation a matter of both foreign policy and economic security.
Talks with the United States were another important development. Yermek Kosherbayev met US Assistant Secretary of State for South and Central Asian Affairs Paul Kapur. The two sides identified energy, critical minerals, advanced technologies, digitalisation, transport and investment as key areas for practical cooperation.
Preparations for the G20 summit in Miami, which President Kassym-Jomart Tokayev has been invited to attend, add further significance to this engagement.
The domestic political agenda focused on preparations for elections to the Kurultai. The Central Election Commission continued organising the vote, working on voter lists, accrediting international observers and carrying out other electoral procedures.
The political agenda in the first half of August was therefore shaped by two parallel processes: preparations for parliamentary elections at home and a stronger economic dimension in foreign policy. Kosherbayev’s series of talks shows that energy, export routes, investment and technology are becoming increasingly prominent elements of Kazakhstan’s international diplomacy.
Economy: Growth in Processing Industries Amid Commodity-Sector Constraints
Economic indicators for the first seven months of the year show diverging trends in the extractive and manufacturing sectors. Kazakhstan produced 53.2 million tonnes of oil during the period, equivalent to 91.1% of the level recorded in the same period last year. By the end of the first eight months of 2026, oil production is expected to exceed 60 million tonnes.
Mechanical engineering remains one of the main drivers of industrial growth. Output in the sector increased by 22%, while automotive manufacturing grew by 29.9%. Over the seven-month period, Kazakhstan produced 102,870 passenger cars, 36% more than a year earlier, as well as 1,612 buses, an increase of 18% year-on-year.
The chemical industry also recorded strong growth, with its physical volume index reaching 126.9%.
These indicators point to an expansion of Kazakhstan’s non-resource production base. Mechanical engineering, automotive manufacturing and the chemical industry involve higher levels of processing and generate additional demand for components, logistics, skilled labour and technological solutions.
Positive momentum also continued in the agricultural sector. Agriculture grew by 5% over the first seven months of the year, while food production increased by 13.9%.
By the end of the year, Kazakhstan plans to implement 33 agricultural processing projects worth a combined 122.4 billion tenge. Expanding processing capacity is important not only for economic diversification but also for the domestic market, as increased domestic production can gradually expand the supply of food products.
Inflation, however, remains one of the main constraints on the economy. Annual inflation stood at 10.2% in July, while monthly inflation was 0.6%. Food prices rose by 10.1% year-on-year, non-food goods by 11.7% and paid services by 9.2%.
The expansion of domestic production is therefore taking place against a backdrop of persistent price pressures. Industrial policy consequently faces two simultaneous tasks: increasing the supply of goods and sustaining investment activity without adding further pressure to consumer demand.
Against this backdrop, improving productivity, increasing localisation and deepening domestic processing are becoming particularly important.
Society: Between Cultural Heritage and New Formats
Cultural and youth initiatives featured prominently on Kazakhstan’s social agenda in the first half of August.
Comic Con Astana 2026 was held in the capital from 6 to 9 August. International guests included Nikolaj Coster-Waldau, Paul Anderson, Iñaki Godoy and Taz Skylar.
The programme included meetings between actors and fans, Q&A sessions, autograph and photo sessions, concerts, and events featuring artists, bloggers, cosplayers and digital content creators.
A separate highlight was an international cosplay competition with a prize fund of 20 million tenge.
The scale of the event reflects the continued development of modern cultural and entertainment formats in Kazakhstan. International festivals of this kind can contribute to the growth of the creative industries, event tourism and the urban economy.
Kazakhstan marked Abai Day on 10 August. Cultural, educational and public-awareness events dedicated to the legacy of the poet and thinker were held across the country.
The youth agenda continued with JASTAR DAY in Astana. The festival brought together around 3,000 young people from different regions of the country.
One of the mechanisms supporting youth initiatives is the Täuelsizdik Urpaqtary grant programme, established in 2021 at the initiative of the president. In 2026, 30 grants worth 3 million tenge each are to be awarded across six categories: Science, Culture, Information Technology, Business, Media and Volunteering.
Overall, the period’s social agenda combined traditional culture with contemporary youth-oriented formats. Abai Day, Comic Con Astana and youth initiatives represent different strands of cultural policy, but all broaden opportunities for different audiences to participate in the country’s social and cultural life.
Economic Resilience as a Common Goal
Developments in the first half of August suggest that Kazakhstan’s foreign policy and industrial development are increasingly converging around the goal of strengthening economic resilience.
Yermek Kosherbayev’s series of talks with European partners on energy issues demonstrates Kazakhstan’s efforts to use diplomacy to protect its export interests. The stability of oil infrastructure is directly linked to export volumes, foreign currency earnings and budget revenues.
At the same time, domestic production is expanding in industries with higher levels of processing. Growth of 22% in mechanical engineering, 26.9% in the chemical industry and 13.9% in food production points to the emergence of a broader production base beyond the extractive sector.
It is still too early, however, to speak of a substantial reduction in Kazakhstan’s dependence on commodities. Oil production trends continue to have a significant impact on overall economic performance, while the condition of export infrastructure remains one of the factors affecting macroeconomic stability.
Inflation is another constraint. With consumer prices rising by 10.2% year-on-year, increased production alone does not guarantee a comparable improvement in household purchasing power. Further diversification therefore requires not only higher physical output but also greater productivity, stronger competition and lower production and logistics costs.
Conclusion
The first half of August highlighted the growing economic focus of Kazakhstan’s state policy. In foreign affairs, this was reflected in Yermek Kosherbayev’s series of talks on energy and export infrastructure and in the development of dialogue with the United States on critical minerals, technology and investment. At home, this approach is underpinned by growth in mechanical engineering, automotive manufacturing, the chemical industry and food production.
At the same time, the economy continues to face a number of structural constraints. The oil sector and the condition of export infrastructure continue to have a significant influence on macroeconomic indicators, while annual inflation of 10.2% limits the benefits of industrial growth for the domestic market.
The effectiveness of the current course will therefore be determined not by individual production indicators alone, but by Kazakhstan’s ability to protect its export interests while expanding the production of higher value-added goods, improving productivity and containing domestic price pressures.
The combination of active economic diplomacy and the gradual expansion of non-resource production is becoming one of the key conditions for building a more resilient and diversified economic model in Kazakhstan.
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Kazakhstan After the Elections: A New Political Cycle and an Infrastructure-Led Agenda
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Kazakhstan has entered a new political cycle. Following the elections, the unicameral Kurultai began its work, a new leadership of the legislature was appointed and the government was reshuffled. At the same time, the appointments demonstrated continuity within the executive branch. In the economy, energy, transport infrastructure and transit development remain the main priorities, while persistently high inflation continues to limit the scope for a rapid easing of monetary policy.
Politics: Institutional Renewal Alongside Continuity
The most significant domestic political development was the establishment of a new legislative framework. Following the 23 August elections, the 145-member unicameral Kurultai began its work.
Five parties secured representation. Adilet won 110 seats, Auyl 10, Respublica nine, while Ak Zhol and the Nationwide Social Democratic Party each secured eight. Adilet received 6,528,948 votes, or 71.17% of the total.
At the first session on 28 August, Aibek Dadebay was elected Speaker of the Kurultai. Nurlan Beknazarov, Dania Yespayeva and Dinara Zakiyeva were appointed Deputy Speakers. Eight standing committees were also established.
The beginning of the new political cycle did not lead to a sweeping overhaul of the executive branch. The government resigned before the newly elected Kurultai, but Olzhas Bektenov was reappointed prime minister on 31 August.
While a significant proportion of the Cabinet retained their posts, several ministries received new leaders. Mukhtar Tileuberdi was appointed foreign minister, Alibek Kuantyrov became minister of ecology and natural resources, Arman Kyrykbayev was named minister of culture and information, and Murat Mukhanov took charge of the Ministry of Emergency Situations.
The formation of a new configuration of Kazakhstan’s highest state institutions also continued. Erlan Karin became vice-president, while Murat Baimukashev was appointed on 5 September to head the newly established Office of the Security Council.
The new office will be a state body directly subordinate and accountable to the president, as well as the working body of the Security Council. It will provide analytical, informational and organisational support for the council’s activities.
The political changes during this period therefore combined institutional renewal with continuity in personnel. The new Kurultai and the establishment of the vice-presidency are changing the structure of state power, while the retention of the prime minister and much of the government indicates that the previously chosen policy course will continue.
Security cooperation within the Organization of Turkic States emerged as a separate priority. On 10 September, Kassym-Jomart Tokayev met the interior ministers of Azerbaijan, Kazakhstan, Kyrgyzstan, Türkiye and Uzbekistan ahead of a meeting of the OTS Council of Interior Ministers.
Tokayev said cooperation among the Turkic states was strengthening year by year, with interaction expanding across various areas, including between law enforcement agencies.
Economic priorities were also becoming increasingly prominent in foreign policy. At the Shanghai Cooperation Organisation summit in Bishkek on 1 September, member states adopted 29 documents, including the Bishkek Declaration.
Kazakhstan proposed developing an SCO transport strategy through 2035, creating a common trade and investment space, and hosting the headquarters of a future SCO Development Bank.
Bilateral diplomacy also produced practical results. During Lao President Thongloun Sisoulith’s visit to Kazakhstan, the two countries signed four memoranda:
- a memorandum of understanding between the foreign ministries of Kazakhstan and the Lao People’s Democratic Republic on political consultations;
- a memorandum of understanding between Kazakhstan’s Prosecutor General’s Office and the Office of the Supreme People’s Prosecutor of Laos;
- a memorandum of understanding between Kazakhstan’s Ministry of Artificial Intelligence and Digital Development and Laos’ Ministry of Technology and Communications on cooperation in information and communications technology and digital public services;
- an agreement establishing sister-city relations between Astana and Vientiane.
Following Mukhtar Tileuberdi’s appointment, the president instructed the Foreign Ministry to consistently advance Kazakhstan’s national interests, strengthen its balanced foreign policy and develop economic diplomacy.
The new minister’s first engagements focused primarily on regional relations. On 7 September, he held telephone talks with the foreign ministers of Azerbaijan, Armenia, Tajikistan, Turkmenistan and Uzbekistan. The discussions covered bilateral relations, trade and economic ties, humanitarian cooperation, regional and international issues, and the implementation of previous agreements.
On 8 September, Tileuberdi held talks with Kyrgyz Foreign Minister Jeenbek Kulubaev. The discussions focused on trade, investment, transport and logistics, water and energy cooperation, and cultural and humanitarian ties.
The same day, Tileuberdi received US Ambassador Julie Stufft. The two sides discussed key bilateral issues, prospects for further developing the enhanced strategic partnership, the Kazakh president’s forthcoming participation in the G20 summit in Miami, and preparations for high-level contacts.
This series of meetings shows that economic diplomacy remains one of Kazakhstan’s key foreign policy priorities. Regional cooperation, the SCO and relations with the United States are increasingly linked to trade, investment, transport and technology.
Economy: Infrastructure Investment Amid High Inflation
The economic agenda during this period combined major state-backed infrastructure projects with relatively tight monetary conditions.
On 4 September, the National Bank cut its base rate by 50 basis points to 16.25% per annum. Annual inflation stood at 9.8% in August.
According to the central bank’s updated forecast, inflation is expected to range between 9% and 11% by the end of 2026. It is projected at 6.5% to 8.5% in 2027 before moving closer to the medium-term target of 5% in 2028.
The rate cut marked a cautious easing of monetary conditions. However, high inflation, elevated inflation expectations and persistent upside risks continue to limit the scope for faster reductions in borrowing costs.
Against this backdrop, the government continues to expand the country’s economic infrastructure. It approved an investment agreement between the Ministry of Energy and GRES Kurchatov LLP for the construction of a 700MW condensing power plant. The project is valued at 881 billion tenge.
Two 350MW generating units are scheduled to be brought into operation in stages by 2032. Once fully operational, the plant will be able to generate up to five billion kilowatt-hours of electricity annually.
Rising electricity demand makes the expansion of generating capacity essential for further industrial development. New power capacity is needed not only to meet current consumption but also to support future industrial and infrastructure projects.
Transport remains the second major strategic priority. Kazakhstan is building approximately 3,400 kilometres of roads in 2026.
Around 5,000 kilometres of railway tracks have been built or modernised over the past five years, while transit freight volumes have reached 33 million tonnes.
The Trans-Caspian International Transport Route has expanded particularly rapidly. Freight volumes along the route have increased 5.6-fold over five years, from 800,000 tonnes to 4.5 million tonnes. The capacity of Kazakhstan’s seaports is expected to rise from 21.8 million tonnes to 30 million tonnes by 2030.
Energy and transport projects are creating an interconnected infrastructure network. New generating capacity is intended to meet the economy’s growing energy needs, while the expansion of roads, railways and ports will strengthen Kazakhstan’s position as a manufacturing and transit hub between Asia and Europe.
Society: Greater Choice and New Rules for the Digital Environment
One notable development on the social agenda was the expansion of citizens’ ability to manage part of their financial assets independently.
From 7 September, members of Kazakhstan’s Unified Accumulative Pension Fund were allowed to transfer up to 100% of savings accumulated through mandatory pension contributions, mandatory occupational pension contributions and voluntary pension contributions to private investment portfolio managers.
Previously, a 50% limit applied to savings accumulated through mandatory and mandatory occupational contributions, while savings from voluntary contributions could already be transferred in full.
The rule change gives contributors greater choice while increasing the importance of the performance of private asset management companies. The role of individual investment decisions in the pension system is therefore gradually expanding, while the overall state-administered savings framework remains in place.
Regulation of the digital environment was another focus of public debate.
Kurultai member Zhanarbek Ashimzhanov proposed developing a mechanism to restrict social media registration for children under the age of 16, strengthening the protection of their personal data and introducing permanent monitoring of social media’s impact on pupils’ health and academic performance.
The initiative is part of a broader drive to strengthen protections for minors online. It remains a proposal, however, and the specific mechanism for any potential restrictions has yet to be developed.
Infrastructure and Economic Diplomacy as the Foundation of the New Cycle
The political and economic decisions taken in late August and early September form part of a broader model. Following the institutional changes, Kazakhstan’s new political cycle is moving into its practical phase.
Keeping Olzhas Bektenov as prime minister and retaining a significant proportion of the government ensures continuity in economic policy. At the same time, the new Kurultai, the vice-presidency and the Office of the Security Council are creating an updated political and institutional framework to support that policy.
Two interconnected areas stand out in the economy: energy and transport infrastructure. Both are intended to remove constraints on long-term growth and strengthen Kazakhstan’s role in Eurasian trade and investment flows.
The construction of new generating capacity should ease energy constraints, while the modernisation of roads and railways should improve domestic connectivity. The development of the Trans-Caspian route and port infrastructure is expected to further expand the country’s transit potential.
Foreign policy follows the same logic. Kazakhstan’s initiatives within the SCO, engagement with neighbouring countries and contacts with the United States are increasingly linked to specific economic priorities, including investment, trade, transport and technology.
Inflation, however, remains the main macroeconomic constraint. The reduction of the base rate to 16.25%, alongside a year-end inflation forecast of 9% to 11%, indicates that large-scale investment activity will continue to coincide with relatively high borrowing costs.
This creates a dual challenge for economic policymakers. On the one hand, Kazakhstan needs to accelerate infrastructure development and expand the economy’s productive capacity. On the other, it must ensure that rising public and private investment does not increase domestic demand faster than the supply of goods and services can grow.
Conclusion
The end of August and the beginning of September established the main parameters of the next phase of Kazakhstan’s state policy. The new Kurultai has begun its work, the executive branch has maintained continuity, and the establishment of the vice-presidency and the Office of the Security Council has completed the updated institutional configuration.
In the economy, the focus is on building the infrastructure needed for long-term growth. Energy, roads, railways, the Trans-Caspian route and port capacity are becoming key elements of a policy intended to strengthen the domestic economy and the country’s role as a transit hub.
At the same time, economic diplomacy is becoming increasingly aligned with these objectives. Kazakhstan’s initiatives within the SCO, its regional engagement and its cooperation with the United States are focused on developing trade, transport links, investment and technology.
Inflation remains the main constraint on this agenda. Its success will therefore depend not only on the scale of new infrastructure projects, but also on the country’s ability to expand supply, sustain investment and steadily reduce price pressures.
The combination of political continuity, infrastructure development and economic diplomacy is becoming the foundation of Kazakhstan’s new policy cycle. Its long-term resilience, however, will depend on whether growing investment can be translated into higher productivity and greater domestic supply.
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From Mountain Lakes to Vibrant Festivals: Kazakhstan Gains Popularity Among Foreign Tourists
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Vast steppes and mountain lakes, modern cities and ancient settlements, canyons, deserts and monuments along the Great Silk Road - Kazakhstan offers travelers remarkably different experiences within a single country. An increasing number of international visitors are discovering this diversity.
Who Is Visiting Kazakhstan?
Kazakhstan is welcoming a growing number of international visitors. Both overall tourist arrivals and the number of foreign travelers staying in hotels and other accommodation facilities are increasing.
According to government data, 15.7 million foreign nationals visited Kazakhstan in 2025 - 6.5 million more than in 2023.
Of the total number of international visitors, 11.1 million were classified as tourists. They spent $2.9 billion during their stays in the country.
Another sign of Kazakhstan’s growing appeal is the rising number of foreign visitors using hotels and other accommodation facilities. The figure increased from 1 million in 2023 to 1.29 million in 2024 and 1.43 million in 2025.
Growing Interest in the Regions
International visitors are increasingly exploring Kazakhstan beyond its major cities. Tourist arrivals grew by more than a quarter in some regions over the past year.
The Almaty region recorded the strongest growth last year, with international arrivals rising by 29.7%. The figure increased by 25.88% in the Zhetysu region and by 25.5% in the Kyzylorda region.
Interest among Chinese tourists has also grown significantly. Arrivals from China rose by 46.8% in a year to more than 960,000.
Kazakhstan received 7 million foreign visitors in the first half of 2026. The largest numbers came from Uzbekistan, with 2.5 million visitors, followed by Kyrgyzstan with 1.6 million and Russia with 1.5 million.
Places Worth Visiting in Kazakhstan
Kazakhstan is one of the world’s largest countries, and its tourism potential is largely rooted in the diversity of its landscapes, history and culture. Visitors can experience mountain peaks and clear lakes, canyons and boundless steppes, desert landscapes and the Caspian coast, as well as modern cities and ancient monuments.
Many of the country’s natural attractions are concentrated in the southeast. One of the most recognizable is Charyn Canyon, whose sheer cliffs, gorges and unusual rock formations have become one of Kazakhstan’s signature landscapes.
The Kolsai Lakes are another popular destination. Surrounded by mountains and coniferous forests, they attract visitors seeking peaceful retreats, hiking routes and outdoor experiences. Nearby Lake Kaindy is known for its submerged forest, where spruce trunks rise directly from the water to create a striking natural scene.
Altyn-Emel National Park offers an entirely different experience. It is home to the Aktau and Katutau mountains, as well as the Singing Dune, one of the park’s best-known attractions. A single journey through southeastern Kazakhstan can therefore take travelers across several dramatically different natural environments.
Almaty and the surrounding mountains offer extensive opportunities for mountain tourism. The city’s proximity to the Trans-Ili Alatau allows visitors to combine an urban break with trips into the mountains, making Almaty a convenient starting point for exploring the region’s natural attractions.
In northern Kazakhstan, Burabay remains one of the country’s best-known resort destinations. Its lakes, forests and rocky hills create a landscape that contrasts sharply with the familiar image of Kazakhstan as a predominantly steppe country.
Western Kazakhstan reveals yet another side of the country. The Mangystau region is known for its desert and rocky landscapes. Bozzhyra, with its white limestone cliffs and rock formations, has become one of the region’s most recognizable natural landmarks. Travelers can also visit the Karagiye Depression, the Ustyurt Plateau and the Caspian Sea coast.
Southern Kazakhstan occupies a distinctive place on the country’s tourism map. Turkistan attracts visitors with its historical and cultural heritage, including the Mausoleum of Khoja Ahmed Yasawi. A journey to the south allows travelers to complement outdoor tourism with an exploration of the region’s history.
Kazakhstan does not offer just one standard itinerary but many different types of travel. A city break can be combined with a mountain trip, a journey through national parks with visits to historical sites, and a traditional sightseeing tour with an excursion to the steppe, desert or Caspian coast.
The long distances between regions turn a journey across Kazakhstan into an exploration of several entirely different landscapes. The southeast offers mountains, lakes and canyons; the north has forests and lakeside resorts; the west features the Caspian Sea and desert scenery; and the south is home to historic cities and monuments.
Ecotourism is also becoming a prominent global travel trend. More travelers are seeking opportunities to experience nature in its pristine form without causing significant environmental damage, rather than visiting large-scale resorts.
China offers one example of this approach, where ecotourism has developed into a multibillion-dollar industry. In environmentally sensitive areas, tourism development is combined with limits on human activity. Nature reserves such as Wanglang, known as the Home of Pandas, deliberately restrict visitor numbers. Instead of building mega-resorts accommodating thousands of guests, they develop small ecolodges where overnight stays are expensive but the environmental footprint is minimal.
Experts believe the Kok-Zhailau plateau in Almaty could become a promising location for ecotourism in Kazakhstan. Its future, however, is currently the subject of intense public debate because a ski resort is planned for the area.
The project has sparked controversy. Environmentalists and some residents are calling for the plateau to be preserved in as natural a condition as possible. Experts warn that development could damage its unique ecosystem and have also questioned the project’s economic viability and potential return on investment.
Kazakhstan as a Destination for Major Events
Kazakhstan attracts travelers not only with its natural beauty. Event tourism is also becoming increasingly prominent as the country hosts major international technology, sports and cultural projects. Festivals, exhibitions and other events in the regions can provide visitors with an additional reason to travel.
Astana has had a particularly busy calendar in recent months. The capital has hosted technology competitions and major sporting and cultural events involving representatives from dozens of countries and attracting thousands of visitors.
One such event was the 2026 Games of the Future, an international multisport tournament combining traditional and digital sports that brought participants and visitors from various countries to the capital.
Comic Con Astana 2026 was another major international event, attracting fans of contemporary pop culture and international stars.
For the first time, four international headliners attended the festival in the same year: Nikolaj Coster-Waldau, Paul Anderson, Iñaki Godoy and Taz Skylar. The actors met fans, participated in question-and-answer sessions and held autograph and photo sessions.
The country’s event calendar is not limited to the capital. In August, Almaty hosted a Kanye West concert that attracted 31,000 spectators, according to media reports.
Festivals and other tourism events are held throughout Kazakhstan during the year, allowing visitors to combine travel with an introduction to local culture, nature and traditions.
September 2026 alone features a wide range of events across the regions included in Kazakhstan’s calendar of flagship tourism events. The program spans art and music, food and literature, traditional crafts and environmental initiatives.
Flamingo Fest, one such event, was held in the Akmola region in early September and attracted visitors from the region, Astana and other cities across the country.
Festivalgoers had an opportunity to learn more about the nature and culture of the Korgalzhyn area and visit flamingo habitats. The event therefore brought together ecotourism, cultural tourism and event tourism.
Flamingo Fest also featured the Flamingo Art exhibition, showcasing works by artists from the Akmola region inspired by the area’s natural environment. A fair displaying works by local decorative and applied arts practitioners was another part of the program.
Throughout the rest of the month, Kazakhstan will offer visitors a variety of reasons to travel, ranging from art and literature to food, music and traditional crafts.
The Zhaiyq Sazy autumn arts festival will take place in the West Kazakhstan region on Sept. 12. The program will include exhibitions, workshops, music and theater performances, and meetings with artists and craftspeople.
Two major events are scheduled in Almaty. Alma Fest, an annual festival celebrating the city’s famous Aport apple, will take place on Sept. 20. Its program will feature local produce fairs, workshops, concerts and tastings of apples and apple-based dishes.
KitapFest will be held on Sept. 20 and 21, featuring a book fair, meetings with authors, a book exchange, children’s performances and workshops.
The Caspian - Sea of Friendship international tourism festival will run from Sept. 24 to 28 in the Mangystau region. Its program includes forums, exhibitions, seminars and meetings with representatives from different countries.
Pavlodar will host Ertis Promenade on Sept. 26. Concerts, evening dance parties, open-air film screenings and outdoor workouts are planned along the city’s central embankment.
The Turkistan Craft Fair will conclude the September program from Sept. 26 to 28 in the Turkistan region. The international crafts exhibition will bring together artisans from several countries and feature a handmade goods fair, workshops and concerts.
Trillions Invested in Tourism
Growing interest in Kazakhstan is creating a need for further development of its tourism infrastructure. Investment in the industry is rising, new projects are being implemented and hotel complexes are being built.
According to government data, investment in Kazakhstan’s tourism sector continues to grow. It totaled 787.3 billion tenge in 2023 and increased by 20.3% to 947.5 billion tenge in 2024. In 2025, it rose by a further 32.6% to reach 1.25 trillion tenge.
More than 2.2 trillion tenge was invested in tourism in 2024 and 2025 alone. Annual investment in the sector grew by almost 60% over the two-year period.
Kazakhstan is currently implementing 328 investment projects with a combined value of about 1.3 trillion tenge. Plans are also being developed to build 24 internationally branded hotels in 11 regions using subsidized loans and investment incentives.
Kazakhstan intends to develop not only tourism infrastructure but also new forms of travel. One promising area is adventure tourism, which combines nature, culture and outdoor activities.
In late August, Kazakh Tourism Chairman Talgat Gazizov and Adventure Travel Trade Association CEO Shannon Stowell signed a memorandum of understanding.
The Tourism Ministry said the document was intended to strengthen international cooperation, support expert assessments of the regions’ tourism potential, train Kazakh specialists, organize familiarization tours for international partners and explore the possibility of holding major ATTA events in Kazakhstan.
"Travelers increasingly value unique experiences involving nature, culture and active itineraries. Kazakhstan has enormous potential in this area. Cooperation with ATTA will allow us to develop this work systematically, from training guides to working with international partners," Kazakh Vice Minister of Tourism and Sports Miras Tulebayev said.
The rising number of international visitors shows that Kazakhstan is becoming an increasingly prominent tourist destination. Its rich natural environment, diverse regions, cultural programs and international events give the country opportunities to attract travelers with a wide range of interests.
Growth in visitor numbers is being accompanied by the development of the tourism industry itself. Investment is increasing, new projects are being implemented, hotel infrastructure is expanding and Kazakhstan is exploring new ways to attract international guests.
Maintaining this momentum will largely depend on how successfully the country transforms its natural and cultural advantages into a high-quality and accessible tourism product. The potential is clear, and growing interest among international travelers shows that Kazakhstan is already gaining a more prominent place on the global tourism map.
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Kurultai, National Fund and Digitalisation: What Is Shaping Kazakhstan’s New Agenda
In the second half of August, Kazakhstan moved from political transformation to practical implementation. Elections to the new unicameral Kurultai reshaped the country’s legislative branch, the government set out the main economic and budget parameters for 2027-2029, while preparations for the winter heating season and the launch of Digital Qazaqstan defined its infrastructure and technology priorities. At the same time, the need to finance modernisation while reducing the budget deficit means that government plans remain dependent on the pace of economic growth and National Fund resources.
Politics: New Kurultai and economic diplomacy
The main political event was the first election of deputies to the unicameral Kurultai, held on 23 August.
Ahead of the vote, President Kassym-Jomart Tokayev said the elections, following the entry into force of the People’s Constitution, would become "the starting point for new reforms" and open a new chapter in the history of modern Kazakhstan. In his pre-election address, the president also described the campaign as substantive, open, competitive and civilised.
According to the official results announced by the Central Election Commission, the Adilet party received 71.17% of the vote and secured 110 of the 145 seats. Auyl won 10 seats, Respublica nine, while Ak Zhol and the Nationwide Social Democratic Party received eight seats each. The People’s Party of Kazakhstan and Baitaq failed to clear the 5% threshold.
The new Kurultai has therefore retained multiparty representation, although 110 of its 145 seats are held by a single political force. This gives the largest party a stable parliamentary majority while increasing the importance of the role the other four parties will play in legislative debate and parliamentary oversight.
During this period, Kazakhstan’s foreign policy agenda became increasingly intertwined with its economic interests. Foreign Minister Yermek Kosherbayev continued a series of bilateral contacts with international partners.
At a meeting with Azerbaijani Ambassador Alimzamin Asgarov on 21 August, the parties discussed current areas of cooperation and the further strengthening of the strategic partnership and alliance between the two countries. Particular attention was paid to trade, economic and investment cooperation, as well as the development of the Trans-Caspian International Transport Route.
On 19 August, Kosherbayev held a telephone conversation with Dutch Foreign Minister Tom Berendsen. The discussion also focused on trade, economic and investment cooperation, joint projects and international shipping.
These contacts point to two parallel strands in Kazakhstan’s political agenda. Domestically, the country was completing another stage of institutional restructuring, while economic, transport and investment issues continued to feature prominently in its foreign policy.
Economy: Growth above 5% and a lower deficit
One of the main economic developments was the formulation of medium-term targets for 2027-2029. On 25 August, the government reviewed the socioeconomic development forecast and the draft national budget.
The baseline scenario envisages average annual real GDP growth of more than 5%. Nominal GDP is expected to increase from 199.3 trillion tenge in 2027 to 245 trillion tenge in 2029.
At the same time, the government plans to reduce the budget imbalance substantially. The national budget deficit is expected to fall from 2.3% of GDP in 2027 to 0.4% in 2029, while the non-oil deficit is projected to decline from 5.3% to 2.5%. Budget revenues are expected to rise from 19.9 trillion tenge to 23.4 trillion tenge over the same period.
Budget policy over the next three years will therefore be based on a combination of revenue growth and a gradual reduction in the deficit. At the same time, the state will continue to rely on substantial financing from the National Fund.
The guaranteed transfer from the National Fund will amount to 2.43 trillion tenge in both 2027 and 2028, before falling to 2 trillion tenge in 2029.
The government nevertheless expects the National Fund’s savings to grow. Total inflows are projected at 5.1 trillion tenge in 2027, 5.5 trillion tenge in 2028 and 5.7 trillion tenge in 2029.
Net inflows to the fund are forecast at 0.5 trillion tenge in 2027, 1.4 trillion tenge in 2028 and 2 trillion tenge in 2029. The National Fund’s foreign currency assets are expected to increase from $65.2 billion in 2027 to $70.6 billion in 2029.
These figures highlight the central tension within the medium-term budget model. The government intends to reduce the deficit while maintaining significant investment spending. The sustainability of this approach will therefore depend on the pace of economic growth, an increase in non-oil revenues and the ability of state-funded projects to generate additional economic returns.
Society: Infrastructure and digital transformation
Preparations for the heating season featured prominently on the domestic agenda. The condition of energy and utility infrastructure remains a factor that directly affects the operation of schools, hospitals and other public facilities.
Repairs to nine power units, 55 boilers and 51 turbines are planned at power plants in 2026. Funding for power plant repair programmes has reached 384 billion tenge, an increase of 9% from last year.
By 25 August, 98% of education facilities were ready for the heating season, with 10,693 of 10,913 institutions prepared. In healthcare, 5,281 of 5,394 facilities were ready, also representing 98%.
These figures demonstrate the scale of annual spending required to maintain essential infrastructure. Government policy in this area is focused not only on constructing new facilities but also on ensuring the stable operation of existing energy and public service systems.
In parallel, the government is strengthening its digital agenda. On 26 August, it approved an action plan for implementing the nationwide Digital Qazaqstan strategy through 2029.
The plan provides for the adoption of digital solutions and artificial intelligence across three areas: services for citizens, support for businesses and the economy, and public administration.
Infrastructure modernisation is therefore proceeding on two fronts. The first involves upgrading physical infrastructure, including energy and utility systems. The second focuses on developing digital infrastructure and expanding the use of artificial intelligence in the economy and public administration.
Modernisation as a common objective
Developments in the second half of August show that Kazakhstan’s political, economic and technological decisions are increasingly being brought together under the common objective of modernisation.
The elections established the institutional foundation for the new Kurultai. The medium-term budget defines the state’s financial capacity for 2027-2029. Energy infrastructure repairs and Digital Qazaqstan illustrate two ways in which these resources will be used: maintaining essential systems and advancing technological renewal.
At the same time, domestic priorities are becoming increasingly connected to international economic cooperation. On 26 August, Prime Minister Olzhas Bektenov held talks with Singapore’s Senior Minister Lee Hsien Loong.
Two documents were signed following the meeting. The first was an agreement between Kazakhstan’s Ministry of Water Resources and Irrigation and Singapore Cooperation Enterprise on a capacity-building programme titled "Leadership in Sustainable Urban Water and Waste Management".
The second was a memorandum of understanding and cooperation in multimodal transport, trade facilitation and digitalisation between Middle Corridor Multimodal Ltd and Singapore Cooperation Enterprise.
Economic indicators also point to growing cooperation between the two countries. Trade between Kazakhstan and Singapore reached $777 million in the first half of 2026, an increase of 2.5 times. Gross foreign direct investment inflows from Singapore amounted to around $1.5 billion in 2025.
The content of the signed documents demonstrates the practical connection between Kazakhstan’s foreign economic policy and its domestic priorities. Water management directly affects water security and the resilience of the agricultural sector, while the development of multimodal transport and digitalisation supports the Middle Corridor and Kazakhstan’s transit potential.
At the same time, the budget parameters illustrate the limitations of this model. The government plans to maintain economic growth above 5%, finance infrastructure projects and digital transformation, while reducing the budget deficit from 2.3% to 0.4% of GDP and the non-oil deficit from 5.3% to 2.5%.
Continued substantial transfers from the National Fund support the government’s budgetary capacity, but they also raise the question of how to expand the budget’s own revenue base. The success of the modernisation programme will therefore depend not only on the volume of public spending but also on the extent to which infrastructure and digital investment can raise productivity and create additional sources of economic growth.
Conclusion
The second half of August marked a shift from shaping a new political architecture to giving it economic and institutional substance. The Kurultai elections completed another stage of political reform, while the forecast for 2027-2029 established the main financial priorities for the next period.
The scale of the tasks ahead nevertheless remains significant. The government must simultaneously reduce the overall and non-oil budget deficits, finance energy and utility infrastructure, develop digital technologies and maintain investment activity.
International economic cooperation is becoming an additional instrument of this policy. Contacts with Azerbaijan and the Netherlands, together with specific agreements reached with Singapore, confirm the growing importance of transport, investment, technology and infrastructure in Kazakhstan’s international agenda.
The sustainability of the chosen course will depend on Kazakhstan’s ability to link political modernisation with economic results: higher non-oil revenues, increased productivity, improved infrastructure and a gradual reduction in the budget’s dependence on National Fund transfers.
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Foreign Policy Diversification and Domestic Modernisation: A New Development Model for Kazakhstan
In the second half of July, Kazakhstan continued to strengthen its foreign policy position while focusing on the modernisation of domestic infrastructure. Talks with Russia, deeper cooperation in Central Asia, preparations of the energy sector for winter and the advancement of digital projects indicate that the government is increasingly linking external integration with internal economic resilience and technological development.
Politics: A Multi-Vector Policy Through Regional Partnerships
One of the key events of the period was President Kassym-Jomart Tokayev’s visit to Omsk, where talks with Russian President Vladimir Putin and the 22nd Kazakhstan-Russia Interregional Cooperation Forum were held on 25 July. The central theme of the forum was the creation of a global logistics ecosystem and the development of new areas of bilateral cooperation. Tokayev and Putin also held separate talks on the sidelines of the forum.
The Russian-Ukrainian conflict was among the issues discussed. In particular, Tokayev proposed that Putin consider the possibility of freezing the conflict and returning to what was described as the "Istanbul Formula 2.0".
The significance of the forum and the presidential talks extended beyond traditional cross-border cooperation. Russia remains one of Kazakhstan’s largest trading partners, while interregional ties serve as a mechanism for promoting joint transport, industrial and technological projects. Digital solutions presented to the two presidents in the areas of freight transport management, trade transparency and road safety demonstrate that logistics development increasingly relies on integrated digital infrastructure.
A second major foreign policy priority was the strengthening of regional cooperation. On 31 July, Tokayev attended an informal consultative meeting of the leaders of Central Asian states and Azerbaijan in Cholpon-Ata. The meeting concluded with the adoption of the Cholpon-Ata Declaration.
The inclusion of Azerbaijan in the consultative format reflects the participating countries’ interest in accelerating the development of the Trans-Caspian International Transport Route. Discussions on transport, energy, trade, tourism and regional security indicate that such meetings are gradually becoming platforms for coordinating practical economic projects. Kazakhstan and Uzbekistan also supported further work on a single tourist visa mechanism for foreign visitors, viewing it as a means of increasing the region’s attractiveness as a shared tourism destination.
Kazakhstan is therefore pursuing two complementary foreign policy tracks: strategic partnership with Russia and deeper regional integration in Central Asia. Together, these formats broaden the country’s opportunities in trade, transit and international cooperation.
Economy: Infrastructure as the Foundation of Resilience
The economic agenda during the period focused on transport connectivity, energy modernisation and digital development.
The agenda of the Omsk forum showed that Kazakhstan-Russia cooperation is gradually expanding beyond conventional trade. Discussions focused on transport infrastructure, logistics, industrial cooperation and digital technologies. At the same time, the talks in Cholpon-Ata reflected Kazakhstan’s efforts to strengthen the Trans-Caspian International Transport Route through the Caspian Sea, Azerbaijan, Georgia and Türkiye.
The parallel development of Russian and Trans-Caspian routes reflects Kazakhstan’s intention to diversify transport corridors and preserve the resilience of export logistics amid changing international conditions.
Energy security also received particular attention. Following temporary restrictions on the operation of some single-point moorings of the Caspian Pipeline Consortium after drone attacks, Kazakhstan reiterated its interest in ensuring the stable operation of export infrastructure. The Ministry of Foreign Affairs described such incidents as an unacceptable infringement on the country’s economic interests.
Domestically, the modernisation of energy infrastructure remains a major priority. A total of 384 billion tenge has been allocated to prepare power plants for the 2026-2027 heating season. Capital repairs are planned for nine power units, 55 boilers and 51 turbines. By the end of July, repairs had been completed on two power units, 13 boilers and eight turbines. Work was continuing on another two power units, 27 boilers and 16 turbines.
The scale of the repair campaign points to a more systematic approach to modernising the energy sector. It also highlights the need for further renewal of generating capacity. The reliability of electricity supply in the coming years will therefore depend both on the construction of new facilities and on the effective modernisation of existing infrastructure.
Kazakhstan’s technological agenda was also advanced through the international multisport tournament Games of the Future 2026, which opened in Astana on 29 July. Until 9 August, the capital is hosting more than 800 athletes from 34 countries competing in eight phygital disciplines combining traditional sport, esports and digital technologies.
At the opening ceremony, President Tokayev announced the establishment of an Artificial Intelligence University in Astana and reaffirmed Kazakhstan’s commitment to accelerating the development of the digital economy and AI technologies. The tournament has therefore become not only a major international sporting event but also part of Kazakhstan’s broader effort to promote its technological agenda.
Society: Resilience Through Risk Management
The social agenda in the second half of July centred on two priorities: containing inflation and improving the effectiveness of state financial oversight. Both are directly linked to economic stability and living standards.
Annual inflation stood at 10.3% in June, compared with 10.4% a month earlier. Inflation remained above the national average in 11 regions. During the first three weeks of July, the price index for socially important food products fell by 0.1%.
Seasonal declines in vegetable prices were the main factor behind the slowdown. During one week in July, tomato prices fell by 15.1%, cucumbers by 18.2%, carrots by 5.2% and eggs by 2.4%. At the same time, prices for some meat products continued to rise: lamb increased by 2%, horsemeat by 1.3% and minced meat by 0.6%.
The decline continued towards the end of the month. Over one week, potato prices fell by 2.8%, tomatoes by 2.4%, apples by 1.9% and cucumbers by 1.2%. Prices for flour, first-grade bread, beef, horsemeat and milk remained unchanged. These products account for a significant share of household expenditure. The figures suggest that the easing of inflation remains largely seasonal and does not yet indicate a sustained decline in the cost of the consumer basket.
Another priority was tighter control over the use of public funds. In the first half of the year, the Financial Monitoring Agency prevented unjustified public expenditure worth 279 billion tenge. The figure reflects stronger financial oversight and the government’s effort to improve the efficiency of budget spending.
Comparison: Infrastructure Resilience as a Shared Strategy
Events in the second half of July indicate that Kazakhstan’s foreign and domestic policies are increasingly being linked by a common infrastructure-based approach. The Omsk forum focused on Kazakhstan-Russia logistics and industrial cooperation, while the meeting in Cholpon-Ata centred on deeper Central Asian cooperation and the strengthening of the Trans-Caspian route. At the same time, energy modernisation, the digitalisation of transport processes and the hosting of an international technology-focused tournament are creating domestic conditions for long-term economic growth.
The government is also seeking to balance large-scale infrastructure projects with immediate social priorities. The development of transport corridors, industry and the digital economy requires a reliable energy system, effective public administration and strict oversight of budget spending. Modernising power plants, stabilising prices and strengthening financial monitoring are therefore becoming interconnected elements of a broader sustainable development strategy.
Conclusion
In the second half of July, Kazakhstan reaffirmed its multi-vector foreign policy while continuing to modernise domestic infrastructure. Strategic partnership with Russia, expanded cooperation with Central Asian states and Azerbaijan, the advancement of the Trans-Caspian route, large-scale energy sector renewal and the development of digital projects all point to an effort to build a more resilient model of economic growth.
The effectiveness of this model will depend on the country’s ability to align long-term infrastructure projects with current social priorities. Containing inflation, improving the efficiency of budget spending, ensuring energy security and advancing modern technologies are becoming as important to sustainable development as expanding international cooperation and diversifying transport routes.
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