Images | Akorda
Kazakh President Kassym-Jomart Tokayev chaired a meeting of the Management Council of the Astana International Financial Center (AIFC),
Kazinform News Agency cites Akorda.
Prior to the event, the Head of State got acquainted with the activities the AIFC actors, that have made a significant contribution to the promotion of the Center’s ecosystem. The heads of Freedom Finance Global, Astana office of the China Construction Bank Corporation, Fix Price Group, Grata International and Binance Kazakhstan Technologies presented the results of their work, including innovative projects as well as plans for future development.
Opening the meeting, the Kazakh President noted the rapid changes in the global capital market, formation of new international trade and economic ties as well as expansion of integration processes between countries and redistribution of financial flows.
According to Tokayev, the ongoing challenges and changes open new opportunities for Kazakhstan. In this regard, the Kazakh leader highlighted the key role of the AIFC in ensuring further sustainable and gradual development of the country.
In a relatively short period of its operation, the AIFC has achieved significant results, as conditions have been created to attract investments, that are unmatched at the regional level. Investors are offered favorable tax, visa and labor regimes. The principles of individual and comprehensive support for each investor are in place. A fair and impartial judicial system has been established. Thanks to new digital solutions, now every Kazakhstani can take part in an IPO, said the Kazakh President.
Head of State Tokayev also pointed out that the AIFC is facing a task to strengthen its status as a successful regional financial hub, highlighting a number of current issues.
In particular, the President stressed the importance of further attracting investments in the economy and the need to improve the investment ecosystem of the country.
The Center has already established close cooperation with the partners from the US, Europe, GB as well as a number of Asian and Middle East countries. Work is ongoing to promote investment projects with major companies of the UAE and Saudi Arabia, helping to significantly expand the investment potential of the AIFC and the Kazakh economy. However, it’s necessary to enhance the Center’s interaction with the government and national institutions as well as to continue to improve its regulatory framework, stressed Tokayev.
The Head of State noted that one of the key indicators of a developed stock market is liquidity, that is, primarily, provided by institutional investors. Tokayev went on to add that presently the citizens are offered to transfer up to 50% of their pension savings to private investment managers. To this end, the Kazakh President suggested considering the possibility of providing access of foreign investment management companies to pension assets and financial instruments of the AIFC.
In this context, the President recommended the National Bank together with the government, the Agency for Regulation and Development of Financial Market and the AIFC to look at the possibility of tightening the criteria for companies’ localization in the Center.
According to the Head of State, another priority task is to gradually increase the securities share and volume threshold in the local stock market in case of simultaneous placement in foreign markets. Tokayev stressed the importance of stimulating Kazakhstani private companies to go public, thus confirming their transparency and efficiency.
President Tokayev also pointed out steady observance of the set game rules as the next priority.
The AIFC’s tax regime, guaranteed by the Constitutional Law, is a key element of the Center’s development strategy. It plays a key role in increasing Kazakhstan’s attractiveness for global investors. It’s our unchanged position, that we will never compromise, he said.
The Kazakh leader noted that the development of carbon market in Kazakhstan is one of the priorities of the state policy. According to him, the EU countries is preparing to introduce a Carbon Border Adjustment Mechanism Regulation, which could become a serious barrier to Kazakhstani exports to Europe.
In addition, the Kazakh President stressed the importance of creating efficient financial mechanisms for emergency response. According to him, different state insurance funds should become an instrument to fight consequences of natural disasters. In this regard, the Head of State instructed the government jointly with the Agency for Regulation and Development of Financial Market and the AIFC to explore in detail the issue of establishing such a fund under the jurisdiction of the Center.
Concluding the meeting, the Head of State approved the AIFC Annual Report 2023.
During the meeting, reports were made by AIFC Governor Renat Bekturov, Solidcore Resources plc CEO Vitaly Nesis, Amicorp Fund Services COO Robin Hoekjan, AIFC Court Chief Justice Ian Burnett, Chair of the Board of Directors of the AIFC Financial Services Authority Chair Angela Knight, and AIX Board of Directors Chair Timothy Bennett.
