Kazakhstan: A Rising Tech Hub with 18x Growth since 2019
Kazakhstan’s Tech Sector Thrives as Country Transforms into Global Hub
A recent report by Dealroom.co has shed light on Kazakhstan’s impressive evolution from a resource-based economy to one of the fastest-growing tech hubs worldwide. The Central Asian nation has seen significant growth in its startup ecosystem, with government-backed initiatives playing a crucial role in supporting technology and AI development.
The report highlights Kazakhstan’s remarkable progress, noting that the country’s tech sector is now worth a staggering $26 billion – an eighteen-fold increase since 2019. This growth outpaces the global average, with tech sectors around the world growing 2.6 times over the same period.
Key players in Kazakhstan’s tech scene include companies like Kaspi and Freedom Holding Corp, which have achieved unicorn status with valuations exceeding $1 billion. Kaspi, a payments, marketplace, and fintech platform, recently surpassed the $10 billion valuation milestone, while Freedom Holding Corp has seen a remarkable 775% increase in its stock value since 2019, outperforming tech giants like Meta, Apple, and Amazon.
In addition to these success stories, Kazakhstan boasts a high percentage of funded companies generating $10 million or more in revenues annually. This metric places Kazakhstan ahead of countries like Sweden, Israel, and Germany, underscoring the country’s growing prowess in the tech sector.
A key driver of Kazakhstan’s tech boom is government support for technology and AI initiatives. The establishment of the International AI Center, alem.ai, signals Kazakhstan’s commitment to fostering innovation and collaboration in the AI space. The Ministry of Digital Development, Innovations, and Aerospace Industry has also spearheaded initiatives like an e-Government portal and e-Licensing to streamline business processes.
Looking ahead, Kazakhstan aims to attract $1 billion in private investment through a newly established Fund-of-Funds, signaling a continued commitment to fostering a vibrant tech ecosystem. With strategic investments and national leadership, Kazakhstan is paving the way for other emerging markets to embrace technology as a catalyst for economic growth.
Local founders and industry experts are bullish on Kazakhstan’s potential as a tech powerhouse, citing the country’s high-quality education system and effective government support as key drivers of growth. As Kazakhstan continues on its transformative journey, the global tech community is taking notice of the country’s rapid ascent in the technology landscape.
Minister of Digital Development, Innovations, and Aerospace Industry Zhaslan Madiyev reiterated Kazakhstan’s commitment to nurturing an innovative tech ecosystem, emphasizing the importance of strategic partnerships and international collaborations in driving the sector’s growth. With sustained support and a focus on leveraging cutting-edge technology, Kazakhstan’s tech sector is poised to make significant contributions to the global technology landscape in the years to come.
