Tokayev Addresses Ways to Enhance AIFC as Regional Financial Hub
President Kassym-Jomart Tokayev recently led a meeting of the AIFC Management Council on Sept. 5 to discuss the strengthening of the Astana International Financial Centre (AIFC) as a prominent regional financial hub. During the meeting, several critical points were outlined to enhance the investment environment in Kazakhstan and improve the country’s economic ecosystem.
One of the key priorities highlighted by President Tokayev is the need to boost investment in Kazakhstan’s economy and enhance the investment climate. The AIFC has already forged strong partnerships with countries like the United States, European nations, the United Kingdom, and various Asian and Middle Eastern countries. The center is currently engaged in investment projects with major companies from the United Arab Emirates and Saudi Arabia, expanding Kazakhstan’s investment potential. However, President Tokayev emphasized the importance of strengthening collaboration with government entities and national institutions while enhancing the regulatory framework of the AIFC.
In order to increase market liquidity through institutional investors, President Tokayev mentioned ongoing efforts to transfer citizens’ pension savings to private investment managers. He also proposed exploring the possibility of allowing foreign investment management companies access to pension assets and financial instruments within the AIFC. Additionally, the President recommended reinforcing the localization criteria for companies operating within the AIFC.
Another crucial aspect discussed during the meeting was the importance of increasing the share and volume thresholds for securities in the local stock market, especially when placing them on foreign markets. President Tokayev urged private Kazakh companies to go public, thus promoting transparency and operational efficiency in the market.
Furthermore, President Tokayev emphasized the significance of adhering to the AIFC’s tax regime, which is protected by constitutional law and plays a critical role in attracting global investors. He also highlighted the development of Kazakhstan’s carbon market as a state policy priority, expressing concerns over the European Union’s upcoming carbon adjustment mechanism and its potential impact on Kazakhstan’s exports. Additionally, President Tokayev called for the establishment of financial mechanisms, such as state insurance funds, under the jurisdiction of the AIFC to address emergencies.
In conclusion, President Tokayev commended the significant achievements of the AIFC in creating favorable conditions for attracting investments, with unparalleled tax, visa, and labor regimes at the regional level. He praised the center’s judicial system and new digital solutions that enable all Kazakh residents to participate in IPOs. Overall, the President expressed optimism about the future prospects of the AIFC as a key player in the region’s financial landscape.
