For many years, Kazakhstan’s economic narrative on the global stage was closely associated with extractive industries, large-scale infrastructure projects and its role as a transit corridor across Eurasia. By the 2020s this perception has begun to shift. An increasing number of international corporations no longer view Kazakhstan merely as a sales market and start to establish manufacturing facilities, expand production capacity and integrate local suppliers. It turns the country into a regional industrial platform with export ambitions.From consumer market to manufacturing baseBy 2025, Kazakhstan’s economy clearly demonstrates signs of structural transformation. As global supply chains are being reconfigured amid rising geopolitical and logistical uncertainty, multinational companies are actively diversifying their production footprints. In this context, Kazakhstan is steadily emerging as a manufacturing hub capable of serving not only its domestic market, but also Central Asia, the Eurasian Economic Union (EAEU) and neighbouring regions.This shift is firmly embedded in national economic policy. Manufacturing output is expected to grow by around 6% in 2025, with a target of 6,2% set for 2026. Processing industries are increasingly becoming the backbone of economic growth, gradually reducing the country’s historical dependence on raw material exports.Metallurgy remains one of the core drivers of Kazakhstan’s manufacturing sector. In 2026, output growth in the industry is projected at around 3%, supported by new facilities reaching full design capacity, including Kyzyl Aray Copper, Ekibastuz FerroAlloys, Kazferro Limited and Shagala Mining. In ferrous metallurgy, production of ferroalloys, steel, pig iron and flat products is expected to expand, while non-ferrous metallurgy will see increased output of gold, copper, aluminium and zinc.Mechanical engineering is showing even stronger dynamics. Growth of 13,4% is planned for 2026, driven largely by a 17% increase in passenger vehicle production and a 5% rise in agricultural machinery output. The chemical industry is also on an upward trajectory, with production expected to grow by 7% in 2026 following the commissioning of new capacities for sulphuric acid, sodium cyanide, hydrogen peroxide and liquid glass.Trade continues to play a significant role in the broader economic landscape. In 2026, total trade turnover is targeted at KZT 92.4 trillion, representing growth of 6,5%. This expansion will be supported by stable oil and petroleum product output, large-scale programmes for processing food and non-food goods, and the launch of four major B2B platforms focused on wholesale export trade, including the China-bound direction.Agriculture is also gaining momentum, particularly in food processing. In 2026, production of food products and beverages is expected to grow by 9% and 9,3%, respectively, reinforcing the value-added component of the sector and enhancing its export potential.This transformation is the result of reforms implemented in recent years. Measures aimed at improving the investment climate, modernising industrial zones and increasing regulatory predictability have created more favourable conditions for long-term capital investment. Special economic zones, tax incentives and streamlined approval procedures allow foreign manufacturers to plan production strategies with a long-term horizon.Building the institutional foundations for industrialisationAt a time when companies are reassessing the geography of their manufacturing networks, Kazakhstan offers a combination of political stability, proximity to several large markets and a regulatory environment that is broadly familiar to international investors. This makes the country attractive as both an additional and an alternative production location.A telling example of this shift is the global food corporation Mars. For many years, the company operated in Kazakhstan primarily as an importer and distributor, but it has already begun preparations to localise production in the Almaty region through the construction of a pet food manufacturing facility. Total investment will exceed KZT 88.8 billion, while the plant’s designed capacity is expected to reach up to 100,000 tonnes of output per year. This move underscores a broader trend among foreign manufacturers, who are increasingly opting for local production rather than relying solely on imports.New projects are also emerging in the pharmaceutical sector. An investment agreement has been signed with Khan Tengri Biopharma, which will build a manufacturing complex within the Alatau Special Economic Zone. The facility’s production portfolio will include 27 international non-proprietary names (INNs), covering medicines for the treatment of oncological, autoimmune, rare and inflammatory diseases. Total investment in the project will exceed KZT 103 billion, enabling not only import substitution but also, in the longer term, the launch of export supplies.Kazakhstan’s evolution into an industrial hub is equally evident in more capital-intensive and technologically demanding sectors. The launch of a full-cycle KIA automobile plant in Kostanay in 2025 marked a significant milestone for the country’s automotive industry. Investments exceeding USD 270 million are geared not only towards the domestic market, but also towards exports to Central Asia and EAEU member states. Full-cycle production requires a developed supplier network, skilled personnel and long-term planning, effectively turning such facilities into anchors for industrial clusters.Another example of deeper localization is Wabtec. The American locomotive manufacturer has operated in Kazakhstan for many years, but its role has expanded significantly with the growth of local content and the establishment of an engineering and technology centre in Astana. Long-term contracts with the national railway company provide stable demand, while the transfer of engineering expertise and management know-how strengthens Kazakhstan’s high-tech industrial capabilities.Localization is particularly visible in the metallurgical sector. ERG, one of the world’s leading diversified metals and mining groups, increased the share of goods and services sourced from Kazakh suppliers to 60% in 2024, up from 48% a year earlier. Special emphasis is placed on supporting local manufacturers in mono-industrial towns where ERG operates. In 2024, such procurement accounted for 21.5% of the group’s total purchases in Kazakhstan, with the trend continuing alongside the launch of new, including environmentally advanced, facilities.Qarmet, one of Kazakhstan’s largest metallurgical assets, is implementing two strategic projects that significantly strengthen the domestic industrial base. The first involves the launch of a section rolling mill in partnership with Chinese companies, enabling full import substitution in construction metallurgy and stabilising the domestic market. The second project is the construction of a casting and rolling complex in the Karaganda region, producing hot-rolled steel with widths of up to 1,850 mm and thicknesses ranging from 0.8 to 16 mm. This output is in demand across automotive, oil and gas, nuclear, medical and pipe manufacturing industries, as well as in household appliance production. The projects are expected to reduce production costs, lower energy consumption and expand Kazakhstan’s portfolio of high-value steel products.Building the investment pipelineThe government actively supports this industrialisation drive. A portfolio of 20 major projects with foreign participation, valued at approximately KZT 5.7 trillion, has already been formed, creating more than 11,000 jobs. In addition, nine multilateral projects involving companies from two or more countries are being implemented, with a combined value of around USD 2.4 billion and over 2,800 new jobs. Financing is facilitated through national companies and development institutions, helping to mitigate investment risks.Most new manufacturing facilities are designed with export orientation from the outset. Automotive production, metallurgy and machinery manufacturing are increasingly targeting markets in Central Asia and the EAEU. Localization generates a strong multiplier effect across the economy: employment growth extends beyond factory floors into logistics, engineering and related services, while skills transfer contributes to the formation of a more qualified workforce.While challenges remain, including the upgrade of technological capacity, the overall direction is clear. The expanding presence of global corporations reflects the emergence of an environment increasingly conducive to industrial development.Investments in localization and processing demonstrate business confidence in Kazakhstan’s long-term trajectory and underscore the country’s growing ability to integrate into global and regional value chains. By attracting multinational manufacturers, promoting localization and strengthening export capacity, Kazakhstan is steadily reinforcing its position as a key industrial hub in Eurasia.Source : https://www.gov.kz/memleket/entities/mps/press/news/details/1137078?lang=kk

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In 2025, in his Message to the people of Kazakhstan, the Head of State stressed that the socio-economic development of the Torgai region should be under the special attention of the Government. In order to fulfill this assignment, a draft action plan has been developed for the development of the city of Arkalyk, Amangeldy and Zhangeldinsky districts for the upcoming three-year period.The plan is aimed at solving the main sectoral tasks of the region and provides for the achievement of the following results:- increased tourist flow;- bringing the level of preschool education coverage to 100% (from 90%);- increase the coverage of additional education from 66% to 68%;- an increase in the number of citizens involved in mass sports;- reducing the degree of deterioration of engineering infrastructure.In addition, the implementation of the planned projects will open up new jobs, improve the well-being of residents and boost economic activity in the region.In accordance with the instructions of the Head of State, a large infrastructure facility, a new airport, is being built in the city of Arkalyk.The construction of the terminal building is currently underway. The necessary engineering communications have been fully completed. The project is scheduled to be completed in July 2026.The implementation of this project will increase the transport accessibility of the region, as well as bring tourism development and investment attractiveness to a new level.The three-year plan developed for the Torgai region is of strategic importance and will give an impetus to its long-term development. The ongoing infrastructure projects, improvement of social indicators and improvement of transport logistics are aimed at strengthening the region's economy and improving the quality of life of the population.Source : https://www.gov.kz/memleket/entities/kostanay/press/news/details/1136209?lang=kk

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On January 1, the Minister of Trade and Integration of the Republic of Kazakhstan, Arman Shakkaliyev, monitored retail chains in the capital. The minister visited the major retail chains Small, Magnum, and Anvar.Retail chains opened at 10:00 AM today. The Minister of Trade, one of the first visitors, paid special attention to price stability, shelf availability, and product selection."We specifically monitored retail chains on January 1. Our goal was to ensure price stability today. There are no changes or shortages. In anticipation of the New Year, we jointly held the 'Bereke Fest' promotion with retail chains. Retail chains continue to offer various discounts. Shelves are fully stocked. This stable situation should be maintained in all retail outlets," Shakkaliyev noted.During a meeting with representatives of retail chains, the minister instructed them to ensure price stability and prevent unjustified price increases. He also reiterated that markups on socially important food products are systematically monitored.At the Minister's direction, similar monitoring activities are being actively conducted in the regions by trade and consumer protection departments, in conjunction with local akimats. It should be noted that prices for socially important food products have remained stable over the past six weeks. Source : https://www.gov.kz/memleket/entities/mti/press/news/details/1136135?lang=kk

Within the framework of the environmental program "Taza Kazakhstan", projects on improvement and improvement of the quality of urban and rural environment are being actively implemented in Kostanay region.Since the beginning of the year, 80 squares and parks have been landscaped in the region, 164 playgrounds and sports grounds have been built, and 108 apartment buildings have been renovated. 143.9 thousand green spaces were planted, 8.5 thousand street lamps were installed.The Taza Kazakhstan program has become an effective tool for positive changes in the region. Thanks to its implementation, not only the regional center is being transformed, but also cities, districts and rural settlements. So, on 13 sites where previously there were empty territories, unauthorized landfills, abandoned and unattended houses, well-maintained parks, squares, alleys and public spaces have appeared today.The ongoing work is aimed at creating a comfortable, clean and safe environment for residents and will be continued in the future.Source : https://www.gov.kz/memleket/entities/kostanay/press/news/details/1136129?lang=kk

Astana, December 31, 2025 – A telephone conversation took place between Minister of Foreign Affairs of the Republic of Kazakhstan Yermek Kosherbayev and Minister of Foreign Affairs of the Kyrgyz Republic Zheenbek Kulubaev.During the conversation, the foreign ministers reviewed the outcomes of the outgoing year, noting the steady development of Kazakh-Kyrgyz allied relations in the spirit of brotherhood and good-neighborliness.The interlocutors discussed current issues and prospects for bilateral cooperation. Particular attention was paid to the outcomes of the official visit of the President of Kazakhstan Kassym-Jomart Tokayev to Bishkek, as well as the 7th meeting of the Supreme Interstate Council of Kazakhstan and Kyrgyzstan held in August this year, and to the practical implementation of the agreements reached at the highest level.The parties expressed their mutual readiness to comprehensively facilitate the strengthening of political dialogue, as well as the expansion of cooperation in trade and economic, investment, transport and logistics, and cultural and humanitarian spheres.In addition, the ministers exchanged views on topical issues on the regional and international agenda and reviewed the schedule of upcoming international events for the coming year. Source : https://www.gov.kz/memleket/entities/mfa/press/news/details/1136051?lang=kk

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Astana, December 30, 2025 – Deputy Minister of Foreign Affairs of the Republic of Kazakhstan Alibek Kuantyrov and Deputy Chairman of the Management Board of Kazakh Invest National Company JSC Madiyar Sultanbek held a working meeting with Xu Jie, General Director of Xinjiang Lihua (Group) Co., Ltd.During the meeting, the parties discussed the current status of implementation of the investment project to establish a cotton and textile cluster in Turkestan Region, as well as plans for its expansion. The project provides for the formation of a full production cycle, including up to 10 production facilities covering cotton cultivation and primary processing, production of yarn and textile products, manufacturing of drip irrigation systems and related materials.Initially, the investment volume of the project was estimated at 450 million US dollars; however, during the meeting, the intention to increase the total volume of investments to 600 million US dollars was confirmed in connection with the expansion of the production program and scaling of capacities.At present, within the framework of the project, a PVC pipe manufacturing plant has already been commissioned in the TURAN SEZ, installation of equipment at the spinning facility is nearing completion, two cotton ginning plants are in operation, and equipment installation is underway at the drip tape production facility. Full commissioning of all facilities is planned for the first quarter of 2026. Implementation of the cluster will allow for the creation of more than 4,000 jobs and the formation of a sustainable industrial base in the region with a high level of localization.Deputy Minister Kuantyrov noted that the Xinjiang Lihua project is of significant importance for the development of the national processing industry and the promotion of products under the Made in Kazakhstan brand: “For us, it is fundamentally important not only to attract investment, but also to form full-fledged production chains with high value added within the country. Projects of this scale create a foundation for producing competitive products under the Made in Kazakhstan brand, strengthen export potential and contribute to regional development. The state is interested in the timely launch of all facilities and will provide the investor with the necessary support,” he emphasized.Commenting on the company’s plans, Xu Jie noted that the increase in investment volume reflects the investor’s long-term intentions in Kazakhstan. According to him, the company decided to expand the project, increasing the total volume of investments to 600 million US dollars, considering Kazakhstan as a key platform for developing production with export potential.Following the meeting, the parties confirmed their interest in further expanding cooperation, ensuring synchronized commissioning of production capacities and effective implementation of the project within the established timeframes, with support from Kazakh Invest and relevant government authorities. Source : https://www.gov.kz/memleket/entities/mfa/press/news/details/1135896?lang=kk

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Astana, December 30, 2025 – A telephone conversation took place between Minister of Foreign Affairs of the Republic of Kazakhstan Yermek Kosherbayev and Minister of Foreign Affairs of Georgia Maka Bochorishvili.During the discussion, the foreign ministers reviewed the results of bilateral cooperation over the past year and positively assessed the dynamics of Kazakh-Georgian relations. They reaffirmed mutual commitment to further strengthening political dialogue and developing practical cooperation across all aspects of the bilateral agenda.Particular attention was paid to expanding trade and economic cooperation between the two countries. The importance of activating cooperation in the investment sphere was noted, as it makes a significant contribution to the development of national economies, promoting production growth and job creation.The ministers agreed to maintain close working contacts and to continue constructive dialogue.Source : https://www.gov.kz/memleket/entities/mfa/press/news/details/1135372?lang=kk

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The Ministry of Trade and Integration of the Republic of Kazakhstan is holding its national campaign "Bereke Fest" again from December 23 to 31. Around 80 major retail chains across the country are participating in the campaign, including major retailers such as SMALL, Magnum, Fermag, Anvar, Toimart, Fermag, Dina, Norma, and Dana, as well as regional retail chains.This initiative covers all regions of the country and is primarily aimed at stabilizing prices for essential consumer goods, supporting domestic producers, and increasing the availability of Kazakhstani products for the population. It should be noted that the Ministry of Trade previously organized this campaign in September and October of this year.The price reduction was made possible by reducing retail chain markups and building direct relationships between farmers and retail outlets. This enabled direct product deliveries, bypassing intermediaries. It's important to emphasize that as part of the promotion, retail chains have reduced markups, allowing discounts on both domestic and imported goods.The promotional assortment includes socially significant food products.As part of the promotion, major retail chains have set up special promotional zones for products from Kazakhstani producers. The main goals of the promotion are to promote domestic goods and develop sustainable cooperation between retail chains and local suppliers. Furthermore, the promotion helps stimulate domestic demand and strengthen the country's food security.All participating retail outlets are designed in a uniform style. This facilitates consumer orientation within the retail space and emphasizes the availability of products and their local origin.Source : https://www.gov.kz/memleket/entities/mti/press/news/details/1134560?lang=kk