KAZAKHSTAN

Stabilization after the Covid-19 shock

C3

SENSITIVE RISK for enterprise

  • Economic risk

  • Business environment risk

  • Political risk

  • Commercial risk

  • Financing risk

  • Economic risk

  • Business environment risk

  • Political risk

  • Commercial risk

  • Financing risk

Updated in September 2021.

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GDP USD169.84bn (World ranking 52, World Bank 2020)
Population 18.80mn (World ranking 63, World Bank 2020)
Form of state Presidential Republic
Head of state Kassym-Jomart TOKAYEV (President)
Next elections 2023, legislative
  • Abundance of raw materials (e.g. hydrocarbons)
  • The National Fund of the Republic of Kazakhstan (NFRK, the sovereign wealth fund) holds ample assets
  • Strategic location in Central Asia: benefits from China’s Belt and Road Initiative in terms of FDI and infrastructure investment
  • Authoritarian political regime
  • Interventionist and protectionist economic strategy
  • High dependence on global commodity prices
  • Exchange rate vulnerability to external shocks
  • Vulnerability to Russian business cycle
  • Regional instability in Central Asia
  • High external debt burden

Trade structure by destination/origin

(% of total, 2020)

Exports Rank Imports
China 14.0%
1
35.9% Russia
Italy 13.7%
2
17.4% China
Russia 10.1%
3
9.5% Korea, Republic of
Netherlands 7.4%
4
4.3% Italy
France 5.9%
5
3.9% Germany

Trade structure by product

(% of total, 2020)

Exports Rank Imports
Petroleum, petroleum products and related materials 55.7%
1
11.7% Other industrial machinery and parts
Non-ferrous metals 9.3%
2
7.0% Electrical machinery, apparatus and appliances, n.e.s.
Iron and steel 7.7%
3
6.6% Iron and steel
Metalliferous ores and metal scrap 6.5%
4
5.8% Manufactures of metal, n.e.s.
Inorganic chemicals 4.5%
5
5.7% Road vehicles
The payment culture of Kazakh companies has declined due to local currency devaluation from 2014, with a high risk of further devaluation. There are no DSO statistics available and it highly depends on industry.

  • Low

  • Medium

  • Sensitive

  • High

  • Payments

  • Court proceedings

  • Insolvency proceedings

  • Payments

  • Court proceedings

  • Insolvency proceedings

 

The courts are reliable and deliver their decisions quickly. However, the requirements to provide supporting documentation for the claim are rather high. Enforcement procedures show moderate results and there is room for improvement.

Insolvency proceedings tend to bring low results for unsecured creditors, while the creditor’s claim must be accompanied by the required set of documentation.

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