Post by Cordoba Research Group

Kazakhstan’s latest steps around Alatau City suggest that the country is attempting to build a new model for attracting long-term investment into Central Asia. President Kassym-Jomart Tokayev has signed the Constitutional Law “On the Special Legal Regime of the City of Alatau”, creating a separate framework around investment, taxation, customs, financial services, digital assets and urban development. Investors will also have access to stronger dispute-resolution mechanisms, including the Astana International Financial Centre court and international arbitration in certain cases. This links closely to something we have mentioned previously - Central Asia is increasingly trying to move beyond attracting capital through natural resources alone. Alatau City is being positioned as a wider business and investment hub, with a focus on logistics, manufacturing, technology, financial services, education and tourism. The investment pipeline is also starting to become more visible, with 53 projects worth more than KZT 2 trillion currently being developed and the potential to create more than 51,000 jobs. Names connected to the wider pipeline include Mars, PepsiCo, Hyundai Green Food, KAIST University, Joby and AutoFlight. Kazakhstan remains under-covered relative to the pace of change taking place across the country. The economy is still closely linked to commodities, but the wider investment story is gradually becoming broader. Alatau City could support this next stage by creating a more practical framework for investors looking at industrial development, logistics, food processing, technology and regional trade. Its location close to Almaty and major transport routes also gives the project a wider regional importance. The more important point is that Alatau could help change the way investors view Central Asia. The region is often discussed through the lens of commodities, geopolitics and transit routes. These remain important, but they are not the full story. Kazakhstan is trying to show that Central Asia can also develop stronger institutions, deeper local value chains and more credible investment frameworks for long-term capital. There are still important areas to monitor closely. The success of Alatau will depend on whether the project pipeline turns into operating businesses, whether infrastructure keeps pace with demand and whether the legal framework works consistently in practice. Electricity, water, gas and transport capacity will remain particularly important as the city develops. At Cordoba Research Group, our view is cautiously positive on Alatau City. The project is still at an early stage, but it reflects a wider shift taking place across Central Asia. We will continue monitoring the investment pipeline, infrastructure build-out and wider implications for Kazakhstan’s investment outlook as the project develops. #CordobaResearchGroup #Kazakhstan #AlatauCity #CentralAsia #EmergingMarkets #ForeignInvestment #Infrastructure #MacroResearch