UAE, Kazakhstan sign agreement to strengthen investment cooperation - GulfToday

UAE, Kazakhstan sign agreement to strengthen investment cooperation


Top officials during the signing ceremony.

The Ministry of Investment of the UAE has signed a Memorandum of Understanding (MoU) with the Ministry of Digital Development, Innovations, and Aerospace Industry of the Republic of Kazakhstan as well as Sovereign Wealth Fund Samruk-Kazyna. This strategic agreement aims to create a framework for investment cooperation in data centre and artificial intelligence (AI) projects in Kazakhstan.

The MoU was signed by Mohamed Hassan Alsuwaidi, Minister of Investment of the UAE; Bagdat Mussin, Minister of Digital Development, Innovations, and Aerospace Industry of the Republic of Kazakhstan; and Nurlan Zhakupov, Chairman of the Management Board of Samruk-Kazyna, JSC.

Data centers are essential for organisations to store crucial data and operate applications.

Kazakhstan, the largest economy in Central Asia, is witnessing substantial growth in its data centre industry driven by increased demand for computing resources, progressive government policies and AI advancements.

The country’s data centre market is projected to grow at a 6.83 per cent compound annual growth rate between 2024 and 2028, resulting in a market volume of $416.7 million.

The MoU between the UAE and Kazakhstan centers on establishing robust and efficient collaboration through the development of bilateral relationships between public and private organisations.  The agreement also proposes introducing incentives to bolster relevant initiatives and seeks to facilitate the exchange of knowledge.

Mohamed Hassan Alsuwaidi, Minister of Investment of the UAE, commented: “The agreement reflects our commitment to further strengthening relations between our two nations and working together to realise a shared vision for economic advancement.”

“The planned investments in data centre and AI projects in Kazakhstan will help enhance the nation’s expanding digital infrastructure, offering businesses more opportunities to embrace and gain advantages from digitisation.”

Nurlan Zhakupov, Chairman of the Management Board of Samruk-Kazyna, JSC, commented: “The establishment and growth of data centers is pivotal for Kazakhstan’s technological advancement. They serve as the backbone of innovation, fostering economic development, and propelling the nation into the forefront of the global digital landscape.”

“Furthermore, the strategic development of data centers not only enhances domestic capabilities but also acts as a magnet for foreign investments, positioning Kazakhstan as an attractive destination for international businesses seeking a robust technological infrastructure.”

Kazakhstan’s exports to the UAE amounted to $560.34 million during 2022, while the UAE’s exports to Kazakhstan reached $1.69 billion.

Established in July 2023, the Ministry of Investment aims to accelerate foreign direct investment into the country and further strengthen the UAE’s position as a globally leading investor.

Meanwhile Kazakhstan has planned to boost its trade exchange with the UAE to $1 billion from $632 million recorded last year, according to a senior government official.

Speaking to the Emirates News Agency, Kazakhstani Trade and Integration Minister Arman Shakkaliyev said both countries have discussed investment objectives to boost bilateral trade relations. “We discussed investment in environmental, social and governance and climate change agenda, and as a representative of Kazakhstan, I showed our plans about new trade roads from the Caspian Sea to Abu Dhabi and Dubai ports in the UAE,” Shakkaliyev told WAM on the sidelines of the eighth investment forum of the UN conference on trade and development held in Abu Dhabi.

He added: “It is very important that a new road connects Central Asia as an agricultural hub and gives us new challenges to open regional markets. I think that this type of event gives us a clear understanding of what conditions under which the government invites investors.”

Shakkaliyev further explained that the country is poised to attract investments and boost its economic position as a critical direction of its investment policy.

This policy aims to increase competitiveness, create optimal conditions for investors, and attract investment in export sectors independent of natural resources. He elaborated that the country implemented 46 investment projects last year, with foreign capital reaching $4 billion and generating 6,500 jobs.

“Infrastructure and a wide range of investment preferences have been created in the territories of 14 special economic zones. A new tool of state support has been introduced, and an investment agreement, which can be concluded directly with the government, gives individual benefits and legislative stability for up to 25 years,” he highlighted.

“We are focused on attracting investment in the development of transport and logistics. Kazakhstan has become a vital transport and logistics centre in Eurasia, offering 11 international transit routes, five railways and six roads,” Shakkaliyev stated.

He further stated that the country is developing a route for supplying agricultural goods from the Kazakh port to Gulf countries.

Related articles