Since the establishment of diplomatic relations in 1992, the Republic of Kazakhstan and the UK have developed ever-stronger economic ties with the growth of two-way trade and investment flows, reflecting the Kazakhstan’s role as a regional leader in terms of economic reform, openness to international trade and investment and political stability.
The trade turnover between Kazakhstan and the UK was on a steady rise from USD395 million in 2003 to USD1,870 million in 2007. Given the wealth of Kazakhstan natural resource base, the major items of Kazakhstan’s export are mineral production, ferrochrome, steel, copper, rawhide, fertilizers, precious and semi-precious metals. The UK export into Kazakhstan includes technical equipment, transport vehicles, optical instruments, chemical, alcoholic and tobacco production, textile, food industry and others.
The flourishing economic relationship between our countries has been characterized by growing partnership with 128 companies with British investors’ participation registered in Kazakhstan, 57 of which are joint ventures and 71 are representative offices of British companies. UK’s leading oil and gas corporations have strong investment interest in Kazakhstan, as do some of the UK’s large contracting companies. A large number of smaller oil-field service and supply companies have established themselves in the market, usually in partner with Kazakhstani partner companies.
Two-way investment flows are healthy. Traditionally, the UK is one of the leading investors into Kazakhstan’s economy – third by amounts of gross inflow of investments – USD15,200 million as of September 2007, of which USD1,087 million came in the form of direct investments. The total amount of Kazakhstan’s investment into UK economy in 2007 amounted to USD 3,302 million. Kazakhstani companies are increasingly listing on the London stock Exchange with IPOs to a value in excess of US$14 billion since 2005.