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  • UAE to invest $6 billion in Kazakhstan

UAE to invest $6 billion in Kazakhstan

11 October, 2021 16:53

On October 9-10, 2021, Kazakh Prime Minister Askar Mamin made a working trip to the United Arab Emirates that plans to invest $6 billion in Kazakhstan, reports Strategy2050.kz.

In Abu Dhabi, Mamin held talks with the Deputy Prime Minister and Minister of Presidential Affairs Sheikh Mansour bin Zayed Al Nahayan, as well as the leadership of state development institutions, holdings, and other leading companies of the UAE.

The sides discussed the implementation of previously reached agreements and the prospects for bilateral cooperation in trade and economic, financial and investment, energy, transport and logistics, agro-industrial areas. 

Currently, the Emirati companies are involved in the implementation of 11 major investment projects in Kazakhstan worth over $3.5 billion.

As a result of negotiations, an intergovernmental agreement on the establishment of a long-term strategic partnership on the development of projects in priority sectors of the economy was signed. The document is aimed at the implementation of projects in the energy, agro-industrial, transport and logistics, pharmaceutical, and financial sectors of the national economy of Kazakhstan with a total investment of more than $6 billion.

The main partner of Kazakhstan in the implementation of the agreement will be the Abu Dhabi sovereign fund, ADQ, widely represented in such sectors as manufacturing and mining, agriculture, transport and logistics, finance, tourism, media and energy. The fund has more than $175 billion in assets under management.

As part of the agreement, Kazakhstan's Samruk-Kazyna intends to establish strategic cooperation with ADQ and create a joint energy holding for the development of renewable and traditional energy. The sides plan to implement joint projects on the construction of solar, wind, and hydropower plants in Kazakhstan with a total capacity of 5 GW.

Kazyna Capital Management and ADQ will also establish a joint venture fund for $100 million to finance joint startup projects in the areas of IT, fintech, agritech, B2B and B2C, telecommunications, food technology, platform solutions and digital transformation.