Central Asia's Chief in Foreign Direct Investment: Kazakhstan Shines, Particularly in Greenfield Investment, According to United Nations Report
In a significant shift towards sustainable development and greenfield projects, Kazakhstan has emerged as a regional leader in attracting foreign direct investment (FDI) in Central Asia. According to the United Nations Conference on Trade and Development's (UNCTAD) 2025 World Investment Report, global FDI flows have decreased by 11% to $1.5 trillion, but Kazakhstan has managed to buck the trend.
Kazakhstan accounted for approximately 70% of the total net investments in Central Asia, with four out of five greenfield projects exceeding $1 billion announced in Landlocked Developing Countries (LLDCs) in 2024, and Kazakhstan attracting four of them. The energy and gas supply sector remained the dominant destination for greenfield projects in LLDCs from 2020 to 2024, attracting nearly $50 billion. However, Kazakhstan has shown a clear focus on clean energy and diversification, with nearly $8 billion across 19 projects in the transport sector.
The government's commitment to sustainable and greenfield investment is evident in its development of a supportive policy framework for sustainable infrastructure investment, adhering to OECD standards and promoting Environmental, Social, and Governance (ESG) principles. In 2024, the country committed to a declaration on responsible business conduct (RBC) to encourage investments that contribute positively to sustainable development goals (SDGs).
Institutional framework improvements, such as the creation of the Council for Attracting Investments in 2021 and the establishment of Kazakh Invest as a one-stop shop for foreign investors, have facilitated market entry and improved the investment climate, especially for greenfield projects in renewable energy, waste management, gas, transport, and mining sectors.
Kazakhstan has also attracted substantial FDI in greenfield projects within the renewable sector, with 148 renewable energy facilities generating about 3,000 MW of clean power by the end of 2024. The government targets increasing renewables to 15% by 2030 and 50% by 2050, which is expected to attract further FDI.
Notable investments in Kazakhstan include a $1.8 billion steel manufacturing project by Fujian Hengwang from China and a $5.5 billion natural gas facility by Qatar's UCC Holding. The country also launched a digital licensing platform and introduced fast-track procedures for priority investment projects in 2024.
The UNCTAD report highlighted the establishment of a unified registry for investor issues and complaints in Kazakhstan, and the country remains a reliable and appealing destination for global investors, according to Kazakh Invest. Despite recording its first-ever negative net FDI reversal since gaining independence, from $3.7 billion to a net outflow of -$2.6 billion, the negative result was mainly due to companies repatriating previously reinvested earnings for dividend distribution.
In conclusion, Kazakhstan's focus on sustainable development, greenfield projects, and reform-oriented investment facilitation has positioned the country as a leader in greenfield investment in Central Asia. This shift towards sustainability-driven opportunities, combined with ongoing reforms and infrastructure modernization, is expected to attract more investors looking for stable, reform-oriented, and sustainability-driven opportunities.
In the realm of sports and technology, Kazakhstan's digital licensing platform introduces fast-track procedures for priority investment projects, demonstrating a fusion of modern technology and investment facilitation. On another note, the country's commitment to clean energy is evident in its ambitious goal to increase renewables to 50% by 2050, which could potentially stir interest from sports entities seeking sustainable partnerships in weather-friendly settings for hosting international events.
