Business Opportunities in Kazakhstan

Business in Kazakhstan is often focused on the oil and gas sector, which has been responsible for the country?s strong economic expansion over the last decade. Kazakhstan, however, has developed into the leading market in Central Asia and is positioning itself as a transit route between China and Europe. It is also actively seeking ways to use its new mineral wealth to diversify its economy. These efforts, combined with a growing middle class, are providing trade and investment prospects for U. S. firms seeking new opportunities in one of the most dynamic of the emerging markets. Like other former Soviet Republics, Kazakhstan is still developing a transparent and effective business culture that is attractive to foreign investment. Kazakhstan?s authorities realize the need to implement economic reforms. However, new laws and regulations that should improve the business environment are often incorrectly implemented at the local level. Foreign investors, as well as local firms, complain about burdensome regulations that often reflect a way of doing business that is reminiscent of the Soviet Union. Challenges remain in addressing problems related to the country?s competitiveness and economic diversification, its over-reliance on the extractive sector, continued corruption, need for increased rule of law, and concentration of political power.