Kazakhstan has made a significant stride in foreign direct investment (FDI) as it entered the top five recipients globally in 2022, experiencing an impressive 83% increase to reach $6.1 billion, according to the World Investment Report 2023 released by the United Nations Conference on Trade and Development (UNCTAD) on July 5.
In the category of landlocked developing countries, Kazakhstan secured the top spot in terms of net FDI, with a 6% rise to $20 billion in inflows last year, followed by Ethiopia, Uzbekistan, Mongolia, and Uganda.
Central Asia witnessed a 39% surge in net FDI inflows, reaching a record-high of $10 billion, largely driven by high profits in the extractive industries. Notably, Kazakhstan accounted for 61% of this impressive figure.
Kazakhstan also stands out among the post-Soviet countries, leading the pack with the highest FDI indicator in the past five years, surpassing $6.1 billion. Uzbekistan, Lithuania, Georgia, and Belarus follow with $2.5 billion, $2.2 billion, $2 billion, and $1.6 billion, respectively. Other countries in the region also experienced varying levels of FDI inflows.
However, Azerbaijan and Russia registered negative results, with -$1.7 billion and -$18.7 billion, respectively.
Kazakhstan also demonstrated its prominence in the renewable energy sector, securing the fifth position among developing economies, with a substantial $56.3 billion in net investments attracted over the period of 2015 to 2022.
The global net FDI flows experienced a 12% decrease to $1.3 trillion in 2022, impacted by factors such as the conflict in Ukraine, high food and energy prices, and soaring public debt.
Developed countries witnessed a significant decline of 37% in net FDI inflows, reaching $378 billion, while flows to developing countries showed a positive trend, increasing by an average of 4%.
Established in 1964, UNCTAD plays a pivotal role as the main body of the United Nations General Assembly, coordinating development issues and related topics in trade, finance, technology, investment, and sustainable development. It is tasked with promoting global economic development through the formulation of recommendations, principles, organisational and legal conditions, and mechanisms for the functioning of modern international economic relations.