ALMATY – Kazakhstan is accelerating efforts to diversify its economy and strengthen industrial competitiveness, with particular emphasis on high-value manufacturing and deep-processing projects, following an Oct. 23 progress review of the implementation of President Kassym-Jomart Tokayev’s directives.
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According to the Ministry of Industry and Construction, investments in the manufacturing sector grew by 34.3% between January and September, driven by the modernization of existing plants, the development of new industrial facilities, and improved infrastructure.
Investment growth and special economic zones
Kazakhstan continues to expand its special economic and industrial zones, which provide favorable conditions for manufacturing projects to attract investment, the Prime Minister’s press service reported.
In 2025, new Special Economic Zones (SEZs) were launched in the Aktobe and Kyzylorda regions, bringing the national total to 16 SEZs, 61 industrial parks, and 34 small industrial zones.
Currently, 532 projects are operational within SEZs, including 85 with foreign participation, while 449 more are under development. The total volume of foreign direct investment (FDI) in SEZs has reached 925.3 billion tenge (approximately US$1.7 billion).
Between January and September 2025, five new investment agreements worth 3.1 trillion tenge (US$6.2 billion) were signed in the manufacturing sector, covering areas such as ferroalloy production, passenger car manufacturing, and cement production.
Offtake contracts and industrial projects
To boost production and ensure steady demand, Kazakhstan has expanded the use of long-term offtake contracts, guaranteeing investors stable markets for their output.
By the end of 2024, 898 contracts totaling one trillion tenge (US$1.85 billion) were concluded, while in January-July 2025, the number rose to 1,035 contracts worth 1.18 trillion tenge (US$2.19 billion), a 70% increase.
The government is also overseeing the implementation of 190 industrial projects worth 1.5 trillion tenge (US$2.78 billion), expected to create 22,600 new jobs in metallurgy, mechanical engineering, petrochemicals, and food processing. Of these, 115 projects have been commissioned, generating 13,384 jobs, while 75 more are scheduled for launch by 2026.
Focus on deep processing and technological collaboration
One of the top priorities is the development of industries with a high degree of processing and domestic value addition.
Flagship initiatives include the KIA Qazaqstan automobile plant in Kostanai, Astana Motors Manufacturing Kazakhstan in Almaty, and several new metallurgy, chemical, and food production facilities.
To advance technological innovation, major national companies are strengthening cooperation with research institutions.
Recently, KMG PetroChem and the National Academy of Sciences of Kazakhstan signed a memorandum of understanding to test locally produced urea fertilizer for agricultural use. Field trials across 600 hectares are already underway, aiming to improve crop yields and promote local agrochemical production.
Industrial expansion and economic impact
Over the past three years, Kazakhstan’s industrial sector has diversified its output, launching new production lines for polypropylene, ferrosilicon, hot briquetted iron, household appliances, tires, fertilizers, and energy-efficient building materials.
According to the ministry, these developments are part of a broader effort to move away from a resource-based economy and build a technologically advanced, export-oriented industrial base.
The government plans to continue fostering industrial innovation, developing domestic supply chains, and ensuring sustainable job creation through integration.