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The fund of direct investments will be a guarantor for foreign investors in implementing large projects - Zhenis Kassymbek on execution of the Address

That was announced by the Minister for Investment and Development Zhenis Kassymbek during a press conference in the press centre of the Government of the Republic of Kazakhstan. He stressed that the Fund will guarantee stability and confidence in implementing large, breakthrough projects.

According to statistical data of the National Bank, since 2005 the volume of direct foreign investments in Kazakhstan accounted for USD265 billion. This, as noted by the Ministry for Investment and Development, makes up 70 % of the total amount accounted for Central Asia.

«We are the leaders here, approximately 50-55 % for this period accounted for the mining industry, 15 % - in the processing industry. If in the beginning of implementing the Innovative Industrial Development, 8,5-9 % of investment annually came to processing, then according to the last year this indicator makes up already 25 %. The growth is significant, and we see, that it is growing. The dynamics of physical volume and the share of investment is growing in the processing seriously», - Zhenis Kassymbek said.

The Minister for Investment and Development Zhenis Kassymbek noted that as part of the assignment of the Head of the state on establishing a Direct Investment Fund in non-raw materials sector, working on a principle co-investment with foreign investors, the working group is created together with state agencies and national holdings, and also it is planned to attract international experts.

«This is an international practice for a foreign investor to come to Kazakhstan, who needs a reliable partner represented by some particular fund or company where there is a state participation which will be a certain guarantor for foreign investments. This Fund will be created for co-investment of large projects», - he said.

According to the Minister, the Fund will guarantee stability and confidence in the implementation of projects.

«Assuming that a project costs some money, but 10-15 % is asking for the complicity of the state through this Fund. For a foreign investor it is a certain guarantee that the state guarantees stability, support for the implementation of these projects. These funds function in Russia, there are similar funds in China, in many European countries, so there is a world experience, and we will base on it», - Zhenis Kassymbek said.

Let's remind that the President of the Republic of Kazakhstan Nursultan Nazarbayev in the annual Address to Kazakhstani people «Growing Welfare of Kazakhstani People: Increase in Incomes and Life Qualities» instructed to consider the establishment of a Direct Investment Fund in non-raw materials sector that will conducts its activities on a principle of co-investment with foreign investors.