Industrial Growth Spurt in Kazakhstan: $15.5 Billion Investment, 17 Significant Projects Announced
Kazakhstan is embarking on a significant economic transformation, with a strategic focus on industrial diversification, infrastructure development, and manufacturing expansion. The country's economic growth and diversification until 2029 are driven by key investment projects and strategies that aim to foster a resilient, diversified, and competitive economy.
The government is implementing a substantial investment plan involving around 190 projects across critical sectors such as mechanical engineering, ferrous metallurgy, automotive manufacturing, and household appliances production. This ambitious plan is expected to collectively prepare Kazakhstan for a more diversified industrial future.
One of the most notable projects is the KIA Qazaqstan plant in the Kostanai Region, which is set to produce 70,000 cars annually, significantly boosting the automotive sector. Another significant development is a new factory in the Almaty Region, which will manufacture 750,000 household appliance units annually, supporting industrial diversification into consumer goods.
In the steel production sector, a metallurgical plant with a production capacity of three million tons of steel is planned for the Jibek Joly Special Economic Zone in the Zhambyl Region, with an estimated investment of $1.2 billion (KZT580.1 billion). Construction started in April 2025, and an initial production capacity of one million tons is expected by 2027.
Transport infrastructure development is a cornerstone strategy critical to economic development. Kazakhstan plans to build and upgrade 13,000 km of roads by 2030, including major highway projects like Zhezkazgan-Karaganda, Aktobe-Ulgaisyn, and Atyrau-Dossor. Additionally, repair and construction of 5,000 km of railways are planned for 2025, enhancing logistical connectivity.
The government aims to accelerate economic growth through structural reforms and diversification away from primary resource dependence. This shift is evident in the decline of the mining industry's share in Kazakhstan's economy, which has decreased from 19.5% to 12%.
Kazakhstan is pursuing 17 large-scale projects that align with sustainable industrial development, as highlighted by the Ministry of Industry and Infrastructure Development. The construction sector, a key driver for other industries, is forecasted to grow by 6.8% in 2025, supported by investment in both transport infrastructure and manufacturing facilities.
Agriculture in Kazakhstan will receive strong backing, with 700 billion tenge (US$1.3 billion) in preferential financing and 286 projects worth 694 billion tenge (US$1.3 billion) planned for this year. Foreign direct investment remains a key part of Kazakhstan's economic development, with an annual target of $24-25 billion.
The goal is to establish a resilient, diversified, and competitive economy that can effectively respond to global challenges. The new National Development Plan of Kazakhstan aims to ensure sustainable GDP growth of 6-7% and expand the economy to $450 billion by 2029.
Digitalization of the economy is a priority, with IT service exports projected to exceed $1.5 billion by 2030. The Industrialization Map of Kazakhstan includes over 230 projects through 2029, including large-scale petrochemical ventures. In 2024, the government allocated eight trillion tenge (US$15.5 billion) through Baiterek Holding to support industrial growth.
By 2030, the expected exports of Kazakhstan's petrochemical sector are projected to reach $37.9 billion. The manufacturing sector in Kazakhstan has grown at an average rate of 4.6% from 2010 to 2024, and this year, Kazakhstan is implementing 190 manufacturing projects worth 1.5 trillion tenge (US$2.9 billion).
In conclusion, Kazakhstan's economic strategy until 2029 centers on expanding manufacturing capabilities in the automotive and appliance sectors, developing a major steel production hub, massive infrastructure projects improving road and rail networks, emphasising structural reforms and sustainability to diversify the economy, and focusing on transport and logistics infrastructure development. These projects aim to foster robust economic growth, reduce resource dependency, and prepare Kazakhstan for a more diversified industrial future by 2029.
In the context of Kazakhstan's economic transformation, the government's substantial investment plan encompasses business sectors such as mechanical engineering, automotive manufacturing, and household appliances production, with key projects boosting the automotive sector and increasing household appliance production capacity. Additionally, finance plays a crucial role in Kazakhstan's economic growth, as there are plans to allocate large sums for projects across various industries, including steel production and infrastructure development.
