ALMATY – Kazakhstan has made significant progress in developing a market economy and attracting foreign investment, but regulatory uncertainty, localization policies and concerns over the rule of law continue to pose challenges for international businesses, according to the United States Department of State’s 2026 Investment Climate Statement for Kazakhstan.
The report, released in September, said Kazakhstan has attracted substantial foreign investment since gaining independence in 1991, particularly to develop its mineral and petroleum resources. As of Jan. 1, the country’s stock of foreign direct investment (FDI) stood at $170 billion, including $35.5 billion from the U.S.
The report also noted that publicly available information suggests U.S. investment in Kazakhstan’s hydrocarbons sector could be higher than reflected in official bilateral FDI statistics, partly because some investments are routed through third countries and reinvested earnings are not fully reflected in bilateral data.
According to the State Department, Kazakhstan has made progress in economic diversification and digitalization, while President Kassym-Jomart Tokayev’s reform agenda aims to diversify the economy, promote industrial development and reduce state participation. The government continues to engage with foreign investors through several formal mechanisms, including the Foreign Investors’ Council, a semi-annual Prime Minister’s forum for U.S.
companies and bilateral consultations. Kazakhstan’s membership in the World Trade Organization and Eurasian Economic Union also shapes the country’s investment environment. At the same time, foreign businesses continue to identify areas where further reforms are needed.
“Foreign firms cite the need for better rule of law, more predictable and transparent tax and regulatory systems, deeper investment in human capital, and investment in modern transport and logistics infrastructure,” reads the statement. The State Department also highlighted concerns over increasing regulation, localization and import substitution policies, as well as corruption.
New Tax Code changes investment landscape The report paid particular attention to Kazakhstan’s new Tax Code, enacted in January 2026. Among the changes, the standard value-added tax rate increased from 12% to 16%, while reduced rates were introduced for medicines and medical services.
The corporate income tax rate now varies by sector, reaching a maximum of 25% for the banking sector, while agriculture and healthcare benefit from reduced rates of 5% and 10%, respectively. The new Tax Code also changed taxation in the subsoil use sector, expanded the definition of royalties, revised taxation of non-residents and introduced taxation of dividends.
The State Department said several of these changes, particularly those concerning royalties, international taxation and the cancellation of tax deductions for contracts with individual entrepreneurs, have raised concerns among businesses and remain subject to clarification or negotiations with the government.