Trade and investment between Kazakhstan, Central Asia and the Gulf Cooperation Council has incredible potential according to International Monetary Fund. The topic was discussed during the launch of an International Monetary Fund (IMF) paper, ‘Strengthening CCA-GCC Economic Cooperation’. It examines trade and investment links between both regions and outlines policy measures that could help unlock greater economic integration.
Trade Between Kazakhstan, Central Asia And GCC Has Huge Potential
The Central Asia region including Kazakhstan and GCC countries are among the world’s more open economies and feature trade openness. Trade between both regions has been increasing, however there is significant untapped potential which presents opportunities for early movers. The report also found that the GCC and Central Asia have complementary investment dynamics. According to the IMF, existing exports in both regions heavily feature fuel/minerals, though diversification efforts are changing composition of trade. This is important because this diversification creates additional opportunities between Kazakhstan, Central Asian countries and the GCC. Importantly, studies project that passenger traffic on the GCC railway network could exceed 8 million passengers by 2040. Furthermore, freight volumes could reach approximately 95 million tonnes.
IMF Identifies Improved Logistics And Infrastructure As Priority
For Kazakhstan and Central Asian countries, the IMF identified logistics and governance reforms as the highest-impact priorities. Moreover, reductions in tariffs and non-tariff barriers were also linked to stronger trade performance. The IMF recommended expanding trade and investment agreements, improving cross-border payments and strengthening and enhancing trade facilitation. Conversely, the GCC is proactively widening its partner network toward promising non-traditional markets. Kazakhstan and Central Asia is a natural fit as they bridge Asia-Europe corridors, are resource rich and are fast-growing economies. Priority sectors and areas of cooperation include renewable energy, logistics, food security and infrastructure.
Interested In Investing In Kazakhstan Or Central Asia? Contact Soutien Group Now!
Soutien Group is a boutique advisory and consulting firm specialised in market entry, business localisation, expansion, relocation, business development and stakeholder management strategies across the Middle East, Central Asia and Africa. Our clients are corporate, private and international with an interest in exploring new markets.
We offer expertise in Company Formation Kazakhstan, Market Research and Assessment Kazakhstan, Kazakhstan Business Case, Kazakhstan Business Model Development, Feasibility Study and Business Plan Kazakhstan, Organisational and Operational Structuring Kazakhstan, Kazakhstan Sponsorship and Partnership, among others.
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