(MENAFN - Trend News Agency) Baku, Azerbaijan, April 11
By Fakhri Vakilov –Trend:
The volume of direct Arab investments in the mining industry of Kazakhstan amounted to only $48.6 million in January-September 2018, which is 51.1 percent lower than a year earlier, Trend reports via finprom.kz.
The results of two months of 2019 show that the volume of production in the mining industry reached 2.5 trillion tenge, with an annual growth of 12.9 percent (however, the industrial production index, which shows inflation-adjusted growth, was only 106.3 percent). In 2018, for the same period, products worth 2.2 billion tenge were produced (the index was 105.5 percent).
The mining industry remains the key in the domestic industry, as this year its share was 57.2 percent (in 2018, 53.4 percent).
Financing of this industry by foreign investors is actively developing. So, for the three quarters of 2018, the gross volume of foreign direct investment (FDI) in the mining industry amounted to $9.7 billion, which is 18.3 percent more than in the same period of 2017.
At the end of September 2018, the largest amount of investment was in the Netherlands: $54.6 billion (+1.6 percent year-on-year). The share of FDI in this country is the largest - 45.3 percent. The United States is in the second place: the amount of investment is $29.1 billion. The third leader in investing in the mining industry of Kazakhstan is France with $13.4 billion.
The attractiveness of the mining industry of Kazakhstan was noticed not only by the states of Europe and America, but also by Arab countries. An important event in the industry was that Qatar Mining, a Qatar state-owned mining company, is planning to implement an investment project for the extraction of gold and copper in Kazakhstan. Capital expenditures can range from $10 to $ 50 million.
Overall, FDI from Arab countries has been declining in recent years. In January-September 2018, the volume of Arab investments amounted to only $48.6 million (the share of all FDI in the country is only 0.3 percent), which is 51.1 percent lower than a year earlier. A major investor among Arab countries is still the UAE with an FDI amounted to $34.7 million.
Perhaps investment from Qatar will be able to rectify the situation by increasing the volume of FDI from Arab countries.
However, as of late September 2018, direct investment from Qatar totaled $38.6 million, a decline of 17.1 percent over the year.
($1-380.15 tenge on April 10)
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