As global companies seek new growth opportunities, Kazakhstan is emerging as a market with immense potential. At Filuet, we specialise in supporting companies in their global expansion efforts, and Kazakhstan represents a particularly promising destination. In this article we explore the various benefits of expanding business in Kazakhstan and how Filuet can facilitate this journey.

Economic growth and stability

Kazakhstan has demonstrated impressive economic resilience, with a GDP growth rate of 5.1 percent in 2023, thanks to a solid commitment to economic reforms and a stable business climate (World Bank). The country’s abundance of natural resources, including oil, gas and minerals, has laid a solid foundation for its economic prosperity. These resources have been instrumental in building Central Asia’s leading economy, providing a stable environment for investment and growth (TradeGOV)​.

Kazakhstan’s strategic economic policies have focused on diversification and modernization, which have further strengthened the country’s economic landscape. The government strategy “Kazakhstan 2050” aims to position the country among the top 30 global economies by 2050. This long-term vision includes substantial investment in infrastructure, technology and human capital, creating a favourable environment for foreign businesses (World Bank Open Data, Trade.gov)​.

Strategic location and market access

Kazakhstan’s strategic geographic location, linking the fast-growing markets, makes it a vital transportation and logistics hub for Central Asia. The development of modern transportation infrastructure, such as the Middle Corridor, further strengthens its role as a transit country for commodity flows, offering businesses a gateway to a market of about 150 million consumers in the Caspian Sea countries, 50 million in Central Asia and 300 million in Western China​.

The Middle Corridor, also known as the Transcaspian International Transport Route, is a major infrastructure project that reduces the transit time and cost of goods travelling between Asia and Europe. This corridor runs through Kazakhstan, the Caspian Sea, Azerbaijan, Georgia, and Turkey, offering an efficient alternative to traditional routes. The government’s focus on improving logistics and transportation networks has positioned Kazakhstan as a crucial player in regional trade.(Trade.gov)

Young and Dynamic Population

Kazakhstan boasts a young and dynamic population, with an average age of 31.7 years. More than 58.2 percent of the population resides in urban areas, highlighting significant market opportunities in cities​. Increasing urbanisation and the growth of the middle class have led to increased consumer spending in various sectors, making Kazakhstan an attractive market for various products and services (World Bank).

The young population is also driving technology adoption and innovation. Kazakhstan has seen a significant increase in Internet penetration and mobile connectivity, fostering a vibrant digital economy. Businesses can leverage this tech-savvy population to introduce innovative products and services, capitalising on the growing demand for digital solutions ​ (World Bank Open Data).

Business-friendly reforms and regulatory environment

Kazakhstan has made significant steps in improving its business environment, ranking high in the World Bank’s Ease of Doing Business report. The government has implemented reforms to streamline business operations, including processes for starting a business, obtaining credit, and resolving insolvency. These efforts have created a more transparent and market-oriented business climate, attracting foreign investment (TradeGOV).

The young population is also driving technology adoption and innovation. Kazakhstan has seen a significant increase in Internet penetration and mobile connectivity, fostering a vibrant digital economy. Businesses can leverage this tech-savvy population to introduce innovative products and services, capitalising on the growing demand for digital solutions ​ (World Bank Open Data).

Success stories of global brands

Several global brands have successfully entered and thrived in the Kazakh market, demonstrating the country’s potential. These success stories highlight the strategic approaches and key factors that have contributed to their success.

Coca-Cola‘s strong supply chain and local production facilities have consolidated its presence in the Kazakh market. Investment in local infrastructure ensures product availability and consistent quality.

Filuet supports brands like Coca-Cola by helping them build strong local operations and effectively manage market complexities. Our expertise in supply chain management ensures that products reach consumers efficiently and reliably.

Samsung‘s strategic partnerships with local retailers and distributors have been key to its success. This approach ensures widespread product availability and brand recognition.

Filuet’s extensive local network and market expertise facilitate these crucial partnerships, making expansion smoother and more efficient. We help companies establish and maintain strong relationships with local partners, ensuring smooth market entry.

SPAR leveraged Dutch experience to strategically enter the Kazakh market, promoting growth and innovation. The ability to adapt to local market conditions has been a significant factor in its success. 

With our presence in key markets, Filuet supports these strategic expansions by providing local insights and logistical support. Our deep understanding of local consumer behavior and market dynamics helps companies like SPAR thrive.

Škoda‘s strategic collaboration focuses on production, sales, and technical training, emphasizing the importance of local engagement and skill development. Their global approach ensures sustainable growth and market penetration.

We assist companies like Škoda by providing tailored solutions and local expertise, ensuring successful market penetration. Our support in areas such as regulatory compliance and workforce training helps companies establish a strong foundation.

McDonald‘s effective franchise model has enabled rapid expansion, ensuring consistency of quality and service while adapting to local tastes. The ability to adapt to local market preferences has been the key to success.

Filuet’s experience in facilitating franchise opportunities helps brands like McDonald’s navigate new markets with confidence. Our comprehensive support includes market research, franchisee identification, and operational setup.

Role of local expertise and partnerships

Local partnerships are key to navigating the Kazakh market. Filuet provides essential support to global expansion efforts by offering:

• Local market insights: Our deep knowledge of local market dynamics helps companies make informed decisions. We provide valuable insights into consumer behavior, the competitive landscape, and regulatory requirements.

• Logistics support: We manage supply chains and ensure efficient distribution networks. Our expertise in logistics and warehousing helps companies optimize operations and reduce costs.

• Regulatory navigation: Our experience in regulatory management ensures compliance and smooth operations. We assist companies in understanding and adhering to local laws and regulations, minimising risk and ensuring smooth market entry.

Challenges and how to overcome them

While Kazakhstan offers many opportunities, businesses may face challenges such as competition and regulatory hurdles. Overcoming these challenges requires:

• In-depth market research: Understanding industry-specific opportunities and local consumer behaviour is critical. Companies must invest in comprehensive market research to identify growth areas and adapt their strategies accordingly.

• Strong local partnerships: Partnering with local entities to leverage their expertise and networks is essential. Partnerships with local distributors, suppliers, and service providers can improve market reach and operational efficiency.

• Adaptability: Being flexible and responsive to changing market and regulatory requirements is key to success. Companies must be willing to adapt their products, services, and strategies to align with local market conditions and consumer preferences.

Conclusions

Kazakhstan offers significant advantages to companies looking to expand globally, from economic stability to strategic location to a young and dynamic population. With the right strategy and local support, companies can seize significant opportunities in this emerging market. Filuet is committed to being your trusted partner for global expansion, providing the knowledge, networks and support you need to succeed.

Kazakhstan’s strategic initiatives, favourable economic environment, and growth potential make it an attractive destination for global businesses. Ongoing efforts to diversify the country’s economy, along with its young and tech-savvy population, present immense opportunities for innovation and growth. By leveraging Filuet’s experience and local presence, companies can navigate the complexities of the Kazakh market and achieve lasting success.

Get in touch with Filuet for personalised advice on entering the Kazakhstan market.