The United Nations Conference on Trade and Development (UNCTAD) has published its annual World Investment Report 2025, highlighting an 11% decline in global foreign direct investment (FDI) flows to $1.5 trillion. The drop was particularly severe in developing and landlocked countries, Kazakh Invest reported.
According to UNCTAD, Kazakhstan has attracted over $151 billion in net FDI since gaining independence, making it the clear leader in Central Asia. It is followed by Turkmenistan ($44 billion), Uzbekistan ($16 billion), Tajikistan and Kyrgyzstan (around $4 billion each).
In 2024, Kazakhstan recorded its first-ever negative net FDI figure since independence, totaling -$2.6 billion, impacting the overall regional statistics. This decline was driven by global instability, geopolitical risks, reduced activity by major multinationals, and accounting methodology that includes capital repatriation from large projects.
Crucially, this negative result was mainly due to companies repatriating previously reinvested earnings for dividend distribution. While Kazakhstan does not influence such shareholder decisions, it highlights that companies successfully generate and reinvest profits in the country — a sign of its ongoing attractiveness to investors. The ability to freely repatriate profits also reflects Kazakhstan’s open and stable economic environment. This is not a warning sign, but a natural transition from investment phase to returns. Kazakhstan remains a reliable and appealing destination for global investors, Kazakh Invest says.
Importantly, this is not unique to Kazakhstan. Similar negative FDI balances occurred in Ireland (-$38.9 billion) and Switzerland (-$60.7 billion) in 2024, as well as in the Netherlands (-$184 billion in 2023) and Luxembourg (-$316 billion in 2022). These fluctuations reflect investment cycles and shareholder strategies, not underlying economic weakness.
At the same time, the report highlights several positive trends related to Kazakhstan:
Kazakhstan led all landlocked developing countries (LLDCs) in transport-sector FDI, securing $8 billion across 19 projects.
The country secured four of the region’s five largest greenfield projects, including a $5.5 billion gas facility by Qatar’s UCC and a $1.8 billion steel plant by China’s Fujian Hengwang.
UNCTAD recognized Kazakhstan’s leadership in streamlining investment regulation, including digital licensing platforms and fast-track procedures for priority projects.
Kazakhstan is also one of just four developing nations to implement a national emissions trading system (ETS) — showing a strong commitment to a sustainable economy and green tech.
The report also notes Kazakhstan’s active efforts to launch new industries with international partners, especially under the Belt and Road Initiative. Investment from China and the Middle East in infrastructure, metallurgy, and raw material processing lays the foundation for future growth.
According to ESCAP, a UN regional commission, Kazakhstan attracted $15.7 billion in new project investments in 2024, accounting for 63% of all foreign investment in new projects in Northern and Central Asia — an 88% increase over 2023.
Despite global headwinds, Kazakhstan continues to build a strong investment climate, develop a sustainable digital economy, and attract strategic partners to drive the next wave of industrial development.
