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Kazakhstan, a major power among the Central Asia nations: says Kazakh Ambassador to the UAE
posted on 29/08/2010
 H.E. Ambassador of Kazakhstan to the UAE Askar Musinov said his country is among the world's 20 largest oil producers and is expected to grow into an even bigger oil producer in the coming two decades or so.
Marking the 15th anniversary of the Constitution Day of Kazakhstan, Musinov told Emirates News Agency (WAM) in an interview that Kazakhstan is opening up to the rest of the world, including the Arab countries in general and the UAE in particular to promote cooperation.
The excerpts of interview:
Q1- From its independence in 1991, to the installation of the new constitution in 1995 and up to this year 2010, Kazakhstan has succeeded in building a world-class modern state in such a short time. In what way Kazakhstan was able to make that miracle?
A1- In the years following its independence, Kazakhstan turned itself into a major power among Central Asia nations, and even among the former Soviet Union states, thanks to H.E President Nursultan Nazarbayev's strategy which focuses on "the economy first and then politics." This strategy enabled Kazakhstan to become a strong country with a successful process of development, to make an economic miracle that is compared to the achievements of Asia's most developed nations as well as to a leader in enforcing reforms that have become an example to follow for Central Asia and the rest of the world.
Relying on a competent strategy and huge economic potentials and natural resources, Kazakhstan succeeded in attracting foreign direct investments (FDI) into its oil, gas and energy sector. Now the country is among the world's 20 largest oil producers and is expected to grow into an even bigger oil producer in the coming two decades or so.
Kazakhstan has developed its economy and financial and banking system and took procedures to protect FDI which reached US$60 billion, ranking Kazakhstan as one of Central Asian countries most attractive to investors.
Kazakhstan's own FDI amounted to US$20 billion. We also have modern and developed agriculture, in the North in particular, and currently harvest 18-20 million tons of wheat per year and exports around 7 million tons to other countries.
In 1997, Kazakhstan officially moved its capital from Almaty to Astana. The historical event marks a new era of modernisation and progress in the modern history of the country.
Kazakhstan's strategy contributed to the widening of the process of opening up to the rest of the world and the promotion of cooperation with the world in general, and with Arab countries, including the UAE, in particular. Earning the trust of the international community through this approach, Kazakhstan, in 2010, has held the presidency of the Organisation for Security and Co-operation in Europe, the world's largest regional security organisation with 56 member states in 3 continents, and now prepares for holding the chairmanship of the Organisation of the Islamic Conference (OIC) in 2011.
Q2- What does the Constitution Day which is celebrated on August 30th each year mean for Kazakhstan and its people?
A2- Celebrated on August 30th each year, the Constitution Day is a unique date in the Kazakhstan's modern history. Kazakhstan's current constitution was approved on this day back in 1995 by a referendum paving the way to the building of democratic state in which more than 120 ethnicities coexist. The new constitution allowed for rapid economic reforms but at the same time safeguarded the country's social and political stability, an approach which was part of H.E President Nursultan Nazarbayev's strategy which focuses on "the economy first, then politics" to make Kazakhstan a example to follow in Central Asia and the rest of the world.
The Constitution Day also marks the birth of an economic tiger in Central Asia. Kazakhstan, already the economic powerhouse of this region's and one of the world's most developed economies, also aims to transform itself into an excellent economic hub between Asia and Europe.
Q3- Upon a proposal from Kazakhstan, August 29th was declared by the United Nations General Assembly as the "International Day against Nuclear Tests." Why is this significant for Kazakhstan?
A3- Kazakhstan voluntarily renounced the Soviet-era nuclear war heads and in 1992 it joined the Lisbon Protocol. On August 29th, 1991, an in an unprecedented move, Kazakhstan closed one of the world's biggest nuclear testing sites. In 2009, President Nazarbayev launched an initiative calling for declaring August 29th as the as the "World Day of Renouncing Weapons of Mass Destruction." On October 30, 2009, the First Committee of the UN General Assembly (which oversees disarmament and security issues) unanimously approved Kazakhstan's proposal. The approval underlines Kazakhstan's vital role in maintaining global security, peace and stability. August 29th marks a historical event, not only for Kazakhstan, but also for mankind because for the first time in history, a nuclear testing site was closed, not for technical reasons, but as a practical contribution to the world's nuclear disarmament efforts. On that very day, the world's first real nuclear step towards disarmament was made launching the countdown for the liquidation of the world's fourth largest nuclear reactor which Kazakhstan had inherited from the former Soviet Union but then voluntarily renounced.
Q4-Kazakhstan, just like any other country, has seen the consequences of the global financial crisis. How could your country survive this crisis?
A4- Kazakhstan, like many other countries with open economies, has been affected by the global financial crisis. But the crisis could not stop country's process of development, thanks to the "Business Road Map-2020" which President Nazarbayev described as a bold action, as well as to the solid strategies and economic foundations and assets bolstered by the success achieved over the past years.
The Kazakh government devalued its currency, nationalised major banks and pumped billions of dollars to revive the economy. Stimulus plans and actions to catalyse the economy succeeded in preventing recession in Kazakhstan and even helped make a growth rate of 1.3%.
In the first months of 2008, Kazakhstan's economy grew by over 8%. The government countered the crisis and helped the country achieve positive growth rates thereby the international holdings and the reserves of the national fund now are in excess of US$ 50 billion, which means the country has grown more than 25-fold over the past 10 years during which spending on development and investment went on non-stop. The nation's unemployment rate has fallen to 6.3 percent (less than it was before the global financial crisis), thanks to the government's effective strategy which managed to create more than 400000 new jobs. The successful implementation of the Road Map Program in 2009, some 862 housing and public facilities projects have been completed.
Q5- What are the most important economic assets of Kazakhstan? What makes this country stand out in the region?
A5- Kazakhstan has become important and attractive for investors and businessmen who are increasingly interested in knowing it better and having stronger presence in it. Kazakhstan has huge natural resources. The country's oil production stands at 1.5 million bpd and is set to grow to 3 million bpd by 2013. Reserves of 99 earth elements (out of the 105 elements on the Mendeleiev periodic table) were discovered in Kazakhstan with 60 elements being currently mined. Last year, Kazakhstan became the world's largest miner of uranium with annual capacity standing at 14000 tons.
The Business Road Map-2020 is the country's way to the top as it relies on preparing the economy for the post-crisis circumstances and sustainable growth through industrialisation, modern infrastructure and effective investment. All these assets and plans make Kazakhstan an attractive destination for global corporations and foreign investors looking for expansion and growth. Kazakhstan is therefore Central Asia's best place for investments and gateway to the world.
Q6-What are the most notable indictors for Kazakhstan?
A6- In Kazakhstan, 2010 is considered as a transition year as Kazakhstan is set to benefit from the Caspian Oil rush and the predicted production increase in 2013. Kazakhstan's currency reserves reached US$ 52.7 billion in February 2010 boosting expectations that the country's economy is only a decade away from its golden era driven by resources, huge investments in infrastructure and the simplification of various regulations.
Experts agree that the global financial crisis could help Kazakhstan wake up and strengthen its economy, make development sustainable and stable. They also agree that the economy will see steady growth in the coming years.
Q7- The Kazakh-UAE relations have recently received an impetus from the exchange of visits by their top leaderships and the signing of bilateral economic and trade agreements. What positive developments Kazakhstan expects?
A7- The UAE was among the first countries to establish diplomatic relations with us in 1992 and which sets an example in relations among nations and peoples. The Kazakh-UAE political, economic, cultural and tourism relations are further boosted by the brotherly relations between the leaderships and the peoples of the two countries and the so many accords signed over the years.
Kazakhstan and the UAE share identical positions on many international issues and both commit themselves to constructive dialogue and understanding among nations and peoples, resolving international issues through dialogue and peaceful means as well as maintaining consultations and contacts. All this enabled the two countries to promote cooperation to integration in various political, economic and trade areas and to launch promising joint investments utilising their financial and human capabilities to realise their aspirations for progress.
Recently, the Kazakh-UAE relations have seen significant activity as Kazakhstan is eager for wider ties with the UAE which has set an example so pronounced that countries in the region and around world are seeking to learn from its development and experience.
The legal framework of cooperation between Kazakhstan and the UAE provides for a large number of agreements in all areas with more than 20 draft agreements, pacts, memorandums of understanding etc on double-taxation, trade and economic cooperation, combating organised crime and reciprocal visa exemption for holders of diplomatic passports etc.
The Kazakh-UAE official relations created the best climate for the private sector in both countries to launch its own initiatives. This was realised by a number of UAE real estate, infrastructure, and tourism projects which are related to the Kazakhstan's investments in oil and mineral resources and agriculture. Both countries have solid ground for stronger cooperation.
In March 2010, the Financial Markets Authority in the Republic of Kazakhstan granted the Al-Hilal Bank an official license to open the Republic's first Islamic bank under the name "Al-Hilal Islamic Bank". The new bank is fully owned by Al- Hilal Bank with a capital of US$36m. The main headquarters will be established in the city of Almaty with a second branch in Astana.
Two UAE property developing majors, Aldar Properties, and the UAE's Al-Maabar International launched Abu Dhabi Plaza in Astana, a US$2 billion integrated community development created for the rapidly growing capital city. The major mix-use development is located in the Special Economic Zone, near the presidential palace in the centre of Astana which enjoys rapid paced growth.
In 2009, Etihad Airways, the national airline of the United Arab Emirates, launched non-stop flights on to Astana in Kazakhstan from its Abu Dhabi home base. Astana became the second destination in Kazakhstan served by Etihad and the Abu Dhabi-based airline's 52nd across its expanding global flight network. This follows the launch by Etihad in December 2008 of flights to Almaty, Kazakhstan's largest city.
Also in 2009, UAE's Mubadala Development Company PJSC (Mubadala), through its business unit Mubadala Oil '&' Gas, Kazakhstan's JSC National Company KazMunayGas (KMG) and ConocoPhillips signed project agreements allowing the joint exploration and development of the Nursultan Block ("N" Block) located in offshore Kazakhstan. KMG as majority owner will hold a 51% interest in the subsoil use contract and the remaining 49% will be shared equally between ConocoPhillips and Mubadala.
Back in 2004, Kazakhstan and the UAE established a joint committee which has took up the responsibility for promoting bilateral relations. In May 2010, the committee's fourth regular meeting, the two countries signed the final protocol on political, economic, trade cultural and humanitarian cooperation between the two countries.
Another significant sphere for cooperation between the two countries is culture.
In May 2010 in Abu Dhabi, the "Kazakh Cultural Days" Festival was inaugurated at Emirates Palace. The audience were treated to unique performances by the Kazakh State Folklore and Ethnographic Folk Orchestra, the Kazakh State Academic Orchestra, Shat Dombra Orchestra. In May, 2010, the UAE Cultural Week festival was inaugurated in Astana.
The UAE, represented by H.H Sheikh Saif Bin Zayed Al Nahyan, Deputy Prime Minister and Minister of Interior, took part in Kazakhstan's celebrations of the 12th Anniversary of Astana, the new Capital of Kazakhstan, which coincided with celebrations of President Nursultan Nazarbayev's 70th birthday.
Q8- How big is the UAE's share in Kazakhstan's foreign trade?
A8- The UAE is Kazakhstan's largest trading partner in this region. Their relations are based on an array of agreements and partnerships which were forged over the past years.
According to recent data, non-oil trade exchange between Kazakhstan and the UAE stood US$197 million in 2009 and is projected to grow to over US$300 million during this current year 2010.
UAE's non-oil exports to Kazakhstan reached US$4 million in 2009, while re-exports reached US$ 164 million of vehicles, tractors, motorbikes, machinery, electric appliances. Kazakh exports to the UAE ( natural and cultured pearl, precious stones, metals, foods, steel etc) stood at US$ 28 million.
Kazakh-UAE trade exchange figures are expected to see an upward trend in light of the intergovernmental strong cooperation.
Q9- What targets did Kazakhstan set for its economic and trade relations with the UAE? A9- The sky is the limit. Spheres of cooperation are wide open as we seek stronger relations based on the brotherly relations between the leaders of our two countries. We are optimistic as both counties enjoy huge potentials for cooperation and better mutual interests. The prospects for better economic and trade cooperation are promising. – Emirates News Agency, WAM
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