Kazakhstan is preparing to privatize 475 state-backed enterprises in a phased plan extending to 2030, aiming to attract foreign investment and transform its public sector, officials and experts say. This initiative marks a significant step in the Central Asian country’s ongoing transition since its independence from the Soviet Union nearly 35 years ago.
The government’s announcement, made by Prime Minister Olzhas Bektenov in May 2025, follows previous privatisation efforts that have faced delays and mixed outcomes. Past initiatives, including a major push in 2016 and the "People’s IPO" campaign of the early 2010s, resulted in only a fraction of targeted assets being sold, hindered by poor execution, transparency concerns, and regulatory gaps.
Kazakhstan’s economy, dominated by natural resources such as oil, gas, uranium, and various minerals, remains heavily state-controlled. Two key public-sector entities, the sovereign wealth fund Samruk-Kazyna and the development finance institution Baiterek, together account for about 40% of the country’s GDP, according to the International Monetary Fund’s 2024 estimates. Samruk-Kazyna’s portfolio spans sectors including gas, electricity, aviation, and mining, while Baiterek primarily supports small and medium-sized enterprises, housing, and infrastructure projects.
Experts emphasize the need for Kazakhstan to establish robust regulatory frameworks and transparent governance standards before proceeding with large-scale asset sales. Dr. Yifei Zhang, a senior lecturer at the University of Hong Kong Business School, highlighted challenges from previous rounds, such as selling monopolies without regulatory oversight and opaque transaction processes. He argued that fixed timelines, clear ownership disclosure, and attractive pricing for global investors are necessary to improve outcomes.
Hong Kong’s capital markets are seen as a potential gateway for Kazakhstan’s state-owned enterprises (SOEs) seeking international investment. The city’s well-developed regulatory environment, liquidity, and experience in guiding large Chinese state companies through privatization and globalization could provide a proven model. Hong Kong Exchanges and Clearing (HKEX) signed a memorandum of understanding in June with the Astana International Exchange (AIX), part of the Astana International Financial Centre, to foster cross-border listings.
Experts from PwC, including Linda Cai and Eddie Wong, note that Hong Kong’s investor base is well-suited to understand emerging markets and sectors critical to Kazakhstan, such as energy, minerals, and infrastructure. They also point out that success will depend on Kazakhstan’s reforms in corporate governance, competition policy, and market liberalization, as investors prioritize earnings clarity, governance, valuations, and liquidity.
A spokesperson for the Astana International Financial Centre indicated that collaboration with Hong Kong could enhance investment opportunities, promote cross-border activity, and support ongoing market internationalization.
If implemented effectively, analysts see the privatization drive as potentially transformative, opening access to capital for key industries and introducing strategic investors who can contribute technology, governance, and financial expertise. This, in turn, could diversify Kazakhstan’s economy, strengthen market competition, and improve the international competitiveness of its enterprises.