Industrial development of Nur-Sultan city

Nur-Sultan city is the capital of the Republic of Kazakhstan and one of the largest cities. Given its convenient geographical location in the center of the Eurasian continent, as well as high economic growth rates, the capital is an attractive place for investors and the development of new competitive industries.

The volume of the gross regional product of the region in January-December 2021 amounted to 8,417.6 billion tenge and has grown 1.5 times over the past 5 years (Figure 1). The share of the manufacturing industry in the total volume is equal to 7.7% or 650.5 billion tenge.

Figure 1. Gross regional product, billion tenge

Source: Bureau of National Statistics of the Agency for Strategic Planning and Reforms of the Republic of Kazakhstan

As of January 1, 2022, there are 63,018 operating legal entities in Nur-Sultan city, including 62,194 small, 473 medium and 351 large enterprises. Of the total number of operating enterprises, 2,398 belong to the manufacturing industry (2,355 small, 28 medium and 15 large enterprises), which is 3.8% of the total number of enterprises.

The volume of industrial production in the region by the end of 2021 amounted to 1,543.9 billion tenge, including 1,390.5 billion tenge – manufacturing industry, whose share in total industrial production amounted to 90.1% (91.3% in 2020) (Figure 2).

Figure 2. The share of the manufacturing industry, in %

Source: Bureau of National Statistics of the Agency for Strategic Planning and Reforms of the Republic of Kazakhstan

In terms of export volumes, Nur-Sultan is on the 2nd place among other regions of Kazakhstan and occupies 10.2% of the share. In terms of exports of manufacturing products, Nur-Sultan ranks 5th with a share of 9.5%. In recent years, the nomenclature of regional exports has been replenished with the following products: electric locomotives and passenger cars.

Since the beginning of industrialization, 45 projects worth 227.3 billion tenge have been commissioned in Nur-Sultan within the framework of the Industrialization Map and Entrepreneurship Support Cards, 4.7 thousand permanent jobs have been created. The largest number of commissioned projects is located in the Almaty region – 37 projects or 82%. At the same time, among the projects of the manufacturing industry, the construction industry leads both in the number of projects commissioned (13 projects or 32%) and in the volume of investments – 57.4 billion tenge or 51.1%.

In the perspective of the region until 2025, a common pool of 57 investment projects worth 156.4 billion tenge has been formed, with the creation of more than 5 thousand permanent jobs. This year it is planned to launch 10 projects worth 38.4 billion tenge. The main areas of projects being introduced in the region in 2022 are the construction industry and mechanical engineering. Thus, the enterprises plan to establish the production of KIA Bongo cars, respirators, elevators and other products.