3 key dimensions of the AIFC: EAEC, Central Asia and Silk Road Economic Belt
On April 12 the Tsesna Capital team took part in the conference organized by the Astana International Financial Center (AIFC) titled Raising International Capital for the Kazakhstani Stock Exchange Market.
The conference gathered professional experts and analysts in investment and securities market areas.
Kairat Kelimbetov, the AIFC Governor noted that the AIFC launched in the fall of 2017 will target services for the clients mostly in three dimensions: within the Eurasian Economic Community and integration project linking China with the Eurasian and European Union countries- the Silk Road Economic Belt.
“ Today, together with Russia, Belarus and Armenia and Kirgizstan we participate in the reinforced Customs Union, implying absence of frictions for businesses, business transactions at the border. It is a vast business area with the recognized business centers operating, such as Moscow, Saint Petersburg, Kazan and Minsk, from the IT technology development viewpoint. Astana also takes the stage with the new range of financial services which we may render to the entire area, Kairat Kelimbetov assured.
According to the AIFC Governor, the Kazakhstani stock exchange market has not yet gotten rolling. It is indicated by the stock exchange market capitalization at 5% of the GDP. To compare with the best examples we are looking to - East European countries-, their share exceeds 15-20% of the GDP.
«Therefore, we understand that we have to develop that area. And the question arises: the chicken or the egg, first comes privatization and then liquidity, or we have to first work with liquidity, and then with privatization. I think that we have to do them simultaneously. I assume that the initiative on privatization of the major assets of the national companies, being a part of the Samruk Kazyna sovereign fund would provide a good chance for the stock exchange market development now. Next year the IPO program for the major assets of the Samruk Kazyna will start. In 2019—2020 we will see privatization of the first companies from the lost- Air Astana and KazAtomProm, and then the rest, such as KazMunayGas. The privatization in Kazakhstan, however, is not conducted to solve some problematic areas, but to attract investments and improve corporate management”, Kairat Kelimbetov said.
The AIFC is planned to officially announce which major international stock exchanges will become partners of the Astana International Financial Center in May-June 2017.
AIFC will concentrate on the capital marker management, asset management, private wealth management, Islamic funding and introduction of new financial technology.