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Kazakhstan aims to be Central Asia's Dubai

KAZAKHSTAN IS positioning it self as the financial, high technology and energy hub of its region, says Ambassador Kairat Umarov." There are obvious complementaries between the Indian economy and what Kazakhstan plans."A variety of Indian firms, ranging from Punjab Bank to Larsen & Toubro to 3i Infotech, have already set up shop in the largest Central Asian country.

President Nursultan Nazarbayev used his recent annual address to set a goal of making his country one the world's "50 most competitive economies." Umarov said his country was already on the World Bank's list of 20 most investor friendly nations and is modeling itself after Singapore and Dubai.

Despite path breaking economic reforms, including banking norms that match western standards and full currency convertibility, Kazakhstan is still lumped together with its troubled neighbours. "Our GDP is larger than all the other central Asian and Caucasus countries put together." Says Umarov.

Another stereotype: the Kazakh economy is only oil and gas. Energy represents 60 per cent of GDP, admits the ambassador, but Nazarbayev's goal is an "English speaking society and a hi-tech industry."Kazakhsthan is promoting several clusters in software, Biotechnology, Pharmaceuticals and space - it is home to the famous Soviet space center Baikonur, but is also building its own satellites launch site. Kazakhstan is using $8 billion development fund to promote these industries.

Alma Aty's ambitions to be a financial hub, its e-governance plan and its software parks are an opportunity for Indian IT. " We are inviting India firms to come," says Umarov.

A pharmaceutical cluster delegation is expected to visit, looking for Indian firms prepared to set up joint ventures in Kazakhstan. "The embassy can help match Indian firms with Kazakh counterparts."

His country is also seeking value-adding investments in areas like textiles, construction materials and petrochemicals.

Umarov says the belief China dominates the Kazakh economy is misplaced. "The European Union is a bigger trading partner even though it has no geographical border."

One of the most successful and biggest foreign investor in Kazakhstan is the Indian steel baron, Lakshmi Mittal. " The issue is that India needs to rediscover Central Asia and especially Kazakhstan,"says Umarov.