Thinking about new investment destinations in Asia? What about the Republic of Kazakhstan?
Kazakhstan, located between the borders of Russia and China in Central Asia, is size of the whole of Western Europe and four times the size of Texas.
It currently has double the oil reserves of the the North Sea with over 35 billion barrels and by 2015 the current projections are for oil reserves of more than 100 billion barrels. For any economy this is a pretty good situation considering the oil price has been hovering at US5 a barrel and will probably go higher. Besides oil, it has the world's largest reserves of barite, lead, tungsten, and uranium; second largest reserves of chromite, silver, and zinc; third largest of manganese, significant deposits of copper, gold, and iron ore. Rich in natural resources, Kazakhstan has become a popular destination for the oil and mining industry since it emerged from independence from the Soviet Union.
Besides resources, there would appear to be significant tourism potential in Kazakhstan as a travel destination. Currently tourism accounts for 5% of the country's GDP and is continuing to grow mainly driven by the strong growth in international business travellers working on the significant oil and gas projects. Positioned on the historical Silk Trade route between Europe and Asia, it offers historical monuments as well as diverse landscapes, mountains, rivers and lakes. Bird watching, fishing, hunting and trekking and beach holidays on the Caspian Sea are on offer. Opportunities for tourism remain positive and Kazakstan's enterprising entrepreneurs should be quick to showcase development opportunities for the global tourism market.
One of the interesting facts about Kazakhstan is that it is where apples originate. In fact, the commercial centre of Kazakhstan, Almaty, means "Rich with Apples" in the local language. Agriculture is a significant contributor to the economy and it accounts for more than 20% of GDP. Agribusiness featuring grain and livestock production in the north and fruit and vegatable production in the south is another promising sector. Privatization and productivity improvements provide opportunities for astute investors to develop profitable operations.
The one thing clear about Kazakhstan is that it is rich in resources and tourism potential. The next few years will present many business opportunities in this dynamic market especially for those willing to go beyond the traditional investment destinations.
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