Kazakhstan’s Not So Special, Barren Zones

Читайте этот материал на русском. Yernar Serik, analyst and author of Telegram channel Tradereport, exclusively for Vlast.With reporting by Dmitry Mazorenko.Over the past 25 years, Kazakhstan has established an extensive network of special economic zones.In official government reports, this is framed as a success story: trillions of tenge in attracted investment, hundreds of completed projects, and tens of thousands of jobs.However, in February 2026, President Kassym-Jomart Tokayev ordered the creation of a new SEZ development model, stating that the previous approach had exhausted its potential.This directive followed a critical assessment of the performance of existing SEZs.According to the president, over the past 25 years, SEZs contributed just over 1% to GDP, 0.3% to exports, and a mere 0.9% to foreign direct investment. A closer look at the official data reveals an alarming picture.Statistics on SEZs are inconsistent, with the lion’s share of production and exports driven by just four zones.Furthermore, over 65% of investment within these zones comes from quasi-state enterprises, while management objectives lack any meaningful connection to boosting local regional economies.Vlast examines the structural flaws within Kazakhstan’s SEZs, their real contribution to regional economies and the country’s export potential, as well as the necessary steps to resolve this difficult situation.Illustration by Daniyar Mussirov and Dmitry Mazorenko.Why Are SEZs Ineffective?On paper, Kazakhstan has 18 active SEZs, but in reality, the entire system relies on the performance of a single zone.Two-thirds of all goods manufactured within SEZs—7.9 trillion (almost $17 billion) out of 10.7 trillion tenge—originated from just one zone: Astana – New City.According to the Supreme Audit Chamber, besides Astana – New City, only three other zones can be considered truly successful: PIT, Ontustik, and Seaport Aktau.These specific zones account for the bulk of total manufacturing output in absolute terms.This means that the output of the remaining 14 zones combined amounts to little more than a footnote The primary issue plaguing SEZs stems from investment data.