Kazakhstan's AIFC Hosts Astana Finance Days, Unlocking Investment Potential and Driving Innovations

The Astana International Financial Centre (AIFC) recently hosted the Astana Finance Days (AFD), a series of discussions exploring the investment landscape, financial institutions' roles, data protection, artificial intelligence (AI) in business, the creation of a voluntary carbon market, capital markets, financial technologies, and Islamic financial solutions for corporate and retail sectors.

Empowering Investors and Transforming the Financial Landscape in Central Asia

Investment Opportunities and Strategies: Navigating the Region's Potential

The session on "Unlocking Investment Potential: The Role of Financial Institutions in Kazakhstan and the Region" delved into the investment opportunities and strategies in the region. Timur Suleimenov, the Chairman of the National Bank of Kazakhstan, highlighted the importance of the AIFC as a key investment mechanism, emphasizing the need for continuous focus on investments and their significance. He addressed the challenges of maintaining the tenge's value, noting the National Bank's interventions in response to geopolitical issues and supply chain disruptions.Kanat Sharlapaev, the Minister of Industry and Construction, emphasized the need to address infrastructure challenges despite impressive growth in the construction sector, calling for a reassessment of infrastructure foundations to support sustainable development. George Grunebaum, the Global Head of Distribution at Ashmore, explained the firm's investment rationale in Kazakhstan, citing the country's progress in areas such as economic fundamentals, growth, inflation targeting, structural reforms, stability, and transparency.Renat Bekturov, the Managing Director of the AIFC, detailed the center's efforts to reduce investment risks and transaction costs by adopting common law practices familiar to companies from the United Kingdom, the Middle East, and Asia. He emphasized the goal of creating a direct capital market without intermediaries, increasing asset liquidity and trade, and attracting foreign managers to develop success stories for the global capital market.

Belt and Road Initiative and Regional Partnerships: Fostering Cross-Border Collaboration

The session on the Belt and Road Initiative (BRI) featured insights from industry experts. Lyu Hao, the Executive Vice President of the Shanghai Stock Exchange, highlighted the AIFC's role as a financial hub for Central Asia, facilitating the expansion of Kazakh businesses into neighboring countries like Uzbekistan and the Kyrgyz Republic, as well as strengthening trade relations between Kazakhstan and China.Damir Kozhakmetov, the CEO of KTZ Express (a subsidiary of Kazakhstan Temir Zholy), addressed the impact of the BRI on transit, emphasizing Kazakhstan's importance as a key transit hub linking Europe and China. He discussed the joint ventures and infrastructure developments along the Middle Corridor in collaboration with Chinese partners.Lawrence Tsang, the Co-Head of the Belt and Road Department at TF International Securities, noted the company's growing focus on Central Asia and the Middle East, praising Kazakhstan's competitive firms and their potential for initial public offerings (IPOs) in Hong Kong.

Navigating the Challenges and Legislative Needs in Artificial Intelligence

The panel session dedicated to AI in business highlighted the technology's pervasive role in various applications, raising concerns about data security and ethical issues, such as misinformation and fraud. Speakers emphasized the urgent need for a strong culture of data protection and enhanced public awareness to address the threats posed by organized criminal groups.Dana Utegen, the Teaching Professor at Maqsut Narikbayev University and Head of DRCQ at the AIFC, stressed the importance of robust legislation to safeguard data, drawing parallels with fragmented data protection laws in the United States. She advocated for national regulations on AI, emphasizing the need to ban social scoring based on age, race, or gender.

Fostering Collaboration and Innovation: AIFC's New Initiatives

The conference included several notable highlights, including the unveiling of the AIFC Business Club, a membership-based program aimed at bringing together senior executives, company owners, and entrepreneurs into a network of visionary leaders. The initiative seeks to support business growth, encourage collaboration, and drive innovation within and beyond the AIFC.Additionally, the Astana International Exchange (AIX) and Oman's Muscat Securities Market (MSX) signed a memorandum of cooperation to facilitate cross-exchange trading through the digital hub Tabadul. This partnership aims to improve market liquidity and simplify trading mechanisms for securities listed on both exchanges, fostering cross-border collaboration and enhancing the financial ecosystem.