Is Kazakhstan Becoming the Next Silicon Valley?

Why International Investors Are Starting to Pay Attention to Kazakhstan

Kazakhstan has recently become an unlikely hub for tech startups. In the first half of 2020, when COVID-19 was already a force to be reckoned with, Kazakhstan has attracted many international investors.

Once the pandemic struck, the government stepped in with crisis management measures that helped minimize losses in the IT sector. The Kazakh government is also expected to support the sector with grant program for startups. By 2024, startups are expected to account for 5% of the GDP.

Even before COVID-19, startups already had a strong presence in Kazakhstan and had been integrated into the national economy. They have been facilitated by Kazakh investment funds and promotional platforms like business accelerators and incubators.

How Did Kazakhstan Become a Hub for Startups?

Kazakhstan is the most developed country in the Central Asia region in terms of GDP per capita and in digital services. Though it has a relatively small domestic market, it is home to a powerful eCommerce market. It acts as a global leader in mobile traffic consumption with an average monthly usage of over 5 gigabytes.

For all of these reasons, Kazakhstan attracts the majority of foreign investments in the Central Asia region. Some of the most popular investment areas include digital education, digital health, digital agriculture, fintech, and infrastructure.

Incubators and Accelerators in Kazakhstan

Is Kazakhstan the Next Silicon Valley?