W6580KR: KRG - backed by a real estate business

KRG - backed by a real estate business

Introduction

Karagandy Hotel & Office complex Karagandy

Hotel & Office complex is a commercial real estate with 5 floors and a total area of 10,000 sq.m. The 1st and 2nd floors are rented out as retail and office premises, while 3-5 floors are occupied by hotel rooms of mixed type.

Karagandy is a three-star hotel in the city centre and is considered economy class, which along with easy transport connections gives an edge in terms of customer flow.

Tourism potential in Kazakhstan

The direct contribution of the travel and tourism industry accounted for 5.6 percent of the total GDP of Kazakhstan in 2019. According to the official government strategy published in May 2019, the goal is to make it 8% by 2025.

Investment climate in Kazakhstan

The Central Asian nation of Kazakhstan seeks to profit from its geographical location and become the “New Silk Road” linking China and Europe through Central Asia and Russia. Kazakhstan aims to become the Eurasian Economic Union’s investment center.

In the Doing Business 2020 rating from the World Bank, Kazakhstan ranked 25th among 190 countries (in 2019 - 28th, in 2018 - 36th). The country is in the TOP-10 of the world countries in such indicators as compliance with contracts and protection of the rights of minority investors.

Tourism investments

Over the past decade (2009 - 2019), the average annual investment growth in tourism and entertainment enterprises amounted to 10%, and according to the results of 2019, the increase in capital investment reached 46.2% per year.

By the end of 2019 direct tourism investments amounted to 153.7 billion Tenge (approximately 368 million USD), thereby breaking the record level in the history of Kazakhstan. Government funds accounted for 40.2% of the total investment amount, 46.2% accounted for equity, and 13.6% were borrowed funds and bank loans.