Kazakhstan Launches $8B Local Production Drive in 2026

Kazakhstan's $8 Billion Push to Slash Imports and Boost Local Industry by 2026

Kazakhstan is set to launch a major investment programme in 2026 aimed at boosting local production and cutting reliance on imports. The initiative follows similar moves by other nations, including the United Arab Emirates, which introduced its own localisation schemes in recent years. Officials will now pinpoint key sectors and regional businesses to drive the effort forward.

One of the first big steps comes from Turkish firm Tiryaki Holding, which is pouring $320 million into a new agro-industrial complex in Astana. The facility will process grain and legumes on a large scale, marking a significant early investment in the country's push for self-sufficiency.

The government has already mapped out 26 types of goods that currently depend heavily on imports. These range from textiles and footwear to sanitary ware, home appliances, and cosmetics. To tackle this, a portfolio of 202 projects—worth 4.3 trillion tenge (around $8 billion)—has been assembled, with funding channeled through state subsidiaries and commercial banks.

Among the standout projects are a cotton fabric plant in Turkistan, a sanitary ware factory in Kyzylorda, and new production lines for insulation materials in Karagandy. North Kazakhstan will also see a wood panel manufacturing facility. Each of these will undergo rigorous review by Baiterek Holding to ensure they are financially sound and viable for investment. A smaller but immediate batch of 67 projects, valued at over 600 billion tenge ($1.11 billion), is already in the pipeline. These alone are expected to generate around 10,000 jobs. The broader programme will prioritise businesses producing goods in high demand, particularly where imports currently dominate the market. Unlike some localisation schemes, Kazakhstan's approach does not require companies to set up local assembly or production to qualify. Instead, it focuses on stimulating investment in sectors with strong export potential or import-replacement opportunities. Regional authorities will play a key role in selecting which local firms and projects receive support under the scheme.

The investment order programme will roll out fully in 2026, with the agro-industrial sector already seeing major commitments like Tiryaki Holding's Astana complex. By targeting specific goods and regional strengths, the government aims to shift production away from overseas suppliers. The success of the initiative will depend on the economic viability of the chosen projects and their ability to meet domestic and export demand.