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Kazakhstan’s securities market is undergoing significant transformations in 2025, driven by a series of reforms aimed at improving efficiency, transparency, and international integration. These changes are part of a broader strategy to diversify the economy and attract greater domestic and foreign investment.
Here are some key aspects of how Kazakhstan is transforming its securities market in 2025:
1. Regulatory Enhancements and Simplification:
* Expanded Transaction Registration Methods: The Agency for Regulation and Development of the Financial Market of the Republic of Kazakhstan (ARDFM) has approved resolutions to simplify transaction registration. This includes expanding methods to include international trading platforms like Bloomberg and Reuters, making it easier for global investors to participate.
* Streamlined Custody Structure: Initiatives are being implemented to reduce transaction costs and enhance transparency and security for financial instruments through simplified custody structures.
* Qualified Intermediary (QI) Status: This status strengthens the Central Depository’s position as a regional financial center and makes investing in U.S. assets more accessible and cost-effective for Kazakhstani investors.
2. Increased Accessibility and International Integration:
* Direct Access to U.S. Securities: Kazakhstani investors now have direct access to U.S. stocks and bonds without intermediaries, reducing costs and increasing opportunities.
* Central Depository’s International Role: The reforms aim to expand the Central Depository’s international role as a regional settlement hub, facilitating cross-border transactions and increasing confidence in Kazakhstan’s financial market.
* Attracting New Market Participants: By simplifying integration into the global financial system, Kazakhstan seeks to attract new market participants and investments.
3. Growth and Expansion of the Kazakhstan Stock Exchange (KASE):
* Steady Growth in Early 2025: The Kazakhstan Stock Exchange (KASE) has shown steady growth in early 2025, with a significant increase in the number of transactions and trading volumes compared to the previous year.
* Expanded Product Offerings: KASE plans to continue expanding its product offerings, including a wider range of financial instruments.
* Strengthening International Position: KASE is focusing on strengthening its position in international markets, aiming to be a key player in the Central Asian financial landscape.
4. Broader Economic and Financial Reforms:
* Reduced State Role and Private Sector Development: A core strategy is to encourage greater domestic and foreign investment by reducing the state’s role as both an actor and regulator of markets. This aims to foster free private initiative and legal certainty.
* Improved Public Financial Management: Efforts are underway to strengthen public financial management and improve fiscal governance to reduce reliance on the National Fund and bolster the economy’s ability to withstand external shocks.
* Tax Reforms: A comprehensive tax reform agenda is being outlined to address fiscal challenges, including potential transitions to a progressive income tax system, phasing out inefficient tax incentives, and improving VAT compliance.
* Judicial System Reform: A major reform of the judicial system is set for July 1, 2025, with the creation of three independent courts of cassation for civil, administrative, and criminal matters. This aims to ensure citizens can address violations of their rights by state bodies.
* Focus on Diversification: While oil production is projected to increase in 2025, there’s a strong emphasis on diversifying the economy and expanding the non-oil sector, including support for small- and medium-sized enterprises.
Overall, Kazakhstan’s securities market in 2025 is characterized by a concerted effort to modernize its regulatory framework, enhance market accessibility, and integrate more deeply into the global financial system. These reforms are expected to improve the investment climate and support sustainable economic growth.

Video courtesy of ABN-AMRO

Video courtesy of ABN-AMRO