weighted score 4.0 · ten dimensions
Sourcing Attractiveness Index · ten dimensions
Kazakhstan
Labour cost, supply base depth, logistics infrastructure, trade access, and innovation scores for Kazakhstan as a sourcing destination.
Labour cost competitiveness
7
Low manufacturing wages relative to Europe. Labour costs competitive with some ASEAN peers but higher than Uzbekistan and Kyrgyzstan. Small population limits labour pool scale.
Supply base depth
3
Supply base concentrated in extractive industries (oil, gas, uranium, metals). Manufacturing supply chains outside mining are shallow. Limited tier-2/tier-3 supplier ecosystems.
Logistics & infrastructure
4
Khorgos Gateway provides BRI rail connectivity. Landlocked geography limits maritime access. Internal distances are vast. Cold-climate logistics challenges in winter months.
Workforce skills
4
Strong Soviet-era technical education in metallurgy and engineering. Bolashak programme building professional class. Manufacturing skills outside extractives are limited.
Scalability
4
Small domestic market (~20 million). Production scalability constrained by population, geography, and limited manufacturing infrastructure outside extractive sectors.
Ease of doing business
4
AIFC provides English common law framework for financial services. Broader business environment improving but bureaucratic complexity and corruption remain challenges. World Bank Doing Business reforms ongoing.
Trade access & tariffs
3
EAEU membership provides tariff-free access to Russia and Central Asian partners. EPCA with EU and standard GSP. No comprehensive FTA with EU, US, or major Asian economies.
Sustainability baseline
3
Heavy reliance on fossil fuels and extractive industries. Carbon intensity among the highest globally. Renewable energy commitments exist but implementation is early-stage.
Innovation & IP
5
Growing technology sector in Astana and Almaty. AIFC supports fintech development. R&D investment is modest. Patent activity concentrated in mining and energy technology.
Quality standards
3
EAEU technical regulations apply. ISO certification uptake is growing but limited outside major exporters. Quality management systems are less mature than in established manufacturing economies.
Labour, Cost & Economy
Labour, Cost & Economy
- Economic structure
- Kazakhstan's economy is heavily dependent on oil, gas, and mining. Hydrocarbons account for approximately 60% of exports and 40% of government revenue. Manufacturing diversification remains limited outside metals processing and basic construction materials.
- Labour cost
- Manufacturing wages are low by European standards but higher than Central Asian neighbours (Uzbekistan, Kyrgyzstan). Minimum wage is approximately USD 130/month. Labour availability in manufacturing is constrained by the small population (~20 million) and geographic dispersion across a vast territory.
- Skills base
- Strong technical education legacy from the Soviet era, particularly in metallurgy, mining engineering, and energy. Nazarbayev University and Bolashak scholarship programme have expanded the English-proficient professional class. However, manufacturing workforce skills outside extractive industries are limited.
Logistics & Trade Infrastructure
Logistics & Trade Infrastructure
- BRI rail connectivity
- Khorgos Gateway, the dry port on the China-Kazakhstan border, is a key node on the Belt and Road Initiative's overland corridors. China-Europe rail freight transits Kazakhstan, offering 12-18 day delivery times compared to 30+ days by sea.
- Port access
- Kazakhstan is landlocked. Actau port on the Caspian Sea provides limited maritime access via the Trans-Caspian International Transport Route (Middle Corridor) to Azerbaijan, Georgia, and onward to Turkey/EU.
- Internal logistics
- Road and rail infrastructure connects major cities (Almaty, Astana, Shymkent) but vast distances between population centres increase domestic logistics costs. Cold climate (-30C winters) adds seasonal complexity.
Business Environment & Trade Access
Business Environment & Trade Access
- AIFC
- The Astana International Financial Centre (AIFC), modelled on the DIFC, operates under English common law with its own court system. It aims to attract foreign investment and financial services to Central Asia.
- EPCA with EU
- The Enhanced Partnership and Cooperation Agreement (EPCA) with the EU entered into force in 2020, covering trade facilitation, regulatory approximation, and investment protection. Kazakhstan benefits from standard EU GSP preferences.
- EAEU membership
- Kazakhstan is a founding member of the Eurasian Economic Union (EAEU) alongside Russia, Belarus, Armenia, and Kyrgyzstan. This provides tariff-free access to a market of ~180 million but creates regulatory alignment pressure with Russia.