W MUSAVIR:
ASTANA: The Astana International Finance Centre (AIFC) was officially inaugurated on Thursday by Kazakhstan President Nursultan Nazarbayev, in presence of HH Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces.
Kazakh president said ‘The launch of the center is an important step of sustainable and consistent economic development of Kazakhstan. For the first time ever I have proposed the idea to create the AIFC in 2015 as one of the answers to new global challenges.’
The Kazakh President expressed his delight at Sheikh Mohamed’s attendance of AIFC’s inauguration, which he said was launched after examining the successful experiences of the financial markets in a number of countries, including the UAE.
In a speech delivered before senior international financial officials and guests, President Nazarbayev said that AIFC will serve Central Asian countries by supporting the development of the private banking sector, and opening investment opportunities. It will also facilitate the development of Green Finance, and support environmental-friendly investments.
As the Head of State said, the country fulfills large-scale structural institutional reforms, aimed at raising the competitive power and Kazakhstan’s accession to the world’s 30 most developed countries. “For the past 10 years, Kazakhstan soared up from 64th ranking place to 36th in the World Bank’s Doing Business Ranking. We have been once again convinced in the need of the long-term outlook for efficient and sustainable financing. We have thoroughly studied the world practices of how creating, functioning and developing financial centers the worldwide, such as in Dubai, Singapore, and Hong Kong,” the President stressed.
( Hamad Al Kaabi / Crown Prince Court – Abu Dhabi )
55 companies have already registered at AIFC. Their number is expected to reach 500 by 2020. The center cooperates with the world’s top financial institutions – the World Bank, the IMF, the EBRD, the ADB, the Asian Infrastructure Investment Bank, and the SCO Development Bank. On the margins of the Astana Finance Days, AIFC signed the memorandums of understanding with the Qatar Financial Center Authority, ERG, and CIS Interstate Bank. The Silk Road Fund signed the documents to get the status of AIX (AIFC Exchange) shareholder.
Nursultan launched the Astana International Exchange (AIX) of the AIFC by striking a gong. “I congratulate you on the fact that this long-awaited moment has come, and our International Financial Centre is now operating. I would like to sincerely thank all the Centre participants present here, our dear guests for the attention and the time they favored us with today. Tomorrow we will celebrate the 20th anniversary of our capital. Our country is only 27 years old. For history, it is an instant. However, I think our people have made a big leap toward the future prosperity. We very much hope that the AIFC will also serve this purpose,” Prez said. Nursultan assured that the Government of Kazakhstan will bend every effort “so that work at the Centre could bring pleasure to everyone, the business could yield profit and Kazakhstan could benefit from that.”
Meanwhile, Managing Director of the International Monetary Fund Christine Lagarde sent a message of congratulations to President of Kazakhstan on the occasion of official presentation AIFC. In her message, Lagarde congratulated President and his colleagues, the AIFC Governor on the opening of the Centre. She also extended congratulations on the 20th Anniversary of Astana. Lagarde stressed AIFC is an excellent opportunity and platform for Kazakhstan and the region to develop a deeper financial market and attract investment.
Further, she pointed out that a transparent, reliable and market-friendly regulatory framework, modern infrastructure and strong human capital will provide AIFC with the potential for development to the extent of a regional hub, setting an example of applying innovations, high-quality services, effective management, and reasonable methods of dispute settlement. Lagarde’s message emphasizes that it will take time, and AIFC will face new challenges. However, with a clear vision and strong team, the Centre will be capable of meeting them. The head of the IMF also wished all the best for future endeavors and expressed hope for further cooperation.
“Currently, there are 14 local international brokers with assets totaling $34 billion on the AIFC exchange and the figures will be rising,” Nursultan said. The Head of State also added that within the AIFC, it is planned to IPO mining, oil and gas, transport, information and communication, and other national companies of Kazakhstan. “Islamic “green” finance will also become a crucial area for the development of AIFC. On its platform, this year we intend to issue Islamic securities – sukuk. We are working on issuing “green” bonds for infrastructure, investment, and environmental projects. One of the vital areas of AIFC’s activity is the creation of an effective environment for the development of innovative, financial technologies,” added Nursultan. The Head of State said that the groundwork for testing new fintech products will be laid within AIFC.
AIFC will help create a competitive financial market in Kazakhstan, Natasha Khanjenkova, Managing Director, Central Asia at the European Bank for Reconstruction and Development (EBRD) said.
“I am sure that the development of the AIFC will help create a competitive, efficient and transparent financial market in Kazakhstan, Central Asia and the wider region. We at the EBRD are particularly pleased with the level of understanding and partnership between the two institutions and the commitment of the AIFC management,” noted Khanjenkova.
The AIFC development plays an important role in the overall reform agenda of the country: it will help channel domestic and foreign investment to Kazakhstan, stimulate growth, set new standards of corporate governance, and promote skills transfer and green innovation.
The Centre is expected to attract international investors to finance large-scale infrastructure projects and will play a vital role in the privatization of large blue-chip companies – one the country’s key reform challenges.