Astana International Financial Centre: Your Gateway to Central Asia

The Astana International Financial Centre (AIFC) is a game-changer for business and finance in Central Asia. Located in the heart of Astana, the capital city of Kazakhstan, AIFC is a hub for international finance and trade.

AIFC was established in 2015 with the goal of becoming a major financial center in the region. It's already making waves with its innovative approach to finance and business. The centre is designed to provide a stable and secure environment for businesses to operate and grow.

One of the key benefits of AIFC is its unique status as a free economic zone. This means that businesses operating within the centre enjoy a range of tax breaks and other incentives to help them thrive. It's a major advantage for companies looking to expand into the region.

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The Astana International Financial Centre (AIFC) has established itself as a leading international financial centre in the region, with a unique blend of innovation and investor-friendly legal frameworks. This has made it an attractive destination for global investors.

The AIFC is home to a number of financial services companies, including banks, insurance companies, and fintech firms. In 2022, Kazakhstan ranked 18th in the Global Islamic Finance Report (GIFR) index, ahead of countries such as the UK, the USA, Singapore, and China.

The AIFC has a regulatory framework in place to support the growth of Islamic finance, including Islamic banking and Islamic insurance. The Astana Financial Services Authority (AFSA) is responsible for regulating financial services and related activities in the AIFC, ensuring that financial markets are fair, efficient, and transparent.

The AIFC has also established the Astana International Exchange (AIX), which was created to develop the public equity and debt capital markets in Kazakhstan and Central Asia. AIX is regulated by the AFSA and has shareholders including the AIFC, Goldman Sachs, the Shanghai stock exchange, and China's Silk Road Fund.

The AIFC has seen rapid growth in the asset management sector, with the volume of assets under management increasing by 82% from USD 585 million to USD 1 billion in 2023. The number of registered funds also increased from 20 to 37 in 2023.

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The Astana International Financial Centre (AIFC) has a robust authority structure in place to regulate and develop the financial services sector. The AIFC Authority was established on December 28, 2015, and is responsible for promoting the AIFC in global markets and attracting potential participants.

The AIFC Authority is led by the AIFC Management Council, a supreme authority that includes high-profile leaders of global financial corporations. The Council is chaired by the President of Kazakhstan and determines the strategic directions for the AIFC's development.

The Astana Financial Services Authority (AFSA) is an independent regulator that oversees the AIFC's financial services and related activities. AFSA's purpose is to facilitate business by maintaining the safety and robustness of the AIFC financial system.

AFSA's regulatory remit includes financial and market services in banking, insurance, capital markets, Islamic finance, fintech, and ancillary services. The AFSA FinTech Lab allows firms to test new products and technologies in a live environment with real clients.

Here are the key authorities involved in the AIFC's financial services sector:

The asset management sector in the AIFC is growing rapidly, with a remarkable 82% increase in assets under management (AUM) from USD 585 million at the beginning of 2023 to USD 1 billion at the end of the same year.

This growth is impressive, and it's no wonder that more companies are taking notice. The number of registered funds in the AIFC increased from 20 to 37 in 2023.

One of the key areas where this growth is being driven is in collective investment management. This includes various types of funds and investment vehicles that allow individuals and institutions to pool their resources and invest in a diversified portfolio.

The AUM of investment funds in the AIFC reached USD 616 million, a significant milestone in the growth of this sector. This is a testament to the confidence that investors have in the AIFC as a hub for financial services.

The AIFC has created a legal framework for asset management, which includes various formats such as collective investment management, investment management, and fund management support. This framework provides a stable and secure environment for companies to operate in.

Here are some key statistics that highlight the growth of the asset management sector in the AIFC:

The AIFC provides a legal framework for Islamic Finance, including Islamic Banking Business and other activities carried out in accordance with the principles of Shari’ah.

In February 2024, the AIFC expanded the list of financial services that its resident companies can provide to clients in Kazakhstan, including Islamic finance services in any currency.

The minimum authorised capital requirements for Islamic banks and financial organisations have been reduced until May 2026 to attract companies to AIFC.

Financial companies licensed by the AIFC regulator are exempt from paying CIT and VAT, including Islamic banking, non-banking, Islamic insurance, and reinsurance companies.

Kazakhstan has entered the prestigious global rankings in Islamic finance, ranking 18th in the Global Islamic Finance Report (GIFR) index in 2022 and 14th in the Global Report on the Islamic Economy (GIEI) index.

Several companies are registered in the AIFC, providing services in Islamic banking and financing, consulting in the field of Shari’ah, and Islamic fintech, such as Al Saqr Islamic Bank, Alif Islamic Bank, and Kazakhstan Islamic Finance Company.

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The AIFC Court provides a common law court system for resolving civil and commercial disputes within the AIFC. It exclusively oversees all legal matters stemming from the AIFC and its activities, as well as other disputes where all parties consent in writing to the jurisdiction of the AIFC Court.

The International Arbitration Centre offers an alternative to court litigation, providing arbitration, mediation, and other dispute resolution methods. The AIFC International Arbitration Centre (IAC) operates under a separate set of rules but benefits from integrated enforcement mechanisms.

IAC awards can be registered as AIFC Court judgments, granting them automatic enforceability. This process bypasses standard procedures required under the New York Convention for the recognition of foreign arbitral awards within Kazakhstan.

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The Management Council plays a crucial role in the development of the AIFC. It's a supreme authority that includes high-profile leaders of global financial corporations.

The Council is chaired by the President of Kazakhstan, which brings a level of gravitas and expertise to the table. This leadership helps to drive the strategic directions for the AIFC's development.

During its first meeting on 26 May 2016, the Management Council determined the AIFC Development strategy.

The AIFC Court and International Arbitration Centre offer dispute resolution options for parties involved in civil and commercial disputes within the AIFC. It exclusively oversees all legal matters stemming from the AIFC and its activities.

The AIFC Court provides a common law court system, which is a departure from the civil law system in Kazakhstan. This has sparked criticism from some quarters.

The International Arbitration Centre offers an alternative to court litigation, providing arbitration, mediation, and other dispute resolution methods. It reviews disputes agreed upon by the parties to be settled through arbitration.

The AIFC International Arbitration Centre operates under a separate set of rules but benefits from integrated enforcement mechanisms. This allows IAC awards to be registered as AIFC Court judgments, granting them automatic enforceability.

The IAC has handled significant disputes, including high-value cases in the energy sector, such as production sharing agreements with claims exceeding $200 million. These cases are typically concluded within an average timeframe of eight months.

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The Business Environment of Astana International Financial Centre is quite unique. It offers a stable and favorable business environment with a clear and transparent regulatory framework.

Astana International Financial Centre has signed a number of agreements with major international financial centers, including the Dubai International Financial Centre and the Shanghai Free Trade Zone.

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Privatization is a significant trend in Kazakhstan's business environment.

Leading national companies will be listed on the Astana International Exchange (AIX) over the next few years, following in the footsteps of NAC KazAtomprom JSC, which successfully completed its IPO.

This move is expected to bring in more investment and boost economic growth in the country.

Living in Dubai comes with a hefty price tag, especially when it comes to housing. Overall cost of living in Dubai is 120.1% higher excluding rent, and 194.5% higher including rent compared to Astana.

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Rent prices alone are a staggering 423.9% higher in Dubai. This is a significant factor to consider when deciding where to set up shop.

Restaurant prices in Dubai are 125.3% higher, and groceries cost 64.0% more compared to Astana. This can add up quickly for expats and companies alike.

For corporations, these differences translate into substantial operational savings. A ten-person expatriate team that might cost $1 million annually in Dubai—covering salaries and housing—would cost approximately $350,000 to $400,000 in Astana.

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The Astana International Financial Centre (AIFC) offers a range of benefits to financial service providers and individuals. One of the key advantages is the 0% corporate income tax rate for financial service providers licensed by AFSA, compared to Kazakhstan's standard 20% rate.

This tax exemption is not limited to corporate entities, as foreign employees of AIFC participants also enjoy a 0% rate on their employment income, a significant advantage over Kazakhstan's flat 10% rate.

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The Continuing Professional Development Bureau is a game-changer for specialists in the region. It grants opportunities for professional development and qualification improvement.

Within two years, the Bureau has retrained over a thousand specialists, creating a critical mass of highly qualified and educated professionals.

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The tax framework in the AIFC is a major draw for businesses and individuals alike. A 0% rate applies to corporate income tax for financial service providers licensed by AFSA, a significant reduction from Kazakhstan's standard 20% rate.

This means that companies in the AIFC can save a substantial amount on their taxes. Banking, insurance, Islamic finance, asset management, and related ancillary services are all eligible for this reduced rate.

One of the most attractive aspects of the AIFC tax framework is the exemption from value-added tax (VAT) for financial services. This is a huge advantage for businesses that operate in this sector.

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Foreign employees of AIFC participants also enjoy a 0% rate on their employment income, a significant benefit compared to Kazakhstan's flat 10% rate. This makes the AIFC an attractive destination for international talent.

Property and land tax is also exempt within the AIFC territory, providing a further cost savings for businesses and individuals. This is a significant advantage for those who own property or land within the AIFC.

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The Astana International Financial Centre (AIFC) has a truly global reach, with 771 lawyers from 39 jurisdictions holding rights of audience before the AIFC Court. This is a testament to the centre's commitment to providing a welcoming environment for international investors and businesses.

Non-qualified applicants from around the world can also join the AIFC Court, provided they have an undergraduate law degree and either two court judgments demonstrating advocacy experience or a reference from a judge or client confirming courtroom experience. This makes it relatively easy for international practitioners to appear before the court.

International practitioners may appear independently, with no requirement to engage local counsel, making it a convenient option for businesses looking to resolve disputes quickly and efficiently.

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The AIFC Court's admission framework is surprisingly accessible, with no examination or application fees required.

Qualified lawyers from recognized jurisdictions can gain rights of audience by submitting a current practicing certificate and a letter of good standing from their regulatory body.

Non-qualified applicants, on the other hand, need to provide an undergraduate law degree and either two court judgments demonstrating advocacy experience or a reference from a judge or client confirming courtroom experience.

771 lawyers from 39 jurisdictions currently hold rights of audience before the AIFC Court, a testament to its global appeal.

International practitioners can appear independently in the AIFC Court, with no need to engage local counsel.

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The Astana International Financial Centre (AIFC) has firmly positioned itself as a functioning international financial centre, attracting $14 billion in total investment and registering over 3,500 companies.

Its geographic positioning provides first-mover advantages in accessing Central Asian markets, making it an attractive gateway to the region.

A 50-year tax exemption offers long-term planning certainty, a rare find in the financial world.

The English law framework, combined with automatic enforcement, ensures strong transactional security, giving investors confidence in their investments.

Despite challenges such as geographic isolation and climate conditions, the AIFC's trajectory points toward sustainable growth, making it an exciting opportunity for forward-looking investors and businesses.

The Astana International Financial Centre (AIFC) has established itself as the leading international financial centre in Central Asia since its inception in 2018.

The AIFC focuses on five priority sectors, including capital markets, Islamic finance, fintech and digital assets, green finance, and professional services.

AIX recorded a trading volume of $1.3 billion in 2024, exceeding the cumulative volume from 2018 to 2023.

The AIFC has a unique blend of innovation and investor-friendly legal frameworks that paves the way for global investors.

The AIFC operates under a special legal regime based on Common Law, offering familiarity for international investors.

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Over 2,400 companies from around 80 countries are now on board with the AIFC, with many more in the pipeline.

The AIFC's common law framework is conducted in the English language, making it easier for international investors to navigate.

The AIFC actively promotes Environmental, Social, and Governance (ESG) principles, including the introduction of an ESG Fund.

The AIFC Rules on Digital Asset Activities regulate activities of cryptoexchanges, crypto asset service providers, and issuers of stablecoins.

The AIFC has become a hub for fintech and digital assets, with licensed operators including Binance, Bybit, and WhiteBIT.

The AIFC Green Finance Centre is accredited by both the International Capital Market Association and the Climate Bonds Initiative.

The tax framework operates under Article 6 of the Constitutional Law, granting exemptions until January 1, 2066.

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