Strengthening Alliances: Kazakhstan and Qatar's Strategic Bond Expands Opportunities
Vibrant Alliance: The Unчаained Connection Between Kazakhstan and Qatar
The relationship between Kazakhstan and Qatar, two nations separated by vast distances yet bound by lofty ambitions, presents a striking example. Over the past years, their partnership has bloomed into an economic powerhouse, impacting energy, finance, technology, and infrastructure. What path lies ahead for these nations as they forge a connection between Central Asia and the Persian Gulf, and what projects will shape the future of their alliance?
The Dawn
In the 2000s, a Middle Eastern country managed to create new industries and transform its economy. Once reliant on fishing and pearl mining, it has risen to become a global powerhouse for energy, finance, and logistics. Qatar, one of the world's leading liquefied natural gas exporters, achieved this feat through strategic planning and government investments, propelling not only the growth of its oil and gas sector but also advancing technology, tourism, and sports.
The Qatari business community boasts experience in managing large assets and fierce competition in the global market. The Qatar Sovereign Fund, with assets exceeding $500 billion, has investments in major international companies such as Barclays, Volkswagen Group, and Harrods, demonstrating financial prowess and a knack for identifying lucrative investment opportunities. Last year, this sovereign fund allocated over $300 million for agricultural investments in Kazakhstan through its subsidiary Hassad Foods.
However, Qatari investors are notorious for their hard-line negotiation tactics. Their companies scrupulously evaluate deal terms, aiming for maximum returns and minimal risks. This cut-throat approach may make them formidable partners, but their agreements are solid and far-reaching.
Diplomacy in Action
The relationship between Kazakhstan and Qatar has flourished due to active diplomatic initiatives. President Kassym-Jomart Tokayev's visit to Doha in 2022 signaled a new phase in cooperation. Talks with Qatar's Emir Sheikh Tamim bin Hamad Al Thani resulted in agreements worth $18 billion, covering energy and logistics projects. The mutual visit of the Qatari leader to Astana in 2023 continued this dialogue, with delegations from both countries closing deals worth hundreds of millions of dollars at the Astana business forum.
The high point of cooperation in 2024 was our President's speech at the Doha Forum, accompanied by a $250 million increase in non-oil exports from Kazakhstan to Qatar. Today, leading supermarkets in Qatar sell Kazakh lamb, priced higher than meat from other countries.
The primary aim is to boost mutual trade to $500 million. The next significant event will be the state visit of Qatar's Emir, Sheikh Tamim bin Hamad Al Thani, scheduled for May 2025. During the 2025 Astana International Forum, expected to include Qatar's Prime Minister, Muhammad bin Abdulrahman Al Thani, both sides plan to discuss new investment initiatives, including digitalization and 'green' energy projects.
To strengthen economic and investment ties, a Chamber of Commerce was established in 2023 by businesspeople from both countries. This Chamber serves as a bridge for entrepreneurs, fostering bilateral cooperation across various economic sectors. Since its inception, the Chamber has hosted significant events, including the Kazakhstan-Qatar Investment Forum in Doha in December 2024, where energy, construction, and IT collaboration opportunities were discussed.
Energy of the Future: Gas, Infrastructure, and Ecology
Qatar ranks third globally in natural gas reserves and aims to double its production in the near future. The Ras Laffan field, one of the world's largest, plays a critical role, significantly contributing to Qatar's liquefied natural gas exports.
While renowned for its gas, Qatar is also a major oil producer, with daily output surpassing 1.6 million barrels, nearly matching Kazakhstan's levels. The country hosts over 15 petrochemical plants, making it a crucial refining and energy export hub.
For Kazakh specialists and businesspeople, Qatar offers new opportunities. Its oil and gas sector actively recruits foreign workers, offering competitive terms and access to advanced extraction and processing technologies. Kazakh oilfield service companies like CHI and Neftestroyservis are already operating there, expanding their service exports.
On the flip side, Qatari businessmen are investing heavily in Kazakhstan. A gas processing plant project with a capacity of 2.5 billion cubic meters per year is being planned for the Kashagan field in the Atyrau region. The joint venture between Qatari Power International and QazaqGaz will not only create thousands of jobs but also reduce Kazakhstan's reliance on gas imports. Another noteworthy project is the second pipeline of the Beineu-Bozoy-Shymkent pipeline, costing 2.5 trillion tenge ($5.3 billion). Scheduled for completion by 2029, this pipeline will deliver gas to southern Kazakhstan regions and maintain export flows to China.
Prospects: Where is this path leading?
One promising avenue is food security. In the context of scarce water resources and limited agricultural lands, Qatar seeks to reduce its dependence on imports and ensure stable food supplies. Kazakhstan has already taken the first step with the export of mutton to Qatar. Apart from meat, potential exports could include beef, grains, and organic products that could find a niche in the Qatari market.
Another strategic direction is the IT sector. Qatar focuses on innovation and the digital economy by investing heavily in advanced technologies. In 2024, a $1 billion fund was created to support startups and high-tech projects, offering abundant opportunities for Kazakhstani companies. Local IT projects and forums like WebSummit can attract Qatari investments for developing artificial intelligence, cybersecurity, fintech, and cloud technologies, allowing Kazakhstani companies to gain a foothold in other regional markets.
Worthy of special attention is Snoonu, one of the leading Qatari platforms in the field of digital technologies. The company specializes in developing payment solutions and e-commerce, providing technological solutions for businesses and financial institutions. Its experience and advanced technologies could serve as a basis for joint initiatives in Kazakhstan, contributing to the development of the country's digital ecosystem and accelerating the implementation of fintech solutions in the banking sector. Over 40 Snoonu employees are now working in the Astana hub.
The partnership between Kazakhstan and Qatar transcends traditional bilateral cooperation. It's a strategic dialogue built on mutual trust, foresight, and a passion for sustainable development. Today, it's not just about investments and trade, but also knowledge exchange, technology transfer, and collective problem-solving for the future.
Qatar, a formidable force in finance and energy, gains access to new markets and opportunities in the heart of Eurasia. Meanwhile, Kazakhstan, diversifying its economy and developing non-resource sectors, finds a dependable partner in Qatar with a global vision.
This partnership has already delivered tangible results, and with ambitious aspirations ahead, Kazakhstan and Qatar have even more possibilities, opportunities, and successes to look forward to.
Almas KUDAIBERGEN, Chairman of the Kazakhstan-Qatar Chamber of Commerce and Industry.
Insights:
- In addition to their current collaborations, Kazakhstan and Qatar are exploring new areas of cooperation, such as decarbonization partnerships, digital connectivity, and cultural exchange programs.
- The Gulf countries, like Qatar, have a significant interest in mountainous countries like Kazakhstan for potential minerals, particularly uranium, further strengthening their alliance.
- The Caspian Sea and Arabian Sea logistics networks could play a crucial role in forming green hydrogen corridors between these nations, contributing to sustainable energy trade.
- The GCC–Central Asia Joint Action Plan (2023–2027) outlines a series of agreements and partnerships focused on multilateral project funding and technical knowledge sharing between Kazakhstan and Qatar, as well as other GCC countries.
- The Qatar Sovereign Fund, having invested over $300 million for agricultural investments in Kazakhstan through its subsidiary Hassad Foods, will analyze risks associated with these investments and aim to reduce Kazakhstan's dependence on food imports from other countries.
- In the realm of sports, the Qatar-Kazakhstan partnership could potentially expand to include sports training and exchange programs, as both nations strive to foster connections and further their shared interests.
- As Qatar and Kazakhstan forge ahead with their alliance, they are keen on exploring partnerships for decarbonization initiatives, with a focus on developing green energy projects and contributing to sustainable energy trade between the nations.
