Dubai-based global port operator DP World, which runs more than 60 container terminals around the world, is planning to invest several billion dirhams in the development of the free economic zone "Khorgos-Eastern Gates" and Aktau Port in Kazakhstan, a visiting Kazakh official told Zawya.
Last week, Kazakh railway monopoly Kazakhstan Temir Zholy, member of the visiting Kazakh government delegation led by Aset Isekeshev, deputy prime minister and minister of industry and new technologies, and DP World signed an agreement on cooperation in the management of Aktau seaport and social economic zone Khorgos-Eastern Gates.
The official told Zawya on condition of anonymity that DP World will use its experience in logistics, industrial and commercial operations at the Jebel Ali port and free zone and make Khorgos-Eastern Gates "the largest logistics center of Eurasia".
According to industry estimates, a project of this caliber would require at least AED 3.67 billion (USD 1 billion) worth of investment.
DP World said last month that it plans to invest USD 3 billion as capital expenditure over 2013 and 2014.
Kazakhstan, the ninth largest country in the world, is seeking investments in various fields, including roads, rail, ports, oil, and other sectors. The UAE is already committed to investing more than AED 7.34 billion (USD 2 billion) in the country, which is strategically located between the emerging economy of China and the European markets.
Abu Dhabi-based Aldar Properties is developing the AED 6.24 billion (USD 1.7 billion) Abu Dhabi Plaza Complex project in the capital, Astana, with the tallest building in Central Asia, a shopping center and a winter garden.
The project will include 90,000 square meters of commercial space, 598 residential units and an 88-storey (382-meter) tower, retail space of 111,000 square meters and two hotels. The development will expand the special economic zone in Astana. The Abu Dhabi Plaza will be connected with the rail network to Astana airport.
According to Aldar Properties, the grand opening of the new development is planned during the international exhibition Expo 2017 in Astana.
Abu Dhabi-based Al Hilal bank is the only Islamic bank in the entire post-Soviet area. Currently, Kazakhstan has three branches of the Emirati bank in Astana, former capital Almaty, and Shymkent.
In addition, the UAE and Kazakhstan have jointly established the Kazakh-Emirati private equity fund Al-Falah with a registered capital of AED 3.67 billion (USD 1 billion). The fund focuses on investments in power and energy, oil and gas services, mining and agriculture in Kazakhstan as well as the Commonwealth of Independent States (CIS). The UAE and Kazakhstan each contributed AED 1.83 billion (USD 500 million) to this fund.
The UAE and Kazakhstan enjoy very strong political and economic ties, with both countries agreeing two years ago to develop several projects in various fields. According to the Kazakh embassy in the UAE, the trade balance between the two countries stood at AED 1.47 billion (USD 400 million) in 2012 and is expected to grow this year.
DP World, whose main revenue comes from container handling, processed 56 million TEUs (twenty-foot equivalent units) last year and is expected to increase its annual capacity to around 100 million TEUs by 2020 via expanding into new markets around the world.
© Zawya 2013
