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Alatau сity and WUF13: Kazakhstan opens pathways for investment and development

GenevaTimes by GenevaTimes
April 7, 2026
in Europe
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Alatau сity and WUF13: Kazakhstan opens pathways for investment and development
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Alatau сity and WUF13: Kazakhstan opens pathways for investment and development

BAKU, Azerbaijan, April 7. Alim Bayel,
Kazakhstan’s Ambassador to Azerbaijan, announced that the country’s
delegation will participate at a high level in the 13th session of
the World Urban Forum (WUF13), scheduled to be held in Baku from
May 17 to 22, 2026. The forum will focus on the theme “Housing the
World: Safe and Resilient Cities and Communities,” addressing key
issues related to housing accessibility and infrastructure
development.

This agenda is particularly pertinent for Astana, given the
ongoing domestic reforms in the construction sector and the rapid
urban population growth.

According to data from the Bureau of National Statistics, as of
March 1, 2026, Kazakhstan’s total population stood at 20.532
million, with 13.120 million residing in urban areas. This results
in an urbanization rate of over 63%, which has significantly
increased the pressure on housing, transportation, and utility
infrastructure.

The growth in construction activity reflects the scale of these
urbanization challenges. In the first two months of 2026, the
volume of construction work surged by 14.5%, reaching 495.6 billion
tenge (approximately $1.048 billion). The largest contributions
came from the construction and repair of facilities (up 63.4%) and
residential buildings (up 30.2%).

By market structure, private companies accounted for 82% of the
total construction work, foreign organizations contributed 17%, and
state entities represented only 1%. The largest share of
construction activity was attributed to infrastructure projects,
including roads, railways, and metros, which constituted 30.5% of
the total volume. Non-residential buildings followed with 17.8%,
while residential buildings made up 11.1%.

Simultaneously, the volume of commissioned housing saw an
increase. In the period from January through February 2026, 2.1
million square meters of housing were put into operation,
reflecting a 9.1% year-on-year growth. Of this, 1.3 million square
meters were apartment buildings, and 738 thousand square meters
were individual houses. The vast majority (98.8%) of the housing
was delivered by private developers.

In response to these developments, Kazakhstan is undertaking
comprehensive regulatory reforms in the construction sector. The
new Construction Code, signed into law by President Kassym-Jomart
Tokayev on January 9, 2026, and set to take effect on July 1, 2026,
introduces several key measures. These include the mandatory
examination of urban development projects, restrictions on
modifications to detailed planning documents (limited to no more
than once every two years), and enhanced construction
oversight.




Furthermore, an automated urban development cadastre system is
being implemented, alongside an electronic registry for licensees
and new seismic safety regulations. The establishment of a National
Institute of Technical Standardization is also planned, alongside
strengthened supervision by the State Architectural and
Construction Control authority throughout all phases of project
implementation.

Particular importance is given to the development of new urban
centers. Kazakhstan is establishing the legal framework for the
Alatau City project, which will be designated a “territory of
accelerated development.” The project is located along the
Almaty-Konaev highway, connecting the Western Europe–Western China
transport corridor, and covers an area of approximately 88,000
hectares. The plan envisions the creation of an international hub
with a distinct legal, tax, and investment regime.

Alatau City will implement a special management model, financial
autonomy, tax incentives, and long-term planning, including a
30-year development concept. Until 2050, funds cannot be withdrawn
from the city budget, ensuring sustainable infrastructure
financing.

In this context, Kazakhstan’s participation in WUF13 underscores
the need to integrate national reforms into the global urbanization
agenda. Infrastructure financing, investment attraction, and
enhanced urban planning efficiency are key priorities for the
country amid growing urban populations and an expanding
construction sector.

The WUF13 offers Kazakhstan an opportunity to compare ongoing
projects with international practices and assess the sustainability
of its urban development model in the context of long-term urban
growth.

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