Kazakhstan is placing its faith in coding, rather than commodities
In the heart of Central Asia, Kazakhstan is making a name for itself as a burgeoning tech hub, attracting global attention and investment.
The Silkroad Innovation Hub, based in Silicon Valley, is playing a significant role in connecting Central Asian talent with global tech networks. This connection is fostering a new wave of innovation, as Kazakhstan positions itself as a potential tech powerhouse.
One of the key factors driving this transformation is the expansion of startup support by Astana Hub. This initiative aims to create an environment where skilled professionals increasingly see a future at home as well as abroad. The strategic location and cost competitiveness of Kazakhstan have been instrumental in luring unicorns like TikTok, Playrix, and inDrive to establish regional operations in the country.
Digitalisation has been embedded into Kazakhstan's national strategy since 2017. This commitment is evident in the country's ambitious goals, such as the aim to educate one million AI-capable workers through the AI-Sana training programme.
Kazakhstan's partnership with the UAE's Presight and Samruk-Kazyna has led to the development of a state-of-the-art AI supercomputer and data centre cluster. This investment in cutting-edge technology is a testament to the country's ambition to become a major player in the global tech landscape.
The digital transformation is not just limited to the technological aspect. More than 93% of public services in Kazakhstan are now accessible online, with 86% of them available via smartphone. In 2024, the UN E-Government Development Index ranked Kazakhstan 24th out of 193 countries, reflecting the country's progress in digital governance.
Kazakhstan is also investing in human capital, with plans to train one million AI-capable professionals. This focus on education and skills development is attracting global players, who see Kazakhstan as a promising market for innovation and growth.
The government is also working to strengthen data governance frameworks, with a focus on transparency and public trust. This is evident in initiatives like the Kazakhstan's Digital Family Card, an AI-assisted platform that automatically identifies families in need and allocates social support without requiring them to apply.
To further bolster its position as a regional innovation hub, Kazakhstan has introduced the Neo Nomad Visa. This special residency scheme is designed to attract skilled digital professionals, remote workers, and entrepreneurs.
Kazakhstan's journey towards tech dominance is not without historical precedent. Having declared independence from the Soviet Union in 1991, Kazakhstan inherited vast oil reserves and a launch pad to space. Today, these resources are being harnessed to fuel its tech revolution.
The development and support of AI research and startup incubator Alem.AI is a testament to Kazakhstan's international collaborations. Institutional collaborations with Silicon Valley accelerators like AlchemistX and Draper University, the Silkroad Innovation Hub, and the Massachusetts Institute of Technology (MIT) are just a few examples. There is also growing cooperation with China, particularly through the Kazakhstan–China Business Council and involvement in initiatives like the Shanghai Cooperation Organization summit on AI cooperation.
Start-ups like Cybernet.ai and Higgsfield AI are deploying voicebots for customer service and developing complex machine learning models in Kazakhstan. The country's first language model, KazLLM, is being developed for multilingual applications in public services and education.
In recent years, Kazakhstan has extended high-speed internet to over 1,200 rural communities to close the digital divide. Astana Hub, Kazakhstan's premier start-up technopark, hosts over 1,600 companies, including 437 with foreign participation, and has attracted more than 700 million US dollars in investment.
As Kazakhstan continues to invest in its tech sector, it is poised to become a significant player in the global tech landscape. With its strategic location, cost competitiveness, and commitment to digitalisation, Kazakhstan is on its way to becoming the next Silicon Valley.
