The Kazakh infrastructure sector is facing severe challenges stemming from falling oil revenues cuts to government expenditure and weak credit conditions. However preparations for the 2017 World Expo the country's rich natural resource endowment a desire for economic diversification and sovereign wealth-backed infrastructure development will provide for distinct investment opportunities some growth relief and continued investments. Following a generally weakening domestic economy including falling loan and private consumption levels we nonetheless expect infrastructure and construction growth to remain far below previously expected levels.
Key Trends And Developments
* Against the weakened economic background the government was forced to adjust its 2015-2017 budget plan including a drop in public expenditure in the range of USD5.5bn in 2015.
* Ongoing external developments associated with decreasing oil prices the economic crisis and a falling Russian rouble due to the Western sanction regimes could force the Kazakh central bank to further devalue the currency in the near future. As such demand for housing commercial and industrial construction is set to remain subdued over the short term.
* Business loan growth in Kazakhstan slowed to 5.5% year-on-year (y-o-y) in December 2014 from 16.9% y-o-y in February while household lending slowed to 10.7% y-o-y from 29.8% y-o-y in the same period due to the ongoing liquidity crunch in Russia's banking sector that holds around 10% of total banking sector assets in Kazakhstan.
* The restart of the giant Kashagan field expected for H215 at the earliest continues to be doubtful. An investigation into the production challenges at Kashagan determined in early 2014 that the two 55-mile long offshore pipeline sections will need to be replaced.
* The 2017 expo in Astana is set to boost the construction industry. The event has also initiated far reaching construction and reconstruction projects of...
Full Report Details at
The Kazakhstan Infrastructure Report features BMI Research's market assessment and forecasts covering public procurement and spending on all major infrastructure and construction projects including transportation and logistics by land sea and air; power plants and utilities and commercial construction and property development. The report analyses the impact of regulatory changes and the macroeconomic outlook and features competitive intelligence on contractors and suppliers.
BMI's Kazakhstan Infrastructure Report provides industry professionals and strategists sector analysts investors trade associations and regulatory bodies with independent forecasts and competitive intelligence on the Kazakhstani infrastructure and construction industry.
* Benchmark BMI's independent infrastructure industry forecasts for Kazakhstan to test other views - a key input for successful budgetary and planning in the Kazakhstani infrastructure market.
* Target business opportunities and risks in the Kazakhstani infrastructure sector through our reviews of latest industry trends regulatory changes and major deals projects and investments in Kazakhstan.
* Assess the activities strategy and market position of your competitors partners and clients via our Company Profiles (inc. SWOTs KPIs and latest activity).
BMI Industry View
Summary of BMI’s key industry forecasts views and trend analysis covering infrastructure and construction regulatory changes major investments and projects and significant national and multinational company developments. These are broken down into construction (social commercial and residential) transport (roads railways ports airports etc) and energy & utilities (powerplants pipelines and so on).
Industry SWOT Analysis
Analysis of the major strengths weaknesses opportunities and threats within the infrastructure and construction sectors and within the broader political economic and business environment.
BMI Industry Forecasts
Historic data series (up to 2012) and forecasts to end-2024 for all key industry indicators supported by explicit assumptions plus analysis of key developments in the market and risks to the main forecasts. Indicators include:
Construction: Industry value (USDbn); contribution to GDP (%); total capital investment (USDbn); real growth (%).
Construction industry real growth forecasts (%) and industry value (USDbn) forecasts for industry sectors are split into Residential and Non-residential and Infrastructure sectors. Where the data is available for particular countries the infrastructure is further broken down into indicators for the transport subsectors of roads railways airports and ports and the energy and utilities sub-sectors of power plants and transmission grids oil & gas pipelines and water infrastructure. This dataset is unique to the market.
The reports also include analysis of latest projects across the infrastructure sectors (transport utilities commercial construction).
BMI’s Infrastructure Risk Reward Index
BMI’s Risk Reward Index provides investors (construction companies suppliers and partners) looking for opportunities in the region with a clear country-comparative assessment of a market’s risks and potential rewards. Each of the country markets are scored using a sophisticated model that includes more than 40 industry economic and demographic data points. These provide indices of highest to lowest appeal to investors with each position explained.
An assessment of the competitive landscape and key challenges to entering the market. Details of the largest companies active in the sector across the sub-segments of the industry including the key financial figures from some of the largest players in the sector.
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