An oil-rich republic of the ex-Soviet Union, Kazakhstan now envisions its economic future as a gateway for foreign investment across Central Asia. Tech solutions and new apps are emerging there to facilitate the process, writes tech columnist Victoria Zavyalova.
Until recently, Kazakhstan had little to show in terms of stock trading and fintech infrastructure. This situation has forced some local entrepreneurs to look at North America and Western Europe as potential markets – sometimes successfully, as exemplified by StockMetrix, which is relocating to the US in autumn.
On the footsteps of Robinhood (1), Acorns, Stockpile and alike, StockMetrix aims nothing short of “changing the investment ecosystem in North America.” Developed in Kazakhstan, this digital stock market app launched on iOS and Android in the U.S. and Canada in April, with more than 4,000 downloads in just two months.
Doszhan presents his app as a natural extension to Robinhood. “StockMetrix was created to eliminate the advisory part of brokerages and help inexperienced and first-time investors develop and backtest their investment strategies,” said founder Dos Doszhan. “You may analyze your stocks for free in StockMeteix, then execute trades in Robinhood,”
Other examples of fintech entrepreneurs having emigrated or emigrating from Kazakhstan include Eldar Akhmetgaliev, a co-founder of MOCAP Analytics, a US startup specializing in player-tracking, and Kairat Akhmetov, co-founder and CTO of Nommi. This startup has developed a 4G hotspot offer with unlimited Wi-Fi worldwide – you no longer need to buy a local SIM in every country you visit.
New prospects on the Kazakhstani scene
The startup ecosystem in Kazakhstan is in the early stage of development but more than 70 universities in the country are focusing on science, engineering and IT, producing thousands of specialists every year. There is also a number of Special Economic Zones, such as Innovation Technologies Park in Almaty, where startups are exempt from corporate tax.
A few acceleration programs, including TechNation, iStartup, Astana Hub, and Garage accelerator are providing assistance and a network of investors for Kazakh startups aiming to move abroad and expand internationally.
Some of Kazakhstan’s fintech ventures leverage the power of Blockchain technologies. Thus, in March, a new trading app, Invest Online, was launched to involve locals in the capital markets by simplifying access. Daniyar Akishev, head of Kazakhstan’s national bank, said the service will allow people to buy discount notes of the Central Bank.
The country’s stock market is developing, too. Until recently, daily equities on the Kazakh Stock Exchange trading averaged just $11 million, but the state government is seeking to change the situation.
In September, trading is likely to start on the new Astana International Exchange (AIX). Built in partnership with Nasdaq and the Shanghai Stock Exchange, AIX is a new state-run project that could put Kazakhstan on the global financial map. The first stock to be listed will be one of the three largest state-controlled companies soon to be privatized, which includes telecommunication provider Kazakhtelecom, uranium producer Kazatoprom and the national flag carrier, Air Astana.
Kazakhstan has already launched a new financial hub, the Astana International Financial Center (AIFC), a special economic zone hoping to attract investment funds and private investors from around the globe.
(1) This increasingly popular app has been valued at $5.6 billion after raising $363 million from Silicon Valley investors in May
Featured image: Construction of Astana Expo City 2017, credits AO Tercan.
