ASTANA – Dealroom.co report released on March 25 highlights Kazakhstan’s remarkable transformation from a resource-based economy to one of the fastest-growing tech hubs globally, with significant growth in its startup ecosystem and government-backed initiatives supporting technology and AI development.
In just six years, Kazakhstan has evolved from a resource-driven economy to become one of the world’s fastest-growing tech hubs, now worth $26 billion. Photo credit: Astana Hub
“In just six years, Kazakhstan has evolved from a resource-driven economy to become one of the world’s fastest-growing tech hubs, now worth $26 billion – an eighteen-fold increase since 2019. Over the same period, tech sectors globally have grown 2.6 times,” reads the report.
Driven by the rise of companies including Kaspi and Freedom Holding Corp – the country’s most successful, billion-dollar unicorns – Kazakhstan’s startup-to-unicorn rate now sits at 2.9%, putting it comfortably ahead of growth levels across the world’s tech leaders Israel (2.3%), China (2.0%) and the United States (1.3%).
Payments, marketplace and fintech platform Kaspi recently surpassed the $10 billion valuation milestone, while Freedom Holding Corp has been one of the best-performing tech stocks in the world, up 775% since 2019 and outperforming tech giants like Meta, Apple, Amazon, Microsoft and Google. Freedom generated revenues of $1.6 billion in 2024, while Kaspi generated $5 billion in 2024.
Another metric of success for Kazakhstan’s emerging ecosystem is the percentage of funded companies with $10 million or more in revenues. In Kazakhstan, 2.8% of companies achieve this annual revenue rate, compared with rates in Sweden (1.05%), Israel (1.0%), and Germany (0.81%).
Government backing for tech and AI
Kazakhstan’s unprecedented growth comes from betting big on tech and AI, with buy-in at the highest political level. A new International AI Center – alem.ai – is set to open this year, providing a hub for AI research, innovation, and global collaboration. The center aims to attract top-tier talent, foster breakthrough developments, and position Kazakhstan as a leader in AI-driven solutions.
“This follows work by the Ministry of Digital Development, Innovations, and Aerospace Industry, which has led in initiatives like an e-Government portal and e-Licensing, vastly speeding up the process of starting a business.
In a collaboration between the Ministry of Digital Development, Innovations, and Aerospace Industry and Astana Hub, a $1 billion Fund-of-Funds was announced at the end of 2024.
Launching this year, the fund will target $1 billion in private investment in the medium term,” according to the report.
As Kazakhstan rapidly transforms from a resource-driven economy to a technology powerhouse, its trajectory offers a compelling case study of how emerging markets can leapfrog traditional development paths through strategic tech investment and national leadership.
Arsen Tomsky, the founder and CEO of InDrive, mentioned that when they started inDrive, they focused on addressing inefficiencies and injustices in mobility for people in emerging markets, areas often overlooked by global players.
He added that today, Kazakhstan’s startup ecosystem has grown 18 times since 2019, driven by the remarkable energy of local founders, a high-quality education system, and effective support from government initiatives like Astana Hub.
“This incredible growth validates our belief that innovation knows no borders. The key is to build with purpose, leverage cutting-edge technology and expertise, and think globally from day one while staying true to your local roots,” he said.
Zhaslan Madiyev, the Minister of Digital Development, Innovations, and Aerospace Industry, stated that Kazakhstan is committed to fostering a dynamic and innovative tech ecosystem. He emphasized that their ambition is to position Kazakhstan as a leading hub for technological advancement in the region.
He also mentioned that the government actively supports founders through initiatives provided by Astana Hub, which offers tax incentives, mentorship programs, and access to international markets.
“Collaborations with global platforms like Dealroom.co further enhance our startups’ visibility, attracting international investments and facilitating growth. We believe that with sustained support and strategic partnerships, Kazakhstan’s emerging tech sector will continue to thrive and make significant contributions to the global technology landscape,” he noted.
