Kazakhstan Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in kazakhstan, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
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Digital Economy
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 Overview

Kazakhstan’s digital transformation efforts have paid off, with the country cementing its status as a regional frontrunner. It has risen to 34th in the IMD World Digital Competitiveness Ranking 2025 out of 67 countries. In line with its digital ambitions, the Government of Kazakhstan has made significant progress toward its goals. 

  •  UN e-Government Development Index: Kazakhstan has achieved its goal of a top 25 ranking, reaching 24th out of 193 countries in the 2024 UN E-Government Development Index, and is now a top 10 global leader in online government services.
  • B2C e-Commerce Index: The country is on track to meet its goal of a top 50 ranking. The share of e-commerce in total retail trade reached 14.1 percent in 2024, with a goal of 18.5 percent for the Ministry of Trade and Integration of Kazakhstan.
  • Information and Communication Technologies Development Index: Kazakhstan is ranked 47 in the ICT Development Index in 2025.
     

Kazakhstan ranked 81st in the Global Innovation Index (GII) 2025 out of 139 economies, according to the World Intellectual Property Organization (WIPO), a slight drop from 78th in 2024. The Network Readiness Index (NRI) 2024 places Kazakhstan at 61st globally. The government continues to focus on the Digital Kazakhstan program that started in 2017 and the Concept of Digital Transformation for 2023-2029 that complements the efforts and emphasizes infrastructure modernization, IT industry growth, and strengthening human capital with a goal of training 100,000 IT professionals by the end of 2025.

Projected Digital Economy Growth

Kazakhstan’s digital transformation efforts are driven by targeted government policies and a robust ICT sector that has seen rapid growth in recent years. The country’s digital economy is projected to continue expanding, with significant investments in infrastructure projects like the Trans-Caspian Fiber Optic Cable project, which aims to connect Kazakhstan to Europe via Azerbaijan through the Caspian Sea. This cable will provide a high-speed Internet route linking Central Asia to major international traffic hubs in Europe, significantly enhancing data transmission capabilities and boosting Kazakhstan’s competitiveness in the digital economy. As reported by the Asian Development Bank, the project also strategically positions Kazakhstan as a digital transit hub between Asia and Europe, attracting major international players to its market.

Key sectors contributing to this growth include fintech, e-commerce, and digital services. The e-commerce sector has seen rapid expansion, with its volume surging to 3.2 trillion tenge ($6.2 billion) in 2024, representing 14.1 percent of total trade. This is a sevenfold increase since 2020. The fintech sector, led by companies like Kaspi.kz, remains a powerful force, with 10 million daily active users on its mobile app alone. About 90 percent of residents actively use mobile banking services, a figure supported by data from the National Bank of Kazakhstan. These trends indicate a favorable competitive environment, with significant opportunities for further growth driven by advanced digital payments, AI integration, and evolving consumer behavior.

Market Challenges 

Digital Trade Barriers

Kazakhstan’s digital economy faces several trade barriers that affect both domestic and international business operations. One major challenge is data localization. As of January 2025, new amendments require personal data of Kazakh citizens to be stored and initially processed on servers within the country. This increases operational costs and limits access to global cloud and data services. These restrictions complicate cross-border data flows, discourage foreign investment, and force companies to navigate multiple, often conflicting, data protection standards.

Technology barriers are also present, though the government is working to address them through infrastructure upgrades like the Trans-Caspian cable. However, regulations often favor domestic or neighboring country technologies, making market entry difficult for foreign firms. Internet access remains uneven, with rural areas suffering from poor infrastructure and slow speeds. Government control over internet services and occasional shutdowns during political unrest raise concerns about reliability for businesses and consumers.

Influence from Russia and China continues to shape Kazakhstan’s digital policies and procurement practices, often sidelining Western companies. Despite this, Kazakhstan is actively diversifying its partnerships. In 2024 and 2025, U.S. tech firms expanded their presence, focusing on AI, cloud computing, and digital infrastructure. For example, in 2025, Amazon Leo committed to deploying satellite internet infrastructure and Meta launched a startup accelerator. These initiatives are strengthening Kazakhstan’s digital capabilities and positioning it as a regional tech hub.

Digital Trade Opportunities 

  • Artificial Intelligence (AI) is being applied to enhance predictive analytics, optimize supply chains, and develop new digital services such as AI-driven financial products and automated customer support, as well as to enhance e-government (eGov) platform services through intelligent service delivery and improved citizen engagement.                                                                                                                                     
  • Human-machine interfaces like augmented and virtual reality (AR/VR) are gaining traction in education, industrial training, and retail, improving service delivery and user engagement.
  • Data center development is being promoted to position Kazakhstan as a regional data transit hub between Asia and Europe, supporting cloud services and big data analytics.
  • AI regulation and standards are advancing, with Kazakhstan adopting Central Asia’s first comprehensive AI law in November 2025 and approving national AI standards for education in September 2025.

Cross-Sector Enabling Technologies

  • Communications and networking infrastructure is being modernized through projects like the Trans-Caspian Fiber Optic Cable and the rollout of 5G and future 6G networks, enhancing connectivity and enabling advanced digital applications.
  • Supercomputing and advanced computing are expanding, with the launch of Central Asia’s most powerful supercomputer in July 2025, now part of a national AI platform accessible to universities and startups.
  • Cloud computing and big data analytics are being integrated across sectors such as finance, oil and gas, and public services to improve decision-making and operational efficiency.
  • Quantum computing is being explored for secure communications and cryptography through pilot projects led by the Ministry of Artificial Intelligence and Digital Development.
  • Open Radio Access Network (ORAN) technologies are being adopted to diversify telecom infrastructure, reduce vendor lock-in, and align with global trends in open, interoperable networks.

Specific Industry Sub-sectors

Kazakhstan’s digital economy is experiencing significant growth driven by government initiatives and private sector investments. Several sub-sectors are becoming pivotal in advancing the country’s technological capabilities and positioning it as a regional leader in digital innovation.

  • Quantum Technologies: Kazakhstan is making strides in quantum technologies, particularly in secure communications and advanced encryption methods. The Ministry of Artificial Intelligence and Digital Development of Kazakhstan has launched pilot projects to explore the potential of quantum computing for enhancing national cybersecurity and financial services. These initiatives align with global trends in quantum research, and Kazakhstan’s strategic location could serve as a critical node in the development of quantum-secure communications networks across Central Asia. The country is working to build local expertise through collaborations with international research institutions and by investing in educational programs focused on quantum technologies.
     
  • Financial Technologies (Fintech): The fintech sector in Kazakhstan is one of the fastest growing in Central Asia, driven by high adoption rates of digital banking and payment solutions. According to the National Bank of Kazakhstan, fintech companies like Kaspi.kz have revolutionized the financial landscape by providing digital wallets, online banking, and e-commerce platforms that are widely used by consumers. The government supports the fintech sector through regulatory sandboxes, allowing innovative financial products to be tested in a controlled environment. Additionally, the development of a national digital currency, the Digital Tenge, highlights the government’s commitment to embracing digital financial technologies, which are expected to further drive cashless transactions and financial inclusion.
     
  • Cybersecurity: As digital transformation accelerates, cybersecurity has become a critical priority for Kazakhstan. The country’s efforts to enhance its cybersecurity infrastructure are supported by the International Telecommunication Union (ITU), which ranks Kazakhstan among the leading countries in Central Asia in terms of cybersecurity preparedness. Government initiatives, such as the creation of a national cybersecurity center, aim to protect critical infrastructure, enhance data protection measures, and combat cyber threats. Cybersecurity companies are increasingly active in Kazakhstan, providing services ranging from threat detection to advanced encryption, catering to both public and private sector needs.
     
  • Internet of Things (IoT) and Smart Cities: Kazakhstan’s ambition to develop smart cities is driving the adoption of Internet of Things (IoT) technologies. Cities like Astana are implementing smart city solutions, including smart traffic management, waste management, and energy efficiency programs. Alatau City, close to Almaty, is anticipated to deploy robust smart city solutions. The World Bank supports these initiatives, highlighting that IoT integration in urban planning can significantly improve the quality of life for citizens while optimizing resource usage. Smart city projects are also being extended to industrial zones, enhancing productivity and operational efficiency through real-time data monitoring and predictive maintenance solutions.
     
  • Software, Digital Services, and Telecommunications: The software and digital services sector is rapidly expanding in Kazakhstan, supported by government incentives and a growing base of tech-savvy professionals. The OECD notes that the software industry is playing a key role in digitalizing traditional sectors such as agriculture, mining, and manufacturing through the development of bespoke digital solutions. Telecommunications companies are investing heavily in network upgrades, including the deployment of 5G technology, to support the growing demand for high-speed internet and mobile services. These investments are critical to ensuring that Kazakhstan remains connected to global digital trade networks and continues to attract international technology companies.

Digital Economy-related trade events

Digital Bridge Forum
Date: TBD – Fall 2026
Location: Astana, Kazakhstan
Description: This forum is a significant event that focuses on Kazakhstan’s role as a digital bridge between Europe and Asia. The event features over 200 experts discussing digital transformation, IT infrastructure development, and Industry 4.0 initiatives. 

Digital Almaty Forum
Date: TBD - January 2026
Location: Almaty, Kazakhstan
Description: Digital Almaty, held in Almaty in the beginning of every year, has a strong focus on industrial digitalization often centering on themes like “Industrial AI” and integrating digital technologies into traditional sectors such as mining, oil and gas, and finance. 

Central Eurasian Venture Forum 2026
Date: TBD- June 2026 
Location: Almaty, Kazakhstan
Description: The Venture Capital World Forum is a global conference that brings together investors, entrepreneurs, and industry leaders to discuss venture capital, investment trends, and innovative opportunities across various markets.

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