Kazakhstan has shown the strongest fundamental shift in the region and is preparing for a credit rating upgrade as early as 2026, opening opportunities for global investors, reports Zakon.kz.
Bank of America (BofA) named Kazakhstan one of the most attractive frontier markets for 2026. Frontier markets are developing economies with smaller liquidity and higher risk than emerging markets like China, India, or Brazil, but offer high growth potential.
Experts highlight three key factors driving Kazakhstan’s investment appeal:
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Fiscal consolidation: the government is tightening budget policy and introducing new tax measures, laying the groundwork for a rating upgrade.
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Slowing inflation: economic cooling is expected to reduce price growth.
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Active domestic bond market: growth in government securities in tenge (KZT) creates opportunities for strategies like carry trade.
Kazakhstan’s sovereign bonds remain undervalued, and low rates abroad combined with stable tenge make carry trade particularly attractive. Compared to Uzbekistan, Kazakhstan stands out as already prepared for a positive rating change.
The economy continues to grow rapidly. In the first ten months of 2025, GDP rose 6.4%—double the OECD global forecast of 3.2%. Industry contributed most, with a 7.3% increase, while trade and transport added further momentum, driving over 70% of GDP growth.
Kazakhstan’s strong reforms and high potential returns make it a rare frontier market opportunity in 2026.
CentralasianLIGHT.org
November 26, 2025