The Construction and construction materials industry in Kazakhstan traditionally occupies an important place among all sectors of the economy. It is represented by cement factories, numerous factories producing building materials, and by construction companies. 7170 legal entities operated in the construction industry; including 193 state-owned and 6875 private firms.
The construction industry provides a favorable investment climate for foreign investors. There are 153 joint ventures with foreign firms and 102 enterprises with 100% foreign capital, operating as affiliates. Most of the main industrial enterprises in this sector have been transferred into foreign management. Almost all industrial enterprises and organizations in the construction industry have been privatized in accordance with the State privatization program.
Certainly, the country's general economic situation affected the construction industry. The effect is indicated by a reduction in the construction sectors' share of GDP, from 12 % in 1990 to 4.2% in 1997. The construction materials industry's share of GDP also fell from 5.6 % to 2.2 %. At the same time, however, investments in the construction industry are likely to bring about a fast turnaround in this situation.
Foreign investment has been attracted to construction projects in Astana and in some key sectors of industry (petrochemicals, metallurgy, and mining industry), however the volume of foreign investment into developments within the construction materials industry needs to be increased.
