Kazakh Parliament Approves Special Legal Regime for New City of Alatau

The Parliament of Kazakhstan has approved a constitutional law establishing a special legal regime for the newly formed city of Alatau. The legislation, passed in its second reading during a joint session of both chambers on March 27, is designed to create a unique regulatory and economic environment to spur the city's development.

The law introduces several key mechanisms to attract investment and foster business activity. New legal concepts have been defined, including 'priority sectors for Alatau,' 'business licenses,' 'regulatory permits,' and 'tax preferences.' A business license will grant the right to operate within the city under specified conditions.

To enhance transparency, information regarding investment commitments, granted benefits, and tax preferences will be made publicly available. Furthermore, all data related to urban management, infrastructure, and public safety will be consolidated into a single digital platform.

The law also strengthens protections for businesses by stipulating that inspections can be conducted solely by bodies of the General Prosecutor's Office. Financial oversight will be rigorous, with the city administration's budget execution report included in the annual reports of both the Government and the Supreme Audit Chamber.

Accountability measures are embedded in the framework. Liability is introduced for officials of the city administration, including the akim (mayor) of Alatau and their deputies. Decisions made by the administration can be appealed in court.

The development plan incorporates principles of inclusivity and environmental protection. The application of universal design is proposed to create an accessible environment for people with limited mobility. Administrative acts must ensure a higher level of environmental protection as stipulated by Kazakhstan's Environmental Code.

A special body, the Alatau City Authority, will be established to manage the city's development as a distinct ecosystem with its own rules and economic model. However, key strategic decisions will remain at the government level. The special legal regime may also apply to suburban areas surrounding the city.

Notably, foreign investors will not receive land ownership rights. Plots will be provided only for specific projects under limited conditions, such as leasehold agreements. Investors who fail to fulfill project obligations within set timelines—for instance, not constructing a promised factory or hotel within two years—will face penalties.

The city of Alatau was officially established in 2024 on the basis of Zhetigen village, with its master plan approved by the government. It is envisioned as a 'digital city' and a new hub for business activity and innovation, with several multibillion-dollar agreements already signed with major international companies.