Kazakh Parliament Approves Special Status Law for Alatau City

The Parliament of Kazakhstan has approved in its first reading a Constitutional Law establishing a special status for the city of Alatau. The legislation introduces a unique legal framework designed to attract investment and foster technological development.

During a joint session, deputies endorsed the bill, which grants the city additional powers and a distinct regulatory regime. Deputy Prime Minister Kanat Bozumbayev stated that the law aims to create an internationally competitive jurisdiction within Alatau, forming a sustainable hub for accelerated economic growth and capital attraction.

The city is envisioned as a separate "ecosystem" with its own governance rules and economy. A special body, the Alatau City Authority, will be established to oversee development, with key decisions reserved for the government level.

A significant aspect of the new regime concerns land use for foreign investors. Land plots will not be transferred into ownership but will be provided for lease or under other limited conditions strictly tied to specific projects. Investors who fail to fulfill their project obligations within set deadlines—for instance, not constructing a promised factory or hotel within two years—will face penalties.

Alatau is planned as a "digital city," where infrastructure such as roads, transport, lighting, and utilities will operate using smart technologies that analyze data for greater efficiency.

A pool of 44 projects worth 1.8 trillion tenge has already been announced. Investors are promised clear and stable rules, with their rights protected by law and disputes resolvable through international arbitration or the Astana International Financial Centre. These projects are expected to create around 30,000 jobs.

Alatau was granted its special status in September last year. Officials have clarified that this status does not alter the city's belonging to Kazakhstan but establishes specific conditions for development in areas like financial management, taxation, and judicial procedures to simplify business operations.

The city of Alatau was formally established in 2024 on the basis of Zhetigen village, following an approved master plan. Its territory was formed by adjusting the borders of the Ile and Talgar districts, as well as the city of Konayev.

Positioned as a new center for business activity and innovation, Alatau has already secured multibillion-dollar agreements with major international companies. One such firm, which participated in developing China's Shenzhen technopolis, is now involved in the Alatau City project.