Kazakhstan is the cornerstone of Central Asia. It straddles Russia to the north, China to the east, and India to the south. In geostrategic terms, its sub-region forms an ‘arc of opportunity’. Despite its vastness – Kazakhstan is the size of Western Europe – the country has a population of only 17 million. For first-time investors in the CIS, it is by far the preferred business address. Why? It has to do with political will, early economic reforms and a fairly modern regulatory framework. Above all, it has to do with the drive of a young nation.

To date, growth has been fuelled by oil and gas. Kazakhstan lifts 1.3 million barrels of oil per day (mbd) from its Caspian Sea reserves, both onshore and offshore. The figure is expected to climb tenfold by the end of the decade. Astana, the new capital, has become a global energy player. For the first time in its young history, the country is awash in credit: Kazakhstan’s banks – several of which are listed at the London Stock Exchange – regaled consumers with $23 billion in loans in 2006. Banking liberalisation, meanwhile, is turning Almaty into a regional financial services hub. Despite the petrodollar inflows, President Nursultan Nazarbayev has stressed the importance of diversifying away from exports of natural resources. Massive investments are going into steelworks, light manufacturing, construction, agribusiness and alternative energy. The next generation of bio-ethanol additives may well come out of the steppes of Kazakhstan.

Great Britain is a major foreign player here. It is the third-largest foreign investor, accounting for 14 per cent of all foreign investment. High level delegations from Britain are regular and Almaty looks to the City of London for advice on financial accounting standards. Still, even in an era of intense globalisation, the country can seem exotic and far away. All this may soon change. In the first half of the year, GDP will grow by 9.1per cent. In the end, it is growth that matters. And by most measures, Kazakhstan is already in the big league.