Evgeny Vinokurov: it is no longer cost-effective for investors to purchase factories. They begin to build their own production facilities from scratch, greenfield projects are in increasing demand

The sectoral structure of mutual foreign direct investments will gradually become more diversified. This conclusion was made today, 18 November, during the EDB presentation by Evgeny Vinokurov, Chief Economist of the Eurasian Development Bank and the Eurasian Fund for Stabilization and Development. “This is our vision for the next 3-5 years. Retail trade, financial services, automotive industries, production of machinery and electrical equipment will be growing,” he said. According to him, in the context of the evolving global climate change narrative, mutual FDIs in "green economy" projects will multiply. Over the past 2 years, the volume of mutual FDIs in such projects has grown by 56%. Kazakhstan will strengthen its leadership in attracting direct investments in renewable energy sources. “The third line is related to the above - the anticipatory growth of greenfield projects and building production facilities from scratch. If in the 2000s people simply purchased assets, now most of the investments are made in the greenfield-oriented format. In other words, the investor in his homeland develops the technology, captures the market, and simply rolls it out. It is not cost-effective to buy someone else's facility, starting up one's own asset from the ground is a better business idea. And this trend will continue in effect. Companies from Russia, Kazakhstan, and Belarus are willing to promote and expand their businesses,” he said.

Источник: Tazabek (IA, KR)