BILATERAL COOPERATION BETWEEN THE REPUBLIC OF KAZAKHSTAN AND THE UNITED ARAB EMIRATES
THE BILATERAL RELATIONS
BETWEEN THE REPUBLIC OF KAZAKHSTAN
AND THE UNITED ARAB EMIRATES
Diplomatic relations between the Republic of Kazakhstan and the United Arab Emirates (UAE) were established on September 01, 1992.
The Embassy of the Republic of Kazakhstan to the UAE was opened in September, 2006, Ambassador: H.E. Askar Mussinov.
The Embassy of the UAE in Astana was opened in October, 2005, Ambassador: H.E. Ibrahim Hasan Saif bin Rabeh Al Ali.
The Consulate General of Kazakhstan in Dubai started its operation in 1997.
The basis for the development of bilateral relations was laid during the official visit of the President of the Republic of Kazakhstan, H.E. Nursultan Nazarbayev to the UAE in 1998, a series of working visits in subsequent years, the latest of which took place in March, 2009, as well as working visits of the President of the UAE, H.E. Sheikh Khalifa Bin Zayed Al Nahyan, and the Crown Prince of Abu Dhabi, H.E. Sheikh Mohammad bin Zayed Al Nahyan, to Kazakhstan.
In 2008, there were a series of visits by representatives of the UAE, which addressed important issues of further intensification of relations in various fields.
July 15, 2008: the first official visit of the President of the UAE, H.E. Sheikh Khalifa bin Zayed Al Nahyan, to the Republic of Kazakhstan.
During the official meeting at the Presidential Palace "Ak Orda" the President of the Republic of Kazakhstan expressed his satisfaction with the high level of bilateral relations with the UAE, both in political and economic fields.
In order to further effective development of bilateral relations the President of the Republic of Kazakhstan offered to sign a new joint action plan between Kazakhstan and the UAE. Also, among the priority goals the President of Kazakhstan noted the necessity to increase the Emirates investments in Kazakhstan and to sign the Agreement on Avoidance of Double Taxation and the Agreement on Protection of Investments between the two countries.
As another important direction of cooperation the President of Kazakhstan called the Conference on Interaction and Confidence Building Measures in Asia (CICA), which is an intergovernmental forum for dialogue, consultations and adoption of decisions and measures on the basis of consensus on security issues in Asia. Kazakhstan expressed its interest in the UAE’s participation in this forum as a permanent member.
In turn, the UAE President, H.E. Sheikh Khalifa bin Zayed Al Nahyan, thanked the President of the Republic of Kazakhstan for the warm welcome and noted that there was a great potential for the development of divercified cooperation between Kazakhstan and the Emirates. Sheikh Khalifa expressed his support for all proposals of the President of Kazakhstan, and drew attention to the need for the development of advanced technologies in the oil and gas industry and the joint implementation of major industrial and infrastructure projects. The President of the UAE stressed the readiness of the United Arab Emirates to cooperate.
March 16-17, 2009: the official visit of the President of the Republic of Kazakhstan, H.E. Nursultan Nazarbaev, to the UAE.
During the negotiations the President of Kazakhstan discussed a wide range of issues of international politics. Special attention was paid to the problems of coping with the global financial crisis.
The President of Kazakhstan, H.E. Nursultan Nazarbayev, thanked the UAE leadership for its support of Kazakhstan’s foreign policy initiatives and, in particular, praised the UAE decision to join the CICA process as a full member, and also invited the Emirati side to participate in the Third Congress of World and Traditional Religions scheduled for July, 2009 in Astana City.
During the official meeting the parties discussed a number of issues related to economic and investment cooperation. Both sides reached an agreement to open an Emirati financial institution, the Islamic Bank, in Kazakhstan with the capitalization of at least 500 million US dollars.
In addition, the parties discussed issues related to the project "Abu Dhabi Plaza" in Astana.
The Kazakh side noted the successful launch of the direct air route "Abu Dhabi – Almaty - Abu Dhabi" by the "Etihad" airlines, the national carrier. In this context the Emirates party was invited to consider in the near future the possibility of launching direct flights between the two capitals: Abu Dhabi and Astana.
During the visit three Intergovernmental agreements were signed: the Agreement on the Mutual Extradition of Criminals, the Agreement on Mutual Legal Assistance in Civil and Commercial Matters and the Agreement on Mutual Legal Assistance in Criminal Matters, as well as the Memorandum of Understanding on political consultations between the Foreign Ministries of both countries.
The Parties reached understanding on signing in the near future intergovernmental agreements on visa-free travel of citizens, holders of diplomatic passports, for mutual protection of investments, on cooperation in the fight against organized crime, illicit trafficking of drugs and psychotropic substances, their analogues and precursors, terrorism and other dangerous crimes.
The UAE President, H.E. Sheikh Khalifa bin Zayed Al Nahyan, presented the President of Kazakhstan, H.E. Nursultan Nazarbayev, with the highest award of the UAE, "The Order of Zayed", for special merits in promoting bilateral relations. In turn, the President of Kazakhstan, H.E. Nursultan Nazarbayev, also awarded the President of the UAE the highest award of the Republic of Kazakhstan, the Order "Altyn Kyran".
March 17, 2009: the First Business Council meeting between the Republic of Kazakhstan and the United Arab Emirates with the participation of the President of Kazakhstan in Abu Dhabi.
The President of Kazakhstan met the UAE Minister of Economy, Mr. Sultan Bin Saeed Al Mansouri, the President of the Federation of Chambers of Commerce and Industry of the UAE, Mr. Salah Al Shamisi, and managers of leading companies in the UAE.
The President of Kazakhstan, H.E. Nursultan Nazarbayev, during the meeting said that Kazakhstan attached great importance to cooperation with the UAE, and added that our country developed successful partnerships with the UAE, which was an example of a stable and successful political and economic cooperation.
Addressing the Emirates business community the President of Kazakhstan identified three main areas for future investments: the development of industries with high added value (deep processing of natural resources, petrochemicals, manufacture of petroleum, metallurgy, mechanical engineering), development of agro-industry (production of agricultural products, livestock and production of meat and milk products) and infrastructure (energy, transport and logistics).
May 4, 2009: the official visit of the Member of the Executive Council of Abu Dhabi H.E. Sheikh Sultan Bin Khalifa Al Nahyan to Astana.
The President of Kazakhstan received H.H. Sheikh Sultan Bin Khalifa Al Nahyan at the Presidential Palace "Ak Orda". During the meeting the sides discussed prospects of development of trade and economic, investment cooperation between Kazakhstan and the UAE.
H.H. Sheikh Sultan Bin Khalifa Al Nahyan arrived in Astana by the personal invitation of the President of Kazakhstan, H.E. Nazarbayev. The Sheikh was accompanied by a large delegation of Arab businessmen. The representatives of Emirates business community expressed their interest in possibility of investing in infrastructure, housing, commercial and entertainment facilities in Astana and Almaty cities. During the meeting the prospects of development of the tourism sector in Kazakhstan, in particular, the arrangement of the popular resort area "Borabay" resort was discussed.
Cooperation in the political sphere.
Close positions of the two countries on a number of important international and regional issues provide a solid basis for deepening cooperation in the political sphere. In this regard, we consider joining the CICA by the UAE as a member as one of the important achievements of cooperation between Kazakhstan and the UAE.
Seeing the value of the initiative of Kazakhstan to convene the meeting as an important tool in improving safety on the Asian continent, the Emirati side expressed intention to participate more actively in the work of the organization. In July, 2008, having completed all the necessary formalities prescribed by the UAE leadership , the UAE decided to join the CICA as a full member.
With the UAE being one of the key countries in the Gulf Region, certainly, the UAE’s participation as a member of CICA is important for the CICA process, and such participation will become a subject to a balanced and peaceful policy of the UAE leadership to serve to strengthen security in the Region and the whole Asian Continent.
Given the attention on the UAE’s place in the Muslim world, the UAE leadership welcomes the establishment of interfaith dialogue both within the country and in the international arena.
UAE delegations always participated in the Congresses of Leaders of World and Traditional Religions in Astana. The Third Congress of World and Traditional Religions took place in Astana in July 2009, where the UAE was represented by the General Authority of Islamic Affairs and Auqaf and the UAE President’s Advisor on Religious and Legal affairs Sayed Ali Al Hashimi.
Sharing the position of the Kazakhstan leadership on the necessity for dialogue between the Muslim world and Western countries, the UAE supported the Astana initiative to host the Conference of Ministers of Foreign Affairs under the title "Common World: Progress through Diversity", which was held in Astana on October 17, 2008. The Emirates Delegation to the above mentioned Conference was headed by the Minister of Culture, Youth and Society of the UAE, Mr. Abdulrahman Al Owais.
Cooperation in the economic sphere
The Action Plan for 2007 between Kazakhstan and the UAE, as well as Protocol of the Third meeting of Intergovernmental Joint Committee on Cooperation are the basic documents for development of fruitful cooperation in all spheres such as trade, banking, investments, information technology, mass media, education, health and culture.
Pursuant to the agreements between the two countries reached during the official and working visits and meetings the Embassy of Kazakhstan continues to strengthen and further develop trade and economic cooperation between Kazakhstan and the United Arab Emirates.
III Meeting of Kazakhstan - Emirates Intergovernmental Commission on Trade and Economic Cooperation
On December 21-22, 2008 the 3rd meeting of the Kazakh-Emirates Intergovernmental Commission on trade and economic cooperation was held in Abu Dhabi.
During the meeting the sides agreed on key aspects of bilateral cooperation, which was reflected in the final minutes. In particular, the commission reached an agreement to begin negotiations on a draft Agreement on Promotion and Reciprocal Protection of Investments between Kazakhstan and the UAE.
In addition, the parties agreed to sign in 2009 agreements in the sphere of agriculture, education, air and road transportation, an agreement on combating organized crime, illicit trafficking of drugs and psychotropic substances and their analogues, terrorism and other dangerous crimes, as well as the Memorandum between the National Bank of Kazakhstan and the Central Bank of the UAE.
The main event of the meeting was the signing of the Convention on avoidance of double taxation and prevention of tax evasion with respect to taxes on income between the Government of the Republic of Kazakhstan and the Government of the United Arab Emirates.
Following the meeting of the Commission, the parties have expressed interest in continuing the close cooperation between various public and private entities for the effective implementation of the provisions on cooperation in various fields contained in the final Protocol of the 3rd meeting of the Kazakh-Emirates Joint Commission.
The implementation of the project "Abu Dhabi Plaza" in Astana
The launch of the development project of the multifunctional "Abu Dhabi Plaza" complex by Aldar Properties company was a real contribution to the development of the new Kazakhstan capital, Astana. The project will include business and shopping centres, hotels, entertainment complex and residential apartments. A special feature of "Abu Dhabi Plaza" in Astana will be monorail road connecting the complex with Astana International Airport.
The multifunctional complex "Abu Dhabi Plaza", which Aldar Properties intends to erect in Astana, is the only project of the company being built abroad. The apartment building part of the complex will be the highest building in Central Asia, as well as 14th world′s highest.
Estimated project cost is more than 1 billion U.S. dollars. The project is scheduled for completion in 2013. It should be noted that the work on the project was assigned to the Bureau of the famous British architect Norman Foster, the architect of the Palace of Peace and Accord in Astana.
The Intergovernmental Agreement on the construction of the multifunctional complex "Abu Dhabi Plaza" was signed in Astana on June 11, 2009.
On August 28, 2009 the President of Kazakhstan, Nursultan Nazarbayev, has laid a capsule at the construction site of the “Abu Dhabi Plaza” multifunctional complex in Astana.
Cooperation in oil and gas industry
In October, 2008, JSC KazMunaiGaz, Kazakhstan, ConocoPhillips, the USA, and Public Joint-Stock Company Mubadala Development Company, the UAE, announced the signing of the Memorandum of Understanding for the exploration and development of the Caspian offshore "N" Oil Block. Cooperation with these companies would allow KazMunaiGaz to attract new technologies relating to the exploration and production of oil and gas on the Caspian shelf.
In December, 2008, ConocoPhillips and Mubadala Development paid to Kazakhstan $ 100 mln. as a bonus for the development and exploitation of the oil deposit on the block "N".
In April 2009, Kazakhstan’s Prime Minister Karim Massimov has met representatives of ConocoPhillips and Mubadala Development. The draft of agreement on deposits in Kazakhstan’s sector of the Caspian Sea were discussed during the meeting. The Chairman and the Chief Executive Officer of "ConocoPhillips", Jim Malva, noted the high interest in the early work on the development of the block "N".
The Intergovernmental Agreement on exploration and development of the Caspian offshore "N" Oil Block was signed in Astana on June 11, 2009.
Cooperation in banking sector
One of the important outcomes of the official visit of President Nursultan Nazarbayev to Abu Dhabi, held in March, 2009, was the agreement on opening of the first Islamic bank in Kazakhstan with capitalization of at least $ 500 million.
Implementation of this initiative was discussed during the meeting of Kazakhstan’s Prime Minister Karim Massimov with Chairman of Al Hilal Bank Ahmed al-Mazroui. The parties discussed the issues of Islamic bank financing in Kazakhstan. Karim Massimov expressed interest in accelerating the process of opening of the Islamic bank in Kazakhstan, and reiterated the readiness of the Government to provide the bank with the necessary support.
After having set up the required legal framework the Intergovernmental Agreement on opening emirates’ Islamic Al Hilal Bank in Kazakhstan was signed in Astana in June, 2009.
Al Hilal Bank is currently working on the issue of opening offices in Astana and Almaty.
Falah Investment Fund
The outcome of Sheikh Khalifa’s visit to Kazakhstan in July, 2008 was the establishment of the Falah investment fund. The founders of the fund were the International Petroleum Investment Company IPIC and the Government of Kazakhstan. The authorized capital of the investment fund is estimated at $ 1 bln. and is intended for investing in energy and other sectors of Kazakhstan economy and Caspian Sea region.
In September, 2008 the parties signed an agreement establishing the Falah joint fund.
The agreement was signed by the representatives of the Kazyna Fund and the Ordabasy Corporation from the Kazakhstan side and the International Petroleum Investment Company IPIC from the Emirates side. The establishment of the Falah Fund will bring new opportunities for cooperation between the two countries to work effectively in an effort to develop and make additional investments in near future that will lead to mutually beneficial relations in various fields.
Direct Investments Fund
The agreement on establishing a joint Fund of Direct Investment between the National Welfare Fund “Samruk-Kazyna” and the International Petroleum Investment Company of Abu Dhabi (IPIC) was signed in May, 2008 within the framework of the World Economic Forum on the Middle East held in Sharm el-Sheikh, Egypt. The initial capital of the Fund, which will finance investment projects in Kazakhstan and Central Asia, amounted to 500 million dollars.
Cooperation between the Chambers of Commerce and Industry
The signing in March, 2008 of two memorandums between the Kazakhstan’s Chamber of Commerce and Industry and the UAE Federation of Chambers of Commerce and Industry, such as Memorandum of Understanding and Memorandum on the establishment of Kazakhstan-Emirates Business Council were designed to strengthen cooperation between business circles of both countries.
The first meeting of the Business Council in Abu Dhabi in March, 2009 allowed for Emirates entrepreneurs to get acquainted with the business and investment climate in Kazakhstan.
The 2nd International Investment Forum "Karaganda Invest-2008"
Paying close attention to regional cooperation among countries in May, 2008 the Kazakhstan Embassy in the UAE organized the visit of more than 30 business representatives of Abu Dhabi to a major industrial center in Kazakhstan, Karaganda, where the UAE delegation attended the International Investment Forum "Karaganda Invest - 2008".
Representatives of the United Arab Emirates have expressed interest in participating in mining, joint work in agroindustrial complex, and also noted willingness to consider the cooperation with the “Kazakhmys” Copper Corporation and “Sary Arka” Social Industrial Corp. During the visit two Memorandums with Sary Arka Corp., such as Memorandum of Understanding on mining and Memorandum of Understanding in the field of agriculture were signed.
Launch of direct flights between the UAE and Kazakhstan
The direct transportation is the main component of bilateral cooperation. In this connection, Etihad Airways’ launching direct flights to Almaty in Kazakhstan from its Abu Dhabi home base on December 2, 2008 is very important.
The announcement followed a visit to Kazakhstan by His Highness Shaikh Khalifa Bin Zayed Al Nahyan, President of the United Arab Emirates and Ruler of Abu Dhabi, aimed at boosting bilateral cooperation between the two nations.
Almaty - Kazakhstan’s largest city with a population of 1.5 million people receives continued non-stop service, three times a week flight from Abu Dhabi using an Airbus A319 aircraft.
Moreover, in May, 2009 Etihad Airways has opened a new direct flight, which unites two capitals: Abu Dhabi and Astana. Regular flights between the capitals are being carried out once a week.
Cooperation in cultural and humanitarian sphere
Cultural and humanitarian ties are no less important then political and economical ones. With the purpose of further strengthening bilateral cooperation, in March 16-17, 2009 the Days of Kazakhstan’s culture in UAE were held.
The opening ceremony of Kazakhstan’s Cultural Days took place at the Emirates Palace Hotel, Abu Dhabi with big gala concert. President of Kazakhstan H.E. Nursultan Nazarbayev and H.H. Gen. Sheikh Mohammed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, attended the opening ceremony.
Moreover, within the framework of Kazakhstan’s Cultural Days in UAE the Exhibition of ancient Kazakh gold and items of decorative art by the title "The Legacy of the Great Steppe" featured famous collections from the Presidential Cultural Center of Kazakhstan, Astana, the Central State Museum of Kazakhstan, Almaty, the State Museum of gold and precious metals in Kazakhstan, Astana.
The core of the exhibition was the composition of the famous "Golden Warrior", found in the Issyk burial mound in 1969, which became the pride of Kazakhstan’s archaeology.
The Embassy of Kazakhstan to UAE
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