Since its inception in 2018, the Astana International Financial Centre (AIFC) has, according to the Global Financial Centres Index, established itself as the leading international financial centre in the region. Its unique blend of innovation and investor-friendly legal frameworks paves the way for global investors by offering a progressive business environment and a modern approach to taxation, labour and currency regimes that are attractive to both multinational companies and startups. Over 2,400 companies from around 80 countries are now on board, with many more in the pipeline.
The AIFC also includes:
– the financial services authority (the Astana Financial Services Authority);
– the common law court to resolve civil and commercial disputes (the AIFC Court);
– the International Arbitration Centre; and
– the stock exchange (the Astana International Exchange).
The AIFC’s common law framework offers familiarity for international investors. Company and contract law, as well as other areas such as financial technology, Islamic finance, banking, and insurance are all conducted in the English language.
Economic activity in the region is further encouraged by providing local startups with an opportunity to secure investment from venture capital firms through various financing instruments such as future equity agreements and security notes.
The AIFC also actively promotes Environmental, Social, and Governance (ESG) principles, including the introduction of an ESG Fund, which enables investors to support companies which prioritise sustainability and responsible practices.
The AIFC Rules on Digital Asset Activities are the unique act which regulates activities of cryptoexchanges, crypto asset service providers, and issuers of stablecoins. These Rules were developed in line with international standards and have been recognised by the Cambridge Centre for Alternative Finance, Cambridge Judge Business School. The pilot project related to digital assets has successfully been completed in the AIFC. Some of the world’s largest cryptoexchanges (e.g., Binance and Bybit), which set up offices in the AIFC, were part of this project. The AFSA now presides over a vibrant digital asset ecosystem complemented by the AIFC FinTech Lab, where innovators and disruptors may develop and test their products and services.
The AIFC has become more than just a financial centre, it has been playing an active role in the future of global finance. It offers new market opportunities to large institutional investors, as well as to hedge funds, law and accounting firms looking to expand their business. It creates opportunities for startups that want to raise funding and open access to new markets, as well as to retail investors who may trade with various instruments (e.g., stocks, bonds, and digital assets).
The main question for forward-looking investors and businesses is no longer “Why should we invest in the AIFC?” but rather “How do we become a part of this compelling journey?”
Authors:
Almas Serikuly is Senior Associate at the Legal Advisory Division of the Astana Financial Services Authority.
Dina Teltayeva is Press-Secretary of the Astana Financial Services Authority.
