Abstract
Research Objective. To study the investment potential of Kazakhstan and review the main challenges and trends of foreign direct investment development. Research Methodology. The study is classified as desk research; secondary information provided by the National Statistics Bureau of the Republic of Kazakhstan was collected and processed. Comparative methods, the Beri model, quantitative and qualitative methods of analysis were used in the study. Originality of the research. As part of the topical issue of attracting foreign investment in Kazakhstan, the authors conducted an analysis of the country’s investment potential. The authors processed the statistical data of investment activity of Kazakhstan for 2017-2021, determined the level of riskiness of doing business in Kazakhstan according to the Beri model. For a deeper comprehension of the issue, the authors conducted a detailed analysis of the components of the net inflow of foreign direct investment, identifying their shortcomings and consequences for the country’s economy, as well as assessing the current trends. Research results. The research results showed that Kazakhstan’s investment activity, after a certain slowdown in growth related to the country’s economic situation, showed a trend towards a recovery in the attraction of foreign capital in 2021. The Beri Business Environment Index of Kazakhstan indicates a favourable investment climate. However, analysis of the components of foreign investment showed that the level of foreign investors’ income exceeds the net inflow of investment, and the share of accumulated investment is only a quarter of total investment, which negatively affects the balance of payments by increasing the country’s external debt.