Outside of Central Asia, the GCC states are important to Kazakhstan as the country continues reaching out to escape being squeezed between its two large and popular neighbors, Russia and China. Kazakhstan’s bilateral ties with the GCC states are deepening in such economic sectors as agriculture and energy. For Kazakhstan’s relations with the countries of the Gulf are increasingly important and fit well into this balanced approach to foreign policy. Kazakhstan and the GCC states are continuing to develop robust economic and trade relations in the spheres of energy, trade, agro-investments, and commerce. Islamic financing banks and norms are also becoming more popular in Kazakhstan. These relations are further consolidated by good personal relations between the leaderships of both sides. Members of GCC royal families increasingly go to Kazakhstan to pursue hunting, particularly in the southern parts of the country. Kazakhstan is specifically seeking to attract GCC royals by apparently building exquisite hunting lodges for visitors from the Arabian Peninsula. It should not be overlooked that the tribal and traditional nature of the GCC states and Kazakhstan appear, at least on the surface, to be very similar, and this signals a trans-regional security prerogative. Significantly, the tribes on the Arabian Peninsula, and the Zhuz (clans) in Kazakhstan, share many attributes towards family, finance, and power. One should always remember that upon their independence, the Central Asian states looked towards the Arabian Peninsula for ways to emulate life and to develop similar state models.
Kazakhstan
Kazakhstan’s relationship with Saudi Arabia is probably the most important of any GCC state on the bilateral level. Kazakhstani officials and Saudi officials travel to each others’ countries frequently and a Saudi based company ‘Central Asia Investment’ with a collective investment fund of 50 million USD is operating in Kazakhstan and has already built several socio-economic and industrial projects including part of the Kazakhstani parliament, hospitals, and mosques. In 2011, Saudi Arabia and Kazakhstan signed an agreement for the avoidance of double taxation and prevention of tax evasion with respect to taxes on income and also began discussion on Saudi Arabia’s desire to import grain and other agricultural products from Kazakhstan as part of Riyadh’s food security plan.
Other GCC states, such as Qatar, developed relations with Kazakhstan early after the collapse of the Soviet Union in areas of energy as well as participation in Doha’s many cultural and socio-political discussion forums. In early 2011, Qatar expressed interest in the North-South railway link to the Arabian Gulf. The planned north–south railway line has two parts: (i) the Uzen–Bereket line (596.0 km) in the north (466 km through Turkmenistan from Bereket to the Kazakhstan border and 130 km through Kazakhstan from its border to Uzen) to be financed by the governments of Turkmenistan and Kazakhstan for the sections located in their territories; and (ii) the Bereket–Atrek–Gorgan line (338.5 km) in the south from Bereket (256.5 km through Turkmenistan and 82.0 km through Iran) The 620-mile railway line will initially be used by Kazakhstan and Turkmenistan to transport goods across Iranian territory to the Arabian Gulf ports and out to world markets. This is also the same route that Saudi Arabia and Kazakhstan discussed for agricultural support which is likely to be the same as Doha’s intent in terms of food security. However, it is notable that securing food security through Iranian territory from Central Asia to the GCC is fraught with potential blockades and trade disputes given the current regional environment. Kuwait is also pursuing relations with Kazakhstan in bilateral trade and economic activity including banking in order to improve roads, railways, ports and airports via the Kuwait Fund for Arab Economic Development (KFAED) and the Kuwait Investment Authority (KIA). Oman was one of the first GCC states to invest heavily in Kazakhstan’s emerging oil industry and was major partners in several projects via the Omani Oil Company (OOC). Muscat also financed a number of different infrastructure projects. Finally, the UAE is heavily involved in bilateral issues with Kazakhstan. Many Kazakhstani families who benefit from the UAE’s ambiance are purchasing property and part of a growing segment of the travel industry to the UAE’s seven emirates. Branches of Emirates Islamic Bank “Al-Hilal” were opened in the cities of Astana and Almaty in March 2010. The projects “Abu Dhabi Plaza” and “Aktau-city” are being built in Astana and on the banks of the Caspian Sea respectively, as well as the joint funds of direct investments of “Falah” for banking purposes. Wheat imports are also under discussion just as with Qatar and Saudi Arabia.
