The Sovereign Wealth Fund “Samruk-Kazyna” will be transformed into an investment holding. The concept was presented to President Kassymzhomart Tokayev, Tengrinews reports.kz with reference to Akorda’s Press Service.

It is reported that the Head of State received Akhmetzhan Yessimov, the CEO of Samruk-Kazyna JSC, and heard a report on the results of the work of the Fund’s group of companies for nine months.

According to Yessimov, the transformation of the fund into an investment holding will diversify the portfolio by geography and industries of assets, increase the profitability of investments and budget revenues due to the growth of dividends.

The net income of the Fund for the 9-month period exceeded the plan by 2.6 times and amounted to KZT436 billion against the plan for KZT167 billion. Dividend payments to the shareholder – the Government of Kazakhstan in 2020 amounted to KZT120 billion, which is 10 times more than in 2017. Stable functioning of all enterprises in the energy, oil and gas, uranium, telecommunications, postal and other industries has been ensured. The production staff has been retained without mass reduction, timely payment of wages to employees has been ensured

The CEO of Samruk-Kazyna informed that the Fund continues to work on the execution of the order to support the country’s economy through the procurement system. The share of local content in the Fund’s purchases for 9 months amounted to 66 percent. Procurement in the amount of KZT819 billion was transferred to the competitive environment. 17,000 business entities have gained access to the Fund’s purchases. Since the beginning of 2020, the group of companies has signed contracts with domestic businesses for KZT2.4 trillion, placed 12 thousand orders at domestic enterprises employing 280 thousand people. The expected tax revenues to the state budget will amount to KZT170 billion.

The Head of State was informed that in accordance with the President’s Message, the program of asset privatization will be continued. At the same time, the Fund will retain control of a stake of 51 percent or more in large and strategic companies in order to ensure a balance between public and private interests.