KAZAKHSTAN: THE CREATIVE PHOENIX
OF CENTRAL ASIA

Kazakhstan’s creative economy is gradually becoming a powerful engine of economic growth, transforming traditional approaches to the country’s development. A look at the data and trends in the sector raises the question: could Kazakhstan become a new centre of creative power in the region?

Creative industries’ contribution to global GDP is 3.1 per cent – an impressive figure, especially given the sector’s annual growth of 9 per cent. In Kazakhstan, however, the figure is still a modest 1 per cent. Herein lies both the challenge and the potential.

BUILDING ON HERITAGE

Kazakhstan has a rich cultural heritage, from music to traditional applied arts. Combined with rapidly growing digitalisation and a young population, the country is ready to embrace the challenges of modernity. Astana, for example, is already actively building ecosystems for creative start-ups through the Astana International Financial Centre (AIFC).

FROM DIGITAL ADVERTISING TO VIDEO GAMES

There are four leading trends in Kazakhstan: digital advertising, music, cinema and video games.

Digital advertising is growing steadily and is expected to reach $700 million by 2028. Platforms such as TikTok and Instagram are already becoming the standard for brands.

The music industry, like the rest of the world, is embracing streaming. Spotify and Yandex Music are leading the way, but local artists are also growing in popularity.
Cinema is also experiencing a renaissance, with national films taking a growing share of the box office. Audiences want to see their stories, and producers are actively seeking support from the government and private investors.

Video games, however, remain underinvested despite the huge demand. This sector has the potential to become the leading one, with a market of $317 million by 2027.

CHALLENGES AND OPPORTUNITIES

Underinvestment remains the main challenge for the creative sector. In Kazakhstan, the creative sector is largely underinvested. However, there are emerging opportunities for venture capital funds and government initiatives. Legislation to protect intellectual property and mechanisms to tokenise assets through the MFCA are already being discussed.

TAX RELIEF: A CATALYST FOR GROWTH

In 2024, Kazakhstan introduced tax breaks for 40 economic activities related to the creative industries. These measures led to a 15 per cent increase in the number of CI companies, or 6,000 new entrants.

An important question, however, is how to categorise the creative industries. International experience shows that there is no single methodology. Kazakhstan’s Ministry of Culture is guided by UN approaches, but emphasises national interests such as uniqueness and export orientation.

To expand the list of activities, Senate deputy J. Asanova held a meeting to discuss the inclusion of production centres, dance, advertising and PR agencies. The new draft law, prepared by the Ministry of Culture, has already been sent to the presidential administration. Its adoption will be an important step towards systemic support for the sector.

International cooperation: the road to global recognition

In 2024, the Ministry of Culture held negotiations with the embassies of the USA, Italy, Great Britain and representatives of the Republic of Sakha (Yakutia).

WHAT PROJECTS COULD RESULT
FROM THIS COOPERATION?

USA. Partnership with Hollywood studios could provide access to the largest cinemas and streaming platforms, as well as the opportunity for Kazakh producers to participate in international projects.
Italy. Collaboration in fashion, design and crafts will enable local artisans to enter new markets. Italy’s experience in promoting cultural heritage could be useful for Kazakhstan’s hubs.
UK. The music industry, educational programmes and the development of streaming services are key areas for joint initiatives.
Republic of Sakha (Yakutia). Sharing experience in creating ethnic cinema and festivals will strengthen Kazakhstan’s national identity on the world stage.

CREATIVE HUBS AND INFRASTRUCTURE

Planned hubs are being established: By end 2024, there were 12 creative hubs in Kazakhstan, including the OzgeEpic hub in Astana and Almaty Creative in Almaty. There are plans to open eight more hubs in the regions by 2025. But key questions remain: How will the governance of these hubs be structured? Will they be effective tools for attracting investment and regional development?
A successful model: Creative hubs in Abu Dhabi and Dubai, such as the Louvre Abu Dhabi and the Dubai Design District, are examples of how the integration of culture and innovation is helping to diversify the economy. The Louvre Abu Dhabi attracted 2.7 million visitors in its first few years of operation, while the Dubai Design District has become a hotspot for creative professionals.
CULTURAL EVENTS AND THEIR
ECONOMIC IMPACT

World Nomad Games in Astana: In September 2024, Astana hosted the 5th World Nomad Games, which brought together 2,000 athletes from 89 countries. The Games attracted more than 100,000 tourists, generating around $625,000 for the Kazakh economy. However, the cost of organising the event was $11.6 million. By comparison, the Burning Man festival in the US attracts 70,000 participants each year and generates $62 million in revenue.
Dimash Kudaibergen concert: Astana hosted a concert attended by more than 40,000 people. This event has become not only a cultural but also an economic driver, boosting hotel and restaurant business. But there is still room for improvement. By comparison, Taylor Swift’s ‘The Eras Tour’ generated around $10 billion for the US economy.
Cannes Lions: Kazakhstan won a prestigious award at the Cannes Lions festival for a social spot on violence. This success confirms that the country’s creative industries are capable of reaching international levels. But the question is: what values are we transmitting through such projects?

Creative Industries Fund: Challenges and opportunities
The creation of the Creative Industries Fund in 2025 will be a key element of the development strategy. But how effective will it be?

A COMPARISON

Creative Europe supports innovation and cultural cooperation with a budget of €2.44 billion.
Saudi Arabia is developing creative industries through ambitious architectural projects such as Neom, demonstrating how culture is becoming an economic driver.
In Russia, the Presidential Grants Fund allocates 148 billion roubles annually to support social and cultural initiatives.
In Uzbekistan, the Fund for Cultural Development funds projects that enable national artists to exhibit at venues such as the Louvre in Paris and other major events. In 2024, Uzbekistan hosted the World Conference on the Creative Economy, which attracted 14,640 participants from 85 countries.

These examples show how smart financing can strengthen a country’s position on the international stage.

For Kazakhstan, it is important to ensure transparency and fairness in the distribution of funds. This can be achieved through:
Electronic platforms for project submission and monitoring.
Independent expertise to assess applications.
Feedback programmes to adjust fund policies.

CHALLENGES AND PROSPECTS

Will new tax breaks and international projects transform the creative sector? Will hubs and legislation work for the benefit of the whole economy, not just individual players? Can the CI Support Fund become a catalyst for new projects that meet international standards? These are all key questions.

Given that the main sector of Kazakhstan’s economy is the industrial sector, and that environmental problems are increasing, there is an obvious suggestion: Integrate CI with industry and ecology. Creative solutions can help modernise industry and reduce the environmental footprint. But how can Kazakhstan effectively integrate the creative industries with the industrial sector?

Kazakhstan is on the cusp of a new era. The success of the creative economy depends on the ability of government, business and society to join forces. The question is whether the country can unlock its potential, become a regional leader and inspire the world with its unique stories.

Irina Kharitonova,
Researcher on Sustainable Development
and Creative Industries