Investing In Kazakhstan: New In Dispute Resolution

In this update we would like to inform you on recent developments in Kazakhstan aiming to improve the Kazakhstan Investment Climate by increasing trust in the Kazakhstan court system. The Astana International Financial Centre (AIFC) was created in December 2015, in Kazakhstan's capital city, followed by the opening of the AIFC Court and International Arbitration Court (IAC). To explore more, please scroll down where, for convenience, we have placed the content in a question-and-answer format.

What is the AIFC?

The AIFC is an international financial centre located in Kazakhstan, providing a platform for businesses and financial institutions to tap into the emerging markets of Central Asia, Eurasian Economic Union, Caucasus, West China, Mongolia and Eastern Europe. The AIFC independent regulation, legal regime based on common law principles, tax incentives and investment preferences make it the ideal hub to access the region's rapidly growing demand for financial services. Guided by its core principles, such as efficiency, transparency, integrity, professionalism and good practice, the AIFC aims to become the leading international centre for providing financial services.

What is the AIFC Court?

The AIFC Court is the Judicial body of the AIFC, which acts based on common law principles and is separate from the judicial system of the Republic of Kazakhstan.

Where is it located?

Upon finishing the reconstruction works in the EXPO-2017, Astana, it will be permanent seat of the AIFC Court.

What cases can be considered there?

The AIFC Court has exclusive jurisdiction over the disputes arising between AIFC participants, AIFC bodies and their employees, and the disputes related to activities conducted in the AIFC and governed by AIFC laws. Moreover, parties to a dispute can transfer the dispute to the AIFC Court by mutual agreement even if they are not AIFC Participants and/or their activity does not relate to the AIFC.

The AIFC Court considers civil and commercial disputes arising from transactions, contracts, arrangements or incidences. The Court does not have jurisdiction to consider criminal and administrative cases.

AIFC Participants - legal entities registered or accredited with the AIFC.

AIFC Bodies - authorized bodies of the AIFC determining the organization and controlling procedure over the AIFC Participants' activities.

What is the applicable law?

The Court exercises jurisdiction under AIFC Court Regulations - adopted by the AIFC Management...