When Kazakhstan declared independence from the Soviet Union in 1991, it inherited vast oil reserves, a launch pad to space, and the skeletal framework of a centrally planned economy. For much of the next two decades, hydrocarbons dominated its economic narrative, funding rapid urban development and fuelling GDP growth. But now, the story is changing.
With digitalisation embedded into national strategy and artificial intelligence (AI) emerging as a national priority, Kazakhstan is making a notable—though not unchallenged—pivot from hydrocarbons to high-tech. In doing so, it offers a test case for how resource-rich nations might evolve into digital economies without discarding their industrial past.
A digital state emerges
Since launching its Digital Kazakhstan program in 2017, the country has invested heavily in infrastructure, public services, and startup development. The results are quantifiable. More than 93 per cent of public services are now accessible online, and 86 per cent of them via smartphone—figures that place Kazakhstan ahead of several OECD countries in digital governance metrics.
In 2024, the UN E-Government Development Index ranked Kazakhstan 24th out of 193 countries, placing it above nations such as France, China, and Canada.
Digital governance is a lever for broader efficiency. One innovative example is Kazakhstan’s Digital Family Card, an AI-assisted platform that automatically identifies families in need and allocates social support without requiring them to apply.
Honoured at the World Government Summit in Dubai, the system is part of a larger push toward “invisible governance”—services that work in the background without bureaucratic friction.
Moreover, Kazakhstan’s eGov Mobile app now enables everything from vehicle registration to accessing housing and healthcare services. In a nation where distances between cities stretch hundreds of kilometres, digital government is a necessity.
The AI pivot: Beyond automation
Central to Kazakhstan’s tech evolution is a national AI Development Concept (2024–29). The country has announced plans to train one million AI-capable professionals and is investing in infrastructure that supports this ambition. One cornerstone is Alem.AI, an international centre for AI research and start-up incubation, housed in Astana’s futuristic Nur-Alem pavilion from Expo 2017. Its mission is to drive innovation and expand AI across economic and public life.
The centre is part of a broader attempt to root AI in education and entrepreneurship. With programmes like Tomorrow School and Tumo Education, Alem.AI expects to train over 1,000 AI specialists, launch 100 AI start-ups, and support 10 AI research projects.
At the government level, the Centre will host situational and GovAI project offices to embed AI directly into public service processes—reinforcing Kazakhstan’s goal to become a regional AI leader.
Elsewhere, Kazakhstan has partnered with the UAE’s Presight and its national sovereign wealth fund, Samruk-Kazyna, to develop a state-of-the-art AI supercomputer and data centre cluster—a foundational step for advanced AI modelling, particularly in underrepresented languages.
But AI is not confined to research labs. Start-ups like Cybernet.ai are deploying voicebots for customer service, while Higgsfield AI, backed by US investors, has developed systems to train complex machine learning models. These initiatives are complemented by KazLLM, Kazakhstan’s first language model, tailored for multilingual applications in public services and education.
From fossil fuels to future hubs
The shift from oil to innovation does not mean abandoning Kazakhstan’s legacy infrastructure. In fact, the digital leap is occurring on the back of institutions and assets once geared toward energy and aerospace.
Consider Astana Hub, the nation’s premier start-up technopark. Established in 2018, it now hosts over 1,600 companies, including 437 with foreign participation, and has attracted more than 700 million US dollars in investment. It offers a zero-tax regime, simplified visa processes, and online company registration—creating a frictionless environment for entrepreneurs.
Unicorns like TikTok, Playrix, and inDrive have chosen Astana Hub for regional operations, lured by Kazakhstan’s cost competitiveness and strategic location between Europe and Asia. With 3.6 billion US dollars in total start-up revenue and 1.2 billion US dollars in cumulative IT service exports, the hub is rapidly becoming Central Asia’s answer to Singapore or Dubai.
Even Kazakhstan’s Soviet-era space legacy is being reframed. The country hosts the world’s oldest and largest launch facility at Baikonur. But today, attention is shifting to digital frontiers. The Silkroad Innovation Hub, based in Silicon Valley, is focused on connecting Central Asian talent with global tech networks.
Balancing innovation and governance
That said, the transition is not without its complexities. Kazakhstan, like many rapidly digitising nations, faces the challenge of aligning its administrative systems with the demands of a dynamic tech sector. While its digital public services are among the most accessible in the region, rural connectivity remains an area for continued investment.
Still, the government has taken notable steps—extending high-speed internet to over 1,200 rural communities in recent years—to close the digital divide.
The country’s telecommunication infrastructure, currently ranked 41st globally, lags behind its strong performance in online services and e-government. Yet, ongoing infrastructure upgrades and public-private partnerships are helping to raise standards nationwide.
Meanwhile, Kazakhstan’s plan to open 16 TB of anonymised structured data to businesses presents both opportunity and responsibility. Recognising this, the government is working to strengthen data governance frameworks, with a focus on transparency and public trust. Initiatives like the Neo Nomad Visa, a special residency scheme designed to attract skilled digital professionals, remote workers, and entrepreneurs, show Kazakhstan’s intent to position itself as a regional innovation hub.
The visa offers simplified entry and residency procedures, enabling international talent to live and work in Kazakhstan while contributing to its growing digital ecosystem. At the same time, efforts to retain domestic talent, such as the AI-Sana training programme, which aims to educate one million AI-capable workers, and expanded startup support through Astana Hub, are creating an environment where skilled professionals increasingly see a future at home as well as abroad.
A post-oil future?
As the world slowly transitions from fossil fuels, Kazakhstan faces a dual imperative: decarbonise its economy and diversify its sources of prosperity. The digital and AI sectors offer a viable path. Kazakhstan’s strength lies in its willingness to experiment, to pilot GovTech reforms, to attract global players, and to invest in human capital.
Digitalisation alone won’t make Kazakhstan a tech powerhouse. But when combined with clear strategy, cross-sector collaboration, and openness to global standards, it can become a blueprint.
For now, Kazakhstan’s pivot from pipelines to platforms is real. The country that once launched Soviet rockets into orbit is now launching start-ups and AI models into the global digital economy.
Photo: Dreamstime.
