City of Accelerated Development

The status of a city of accelerated development means that special rules are established for Alatau within the legal system of Kazakhstan. They cover city governance, investment, entrepreneurship, urban planning, digitalization, and other areas specified by the Law.

Alatau’s bodies may adopt regulatory legal acts within the powers established by the Constitutional Law. On matters covered by the special regime, these rules prevail in the event of a conflict with other regulatory legal acts of Kazakhstan. The Constitution of the Republic of Kazakhstan retains supreme legal force, and ratified international treaties take precedence over the Constitutional Law.

The fundamental difference lies in the scope of powers delegated to the city’s bodies and the special regulatory procedure. In other cities, local authorities also make decisions within their competence. In Alatau, however, the Alatau City Authority and the Alatau City Council receive additional tools expressly provided for by the Constitutional Law.

For Alatau, the status of a city of accelerated development makes it possible to build and grow according to its own model. This model is based on long-term planning, a special budget regime, and the application of international best practices in urban management.

The Law expressly establishes the priority of private investment in the city’s development. Public budget investment and investment by the quasi-public sector are permitted only for the development of transportation, utility, energy, and social infrastructure owned by the state or by the relevant quasi-public sector entity.

No funds may be withdrawn from Alatau’s local budget or from the Alatau City Authority’s funds to the national budget or any other budget until the city achieves fiscal self-sufficiency. This guarantee is established by Article 30.

For companies and investors, the status of a city of accelerated development means, above all, stable and predictable operating conditions.

The Law guarantees that changes to the city’s legislation do not alter civil-law obligations under contracts previously concluded in accordance with Alatau’s legislation, and that licenses and permits already issued remain in effect. New regulatory requirements that would worsen the conditions for implementing investment projects may apply to previously authorized activities only in strictly limited cases and with a mandatory transition period.

At the same time, Article 14 specifically provides that the procedure for applying new regulatory requirements does not extend to tax relations, which are governed by special provisions.

In addition to stability, the status provides specific tools: tax incentives, special customs regulation features, a one-stop shop for matters regulated by the Alatau City Authority, and digital interaction with the city’s bodies by default.

Provisions on the tax regime and customs regulation take effect on January 1, 2027, and those on the one-stop shop and digital first principles take effect on July 1, 2027.

Alatau’s master plan extends through 2050. This does not mean that the special legal regime will expire in 2050. This planning horizon makes it possible to plan infrastructure and investment projects with long payback periods.

The Law also provides for a fiscal self-sufficiency mechanism. Fiscal self-sufficiency is achieved when total revenues from sources within Alatau exceed current and development expenditures for five consecutive years. It serves as a benchmark that determines whether certain provisions of the special budget regime apply.

The special regime expands the powers of Alatau’s bodies and establishes separate rules for business. Government control and prosecutorial oversight remain in place.

Governance system.

Standard Legal Regime for Cities in Kazakhstan: The akimat, maslikhat, and other government bodies act within the powers established by Kazakh legislation

Accelerated Development City Regime in Alatau: Alongside the akimat and maslikhat, the Alatau City Authority and the Alatau City Council, chaired by the Prime Minister of Kazakhstan, operate in the city

Legal framework.

Standard Legal Regime for Cities in Kazakhstan: General laws and codes of Kazakhstan, as well as acts of local authorities within their competence

Accelerated Development City Regime in Alatau: The Constitutional Law and acts adopted on its basis. Special rules prevail in the relations they govern

Regulatory flexibility.

Standard Legal Regime for Cities in Kazakhstan: Industry-specific requirements and procedures are set by Kazakh legislation

Accelerated Development City Regime in Alatau: The Law provides for the application of international construction practices and the recognition of foreign licenses and documents. The Alatau City Authority determines permissible practices and recognition procedures

Budget policy.

Standard Legal Regime for Cities in Kazakhstan: Revenues, expenditures, and intergovernmental transfers are determined by budget legislation

Accelerated Development City Regime in Alatau: Withdrawals from the local budget and the Alatau City Authority’s funds to other budgets are prohibited until the city achieves fiscal self-sufficiency

Administrative services.

Standard Legal Regime for Cities in Kazakhstan: Services are provided by authorized bodies, including through e-government services

Accelerated Development City Regime in Alatau: Provisions on a one-stop shop for matters regulated by the Alatau City Authority and digital procedures by default take effect on July 1, 2027

Regulatory control and inspections.

Standard Legal Regime for Cities in Kazakhstan: Conducted by authorized government bodies in accordance with Kazakh legislation

Accelerated Development City Regime in Alatau: Starting January 1, 2027, the Alatau City Authority and persons it authorizes exercise regulatory control over matters subject to special regulation. The powers of other bodies are delineated in Article 42

Prosecutorial oversight.

Standard Legal Regime for Cities in Kazakhstan: Exercised in accordance with Kazakh legislation

Accelerated Development City Regime in Alatau: Retained. Starting January 1, 2027, inspections of the Alatau City Authority are conducted by the Prosecutor General’s Office on the instructions of the President of Kazakhstan or the Prosecutor General. Inspections of residents’ private businesses are permitted on the instructions of, or with the approval of, the President of Kazakhstan or the Prosecutor General

Starting January 1, 2027, Article 42 establishes a special inspection procedure. On matters within the regulatory remit of the Alatau City Authority, regulatory control is exercised by the Authority and persons it authorizes. Certain inspections by other government bodies require the Authority’s written consent. The Law provides for exceptions, including for special state bodies and for anti-corruption and financial monitoring agencies exercising their exclusive powers.

The main economic function of the status of a city of accelerated development is to create conditions for attracting private capital and technology companies. To this end, the Law provides for experimental regimes, the application of international practices, and special rules for hiring foreign workers.

1. Experimental legal regimes. Article 36 allows the Alatau City Authority to adopt temporary acts for the development, testing, and deployment of new technologies. Such acts remain in effect until a specified date or event. This makes it possible to test new solutions in practice and trial the rules for their use before permanent regulation is introduced.

2. International construction and licensing standards. Article 63 provides for the application of international construction practices and design documentation, as well as the recognition of foreign licenses for engineering surveys, design, construction, and engineering services. Design documentation is reviewed for compliance with seismic, fire, sanitary and epidemiological, and occupational safety requirements. The Alatau City Authority determines the list of permissible practices and the procedure for recognizing documents.

3. Simplified hiring of foreign specialists. Article 60 allows certain categories of residents to hire qualified foreign workers without foreign labor permits. The Alatau City Authority sets the categories of eligible employers, the list of occupations, and the requirements for specialists. Article 61 also allows visas and temporary residence permits to be extended at a resident’s request without leaving Kazakhstan.

The provisions of Articles 60 and 63, as well as the migration mechanisms described above, take effect on January 1, 2027.