Scots make up 98% of arrivals to Atyrau as bilateral relations growBy Elizabeth Mistry
ASK the average person on the street where Kazakhstan is and they'd probably have trouble pointing it out on a map. Not Allan Cameron, sales director at Sabre Safety - the Fife-based specialist in breathing systems for the oil exploration sector.
Sabre, with its headquarters in Cupar, has been operating in Central Asia's largest nation for almost two years.
The company employs a mix of expat and local staff on the ground, which Cameron says is the key to navigating red tape in a country that declared independence from the former Soviet Union less than two decades ago.
Sabre works out of Atyrau, the oil and gas capital of western Kazakhstan, which boasts a sizeable population of Scots among its 300,000 inhabitants.
Andy McKinnon, who heads up Manpower's recruitment business in Atyrau, has been based there longer than most and seen numbers rise as major oil and gas fields in the region begin to require more technical expertise and personnel. His Kazakh wife - who sports a broad Scots accent - runs a thriving equipment supply business and is by no means the only woman involved at a senior level in a country where women are highly educated and business-minded.
But potential investors should be aware moving into Kazakhstan is a long-term commitment, says John Duncan, director of Aberdeen-based E-learning provider New Leaders, which has just won a contract to provide training in Atyrau and the nearby Tengiz field.
"You need patience and good contacts - without these you could spend a lot of money and waste a lot of time and not achieve very much," he warns. Fortunately, he had plenty of support from the Scottish Kazakh Trade Desk (SKTD), the Aberdeen-based one-stop-shop that offers advice on how to do business in the country. The SKTD is run by John "Tiny" Langler, who has worked in Kazakhstan for many years. Through his close links with the Kazakh consulate in Aberdeen - the only one outside London - Langler, who also heads up Walker Technical, has seen the number of visa applications double in the past year.
"Visits are constantly on the up. I understand that up to 98% of arrivals to Atyrau, for example, are coming from Scotland," he explains.
"Within Scotland, especially in the northeast, there is a much greater awareness of Kazakhstan now.
"I know of at least half a dozen companies actively looking at ventures - and not just in the oil and gas sector but also in education and training."
Duncan and Cameron agree small and medium enterprises need to do their homework before venturing into the market. "There are language issues - Russian is still the lingua franca of business but Kazakh is becoming increasingly important, especially at government level," says Duncan. The business culture requires some "getting used to", he says.
The Kazakh authorities are keen to promote the country's investment potential, pointing out the opportunities in a range of sectors and the fact the country has a good relationship with the UK - even if it did take the London embassy a year to take Tony Blair's picture off its website and acknowledge a Scot had become prime minister.
The new ambassador, Kairat Abusseitov, who last month made his first journey to Scotland and attended a SKTD reception in Aberdeen, told the Sunday Herald he was keen to strengthen ties with Scotland.
"My priority is to develop the good relationship we have built up and remind investors of the range of sectors available," he says.
"We are particularly keen that people realise our new financial centre in Almaty - the country's former capital - offers many opportunities and that our improved fiscal regulatory regime can stand alongside that of the UK or the US."
Abusseitov admits Kazakhstan still needs to work on its image. Reports of human rights violations and persecutions of religious groups have long been a blot on the calling card of the country that will chair the Organization of Security and Co-operation in Europe from 2010.
But, he says, potential investors need have no concerns. He insists "Kazakhgate" - a scandal that scared off many investors a couple of years ago after President Nazarbayev's former advisor, US businessman James Giffen, was charged with bribery, is "all in the past".
And the ambassador is not the only one keen to improve bilateral relations. Last month the Kazakh president met Tony Blair at a religious summit.
According to the UK's Department for Business, Enterprise and Regulatory Reform, the UK is the second largest foreign investor in Kazakhstan; total foreign direct investment for 2007 topped US$40 billion (£20bn) and growth this year is predicted to be around 5.3%.
Cameron prefers doing business in Kazakhstan to certain other countries "because we try to take an ethical stance in what we do". He believes a 30% return on investments is easily achievable and sees the company's success as a springboard to moves elsewhere in the region.
"Kazakhstan's potential is bigger than the Middle East. But it is still very much to do with who you know."
For information on The Kazakh Growth Forum 2008: www.kazgf.com
