Kazakhstan to Create Alatau City Authority to Oversee Special-Status City

2026-03-20 - 10:02

The Astana Times provides news and information from Kazakhstan and around the world. ALMATY – Kazakhstan plans to establish a new state body, the Alatau City Authority, to manage the development of the future city of Alatau, Deputy Prime Minister Kanat Bozumbayev said during a March 20 joint session of Parliament, where lawmakers approved in the first reading a draft constitutional law on the city’s special status. Deputy Prime Minister Kanat Bozumbayev. Photo credit: baq.kz “The Alatau City Authority is being created as a new state body based on strategic development. Its activities will be determined by a council chaired by the Prime Minister. Day-to-day operations will be carried out by a chief executive officer,” Bozumbayev said. The council will be responsible for key strategic decisions and approving administrative acts, while the akimat (city administration) and maslikhat (local representative body) will oversee social and public matters, ensuring a separation of responsibilities. Separate budget and governance model According to Bozumbayev, the Alatau City Authority will act as an independent administrator of national budget programs. “Its budget is formed under a block budgeting principle within the national budget and will mainly be aimed at infrastructure development and long-term projects. The selection and financing of projects will be approved by the council,” Bozumbayev said. He added that the city’s local budget will cover operational and social obligations. Until Alatau achieves financial self-sufficiency, funds will not be withdrawn from its budget to other levels of government. Digital governance and experimental regimes At a March 18 government meeting on implementing the new Basic Law, Deputy Prime Minister and Minister of National Economy Serik Zhumangarin said that draft laws propose granting Alatau “city of accelerated development” status, including special taxation, investor protections, and support for advanced technologies such as unmanned transport and digital assets. Astana would receive updated governance mechanisms for urban planning, migration, and transport to improve the urban environment and support long-term development. As Bozumbayev emphasized, authorities plan to build Alatau as a fully digital city, with governance processes designed digitally from the outset. He said the city will introduce experimental legal regimes that allow companies to test innovative technologies under simplified regulations. “This includes areas such as communications, digital networks, artificial intelligence, robotic systems and autonomous transport,” he said. Through a dedicated digital platform, residents and businesses will be able to access key services, including permits and the application of special legal regimes. The city may also introduce regulation of digital assets, including crypto exchanges and tokenization, in coordination with the National Bank and the Agency for Financial Monitoring. Land rules for investors Bozumbayev emphasized that land allocation, particularly for foreign investors, will be strictly tied to specific investment projects. “All investors in Alatau, including foreign ones, will be granted land plots only for the implementation of specific investment projects and for obtaining a business license,” he said. If construction of key facilities such as factories, universities or hotels does not begin within two years, penalties will be imposed. If development does not proceed within another two years, the land will be reclaimed by the state. “These measures apply exclusively to investment projects. Land allocation for Kazakh citizens will continue to be regulated under existing legislation,” he said. The project positions Alatau as a pilot city for new governance, digital solutions and investment models, combining centralized strategic oversight with flexible regulatory mechanisms.