Kazakhstan’s Oil Income Powers Up National Fund with Multi-Billion Contribution

Kazakhstan’s National Fund received 3.8 trillion tenge (approximately $7 billion) in contributions from the oil sector in 2024.

The figure represents a 16 per cent decline compared to the previous year, The Caspian Post reports, citing Kazakh media.

The drop in contributions was largely attributed to a reduction in oil production by 2.3 million tons and a decline in oil exports by 1.3 million tons, despite relatively stable global oil prices. Analysts note that the lower volumes had a more pronounced effect on revenue than fluctuations in market prices.

At the close of the reporting period, the total assets of the National Fund stood at 34 trillion tenge ($64 billion).

Despite reduced sector contributions, the fund’s foreign currency investment portfolio performed strongly in 2024, delivering a 7.59 per cent return and generating $4.6 billion in investment income. The improved performance is credited to a strategic shift by the National Bank of Kazakhstan, which moved from a conservative asset allocation model to a more balanced strategy. As part of this transition, the share of high-yield instruments was increased from 20 per cent to 40 per cent.

In 2023, the fund also introduced a portfolio of alternative investment instruments, further diversifying its holdings. These measures have significantly enhanced the fund’s investment efficiency and strengthened its resilience to external market volatility, the report concluded.