Kazakhstan’s financial market has taken a step that could quietly reshape how investors build their portfolios. What used to be complicated, expensive and посредственно доступно is now becoming direct and practical, DKNews.kz reports.
The Central Securities Depository of Kazakhstan has opened a custody account with First Abu Dhabi Bank - and behind this seemingly technical move lies a much bigger story.
Kazakhstani investors are now one step closer to the markets of the UAE, Saudi Arabia, Oman, Kuwait, Bahrain and Egypt.
From complexity to direct access
Until now, entering Middle Eastern markets meant going through a chain of foreign intermediaries. Each layer added fees, time delays and operational friction.
That barrier is now being removed.
Through KCSD’s account with FAB, investors can:
- settle transactions in securities
- hold and account for assets directly
- access markets without multi-layered посредники
This shift is not just about convenience. It changes the economics of investing.
Why the Middle East matters now
The Middle East is no longer viewed solely through the lens of oil. The region is undergoing structural transformation - with large-scale reforms, ambitious diversification agendas and a growing pipeline of listings.
For investors from Kazakhstan, this opens:
- access to fast-growing capital markets
- exposure to new sectors and industries
- opportunities in Islamic finance, including sukuk
In simple terms, diversification becomes real - not theoretical.
What investors can buy
The range of instruments available through the new setup is broad:
- equities
- government bonds
- corporate bonds
- sukuk - Islamic debt instruments
- ETFs - exchange-traded funds
Each security is subject to compliance procedures, meaning access is structured, controlled and aligned with international standards.
Transactions are settled on a T+1 basis - a globally accepted model that ensures speed and reliability in post-trade processing.
Nine currencies, more flexibility
One of the most practical advantages is the ability to settle transactions in multiple currencies.
Investors can operate in:
- AED - UAE dirham
- SAR - Saudi riyal
- KWD - Kuwaiti dinar
- OMR - Omani rial
- BHD - Bahraini dinar
- EGP - Egyptian pound
- USD - US dollar
- EUR - euro
- GBP - pound sterling
This flexibility allows for better currency risk management and more precise portfolio construction.
A step toward a regional financial hub
Beyond individual investors, this move reflects a broader ambition.
“Opening an account with First Abu Dhabi Bank is an important step in the Central Securities Depository JSC’s strategy to build a regional settlement hub. KCSD has already established extensive inter-depository links; however, the Middle East region had not been directly accessible until now. The opening of the FAB account closes this gap. Direct connectivity reduces the chain of intermediaries, which for professional market participants means lower transaction costs, and for Kazakhstani investors – expanded investment opportunities,” — Yedil Medeu, Chairman of the Management Board of KCSD.
This is how financial infrastructure evolves - quietly, but with long-term impact.
Five million investors - and a new horizon
Nearly 5 million brokerage accounts are already registered within KCSD’s system. This indicates a rapidly growing investor base in Kazakhstan.
Now, that base is gaining access to entirely new geography.
KCSD already maintains links with major global depositories such as Clearstream, Euroclear and Bank of New York Mellon. Adding direct access to the Middle East fills a critical gap in that network.
What comes next
This development could mark the beginning of deeper financial integration between Kazakhstan and MENA markets.
For investors, it means one thing: more options, fewer barriers.
And soon, a typical Kazakhstani portfolio may include not only US and European assets, but also securities from Abu Dhabi, Riyadh or Cairo.
The global market is getting closer. Kazakhstan is moving with it - and, increasingly, on its own terms.
