Citi CCO Outlines Kazakhstan’s Role in ‘Rewired’ Global Economy

ASTANA – As global businesses navigate geopolitical shifts and supply chain disruptions, globalization is entering a fundamental “rewiring” that positions Kazakhstan as a critical strategic hub, said David Livingstone, Chief Client Officer at Citi. Kassym-Jomart Tokayev at the 38th plenary session of the Foreign Investors’ Council in Astana on July 2, 2026. Photo credit: Akorda. Speaking ahead of the annual Foreign Investors’ Council meeting in Astana, Livingstone highlighted how the country’s geography at the crossroads of Europe and Asia combined with its aggressive digital transformation and robust legal frameworks has transformed it from a resource-dependent frontier market into a resilient, multi-polar corridor attracting international capital. Below is the Q&A with Mr. Livingstone. Over the past year, global businesses have had to navigate tariffs, sanctions, industrial policies and shifting alliances simultaneously. Is globalization entering a new phase, or are we witnessing the emergence of several parallel global economies? You have raised what is perhaps one of the most critical questions facing global business today. The simple answer is that globalization is not reversing; it is rewiring. We are not witnessing a retreat but rather the emergence of a multi-dimensional, multi-polar global economy. The world is arguably more fragmented, yet trade is resilient, with growth shifting to emerging-to-emerging market flows. David Livingstone. Photo credit: Citi. This rewiring is driven by a fundamental shift that began during the pandemic and has been accelerated by geopolitical events: the move from a singular focus on efficiency to a balanced focus on efficiency plus resilience. For decades, the just-in-time supply chain was the gold standard. Now, businesses are operating in a just-in-case world, actively diversifying their operations to withstand disruption. This strategic shift is creating a world of new corridors and fresh opportunities, a trend we have analysed extensively at Citi. While headlines may focus on fragmentation, trade has proven remarkably resilient. We are seeing growth increasingly driven by new flows, particularly between emerging markets. Instead of a single, interconnected model, businesses are building more diversified, regional networks. In many ways, this represents a more mature and robust phase of globalization. We live in a world with new corridors and opportunities. For an institution like Citi, this new landscape makes our global network more critical than ever. Citi’s network becomes more valuable as complexity rises. Our global footprint means we are where our clients want to do business. Citi’s global network is both a growth driver and a source of resilience – it enables clients to navigate dimensions, manage risk, and gain competitive advantage through scaled cross-border connectivity. We are the pre-eminent banking partner for companies with cross-border banking needs. Our presence in over 90 markets means we can provide that stability and insight, helping them turn today’s volatility into tomorrow’s opportunity. Many executives now speak about resilience rather than efficiency. What does resilience look like from the perspective of a global bank advising multinational clients? That question gets to the heart of a fundamental shift in corporate strategy. For years, the primary focus was on maximizing efficiency, often through just-in-time models and concentrated supply chains. Today, the conversation has rightly moved to resilience. From our perspective as a global bank advising many multinational clients, resilience is the capacity to operate seamlessly and maintain core functions regardless of the disruption – whether it is geopolitical, a financial shock, or a technological outage. It is about building a business that can bend without breaking. For our clients, this translates into several concrete actions. It means actively diversifying funding sources and supply chains to avoid a single point of failure. It involves maintaining strong liquidity to weather market volatility without being forced into reactive, and often costly, decisions. Furthermore, it requires access to a real-time global financial infrastructure that allows capital to be moved instantly to where it is needed most. Finally, all of this must be supported by robust and resilient financial security frameworks, which today go far beyond simple transaction security to encompass data protection, governance, and the ethical use of information. What is truly different now is that resilience is no longer a defensive or purely risk-mitigation exercise. It has become a source of significant competitive advantage. Our research and client conversations show that the most resilient companies are not just surviving disruptions; they are using them as opportunities to gain market share and strengthen their strategic position. However, resilience does not come without costs. The lessons learned from managing recent events have encouraged businesses and governments to diversify energy supplies, redesign supply chains, build strategic redundancies, and reduce dependence on single suppliers. While these adjustments have made the global economy significantly more resilient to external shocks, they have also increased structural production costs that ultimately feed through into consumer prices. In other words, the global economy may emerge more resilient, but also less efficient and structurally more inflation-prone than in the past. This creates a new structural trade-off between economic security and economic efficiency, with potentially higher standard inflation becoming part of the price paid for greater resilience. This fundamentally changes the environment in which central banks operate. If greater resilience comes at the cost of structurally higher inflationary pressures, monetary policy may also need to adapt to a new equilibrium. Central banks are therefore likely to place greater emphasis on preserving inflation credibility, implying a lower tolerance for upside inflation risks than during the low-inflation era before the pandemic. As a result, periods of restrictive monetary policy may become more frequent, with policy rates remaining higher for longer than markets had become accustomed to before the pandemic. The challenge for policymakers will be to preserve price stability without unnecessarily constraining long-term economic growth. At Citi, we see our role as a key enabler of this resilience. The network becomes more valuable as complexity rises. We provide real-time financial capabilities, the advanced digital infrastructure, and the global connection that our clients need to manage risk and respond to change with agility. It is no longer just about protecting against downside risks, it is about creating the strategic flexibility that allows for sustained, long-term growth. In this new paradigm, the most resilient companies are invariably the most globally connected and strategically agile. Kazakhstan is located between Europe, China, Russia and the Middle East. Has its geopolitical position become a competitive advantage for investors, or does it also increase uncertainty? Which regions do you believe will attract the next wave of global investment over the next five years, and what will determine the winners? Kazakhstan’s unique geography is clearly a significant strategic asset in today’s multi-dimensional world. Its position at the crossroads of Europe, China, Russia, and the Middle East makes it a vital land and logistics bridge, positioning it to play a pivotal role in the future of trade, investment, and regional connectivity. As global supply chains diversify away from maritime chokepoints, land-based alternatives like the Trans-Caspian International Transport Route (the Middle Corridor) have gained strategic importance. This route, connecting China to Europe via Central Asia, offers a compelling alternative for trade. Kazakhstan’s active promotion of this corridor, coupled with its significant wealth in natural resources, including critical minerals essential for the energy transition, makes it an attractive destination for foreign investment. Citi has noted the nation’s robust economy and its success in bringing foreign investment back to pre-pandemic levels. Looking ahead, we believe global capital will flow toward economies that combine three key attributes: strong and predictable institutions, a high degree of digital readiness, and a genuine openness to global markets. Kazakhstan is making meaningful progress across all these areas, from capital market reforms to significant investments in digital and physical infrastructure. Looking at the broader picture for the next five years, we see the next wave of global investment being drawn to regions that can effectively connect these newly reconfigured supply chains. This is not just about being a low-cost manufacturing hub anymore. The winners will be those who offer a combination of strategic location, a skilled workforce, and a resilient, business-friendly environment. Ultimately, what will determine the winners is their ability to offer not just efficiency, but resilience and reliability in a world where predictability is valued at a premium. Artificial intelligence is transforming every industry. How is AI changing investment banking and corporate banking beyond automating routine tasks? AI is fundamentally reshaping the financial sector, moving far beyond the simple automation of routine tasks to redefine the core of how banking works. Industry research estimates that AI could drive global banking profits to as much as $2 trillion by 2028 – a figure that underscores the scale of transformation now underway. This transformation is not about replacing human expertise but augmenting it, allowing for smarter, faster, and more secure outcomes. Within corporate and investment banking, AI is being embedded in core activities to unlock new value. In trade and working capital finance, AI is used to digitize and analyse complex trade documentation, enhance compliance screening, and manage risk in real-time, which streamlines previously manual and time-intensive processes. In the area of payments and liquidity management, AI enables more intelligent, automated payment routing and optimises liquidity for corporate clients, leading to more efficient and robust cross-border transactions. Furthermore, AI significantly strengthens control frameworks by using machine learning to detect anomalies in payment flows, thereby enhancing fraud protection and ensuring regulatory compliance in an increasingly complex environment. This integration allows banks to operate with greater efficiency while empowering teams to dedicate more time to high-value strategic advisory work. By handling the data-intensive analysis, AI allows bankers to focus on building client relationships, structuring complex transactions, and providing the nuanced strategic insights that remain a critical human element of banking. Kazakhstan has made significant progress in digital public services. What should be the nation’s next major step if it wants to compete with leading digital economies? Kazakhstan has certainly built a strong foundation with its leadership in digital public services, which is a significant accomplishment. From my perspective, the next major step is not about a single initiative, but about building scale and depth across the entire digital environment. First, this means continuing to build out high-performance digital infrastructure. The agreement with NVIDIA to develop supercomputing capabilities is a landmark example of the kind of foundational investment required. This is not just about faster internet; it is about creating the raw processing power needed to drive a modern, AI-powered economy. This must be paired with strengthening AI and data governance frameworks to ensure what we call ‘Digital Sovereignty,’ making sure the country can manage its data and digital future securely and independently. Second, it is about fostering the financial systems of tomorrow. This involves creating a clear, consistent, and attractive regulatory environment to develop digital capital markets. There is a tremendous opportunity for Kazakhstan to move quickly and establish itself as a leader in emerging areas like digital assets. Initiatives like the State Digital Asset Fund in Alatau City are positioning the country at the forefront of this shift. This extends to tokenisation, which we at Citi believe presents a massive opportunity. Our research estimates this could become a market worth nearly $4-5 trillion by 2030 and fostering it could provide a powerful engine for the development of Kazakhstan’s own capital markets. All of this needs to be supported by advanced payments infrastructure, including the continued development of Central Bank Digital Currency to ensure the financial foundations are ready for this new era. How has investor perception of Central Asia evolved over the past three years? There has been a very meaningful and positive shift in how investors view Central Asia, and Kazakhstan in particular. For a long time, the region was viewed primarily through the lens of its natural resources. Today, it is increasingly seen as a strategic hub, a valuable source of diversification for global portfolios, and a market with significant long-term growth potential in its own right. This evolution is a direct result of the hard work that has been done. It reflects a period of sustained economic reforms, a clear commitment to improving transparency, and stronger integration into the global markets. As a result, the region is graduating from being viewed as a frontier market to being considered a core source of opportunity and diversification. Investors now see that Kazakhstan is at a pivotal moment. It is advancing its economic transformation and positioning itself to lead through the co-ordinated development of its institutions, its physical and digital infrastructure, and a regulatory framework that is explicitly designed to attract long-term international investment. It is this combination of strategic location, reform-minded leadership, and a clear vision for the future that is capturing the attention of the global investment community. If you were advising an international investor who has never considered Kazakhstan before, what would be your investment argument or advice? At Citi, we have had a front-row seat to the country’s evolution for over 30 years. We have assisted in raising over $40 billion and have seen first-hand how Kazakhstan’s potential has become a reality. Right now, its story is more compelling than ever. For an investor who has never considered Kazakhstan, the investment argument is built on three core pillars: strategic positioning, unwavering reform, and diversifying growth. First, its geography is increasingly strategic. In a world where supply chains are constantly being redrawn, Kazakhstan is the physical land bridge between the economic engines of Europe and Asia. It is the heart of the Middle Corridor, a trade route that offers a real, viable alternative to traditional maritime shipping. This is not just a line on a map; it is attracting massive, tangible investment into logistics and infrastructure that is creating a new hub for regional innovation. Second – and this is critical for any investor – is the country’s powerful commitment to reform. This is not just a promise; it is a proven action. The most visible example is the Astana International Financial Centre, which operates under English common law. For an international investor, that provides a familiar, secure, and predictable legal framework. It is the strongest possible signal that Kazakhstan is not just open for business but is actively building a world-class environment to protect and attract capital. Finally, it is about the future and the diversification of growth. While the country is rich in natural resources, the real story is the strategic push into new, high-value sectors. There is a clear national vision to become a leader in the digital economy, backed by major investments in data centres and AI. Beyond tech, there is enormous potential in agriculture and energy. When you put it all together, you have a country at a geographic crossroads, driven by a pro-business reform agenda, and executing a clear strategy for future growth. That is a special combination of stability and opportunity. Get The Astana Times stories sent directly to you! 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