In Kazakhstan, the futuristic city of “Alatau” reaches a new milestone with special status 
Presented as a future major technological and economic hub, the city of Alatau in Kazakhstan is entering a new phase of institutional structuring after obtaining special status, amid persistent uncertainties about its development.
On 27 March, Kazakhstan’s Parliament adopted a law establishing a special legal regime for the city of Alatau, located a few dozen kilometres from Almaty. This status as a “territory of accelerated development”, with specific economic, administrative and legal rules, is intended to attract investment and foster innovation. The decision marks an important step in the evolution of a project that has been presented for several years as a future technological showcase for the country.
Until recently, however, Alatau remained largely associated with political announcements and ambitious projections, without any real implementation on the ground. The adoption of this special status therefore reflects the Kazakhstani authorities’ desire to structure the project and give it an operational dimension. It remains to be seen whether this institutional advance will make it possible to turn a futuristic vision into a tangible reality.
A project revived by the adoption of a special legal regime
According to the municipality, the city will now benefit from a distinct governance system, with an organisation designed to speed up decision-making and facilitate the establishment of economic actors. The project notably provides for the creation of a strategic authority, the Alatau City Authority, responsible for defining development priorities, as well as an operational body dedicated to the day-to-day management of the project.
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The city will therefore be placed under the supervision of a council chaired by Prime Minister Olzhas Bektenov, in order to ensure direct coordination at the highest level of the state. At the same time, traditional local institutions, such as akimats and maslikhats, will retain their powers in urban management and public social services.
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Beyond governance, this status comes with a specific regulatory framework, including tax incentives, simplified administrative procedures and rules adapted to innovative sectors. This development allows the project to move beyond the announcement stage and enter a concrete institutional framework, marking a new phase in its development.
An economic and regulatory framework designed to attract investment
Launched in the early years of President Kassym-Jomart Tokayev’s mandate in the 2020s, Alatau is intended to become a hub capable of attracting international investment and supporting the country’s economic diversification, notably through its integration into a special economic zone.
The city, which has more than 50,000 inhabitants, is also intended to become a hub for digital technologies, digital assets and innovative financial services. In May 2025, President Tokayev announced the creation of a pilot zone called “CryptoCity” in Alatau, where cryptocurrencies could be legally used to pay for goods and services. This direction is part of a broader strategy aimed at positioning Kazakhstan as an emerging player in high value-added sectors.
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Several concrete initiatives illustrate this ambition. As reported by Alatau City, discussions have been held with South Korea under the Economic Innovation Partnership Program, or EIPP, for the development of the city’s infrastructure. In addition, a branch of the Korea Advanced Institute of Science and Technology, or KAIST, one of South Korea’s leading technological universities, is set to be established in Alatau, strengthening its academic and scientific positioning.
Financial ambitions are also significant. According to the Kazakh authorities, planned investment in the project could reach 10.4 trillion tenge, or around €20 billion. At the same time, the municipality has announced the upcoming start of construction on a landmark architectural complex called “Iconic Towers”. Work is due to begin in May 2026, with completion expected by 2029, at an estimated cost of $800 million, or around €680 million. These elements reflect a desire to give Alatau an economic, technological and symbolic dimension.
Between stated ambitions and persistent uncertainties
Despite these advances, several factors call for caution regarding the project’s immediate impact. In particular, a lack of clarity remains around the tax and legal rules applicable to Alatau, raising questions about the coherence and effective implementation of the system. These uncertainties reflect the difficulties inherent in creating an entirely new regulatory framework.
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Above all, the situation on the ground remains limited at this stage. In March 2026, Kazakh influencer Alimbek Ulan visited the Alatau site and observed the start of excavation work on the outskirts of the area concerned. However, no major structural progress was visible, confirming that the project remains largely in a preparatory phase.
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This gap between stated ambitions and concrete progress has fuelled criticism from some observers, who point to the risk of Alatau remaining a primarily symbolic project. The year 2026 therefore appears to be a decisive moment: with the announced launch of construction work, the authorities will have to demonstrate their ability to turn announcements into reality and begin a genuine construction phase.
Lenny Cabrol Noto
Author for Novastan
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