Building a business in Kazakhstan presents unique challenges and opportunities for entrepreneurs. Dennis Ruiter, a former KLM executive, shares his experience of transitioning from a successful career to launching ventures in the region.
Dennis Ruiter, city — Almaty, entrepreneur, linkedin
About myself
After a successful 25-year career with KLM Royal Dutch Airlines, including roles as an expatriate General Manager in Sudan and Ethiopia, I was offered an exciting new opportunity: to move to Kazakhstan and manage the company's operations across Kazakhstan and neighboring countries. Without hesitation, I accepted.
The transition from working in the harsh climate of Sudan, where temperatures could soar above 50°C, to the more temperate climate of Almaty in 2011 was a welcome change. The shift from a high-hardship assignment to the relative comfort of Kazakhstan marked a new chapter in both my professional and personal life. After resigning from KLM, I decided to stay in Kazakhstan, where I married and raised two wonderful daughters who are Kazakh/Dutch.
Why Kazakhstan
The decision to stay and build a business in Kazakhstan came naturally. Kazakhstan, as a rapidly developing nation, offered numerous opportunities, particularly for entrepreneurs willing to adapt to its emerging market. Although the initial business ideas didn’t always go as planned, the challenges only deepened my understanding of the local market.
One of my first ventures in Kazakhstan involved a partnership with a Malaysian company to sell LED street lighting powered by solar and wind energy. The goal was to provide energy-efficient solutions to the region. However, after engaging with local authorities and exploring business opportunities, it became clear that the agendas didn’t align. The government’s interest was in setting up local manufacturing, but without guarantees on volume, it wasn’t a viable commercial model. This experience highlighted a critical lesson for any international entrepreneur: ensure all agreements are formalized with signed and stamped contracts, as promises made over email or WhatsApp are not legally recognized in Kazakhstan.
The business environment and challenges
The biggest challenge I faced as a foreign entrepreneur in Kazakhstan was navigating the language barrier. The local language is still a significant hurdle for newcomers, and the government’s priorities and business practices didn’t always align with the goals of foreign investors. It took time to adjust to the regulatory environment, particularly around currency controls. For instance, payments in foreign currencies like USD or Euro require additional paperwork, which can be cumbersome for minor discrepancies. While I understand the reasoning behind it, I believe there could be more flexibility in handling small payment differences to streamline the process.
Despite these challenges, Kazakhstan’s business environment has continued to evolve, with great potential in sectors such as renewable energy, logistics, and agriculture.
My first attempt with KazNeth, a venture into the LED lighting market, quickly ended. I then transitioned into the oil and gas sector and later shifted again, focusing on logistics. After a few years I decided to try again to start my own business. I pivoted KazNeth to become an AI-driven Internet marketing agency, specializing in search engine optimization and AI-based marketing tools.
SEO, which helps websites increase their visibility and organic traffic without relying on paid ads, continues to have high demand globally. This pivot to digital services has been successful so far, with significant learning along the way. In fact, serving a few initial clients for free allowed me to expand my knowledge, improve my skills, and better understand the needs of my target market.
The potential for growth in the field of SEO and AI marketing is immense, as businesses of all sizes continue to seek digital solutions to improve their online presence. My long-term goal is to grow KazNeth, employ local talent, and share my knowledge and expertise with the next generation of entrepreneurs. The global nature of online marketing means the possibilities are endless. With the rise of AI technologies, the future of digital marketing is more promising than ever.
Moreover, I hope to see my daughters join the business as it expands. Given that our services are digital, we can easily scale and serve clients beyond Kazakhstan, expanding to regional and international markets.
Advice to entrepreneurs
If there’s one piece of advice I could offer to anyone starting a business in Kazakhstan, it’s this: always formalize your agreements with signed and stamped contracts. Verbal agreements or promises made via email or messaging apps will not hold up legally. This is a vital lesson I learned early on and one that I continue to stress to anyone looking to enter the market.
In conclusion, Kazakhstan offers vast opportunities for international entrepreneurs, but understanding the local business culture and adapting to the market’s unique challenges is crucial. By doing so, you can build a successful, sustainable business in this dynamic and growing region.
If you have any questions, feel free to reach out via the website, and I’ll be happy to offer advice or assistance.
