Foreign direct investment (FDI) based on balance of payments data is classified into assets and liabilities.

Kazakhstan’s direct investment assets include investments by resident entities in foreign subsidiaries and associates, as well as claims on their foreign direct investors and fellow enterprises.

Kazakhstan’s direct investment liabilities comprise investments by non-resident entities in Kazakhstani subsidiaries and associates, as well as liabilities of resident enterprises to their foreign direct investors, subsidiaries, associates, and fellow enterprises.

* Fellow enterprises are entities that are under the control or influence of the same direct investor, but do not directly or indirectly control each other.

FDI based on the directional principle, unlike FDI based on the balance of payments principle, is calculated net of reverse investment — that is, investment by direct investment enterprises (subsidiaries and associates) in their direct investors.

Thus, the net inflow of FDI into Kazakhstan based on the directional principle includes the liabilities of Kazakhstani enterprises to foreign direct investors and fellow enterprises, net of claims on them.

Net inflow/outflow indicators of FDI are compiled on a net basis, meaning they take into account sales or repayments of equity and debt instruments.