A comparative analysis of the experiences of three oil-rich states with foreign companies helps us observe the causal dynamics of the relationship between political institutions and Foreign Direct Investment (FDI) and generate testable hypotheses. It is important, however, to test whether or not these hypotheses apply to other oil-rich countries and for foreign investment into sectors other than oil. To that end, in this chapter I first provide a brief analysis of another major oil producer, Kazakhstan.

Similar to Azerbaijan and Russia, in the beginning of the 1990s Kazakhstan also had considerable hydrocarbon reserves that received significant attention from foreign investors. After Russia, Kazakhstan has the largest proven oil and gas reserves in the post-Soviet region. According to some estimates, its proven oil and gas reserves are currently 39.8 billion barrels of oil and 105.9 trillion cubic feet of natural gas – roughly constituting 3.3 percent and 1.7 percent of the world's total proven reserves (comparable to Nigeria and Libya). Kazakhstan has a significantly higher share of estimated global reserves than of its current production, which suggests that its importance in global oil supply is likely to increase in the near future. Given its rising significance, it is worth noting the similarities and differences between this case and the others discussed in this book regarding their performance in attracting FDI.