Freedom Holding Corp., Sustainable Development of Central Asia, and Our Response to Global Challenges
This year, we are celebrating the fifth anniversary of Freedom Holding Corp. listing its shares on Nasdaq, the world’s most advanced stock exchange. We have embraced the responsibility being a public and transparent company and in my humble opinion, we have been doing quite well.
In June, our company had the honor of participating in the official closing bell ceremony at Nasdaq. This iconic tradition, observed for over 50 years, was a significant milestone for us as a company from Kazakhstan. Nasdaq, home to around 4,000 publicly traded companies including giants like Apple, Nvidia and Microsoft, has a stock market capitalization exceeding $25 trillion. Participating in a bell-ringing ceremony is a privilege.
We received warm comments about our company and Kazakhstan from Rob Phillips, senior managing director of Nasdaq where he noted that Kazakhstan plays a significant role on the global stage, offering financial technologies and innovations. The rapid digital development of Kazakhstan has been recognized in Times Square in New York and by the global financial community. Our success stems from digital integration with public services and our government’s open-door policy. Without the political will to build bridges and cooperate with global digital giants, we wouldn’t have achievements like digital mortgages and loans, advanced online payment and insurance products, or the Astana International Financial Center.
Freedom Holding Corp., a company from Kazakhstan, has achieved success in 20 countries and on Nasdaq, which is significant for the entire Central Asian region. On the day of the bell-ringing ceremony, our company issued its annual report announcing a record-high revenue of $1.64 billion (+105.5% year-on-year) and an 82.4% increase in net profit, reaching $375 million.
In response to global challenges, Freedom Holding Corp. aims not only to expand and boost revenue but also to invest in improving living conditions and developing new technologies for the benefit of Central Asia. We seek to practice good corporate citizenry at both a local and global level, which includes our commitment to sustainable development. We have been a signatory to the UN Global Compact since 2023 and are among the largest supporters of the ESG agenda (environmental, social, governance) in the financial sector of Kazakhstan and Central Asia. This commitment is part of the foundation Freedom Holding Corp.’s business.
What is the UN Global Compact? Launched 20 years ago, it is a voluntary initiative based on ten principles covering human rights, labor, the environment and anti-corruption. These principles help participants align their actions with the social agenda and build a more inclusive and sustainable global economy. Thousands of big and small businesses worldwide have united to address global challenges and make the world a better place.
Kazakhstan is part of Central Asia. With several colleagues from Kazakhstan and Uzbekistan, we decided to go a bit further and have joined the Advisory Committee of the Global Compact in Central Asia. This body plays a crucial role in expanding UN initiatives in the region.
In the sphere of sustainable development, we believe in actions speaking louder than words. Over the past two years, Freedom has invested $31.5 million in various projects aimed at achieving these goals. Overall, the company has donated more than $50 million to modernize infrastructure in Kazakhstani regions, improve education and healthcare, promote sports and enhance living conditions for our fellow citizens.
Freedom has a corporate fund, Freedom Shapagat, which is responsible for centralized charity and sponsorship activities promoting sustainable development on behalf of the company. Over the past six months, the fund has allocated more than $10.5 million to these goals. For instance, Freedom Shapagat is funding the construction of a new educational building for SDU University and has launched a project to install over 100 reverse vending machines to collect and recycle plastic, aluminum cans, and bottles in Almaty and Astana. These are just a few examples of our initiatives.
We also contribute significantly to the Kazakhstan Chess Federation, the International Chess Federation, the Republican Scientific and Practical Center Daryn and the Paryz Foundation in Aktobe.
Moreover, our subsidiary Freedom Telecom will actively participate in the Digital Silk Road development (a joint project with Azerbaijan). We will finance the installation of fiber optic cables for the national hyper West-East trunk to boost data transit through Kazakhstan, and the construction of data processing centers.
Additionally, we have initiated a significant internal ESG transformation of Freedom Holding Corp. We aim to become a regional benchmark in sustainable development, showcasing the successful integration of ESG principles into a corporate environment. In late 2023, the company published its first Sustainability Report in three languages. We are promoting green economy principles and plan to invest $420.7 million in sustainable financial instruments and projects meeting ESG principles from 2023 to 2027.
Recently, I have become the chair of the Advisory Committee of the UN Global Compact in Central Asia, a body committed to resolving transborder issues related to water resources, the environment, hunger, poverty, infrastructure and energy security.
Notably, the number of companies joining the Global Compact in Kazakhstan, Uzbekistan, Kyrgyzstan, and Tajikistan has grown from 55 to 112 over the past year. I am convinced that more businesses will join this effort to improve the living conditions for our fellow citizens and contribute to the development of the region. As the chair of the Advisory Committee of the UN Global Compact in Central Asia, I, along with our company, will do everything possible to address the existing problems in our region.
