Azerbaijan urges German companies to make investments

ECONOMICS  27 February 2024 - 20:04

A business delegation led by Executive Director of the Eastern Committee of the German Economy Michael Harms is on a business visit to Azerbaijan.

Azerbaijani Economy Minister Mikayil Jabbarov, the leadership of the agencies under the ministry and the Azerbaijan Investment Holding, German ambassador to Azerbaijan Ralf Horlemann, Executive Director of the Eastern Committee of the German Economy Michael Harms and German businessmen attended the meeting with the German delegation at the Azerbaijani Economy Ministry, according to Caliber.Az.

The sides stressed during the meeting that Azerbaijan has a favourable investment environment for the activity of international partners, including German companies, and that successful cooperation experience stimulates the development of relations in various sectors of the economy.

The visit of a big delegation of German companies interested in cooperation in industry, construction, renewable energy sources, agriculture, transport, logistics, ICT, finance, law, consulting and other spheres to Azerbaijan is the result of meetings between the Azerbaijani President and business circles during the visit to Germany and will play an important role in the development of trade and economic relations.

Azerbaijan attaches great importance to the development of trade, economic and investment cooperation with Germany. The trade turnover between the countries increased by 45.4 per cent in 2023, amounting to $1.8 billion. Currently about 180 German companies are successfully operating in Azerbaijan.

The event participants were informed about the Azerbaijani economy, business and investment environment. The non-oil economy and export of non-oil products are increasing from year to year as a result of the ongoing economic reforms.

Azerbaijan’s macroeconomic stability, the creation of a strategic framework for managing public debt, and the development of human capital expand the country’s economic opportunities. The event participants were informed about the ongoing reforms in the country in various spheres, including taxes and customs.

The renewable energy development projects which are implemented in the country were discussed, and the energy partnership between the European Union and Azerbaijan was emphasised during the meeting. The importance of the strategic document on energy signed between Azerbaijan and the EU, as well as the quadripartite memorandum on the project of laying an electric cable along the bottom of the Black Sea signed by Azerbaijan, Georgia, Romania and Hungary was stressed.

The German businessmen were informed about international and regional transport and logistics projects, the author and participant of which is Azerbaijan, as well as the opportunities created by the Middle Corridor. The businessmen were informed about the favourable investment climate created for entrepreneurs in industrial zones, including the Alat Free Economic Zone, and benefits for residents. Azerbaijan’s numerous logistics and transport capabilities open up wide opportunities for the activity of German companies in Azerbaijan.

Azerbaijan’s importance and contribution to regional cooperation was stressed. Azerbaijan effectively cooperates on various platforms with the member states of the UN Special Programme for the Economies of Central Asia – SPECA. The free trade agreements signed with several countries simplify economic and trade relations. The Preferential Trade Agreement between Azerbaijan and Türkiye is a successful example.

 The satisfaction was also expressed with the activity of German companies in Azerbaijan. Azerbaijan is an attractive country for making direct investments. The further expansion of transport and logistics capabilities creates additional prospects for German companies.

The holding of the 29th session of the Conference of the Parties to the UN Framework Convention on Climate Change (COP29) in Azerbaijan shows Azerbaijan’s importance attached to the development of a green economy and solving global problems.

In conclusion, the representatives of German companies voiced their proposals and expressed interest in participating in various sectors of the Azerbaijani economy, as well as public-private partnership projects, including restoration and construction work in the Azerbaijani territories liberated from occupation.

The German businessmen are expected to visit the Alat free economic zone and the Baku International Sea Trade Port.

Caliber.Az