UN: Azerbaijan has strong potential to become regional investment hub

Azerbaijan has significant potential to become a regional hub for attracting investment and fostering cross-border financial flows, a United Nations official said, highlighting the country's efforts to expand sustainable finance initiatives.

Speaking at a panel on innovative financing for sustainable development during the annual meeting of the Islamic Development Bank (IsDB) Group in Baku, Nasar Hayat, the Food and Agriculture Organization's (FAO) representative in Azerbaijan, said the country was making progress in strengthening its sustainable finance framework, Caliber.Az reports via local media.

Hayat pointed to ongoing reforms, including the development of a National Green Taxonomy and the Sustainable Finance Roadmap for 2023-2026, as Azerbaijan seeks to align investment flows with environmental and development goals.

His remarks come as the global financing gap for the United Nations Sustainable Development Goals (SDGs) continues to widen, driven by declining levels of Official Development Assistance (ODA) and mounting pressure on public finances.

"The global SDG financing system is facing serious challenges," Hayat said, adding that governments and international institutions need to embrace more flexible and innovative sources of capital.

He identified several priorities for mobilising additional funding, including attracting private-sector investment, strengthening domestic financial resources and expanding the use of Islamic finance instruments, financial technology, digital solutions and capital markets.

"If we want to achieve the Sustainable Development Goals, we need to think beyond traditional approaches and ODA assistance," Hayat said.

He added that Azerbaijan's strategic location and experience in hosting major international events, including COP29, position the country to play a larger role in regional investment and sustainable development financing.

By Aghakazim Guliyev