Azernews.Az

By Kamila Aliyeva

Azerbaijan Investment Company (AIC) is discussing the possibility of creating joint investment funds with foreign partners, AIC Executive Director Rovshan Najaf said at a press conference in Baku on March 5.

He didn’t specify with which companies negotiations are underway, noting that all details will be revealed later.

AIC is already a shareholder of one of the investment funds - Caspian International Investment Company.

The Caspian International Investment Company was established in 2008, and the AIC has a 24.1 percent share in the company. Other shareholders of the investment company include the Islamic Development Bank, Islamic Corporation for the Development of the Private Sector, Al Ahmar Group and AREF Investment Group.

Najaf said that in general rendering support for the non-oil sector, in particular, through the creation of industrial zones in Azerbaijan’s districts will be the main task of the AIC in 2018.

In 2018, such zones will start operating in Masalli, Hajigabul and Sabirabad regions, he added.

“Our task is to create industrial zones in all regions of Azerbaijan. At present, we are working on this task,” Najaf said.

He said that the total investment made in enterprises in the Neftchala industrial zone amounted to 45.3 million manats.

Presently, nine enterprises engaged in industry, food industry, agriculture sectors and one workshop operate in this industrial zone that will open up 500 new jobs.

Najaf added that investors in the Masalli industrial zone presented 33 projects worth 33 million manats.

At the first stage, which will be completed this year, nine enterprises will start operating here. The total volume of investments in these enterprises will be 7.1 million manats, which will open up over 200 new jobs. The enterprises will be engaged in the production of furniture, plastic, ceramic and metal products, building materials.

In the Sabirabad industrial zone, investors presented six projects. The volume of investments will amount to 43 million manats and will allow to open 850 new jobs. The enterprises will engage in the spheres of light industry, agriculture, production of building materials. It is also planned to create a logistics center, he said.

Country’s new car plant

He also informed that automobile plant will be built in Hajigabul industrial district.

Negotiations are being held with foreign investors in this regard, according to the executive director. The company plans to arrange production of both passenger cars and trucks.

Najaf also recalled that in 2018 an automobile plant will be commissioned in the Neftchala industrial district.

By the end of March this year, the opening of the first joint Azerbaijani-Iranian automobile plant, which is being built in the Neftchala industrial zone, is planned. Its founders are Iran Khodro and Azeurocar.

Total cost of projects

He went on to say that the total cost of projects with the participation of AIC reached $1.2 billion.

As many as $450 million of foreign investments were attracted to these projects, which contributed to the creation of 2,600 new jobs, according to the executive director.

As for the financial indicators of the AIC, Najaf noted that the company’s net profit in the end of 2017 was 2.7 million manat ($1.58 million).

The company’s revenues for the reporting period amounted to almost 4.8 million manat ($2.8 million), and expenses 1.8 million manat ($1.05 million). The company also received dividends for 1.25 million manat ($735,470).

Azerbaijan Investment Company (AIC) has been operating since 2006. The main goal of the company is to attract new investors to the existing and new commercial enterprises of the country, as well as to support the development of the non-oil sector by investing in these enterprises at their own expense.

At present, AIC funds are invested in such spheres as agriculture, heavy industry, food industry, logistics and pharmaceuticals.

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Kamila Aliyeva is AzerNews’ staff journalist, follow her on Twitter: @Kami_Aliyeva

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