Retail business contributing to Azerbaijani economy
By Aynur Jafarova
Retail business development can make a significant contribution to diversification of the Azerbaijani economy.
This remark was made by Azerbaijan's Deputy Economy and Industry Minister Sahil Babayev at a roundtable on the development of retail and franchising, organized as part of a Dubai Chamber delegation visit to the country.
The roundtable was organized by Dubai Chamber of Commerce and Industry.
Dubai Chamber is an entity engaged in the development of the business environment and the protection of the business interests of the United Arab Emirates (UAE).
"Azerbaijan has made significant progress in economy over the past 10 years and now the country is facing with the task of diversifying the economy which is reflected in the "Azerbaijan-2020: Vision into the Future" concept," he noted.
"The UAE has extensive experience in the development of retail and franchising, and this experience can be beneficial to local entrepreneurs," Babayev said.
More than 20 agreements on cooperation in various spheres of the economy have been signed with the Emirates.
Currently, about 200 companies from the UAE are operating in Azerbaijan. In recent years more than $465 million were invested by the UAE in this Caspian nation.
"There is appropriate ground for expansion of cooperation between our countries," the deputy minister said.
In his remarks, Deputy Chairman of Dubai Chamber of Commerce and Industry Hisham Al Shirawi said Islamic retail enjoys serious development potential in Azerbaijan.
"Currently, so called halal-retail consists about 10 percent of global retail sales. In 2012, Muslims have spent $224 billion on Islamic clothing and footwear, and according to the forecasts, this figure will rise to $324 billion in the next few years. As for cosmetics, Islamic retail volumes in this area amounted to $26 billion in 2012, and according to the forecasts, the market will rise to $39 billion by 2018," Al Shirawi noted.
He went on to add that Dubai is one of the largest world actors in the retail business and the second largest world center of retail trade.
"Only one of the largest trade centers of the emirate, Dubai Mall was visited by over 75 million people last year, which is 15 percent more than in 2012. We have huge experiences about the development of retail and franchising, and are ready to share it with our Azerbaijani colleagues," Al Shirawi stressed.
Diplomatic relations between Azerbaijan and the UAE were established on September 1992.
Azerbaijan and the UAE are cooperating within the framework of the UN, the Islamic Conference Organization, and other influential regional and international organizations. The UAE supports Azerbaijan's fair position on the Armenia-Azerbaijan Nagorno-Karabakh conflict.