Azernews.Az

By Leman Mammadova

Every year, trade and economic cooperation between Azerbaijan and Turkey diversifies and covers new areas. Both countries are interested in the maximum expansion of relations. In this terms bilateral investments are an important indicator.

Azerbaijan’s investments in Turkey totaled $516 million in 2018, Trend reports with reference to the Central Bank of Turkey.

At the same time, Azerbaijan’s direct investments in Turkey account for $489 million.

During the year, the biggest volume of investments from Azerbaijan to Turkey was made in November ($178 million), the smallest - in December ($13 million). Azerbaijan accounts for almost 8 percent of all investments in Turkey.

The total value of foreign investments in Turkey amounted to $6.5 billion in 2018.

“Investments worth $4.2 billion account for the share of European countries, which is 14 percent less compared to 2017,” the report said.

Investments by Asian countries in 2018 increased by 3 percent compared with the previous year and amounted to $1.7 billion.

Spain holds the first place among investors in Turkey. The value of direct investments from this country to Turkey amounted to $1.2 billion.

Dutch share in total investments was 13 percent, thus $ 833 million of direct investments in Turkey have come from the Netherlands.

In direct investments Dutch share followed by Azerbaijan with $ 516 million, Italy with $ 509 million, $ 465 million with Australia and $ 446 million.

Italy was the country with the highest increase in the amount of investment.

Turkey and Azerbaijan, both effectively use their economic and energy capabilities, as well as the geopolitical position to expand bilateral and regional cooperation.

Azerbaijani investments in Turkey are estimated at $14.5 billion, about $13 billion of which falls on the oil and gas sector. In turn, Turkey has invested $11.8 billion in Azerbaijan, of which $9.1 billion account for the oil sector. Turkey has invested $2.7 billion in the non-oil sector of the Azerbaijani economy, being the leading investor in this sector.

There are about 3,400 companies with Turkish capital in Azerbaijan, and 2,400 Azerbaijani companies in Turkey.

Turkey is a partner in many strategic projects of Azerbaijan. Turkey was the first state to recognize Azerbaijan's independence in 1991 and has been a staunch supporter of Azerbaijan in its efforts to consolidate its independence, preserve its territorial integrity and realize its economic potential arising from the rich natural resources of the Caspian Sea.

Two countries have gained good experience in the implementation of large-scale projects of international importance, which are well known in the region and the world. These are Baku-Tbilisi-Ceyhan oil pipeline, the Baku-Tbilisi-Erzurum gas pipeline, TANAP, the Southern Gas Corridor and the Baku-Tbilisi-Kars railway.

All projects initiated by Azerbaijan and Turkey are implemented successfully and serve further development and well-being of two nations.

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Leman Mammadova is AzerNews’ staff journalist, follow her on Twitter: @leman_888

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