IBA aids drawing British investors to Azerbaijan
Great Britain retains its leading positions in terms
of the volume of investments made in the Azerbaijani economy,
accounting for about 50 percent of the total amount of foreign
investments.
A trade and investment forum "Great Britain in Azerbaijan" took place in London on March 8, aimed at boosting cooperation between the two countries and presenting investment opportunities in Azerbaijan for the British business community. The forum was organized under the auspices of the Middle East Association and the International Bank of Azerbaijan (IBA).
The Azerbaijani delegation was represented by high-ranking government officials and representatives of the business community,
including Jahangir Hajiyev, the IBA Chairman, Shahmar Movsumov, Managing Director of Azerbaijan’s State Oil Fund (SOFAR), Suleyman Gasymov, Vice-President of the State Oil Company of the Azerbaijan Republic (SOCAR) on economic issues, Akim Badalov, Head of the State Agency for Alternative and Renewable Energy Sources under the Ministry of Industry and Energy, Reza Veziri, President of Anglo Asian Mining, Nasib Piriev, General Director of AzMeCo, and others.
Britain was represented by such high-ranking officials as Rt. Hon. the Lord Howell of Guilford, co-chairman of the Britain-Azerbaijan Business Council, Michael Thomas, General Director of the Middle East Association (MEA), and the Alderman Nick Anstee, Lord Mayor of the City of London. Vast opportunities of the Azerbaijani economy in such fields as energy, financial services and insurance, education, infrastructure, agriculture, retail trade and tourism were presented at the forum.
The forum covered such issues as the investment climate, project financing, investment incentives, opportunities for British business in Azerbaijan, energy, diversification of the economy, education, and entrepreneurship.
At the forum's opening ceremony, which was held in the Mansion House, MEA General Director Michael Thomas noted that Azerbaijan is a strategic country in the region and possesses much more than oil and gas, which the British business community is currently aware of. According to him, the City of London is the world's leader in rendering financial services, and this is the best place for bringing together all leading bankers and businessmen with an aim of promoting trade and investments between Britain and Azerbaijan.
According to Rt. Hon. the Lord Howell of Guilford, considering the opportunities currently offered to British investors, the future of relations between the two countries spans beyond energy issues.
Jahangir Hajiyev, co-chairman of the Business Council and IBA Chairman, expressed hope that the Council, established in London in September 2009, would help in considerably expanding business relations between the two countries.
According to him, MEA’s contribution and efforts in Azerbaijan have become a turning point in the area of intensifying business contacts, and the contribution of London to Azerbaijan’s economic successes is considerable and valuable. Azerbaijan is surmounting the financial crisis much better than its neighbors owing to a prudent economic management and thanks to the policy carried out by the President aimed at diversification of the economy, which has fostered economic and political stability.
In his speech, the Alderman Nick Anstee said such a conference is very timely nowadays, as it follows the two visits of British business delegations to Baku, demonstrating the broad interest of the British financial services sector in Azerbaijan.
In his opinion, Azerbaijan is regarded as an important agent in an emerging market. Over 160 British companies are currently operating in Azerbaijan, ranging from the small and medium-sized enterprises to such large ones as AIOC, Rolls Royce and BP. Azerbaijan is the third largest export market for Great Britain in the Eastern Europe and CIS, next only to Russia and Ukraine. In his speech the Alderman Nick Anstee expressed hope for the future broadening of investment opportunities and intensification of the Azerbaijani-British trade.
Since Azerbaijan gained its independence, Britain has played a key role in its development, considers Fakhraddin Gurbanov, Azerbaijan’s Ambassador to Great Britain. According to him, 170 British companies are currently operating in the country and about 5,000 British citizens work and live in Azerbaijan.
A particular emphasis at the forum was placed on the measures taken by the government of Azerbaijan with the view of diversifying the economy.
Shahmar Movsumov, SOFAR Managing Director, noted that education is the main sphere in the course of economic diversification, and knowledge and skills are crucial for Azerbaijan. Thus, Britain can assist in diversifying the Azerbaijani economy by sharing the expertise commanded by its companies.
According to Sevinj Hasanova, Deputy Minister of Economic Development, Azerbaijan aims at increasing the volume of non-extraction export per capita up to $5,000 by 2020 as compared to $287 reported as of the end of 2009.
As an example, in Japan, it has amounted to $6,154, and in the U.S. it is $4,191. In order to achieve these figures, annual growth of non-extraction export in Azerbaijan should make up 21%.
In 2001-2009, this indicator increased on average by 20.3%. The deputy minister considers that to meet these targets the annual growth rate of real non-extraction GDP is to reach 7%, while investments in the non-oil sector 8%, and the volume of investments in the non-oil sector is to increase from $750 million in 2009 to $4.2 billion in 2016. Having informed the British business community about the projects implemented in the non-oil sector, the representatives of Azerbaijani companies tried to draw investors' attention to their financing. Reza Veziri, President of Anglo Asian Mining Plc, the only producer of gold in Azerbaijan, plans to produce 72,000 ounces of gold by the end of 2010 from the Gadabay gold and copper mine in Azerbaijan. This month, the company has also launched production of copper from Gadabay. Much of financing the company currently receives from the IBA, which, according to Veziri, makes it the main business partner of the company.
Under the long-term PSA agreement with the government of Azerbaijan, signed in August 1997, the company has been awarded the rights for the development of six deposits in southwest Azerbaijan – Gadabay, Ordubad, Gosha Bulag, Gyzyl Bulag, Vezhnali and Soyutlu. The Azerbaijani company AzMeCo, which implements the largest project in the country's non-oil sector, presented the current and future projects and also invited the British investors to cooperate. According to Nasib Piriev, General Director of AzMeCo, the project consists of three phases. During the first phase worth $324 million, it is planned to construct a methanol plant with the annual capacity of 720,000 tons.
The second phase of this project is estimated at $700 million and is aimed at construction of a fertilizer plant, Azershavre, a complex for production of ammonia, calurea and formaldehyde. The third phase of this project provides for production of methanol and carbamide derivatives. AzMeCo plans to start the production of acetic acid, DME and melamine. According to Luke Marshand, the Acting Director of sovereign ratings of Standard & Poors international rating agency, the great demand for the products of the oil and gas sector will facilitate expediting the growth rate of Azerbaijan’s economy. In his speech, Marshand set forth the progress and positive trends in the Azerbaijani economy. According to him, pursuant to the sovereign rating received by Azerbaijan from the agency in December 14, 2009 at the level of "BB+" with the positive forecast, the strengths of the Azerbaijani economy are the significant fiscal and external buffers, low volume of public debt, and the large fund created on the basis of oil and gas revenues.
The attendees also familiarized themselves with the current situation in the country's energy sector. Thus, SOCAR Vice-President Suleyman Gasymov said that in the years to come Azerbaijan will increase its role in ensuring energy security of the regional countries and the European Union. According to him, by 2015, SOCAR plans to bring the country's oil production up to 60 million tons and production of gas up to 35-40 billion cubic meters. Last year, more than 50 million tons of oil were produced in Azerbaijan, up by 6 million tons as compared to 2008. In 2009, the production of gas constituted about 24 billion cubic meters, up by 276 million cubic meters in comparison with the previous year. According to the SOCAR vice-president, all this creates suitable conditions for fulfilling projections.
Thus, the British business community that participated at this forum was presented with the full and real picture of the current situation in the main sectors of Azerbaijan’s economy and the reforms carried out with the view of strengthening the process of diversification. The success of this forum has become apparent in the great interest displayed by the representatives of British companies and government agencies, who actively cooperated with the Azerbaijani delegation.
A trade and investment forum "Great Britain in Azerbaijan" took place in London on March 8, aimed at boosting cooperation between the two countries and presenting investment opportunities in Azerbaijan for the British business community. The forum was organized under the auspices of the Middle East Association and the International Bank of Azerbaijan (IBA).
The Azerbaijani delegation was represented by high-ranking government officials and representatives of the business community,
including Jahangir Hajiyev, the IBA Chairman, Shahmar Movsumov, Managing Director of Azerbaijan’s State Oil Fund (SOFAR), Suleyman Gasymov, Vice-President of the State Oil Company of the Azerbaijan Republic (SOCAR) on economic issues, Akim Badalov, Head of the State Agency for Alternative and Renewable Energy Sources under the Ministry of Industry and Energy, Reza Veziri, President of Anglo Asian Mining, Nasib Piriev, General Director of AzMeCo, and others.
Britain was represented by such high-ranking officials as Rt. Hon. the Lord Howell of Guilford, co-chairman of the Britain-Azerbaijan Business Council, Michael Thomas, General Director of the Middle East Association (MEA), and the Alderman Nick Anstee, Lord Mayor of the City of London. Vast opportunities of the Azerbaijani economy in such fields as energy, financial services and insurance, education, infrastructure, agriculture, retail trade and tourism were presented at the forum.
The forum covered such issues as the investment climate, project financing, investment incentives, opportunities for British business in Azerbaijan, energy, diversification of the economy, education, and entrepreneurship.
At the forum's opening ceremony, which was held in the Mansion House, MEA General Director Michael Thomas noted that Azerbaijan is a strategic country in the region and possesses much more than oil and gas, which the British business community is currently aware of. According to him, the City of London is the world's leader in rendering financial services, and this is the best place for bringing together all leading bankers and businessmen with an aim of promoting trade and investments between Britain and Azerbaijan.
According to Rt. Hon. the Lord Howell of Guilford, considering the opportunities currently offered to British investors, the future of relations between the two countries spans beyond energy issues.
Jahangir Hajiyev, co-chairman of the Business Council and IBA Chairman, expressed hope that the Council, established in London in September 2009, would help in considerably expanding business relations between the two countries.
According to him, MEA’s contribution and efforts in Azerbaijan have become a turning point in the area of intensifying business contacts, and the contribution of London to Azerbaijan’s economic successes is considerable and valuable. Azerbaijan is surmounting the financial crisis much better than its neighbors owing to a prudent economic management and thanks to the policy carried out by the President aimed at diversification of the economy, which has fostered economic and political stability.
In his speech, the Alderman Nick Anstee said such a conference is very timely nowadays, as it follows the two visits of British business delegations to Baku, demonstrating the broad interest of the British financial services sector in Azerbaijan.
In his opinion, Azerbaijan is regarded as an important agent in an emerging market. Over 160 British companies are currently operating in Azerbaijan, ranging from the small and medium-sized enterprises to such large ones as AIOC, Rolls Royce and BP. Azerbaijan is the third largest export market for Great Britain in the Eastern Europe and CIS, next only to Russia and Ukraine. In his speech the Alderman Nick Anstee expressed hope for the future broadening of investment opportunities and intensification of the Azerbaijani-British trade.
Since Azerbaijan gained its independence, Britain has played a key role in its development, considers Fakhraddin Gurbanov, Azerbaijan’s Ambassador to Great Britain. According to him, 170 British companies are currently operating in the country and about 5,000 British citizens work and live in Azerbaijan.
A particular emphasis at the forum was placed on the measures taken by the government of Azerbaijan with the view of diversifying the economy.
Shahmar Movsumov, SOFAR Managing Director, noted that education is the main sphere in the course of economic diversification, and knowledge and skills are crucial for Azerbaijan. Thus, Britain can assist in diversifying the Azerbaijani economy by sharing the expertise commanded by its companies.
According to Sevinj Hasanova, Deputy Minister of Economic Development, Azerbaijan aims at increasing the volume of non-extraction export per capita up to $5,000 by 2020 as compared to $287 reported as of the end of 2009.
As an example, in Japan, it has amounted to $6,154, and in the U.S. it is $4,191. In order to achieve these figures, annual growth of non-extraction export in Azerbaijan should make up 21%.
In 2001-2009, this indicator increased on average by 20.3%. The deputy minister considers that to meet these targets the annual growth rate of real non-extraction GDP is to reach 7%, while investments in the non-oil sector 8%, and the volume of investments in the non-oil sector is to increase from $750 million in 2009 to $4.2 billion in 2016. Having informed the British business community about the projects implemented in the non-oil sector, the representatives of Azerbaijani companies tried to draw investors' attention to their financing. Reza Veziri, President of Anglo Asian Mining Plc, the only producer of gold in Azerbaijan, plans to produce 72,000 ounces of gold by the end of 2010 from the Gadabay gold and copper mine in Azerbaijan. This month, the company has also launched production of copper from Gadabay. Much of financing the company currently receives from the IBA, which, according to Veziri, makes it the main business partner of the company.
Under the long-term PSA agreement with the government of Azerbaijan, signed in August 1997, the company has been awarded the rights for the development of six deposits in southwest Azerbaijan – Gadabay, Ordubad, Gosha Bulag, Gyzyl Bulag, Vezhnali and Soyutlu. The Azerbaijani company AzMeCo, which implements the largest project in the country's non-oil sector, presented the current and future projects and also invited the British investors to cooperate. According to Nasib Piriev, General Director of AzMeCo, the project consists of three phases. During the first phase worth $324 million, it is planned to construct a methanol plant with the annual capacity of 720,000 tons.
The second phase of this project is estimated at $700 million and is aimed at construction of a fertilizer plant, Azershavre, a complex for production of ammonia, calurea and formaldehyde. The third phase of this project provides for production of methanol and carbamide derivatives. AzMeCo plans to start the production of acetic acid, DME and melamine. According to Luke Marshand, the Acting Director of sovereign ratings of Standard & Poors international rating agency, the great demand for the products of the oil and gas sector will facilitate expediting the growth rate of Azerbaijan’s economy. In his speech, Marshand set forth the progress and positive trends in the Azerbaijani economy. According to him, pursuant to the sovereign rating received by Azerbaijan from the agency in December 14, 2009 at the level of "BB+" with the positive forecast, the strengths of the Azerbaijani economy are the significant fiscal and external buffers, low volume of public debt, and the large fund created on the basis of oil and gas revenues.
The attendees also familiarized themselves with the current situation in the country's energy sector. Thus, SOCAR Vice-President Suleyman Gasymov said that in the years to come Azerbaijan will increase its role in ensuring energy security of the regional countries and the European Union. According to him, by 2015, SOCAR plans to bring the country's oil production up to 60 million tons and production of gas up to 35-40 billion cubic meters. Last year, more than 50 million tons of oil were produced in Azerbaijan, up by 6 million tons as compared to 2008. In 2009, the production of gas constituted about 24 billion cubic meters, up by 276 million cubic meters in comparison with the previous year. According to the SOCAR vice-president, all this creates suitable conditions for fulfilling projections.
Thus, the British business community that participated at this forum was presented with the full and real picture of the current situation in the main sectors of Azerbaijan’s economy and the reforms carried out with the view of strengthening the process of diversification. The success of this forum has become apparent in the great interest displayed by the representatives of British companies and government agencies, who actively cooperated with the Azerbaijani delegation.
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