Azernews.Az

By Seymur Aliyev

Trade turnover between Azerbaijan and Turkey has increased ten-fold over the past ten years, and the two countries intend to increase it further to $10 billion within the next five years, the Aksam newspaper reported on Tuesday quoting Turkish Prime Minister Recep Tayyip Erdogan.

"By late this year, we intend to increase the trade turnover to $4 billion. Our goal is to bring it to $10 billion within the next five years," Erdogan said.

According to Azerbaijan's Ministry of Economic Development, there are 844 companies operating with Azerbaijani capital in Turkey. The companies are mainly engaged in construction, tourism, real estate, energy and transport sectors. The state oil company SOCAR and other Azerbaijani companies have invested about $4.5 billion in the Turkish economy. Until 2018, SOCAR plans to invest $17 billion in Turkey.

According to Azerbaijani Ambassador to Turkey Faig Bagirov, 1,516 enterprises operating with Turkish capital were recorded in Azerbaijan as of January 2011. 239 of them were registered in 2010 alone.

Turkish companies, along with US and British firms, are the biggest investors in Azerbaijan. According to the Azerbaijani Ministry of Taxes, 1,330 Turkish legal entities were registered in the state register of taxpayers as of early this year. Turkish companies have been involved in large-scale work under contracts in Azerbaijan, including the construction of such buildings as ISR Plaza, Grand Hotel Europe, the Central Bank of Azerbaijan, the Central Clinical Hospital, and Heydar Aliyev International Airport of Baku. Moreover, the country's companies have facilitated the construction of Alat-Gazimammad road, Baku-Supsa oil pipeline, the giant Sangachal oil and gas processing terminal outside Baku, and other projects.

Turkish companies are mainly engaged in the fields of banking, construction, food and beverage processing, etc.

Coca-Cola Baku plant is one of the largest Turkish investments in Azerbaijan, totaling more than $100 million. Cellular operator Azercell, another company with Turkish capital working in Azerbaijan, has invested more than $1 billion in the country. According to Azerbaijan's Ministry of Taxes, Azercell Telecom LLC is the second biggest taxpayer operating outside the country's oil sector. The company reported that during the first five years of its activity, it contributed a total of $780 million to the state budget and state funds. According to Azercell, it currently holds 55% of the market share in mobile telecommunications.

In 2011, Azerbaijan's overall foreign trade turnover increased 29.92% compared to 2010 to reach $36.326 billion. Goods worth $26.57 billion were exported from the country, which is 24.39% over 2010. The volume of imports equaled $9.755 billion, 47.81% above the 2010 figure.

A total of 2,082 types of products were exported from Azerbaijan and 6,233 types imported in 2011. Thus, a positive balance in the trade turnover was equal to $16.814 billion.

The growth of the foreign trade turnover was fueled by a number of measures implemented by the government, such as protecting the rights of all individuals and legal entities on import and export of strategic goods. Also, efforts were made to prevent monopoly practices, ensure proper marketing in the domestic market, simplify customs regulations, conduct foreign trade liberalization, and create favorable investment climate.