Nearly 70 pct of AIC investments directed to industrial sector
By Aynur Jafarova
The Azerbaijan Investment Company (AIC) reported that so far it has directed 68 percent of its investments to the industrial sector.
According to the company, 18.9 percent of the AIC investment portfolio falls to the agricultural sector, 4.91 percent - the food industry and 8.04 percent of the funds are invested in the company's subsidiaries.
The company reported that it is involved in the implementation of nine ongoing projects worth over $1 billion. Its investments exceed $113 million.
The biggest AIC project is the construction of the Baku Shipyard. AIC's share in the project worth $470 million amounts to $40 million.
Furthermore, the company is involved in the projects such as the construction of a seed production plant worth $24.03 million, expansion of production capacity at one of the largest poultry farms in Azerbaijan - Devechy Broiler - worth $14.48 million, construction of an agro-service enterprise in the Aghstafa region worth $5.93 million, construction of a new cement plant worth $300 million, construction of a new milk processing plant worth $12.23 million and establishment of the Caspian International Investment Company worth $66.16 million.
AIC was established by a Presidential decree dated March 30, 2006. The only founder of the company is the Azerbaijani Ministry of Economic Development.
The main purpose of AIC is to support the development of the non-oil sector of the economy via termed equity injection along with local and foreign co-investors into the greenfield and brownfield projects on the territory of Azerbaijan.
The company's authorized capital was increased to 160 million manat in 2010 from 90 million manat upon its establishment.
The general social, economic and legal conditions and investment climate in Azerbaijan are favorable for investment activity. The government takes necessary measures to accelerate development of entrepreneurship, to simplify starting procedures of business and to increase suitableness of business climate as well.