Azernews.Az

By Gulgiz Dadashova

The state of Azerbaijan is working to create a more attractive business environment, and make the country alluring for foreign investments.

"The ongoing active and deep economic reforms pursue this aim," said President Ilham Aliyev while talking to French businessmen.

President Aliyev received on May 11 a delegation of MEDEF, Movement of the Enterprises of France, visiting Baku to explore the perspectives of developing business ties with Azerbaijan.

The ways of bringing French investment, technology and services to Azerbaijan to help boost local production, investment and support economic growth in 2016 were the main focus of talks in Baku.

The two enjoy a common interest in developing the collaboration and partnership in economy, as the bilateral ties rely on strong political ties.

In a speech to leading French businessmen, the president praised the bilateral political ties, and reciprocal visits of the two countries’ leaders, noting that the solid political base offers new opportunities for doing business.

The French companies invested about $2.4 billion in Azerbaijan's economy, while over 40 companies with French capital operate in Azerbaijan. French companies are also involved in projects implemented by public investment. The trade turnover with France amounted to $233.13 million in the first quarter of 2016, of which $200.89 million fell on export to this country.

“Bulk of French investments, surely falls to share of the oil and gas industry. However, of course, given the priority to diversify the economy, we would like to see more investment in other sectors,” President Aliyev said.

Mentioning that the bilateral economic cooperation is already quite diverse and covers the areas of transport, as well as space industry, President Aliyev voiced an interest in launching the cooperation in the agricultural sector

“Several projects have already been launched. The sector has great potential and is among priorities for Azerbaijan in expanding export opportunities,” the president explained.

As the global energy sector still shows volatility, Azerbaijan is betting on agriculture. Agricultural sector which is one of the leading parts of non-oil sector projected to grow by 5.5 percent in 2016 and average of 5.2 percent in next 3 years.

France is the most dominant agricultural center of Europe: its share of the value of EU agricultural production is 18.1 percent. The sector plays the role of a crucial driver of growth and employment, as it ensures jobs for over 1.4 million people and provides 3.5 percent of national GDP.

Further hailing the bilateral ties in humanitarian sphere, the president reminded that a French lyceum operates in Baku while the work is underway for creating Azerbaijani-French University.

Surely, the humanitarian sphere does not create directly any business activity. However, it plays a very important role in promoting friendly relations and creating mutual understanding and partnership, emphasized President Aliyev.

The president further voiced his confidence that the developed economic cooperation will draw attention to sectors which are of priority for Azerbaijan.

“Currently, Azerbaijan works to reduce dependence on oil prices, oil and gas sector establish a sustainable economy that will be able to provide a good standard of living for people. We are working in this direction, we carry out economic reforms and reforms in the area of increasing employment in Azerbaijan.

Over the past 15 years, $200 billion have been invested in Azerbaijan, with half being foreign investments. However, the bulk of foreign investment was made in oil and gas sector. And today it is necessary to pay more attention to other areas of the economy,” the president said, adding that despite the fall in revenues the financial situation is stable.

President Aliyev stated that 2017-2018 will be a period of very active development of non-oil sector, noting that public and private investment have already been planned, while infrastructure projects will be of priority in investment making.

Once again noting the necessity of drawing more foreign investment into the country, President Aliyev stressed the necessity of finding a balance between the interests of investors and the interests of Azerbaijan.

“So far, I think we coped with this task. However, this year is the year of the new economic situation. As I have repeatedly pointed out, we have entered the post-oil period. We cannot say that the petroleum era is over. We just have to leave aside this factor and shape our economic strategy as if we do not have oil and gas,” the president said.

The projects creating conditions for business activity are of priority, the president added.

French Ambassador to Baku Aurelia Bouchez, who also took part in the meeting, in turn noted that the variety of sectors that the MEDEF delegation represents demonstrate the dynamics of the economic cooperation.

Meanwhile, Marie-Ange Debon, Co-chairperson of Azerbaijan-France Business Council and Senior Executive Vice-President of the SUEZ Group voiced readiness to continue operating in Azerbaijan and expand the ties.

During the Baku visit, the delegation also met with Economy Minister Shahin Mustafayev, who invited French companies to invest in the areas of agriculture, transport, construction, aviation, tourism, high technology, the environment and others, especially in the projects implemented in the private sector.