2024-05-18 07:38:03
Supply: Development Worldwide Info Company
The newest FDI Intelligence report from the Monetary Occasions names Baku because the third hottest funding vacation spot on the planet.
In keeping with the report, the agreements reached final 12 months on overseas direct funding in Azerbaijan are the biggest tasks since 2017. Thus, in 2023, a major inflow of overseas direct funding totaling $6.7 billion was drawn to the Azerbaijani financial system. The main buyers within the Azerbaijani financial system have been the UK ($1.9 billion), Turkey ($1.3 billion), Cyprus ($792 million), Russia ($617 million) and Iran ($396 million).
Azerbaijan’s favorable enterprise local weather and promising funding alternatives entice many overseas buyers. Key tasks are being carried out throughout numerous sectors of the financial system to stimulate innovation and financial development whereas serving to to create new jobs for the nation’s workforce.
Final 12 months, an settlement was signed between the Azerbaijan Funding Firm (AIC) and the Hungarian Hell Group. In keeping with the signed settlement, a brand new plant with an annual manufacturing capability of 700 million aluminum beverage cans shall be constructed within the Alyat Free Financial Zone. The merchandise produced will fulfill native demand and also will be exported to Central Asian international locations. The venture, a significant funding of $211 million, goals to create greater than 300 jobs.
One other massive enterprise that can obtain vital funding in Azerbaijan includes the manufacturing of electrical buses via a partnership with the Chinese language firm BYD Firm Restricted within the Sumgayit Chemical Industrial Park. BYD initially dedicated $34 million to the venture, with one other $60 million deliberate to be invested in value-added tasks. The aim of the venture is to create 800 new jobs. Ranging from the third 12 months of manufacturing, it’s deliberate to localize the manufacturing of spare elements for electrical buses.
As well as, with the participation of the Turkish firm “Gen Ilaç ve Sağlık Urünleri Sanayi ve Ticaret A.Ş.” the venture is scheduled to launch in 2023 within the Pirallahi Industrial Park with an funding price of $35 million. As well as, in cooperation with the Israeli firm BioPharmax, a pharmaceutical plant is being constructed within the Alyat Free Financial Zone, the venture price is 45 million euros.
Azerbaijan has established very profitable partnerships with power corporations from Arab international locations. One of many placing examples is cooperation with Masdar from the UAE, which has been actively working in Azerbaijan since 2020. Masdar has achieved an necessary milestone with the profitable launch of the 230 MW Garadagh solar energy plant in October 2023.
As well as, Masdar has entered into agreements to develop onshore wind and photo voltaic tasks, in addition to built-in offshore wind and inexperienced hydrogen tasks, totaling 4 GW of capability within the nation. Masdar and Azerbaijan have mutually agreed on an choice to extend the full capability of renewable power tasks to a powerful 10 GW, overlaying numerous applied sciences. Furthermore, it turned recognized that in November this 12 months Masdar will start building of a number of renewable power tasks in Azerbaijan, the full price of which is able to exceed $1 billion.
In 2019, ACWA Energy from Saudi Arabia made its debut in Azerbaijan. The corporate is at the moment creating a 240 MW wind farm in Azerbaijan with a complete funding of $286 million. On 26 October 2023, the EBRD offered a syndicated mortgage of $197.1 million (€186.9 million) to ACWA Energy Azerbaijan Renewable Power. As well as, on December 15 of this 12 months, the OPEC Fund authorized a mortgage of $50 million to ACWA Energy Wind Azerbaijan Renewable Power, aimed toward supporting the development of the Khizi-Absheron wind energy plant.
Earlier this 12 months, ACWA Energy, in collaboration with the Division of Power, signed 4 main venture agreements, together with a 1 GW onshore wind farm, a 1.5 GW offshore wind farm and a battery power storage venture.
So, these are only a few examples of Azerbaijan’s profitable funding partnerships with a variety of companions in all corners of the world. Ongoing discussions with each present and potential companions are centered on attracting funding in new ventures. Just lately, for instance, Azerbaijan and Kazakhstan created a joint funding fund, the aim of which is to draw bilateral funding in numerous sectors. As well as, on the latest Tashkent Funding Discussion board, Azerbaijan and Uzbekistan thought of new areas of funding cooperation.
With the COP29 convention going down in November this 12 months, Azerbaijan will use this chance not solely to advance its local weather agenda, however can even be capable of display funding alternatives to potential companions. It’s noteworthy that vital funding prospects are rising not solely in Baku, but additionally within the liberated territories of Azerbaijan, opening up alternatives within the power sector, agriculture, improvement of transport infrastructure and numerous different sectors. Corporations from Turkey, Russia, Israel, Germany and different international locations are already profiting from these alternatives.
Azerbaijan’s various funding panorama is complemented by tax incentives. Overseas buyers will be assured that Azerbaijan has robust legal guidelines and rules that shield their rights and pursuits.
Total, in line with the Worldwide Financial Fund’s 2024 report, Azerbaijan is among the many seven most favorable international locations for funding. This means that Azerbaijan will proceed its efforts to extend its funding attractiveness, which is able to result in expanded alternatives for attracting funding sooner or later.