2024-04-25 04:12:23
The Financial Times group’s fDi Intelligence publication has published a ranking of the 100 cities with the largest volume of foreign direct investment in 2023.
As Day.Az reported on Wednesday, Baku took 3rd place in this ranking.
According to the publication, the agreements on foreign direct investment in Azerbaijan, reached last year, are the largest projects in the period after 2017. It is noted that, along with several important logistics projects, an agreement was signed in 2023 that the Hungarian company Hell Group alone would invest $211 million in Baku.
It should be noted that last year in Baku, with the participation of the Minister of Economy of Azerbaijan Mikail Jabbarov and the Minister of Foreign Affairs and Trade of Hungary Peter Szijjarto, an Agreement on joint participation was signed between the Azerbaijan Investment Company OJSC (AIC), subordinate to the Ministry of Economy, and the Hungarian company Hell Group “.
According to the document, it is planned to build a new plant in the Alyat free economic zone, the annual production capacity of which will be 700 million aluminum beverage cans. Products will be exported to Central Asian countries, as well as satisfy domestic demand. The project plans to create more than 300 jobs. The investment cost of the project is $211 million.
The favorable business and investment climate of Azerbaijan attracts foreign investors to the country, important projects are being implemented in many areas of the economy, and new jobs are being created.
In 2023, in the Sumgayit Chemical Industrial Park, with the participation of President Ilham Aliyev, the opening of an enterprise for the production of ceramic tiles, Azerbaijan Vanhong Ceramics Co LLC, took place. The enterprise, which is 100% Chinese-owned, has invested US$50 million and created about 500 new jobs.
Another project in Azerbaijan in which large investments will be made is the production of buses with electric motors in the framework of cooperation with the Chinese company BYD Company Limited in the Sumgayit Chemical Industrial Park.
AIC will participate in the project as a shareholder. BYD plans to invest US$34 million in the project first, followed by US$60 million in value-added investment projects.
The project plans to create 800 new jobs. From the 3rd year of production, localization of spare parts for buses with electric motors is provided.
Also, in accordance with the Joint Participation Agreement signed between AIC and the Turkish company “Gen İlaç ve Sağlık Ürünleri Sanayi ve Ticaret AŞ”, in 2023, the foundation of the pharmaceutical manufacturing enterprise “Gen Pharma Colombia Manufacturing Operations” LLC was laid in the Pirallahi Industrial Park.
In addition, together with the Israeli company BioPharmax, a pharmaceutical enterprise with a project cost of 45 million euros is being built in the Alyat free economic zone.
The Alyat Free Economic Zone, which provides entrepreneurs with significant benefits and incentives, provides for the implementation of projects for the production of industrial equipment, construction materials, aviation, shipping, petrochemical and other areas.
Also, with the participation of AIC, the Turkish company “Demirören” envisages investments in the amount of 15 million US dollars for a project for the restoration and operation of small hydroelectric power stations in the regions of Azerbaijan and 20 million manats for a project for the production of breeding eggs with an Israeli company.
Along with this, the Ministry of Economy, within the framework of public-private partnership, continues to work on the implementation of a pilot project for the production of drinking water through desalination of sea water.
In the Financial Times ranking published by fDi Intelligence, the German city of Mannheim took first place, and the Romanian city of Craiova took second place. The report said companies around the world agreed to $1.33 trillion in foreign direct investment in 2023, up 4 percent from the previous year.
FDI Intelligence, owned by the world-famous British publication Financial Times, specializes in in-depth analysis of global and regional markets and the corporate investment climate in many sectors of the economy. The methodology of the FDI 100 publication is based on a study of 100 regions that are rapidly developing in terms of attracting foreign direct investment. The ranking is an assessment of data on the private equity markets and takes into account the number of announced investment projects, the growth rate of capital investment and foreign direct investment, as well as the number of new jobs that will be created through investment.
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