Minister: Great Return to liberated lands to boost Azerbaijan’s economic growth

By Azernews

By Ayya Lmahamad

Azerbaijan’s Economy Minister Mikayil Jabbarov has said that the Great Return will remain a booster of the country’s economic growth.

He made the remarks on air on Azerbaijan Television (AzTV), Azernews reports.

The minister underlined that the main task is to ensure the Great Return and create an economic base for it.

“We can already talk about resolving two issues. First, this is security. We are all witnessing the fact that entrepreneurs, media representatives, and other citizens can freely travel to the liberated territories in the appropriate manner,” he said.

Jabbarov emphasized that the second issue is infrastructure support, adding that a number of works are being implemented at a rapid pace in this direction, new airports and roads are being built, and energy and water supply are being provided.

Moreover, he mentioned that Azerbaijan links sustainable economic activity and investment with the Great Return. He recalled that two special economic zones have been created in liberated lands, namely Aghdam Free Economic Zone in the Aghdam District and Araz Valley Economic Zone in the Jabrayil District.

“There are many entrepreneurs whose applications are at the final stage of consideration. These are Azerbaijani investors and entrepreneurs, but we have already received signs about the interest of foreign investors,” he said.

Economic indicators

Jabbarov also emphasized that the country’s economic indicators for the first half of 2022 are satisfactory. He noted that the growth of the economy by more than 6 percent and the non-oil sector by 9.6 percent demonstrates healthy economic growth.

“In many countries of the world, economic growth is predicted to slow down this year, while all leading rating agencies, based on Azerbaijan's economic indicators for the first half of this year, are increasing their forecasts,” he said.

Furthermore, speaking about the factors that ensured economic growth, he stated that during the COVID-19 pandemic, consistent measures were taken by the state. The minister said that the main goal was to ensure the continuation of the activities of enterprises, the preservation of jobs, and ensuring the integrity of the economic structure.

“Second, we see the results of economic and structural reforms. Third, it is related to the efficiency in the management of state enterprises. Another factor is the continuously evolving business environment. Finally, the oil and gas sector continues to play an important role in the Azerbaijani economy. As you know, in 2022, there was an increase in oil and gas prices on world exchanges,” he said.

Azerbaijan’s export strategy directions

Stating that Azerbaijan’s export strategy envisages several directions, Jabbarov noted that the first direction is geographic diversification and the second is product diversification.

“We pay special attention to non-oil exports. Our economic policy is to deepen the process of industrialization in Azerbaijan,” he said.

The minister stressed that industrial products play the main role in the country’s non-oil exports. He added that in the first six months of the year, Azerbaijan more than doubled its oil and gas exports, trade turnover increased by 75 percent, and non-oil exports by 25 percent.

“Non-oil exports could grow even faster, but in mid-March, it became known about problems with food security in the world, as well as with regional processes,” he said.

He stated that given the important role of Russia and Ukraine in the food market of Azerbaijan and assessing the impact of the known events on prices, a special regime has been applied to the export of food products from the country.

“All this has a negative impact on the growth of non-oil exports,” he said.

In this regard, Jabbarov stated that in the coming years, along with building up the industrial potential of Azerbaijan, steps are envisaged to create added value.

“Azerbaijan exports a number of products as intermediate products, but the potential for their localization is being studied and individual projects are being implemented. Various incentive projects will continue to be implemented to maintain the competitiveness of Azerbaijani exports,” he said.

Green energy

The minister noted that Azerbaijan takes institutional steps in the green energy field. He added that the state has invested funds, created approaches and frameworks, and explored ways to integrate with traditional energy.

"When such foreign investors as Masdar, Aqua Power, bp or other energy companies operating in Azerbaijan apply to us, we conduct not abstract, but substantive negotiations with them," he said.

Additionally, he emphasized that Azerbaijan made an important decision this year not to be limited to foreign investments in the renewable energy sector.

"Our state-owned companies, primarily SOCAR, and if appropriate decisions are made at the next stage, Azerenergy, can invest in this sector. Azerbaijan supports and encourages participation of state-owned companies as investors," he said.