Economic growth of Azerbaijan will be formed at the expense of the non-oil sector of Azerbaijan, Ziyad Samadzade

Issues of development of the non-oil sector have been discussed today (February 24) in Baku at the business forum of the Caspian European Club (Caspian Business Club), held with participation of the Chairman of the Committee for Economic Policy, Industry and Entrepreneurship of Milli Majlis (parliament) of Azerbaijan Ziyad Samadzade. Prospects of development of the economy and legislative initiatives on development of entrepreneurship and further improvement of business-climate in Azerbaijan were discussed at the meeting. 

Addressing the session, Ziyad Samadzade noted that President of Azerbaijan Ilham Aliyev declared about the completion of the economic rebound of the country in 2009. "Within a short period of time we have created a new economic system while it took other states centuries to have it created”, Z.Samadzade noted. 

He emphasized that investors hesitated to invest in Azerbaijan in the period of gaining of the independence whereas not their volume has exceeded $200bln. 

Signing of the contract of the century in 1994 with well-known oil companies played a big role in this process, Z.Samadzade noted. "Oil was produced in Azerbaijan for 150 years, but the independence let us produce it on our own and direct it towards the development of the country”, he continued, noting that Azerbaijan has created currency reserves and an oil fund which saves revenues gained from oil sale. 

According to him, Azerbaijan is a leader in the region till 2014. It turned from a borrower into an investor. 

Global challenges and decline of oil prices by 4 times have certainly affected the revenues of the state as the oil sector accounts for a higher amount of revenues flowing into the state budget, he noted. Meanwhile, he noted that oil is more a tool rather than a target. This factor helped to attract investments into the oil sector first and now into the non-oil sector. 

Z.Samadzade emphasized that Azerbaijan’s economic growth would be formed at the expense of the non-oil sector. 

According to him, big importance should be attached to the development of the processing industry. He reminded that the state has created an infrastructure and a favorable business-climate in the regions of Azerbaijan and called business to invest in the regions of the country.  

He noted that Azerbaijan is capable of producing agricultural products exceeding the needs of the country. Special importance should be attached to such sectors as wine-making, tea growing and cotton growing which used to be the well-developed sectors of the agriculture. 

Ziyad Samadzade noted that Azerbaijan is located in the intersection of transportation corridors. According to him, BTK railways is needed for reducing the time and distance to reach Europe. "It is a regular capital for Azerbaijan”, he underscored and noted that "Azerbaijan has a big transit potential”. 

Speaking at the meeting, Ziyad Samadzade also touched the issues of development of the banking sector. "We want banks to credit a real sector of economy”, he said. 

Proposals of participants on this topic, on changes into the tax, customs and labor codes, as well as issues that were of interest to the member companies of the  Caspian European Club (Caspian Business Club) were discussed at the business-forum. 

Addressing the business forum, First Deputy Chairman of the Caspian European Club (Caspian Business Club) Telman Aliyev thanked Z.Samadzade for a constructive dialogue as well as for an attention to proposals and requests expressed by members of the Caspian European Club (Caspian Business Club) in the course of the event. According to him, within the framework of the business forum companies obtained answers to questions interesting them, discussed possibilities of development of the legal framework with the aim to improve a business-climate in Azerbaijan.  

Signed in the course of the business forum were memoranda about cooperation of the Caspian European Club (Сaspian Business Club) with the Azerbaijan State Economic University and Azerbaijan Technical University. Memoranda were signed by First Deputy Chairman of the Caspian European Club (Caspian Business Club) Telman Aliyev, Rector of the Azerbaijan State Economic University Adalat Muradov and Rector of the Azerbaijan Technical University Havar Mammadov.  

According to T.Aliyev, memoranda will boost cooperation between the Higher Educational Institutions of Azerbaijan and over 5,000 member companies of the Caspian European Club (Сaspian Business Club). 

In the course of the event representatives of VSL Company handed an international CMC certificate (Calibration and Measurement Capabilities) to Shukur Agazade, Chairman of the Board of Director of "Azmetko Kompleks Sazlama və Avtomatlaşdırma” JSC.   

Telman Aliyev noted that Caspian European Club (Caspian Business Club)   was established in June 2002 under support of large oil-gas companies operating in the Caspian and Black Sea region. His Excellency President of the Republic of Azerbaijan Ilham Aliyev is the Chairman of the Caspian European Club (Caspian Business Club). According to Telman Aliyev, the Caspian European Club (Caspian Business Club) has promoted attraction of oil sector revenues into development of the non-oil sector since its establishment. Caspian European Club, which brings together over 5,000 member companies and organisations, is operating in 50 countries around the world, carrying out an active work to maintain the dialogue between government agencies and the private sector. 

In the course of the business forum Z.Samadzade was presented an honorary membership certificate of the Caspian European Club (Caspian Business Club). Certificates were also given to new member companies of the Caspian European Club (Caspian Business Club) - U.F.E. Shipping LLC, Avis Azerbaijan, "Aselsan-Bakü”, Qartal Tikinti Firması. The business forum was attended by heads of companies and ambassadors as well as representatives of diplomatic agencies.