Zaur Karimov: “Economic transformation impossible without an active private sector”

Economic diversification, development of the non-oil sector and attracting foreign investment remain among Azerbaijan’s key priorities. Effective cooperation between the government and the private sector plays a crucial role in achieving these goals.

The American Chamber of Commerce in Azerbaijan (AmCham Azerbaijan) is one of the country’s leading business associations, bringing together local and international companies operating across a wide range of sectors. According to its Executive Director, Zaur Karimov, the success of economic transformation depends on innovation, cooperation and the active participation of the private sector.

In this interview, Zaur Karimov discusses Azerbaijan’s business environment, investment opportunities, private sector development, digital transformation and the steps needed to further enhance the country’s attractiveness for international investors.

- AmCham Azerbaijan has long served as an important cooperation platform between the private sector, government institutions, and the international business community. How do you assess AmCham’s role in the diversification of Azerbaijan’s economy and the process of sustainable economic transformation?

- As the country’s leading non-profit business association, AmCham Azerbaijan has contributed for over 30 years to the development of the private sector, the creation of a favorable business environment, and the strengthening of public-private dialogue. We believe that economic transformation can only be achieved through the joint cooperation of not only the government, but also the business community, academia, and other stakeholders.

Today, AmCham Azerbaijan brings together more than 280 leading local and international companies and operates as one of the most influential platforms in the country’s business community. Our Chamber unites the interests of companies representing various sectors, identifies the challenges and priorities they face, and supports the establishment of constructive dialogue with relevant government institutions.

As AmCham, we help shape a unified voice for the business community, contribute to ensuring that the private sector’s position is taken into account in decision-making processes, and actively participate in promoting initiatives that support the country’s economic development priorities. We believe that strong public-private partnership, open dialogue, and mutual trust are among the key factors for Azerbaijan’s sustainable economic development.

- Today, innovation and new technologies are considered key drivers of economic development. What role can Azerbaijan’s business sector play in promoting innovation?

- In the modern era, innovation is no longer an option but a necessity for enhancing competitiveness. The private sector plays a leading role in the adoption of new technologies, integration of digital solutions, development of the startup ecosystem, and the formation of innovative business models.

In Azerbaijan, the role of the business sector in developing the innovation ecosystem is not limited to adopting new technologies. Companies can also make a significant contribution by fostering a culture of innovation, supporting research and development initiatives, collaborating with startups, and investing in future skills. Strengthening cooperation among business, government, and academia is particularly important in this regard.

Promoting this cooperation is one of the main directions of AmCham Azerbaijan’s activities. We consider innovation and digital transformation to be key priorities of the country’s economic development and support the active participation of the business community in this field. Currently, through 11 committees and 3 working groups operating under the Chamber, we bring together companies representing various sectors. In particular, the Innovation and Digital Economy Committee, as well as the Artificial Intelligence Working Group, play an active role in shaping initiatives aimed at developing the innovation ecosystem.

We regularly organize dialogue platforms between government institutions and private sector representatives and prepare proposals and position papers reflecting the views of the business community. Many of these initiatives are later incorporated into position papers and the biennial White Paper presented to relevant government institutions.

In addition, through forums, panel discussions, hackathons, and other initiatives on artificial intelligence, digital transformation, and innovation, we promote knowledge exchange and cooperation among stakeholders. We believe that alongside technology, collaboration, knowledge sharing, and a favorable business environment are crucial for the development of the innovation ecosystem.

- In the global business environment, ESG principles are recognized as key elements of sustainable economic development. How do you assess the impact of this approach on the development of Azerbaijan’s business environment and the competitiveness of the non-oil sector?

- One of the key conditions for sustainable economic development is that businesses operate based on responsible management principles aimed at creating long-term value. Azerbaijan’s non-oil sector has significant potential, and the widespread adoption of sustainable business practices is essential to realizing this potential.

Today, competitiveness in the global economy is no longer measured solely by financial indicators, but also by companies’ commitment to sustainability and responsible governance approaches. In this context, the application of ESG principles will play a crucial role in the development of Azerbaijan’s non-oil sector.

At AmCham Azerbaijan, we place special emphasis on raising awareness within the business community and promoting best practices in this area. One example is the Sustainability Handbook prepared by our Chamber. This initiative provides practical support to companies in implementing ESG principles and adopting sustainable business approaches.

We believe that the success of economic transformation will depend not only on technological development but also on the broad implementation of sustainable and inclusive development principles within the business environment. AmCham Azerbaijan will continue to play an active role in supporting initiatives that contribute to the country’s economic diversification and sustainable development goals.

- In your opinion, which areas should receive special focus in order to further strengthen Azerbaijan’s innovation, investment, and competitiveness in the next stage of development?

- First of all, I would like to note that under the leadership of President Ilham Aliyev, the economic diversification policy, the focus on developing the non-oil sector, and the initiatives implemented in the areas of digitalization, innovation, and green energy have created a strong foundation for Azerbaijan’s sustainable economic development.

I believe that in order to further strengthen Azerbaijan’s innovation, investment, and competitiveness, the next phase should focus on developing high value-added sectors, promoting technology- and knowledge-based entrepreneurship, increasing investment in human capital, and attracting international investments. At the same time, strengthening the country’s position as a regional innovation and business hub is particularly important.

Azerbaijan’s strategic geographical location, developing transport and logistics infrastructure, green energy potential, and international partnerships create significant advantages in this direction. Effective utilization of these opportunities requires further strengthening of cooperation between the public and private sectors.

As AmCham Azerbaijan, we highly appreciate the strategic development priorities set by the country’s leadership and continue our activities to increase the contribution of the business community to these goals. We believe that steps taken in this direction will further enhance Azerbaijan’s long-term competitiveness and investment attractiveness.