New mechanisms needed to attract private investment to Azerbaijan

SEPTEMBER 15, 2022

In order to attract private investments to Azerbaijan, together with state resources, it is necessary to develop new mechanisms and form a new environment, Azerbaijani Minister of Economy Mikayil Jabbarov said at the “High Level Forum Azerbaijan: Growth Projects in the Changing Global Economy” in Baku, expressing hope for further cooperation with the World Bank (WB).

He noted that the World Bank has made a great contribution to the development of the Azerbaijani economy.

Azerbaijan is cooperating with the World Bank on projects aimed at restoring the infrastructure of the liberated territories of the country, including projects to create renewable energy sources and transition to a green economy, he said.

The minister noted that Azerbaijan is cooperating with international organizations in the field of hydrogen production.

“This event is taking place also on the background of the recently approved strategy for socio-economic development as part of five national priorities. In this period of our openness and cooperation, you [the World Bank] have listed four priorities in which the bank is looking forward to work with Azerbaijan,” he said. “There are five priorities and we are similarly looking forward to work on all five priorities, fifth priority being, or actually first priority being Great Return to Liberated Territories because I think reconstruction and development may also bring with it not only sustainable economic growth, not only green and sustainable areas where it has been designated in the relevant strategy but also significant investments in human capital.”

Azerbaijan is also discussing with the WB issues of energy transition, reforming and reformatting the country’s economy, he noted. Against the backdrop of recent events taking place in the world, especially in the European market, some projects may be somewhat delayed, he said.

“Azerbaijan is a significant regional hydrocarbon, oil and gas producer but it is also exemplary in terms of the work that it is doing on ensuring the relevant investment and focus on creating renewable energy potential,” he added.

The minister also noted that Azerbaijan has transformed from a poor country into a state with an average income, in which the World Bank played an important role by supporting projects to develop its economy.