Juan David Latorre
The Embassy of Azerbaijan held last Tuesday at the Cámara de Comercio de Madrid a meeting entitled Azerbaijan: Business and Investment Opportunities in the ALAT Free Trade Zone (AFEZ), near Baku, next to the International Port, which is an ambitious project of the Government of Azerbaijan to offset the country’s traditional dependence on hydrocarbons.
The event was attended by Azerbaijani Ambassador Ramiz Hasanov, who said: “Azerbaijan is a modern country with a diversified economy. Oil and gas have been the main target of foreign investments in our country since 1994. However, Azerbaijan offers opportunities in many more sectors, now that it has managed to build relatively sophisticated communications and transport. These sectors include agriculture, industry, education, real estate and healthcare.”
“With Spain, the ambassador said, we want to turn our political cooperation into practical cooperation in every sense.”
Azerbaijan, with economic growth of 3.7% in 2022 and forecasts of 2.5% for 2023 and the coming years, has an important geostrategic location in the Caspian region, being a key player in the international energy transit. The country stands out for its great wealth in hydrocarbons (oil and gas) and concentrates 80% of the economy and 95% of the financial resources in its area of economic influence. At the same time, Azerbaijan’s continued development of its non-oil sector is considered crucial to ensure economic growth, supported by International Financial Institutions in infrastructure, renewable energy, agriculture and regional development projects.
The ALAT Free Trade Zone (AFEZ) has a unique legislation offering unique incentives and advantages, applying a special tax and customs regime for companies operating in the zone and engaged in high value-added and export-oriented manufacturing and services, as well as imported goods, works and services.
After welcoming remarks by the Deputy Managing Director of the Madrid Chamber of Commerce, Industry and Services, Elsa Salvadores, Zohrab Gadirov, Deputy Executive Director of the Azerbaijan Export and Investment Agency (AZPromo), gave an overview of the current economic and market situation in Azerbaijan. Also, Valeh Alasgarov, Director of the Board of Directors of AFEZ (Free Economic Zone), discussed the fiscal and market characteristics for investment in the zone.
On behalf of ESKA GLOBAL, a group of companies with ten years of investment experience in Azerbaijan, spoke Adolfo Romero de Marcelo, CEO&Managing Partner, who highlighted the geostrategic situation of the Caucasian country equidistant between an imaginary line between Portugal and Japan, and with very important markets around it and at a very short distance. He also encouraged the use of what he called the “intermediate corridor” for the transport of goods, which shortens the travel time between Europe and East Asia by 15 days.
Finally, Gamze Yilmaz, INDRA Azerbaijan Country Manager, and Álvaro García Guzmán, Project Manager at Técnicas Reunidas for the Modernisation of the Heydar Aliyev Refinery in Baku, gave their testimonies based on their experience in supporting investment in Azerbaijan.
