OREANDA-NEWS. March 18, 2010. Great Britain continues to retain its leading positions in terms of the volume of investments in Azerbaijan economy, its share in the total amount of foreign investments currently accounts for about 50 percent. A trade and investment forum "Great Britain in Azerbaijan" took place in London aimed at a greater strengthening of cooperation between two countries and presentation of investment opportunities in Azerbaijan for British business community. The forum was organized under the auspices of the Middle East Association and the International Bank of Azerbaijan (IBA), reported the press-centre of IBA.

Azerbaijan delegation at this forum was represented by the high-ranking officials of government bodies and representatives of business community. Including Jahangir Hajiyev - Chairman of the International Bank of Azerbaijan, Shahmar Movsumov - Managing Director of the State Oil Fund of Azerbaijan, Suleyman Gasymov - Vice-president of SOCAR on economic issues, Akim Badalov - Head of Agency for Alternative and Renewable Energy Sources under the Ministry of Industry and Energy, Reza Veziri - President of Anglo Asian Mining, Nasib Piriev - General Director of AzMeCo, and others.

The Britain was represented by such a high-ranking officials as Rt. Hon. the Lord Howell of Guilford - Cochairman of Britain Azerbaijan Business Council, Michael Thomas - General Director of Middle East Association (MEA), and the Alderman Nick Anstee - Lord Mayor of the City of London. The opportunities of Azerbaijan economy in such fields as energy, financial services and insurance, education, infrastructure, agriculture, retail trade and tourism were presented at this forum.

The forum "Great Britain in Azerbaijan" covered such issues as the current investment climate, project financing, investment incentives, opportunities for British business in Azerbaijan, energy, diversification of economy, education, and entrepreneurship.

At the forum's opening ceremony, which has taken place in Mansion House, Michael Thomas - General Director of Middle East Association (MEA), has noted that Azerbaijan is the strategic country in the region and has much more than only oil and gas of what the British business community is currently aware. As he has noted in his speech, the City of London is the world's leader in rendering financial services, and this is the best place for bringing together all leading bankers and businessmen with an aim of promoting the trade and investments between Great Britain and Azerbaijan.

According to Rt. Hon. the Lord Howell of Guilford - Cochairman of Britain Azerbaijan Business Council, considering the opportunities currently offered to the British investors, the future of relations between two countries are much more broader than the energy issues.

Jahangir Hajiyev - Cochairman of Business Council and Chairman of IBA, has expressed his hope that the Business Council between Great Britain and Azerbaijan, established in London in September last year, would help in bridging the gaps and raising the business relations between two countries to a much higher level. According to him, the contribution and work of MEA in Azerbaijan has become a turning point in the sphere of intensification of business contacts, and the contribution of London to economic successes of Azerbaijan is considerable and valuable. Azerbaijan is getting over the financial crisis much better than its neighbors owing to a prudent economic management and thanks to the policy carried out by the President aimed at diversification of economy that has offered a good opportunities for immediate transition to the second stage of economic development and ensured the economic and political stability for consolidation of this process.

In his speech, the Alderman Nick Anstee - Lord Mayor of the City of London, has stated that such a conference is very timely nowadays, it follows the two visits of British business delegations to Baku, demonstrating the broad interest of British financial services sector towards Azerbaijan.

In his opinion, Azerbaijan is regarded as an important agent in emerging market. Over 160 British companies are currently operating in Azerbaijan, ranging from the small and medium-sized enterprises to such a large ones as AIOC, Rolls Royce, and BP. Azerbaijan is the third largest export market for Great Britain in the Eastern Europe and CIS, after Russia and Ukraine. In his speech he has expressed the hope for the future broadening of investment opportunities and intensification of bilateral trade between Azerbaijan and Great Britain.

Since Azerbaijan gained its independence, the Great Britain played a key role in its development, considers Fahraddin Gurbanov, the ambassador of Azerbaijan in Great Britain. According to him, over 170 British companies are currently operating in the country and about 5,000 citizens of Great Britain work and live in Azerbaijan.

A particular attention at the forum was given to the measures taken by the government of Azerbaijan with the view of diversifying the economy.

Shahmar Movsumov - Managing Director of the State Oil Fund of Azerbaijan, has noted that education is the main sphere in the course of economic diversification, and knowledge and skills is the most important that Azerbaijan needs. Thus, Great Britain can assist in diversification of Azerbaijan economy by sharing the expertise and skills accumulated by its companies.

According to Sevindzh Gasanova - the deputy minister of economic development of Azerbaijan, Azerbaijan is aimed at increasing the volume of non-extraction export per capita up to 5,000 dollars by 2020 as compared to 287 dollars following the results of 2009. As an example, in Japan, it has amounted to 6,154 dollars, and in the USA - 4,191 dollars. In order to achieve these parameters, the annual growth of non-extraction export in Azerbaijan shall make 21%.
In 2001-2009, this indicator increased on average by 20.3%.

The deputy minister considers that to meet these targets the annual growth rate of real non-extraction GDP shall reach the level of 7%, investments in non-oil sector - the level of 8%, and the volume of investments in non-oil sector shall increase from 750 million dollars in 2009 up to 4200 million dollars in 2016. Having informed the British business community about the projects implemented in the non-oil sector, the representatives of Azerbaijan companies tried to draw investors' attention to participation in their financing. Reza Veziri - president of Anglo Asian Mining plc, the only producer of gold in Azerbaijan, plans to produce 72 thousand ounces of gold by the end of 2010 from the Gadabey gold and copper mine in Azerbaijan. This month, the company has also started the production copper from the Gadabey deposit. Much of financing the company currently receives from the International Bank of Azerbaijan, the fact that, according to Veziri, makes it the main business partner of the company.

Under the long-term agreement with the government of Azerbaijan, signed as PSA in August 1997, the company has been awarded the mineral rights for development of six deposits in the southwest Azerbaijan - Gadabey, Ordubad, Gosha Bulag, Gyzyl Bulag, Vezhnali and Soyutlu. The Azerbaijan company "AzMeCo", which implements the largest project in the country's non-oil sector, presented the current and future projects and has also invited the British investors to cooperate. According to Nasib Piriev - the company's chief executive, the project consists of three phases. Within the framework of first phase at the cost of 324 million dollars, it is planned to construct the methanol plant with the annual capacity of 720 thousand tons of methanol.

The second phase of this project is estimated at 700 million dollars and is aimed at construction of fertilizer plant - Azershavre - a complex for production of ammonia, calurea, and formaldehyde. The third phase of this project provides for production of methanol and carbamide derivatives. "AzMeCo" plans to start the production of acetic acid, DME, and melamine. According to Luke Marshand - the acting director of sovereign ratings of Standard & Poor`s international rating agency, the great demand for the products of oil and gas sector will facilitate to raising of the rates of growth of Azerbaijan economy.

In his speech, he set forth the progress and positive trends in Azerbaijan economy. According to Marshand, pursuant to the sovereign rating received by Azerbaijan from the agency in December 14, 2009 at the level of "BB+" with the positive forecast, the strengths of Azerbaijan economy are the significant fiscal and external buffers, low volume of public debt, and the large fund created on the basis of oil and gas revenues.

The attendees have also familiarized themselves with the current situation in the country's energy sector, thus, Suleyman Gasymov - Vice-president of SOCAR (State Oil Company of Azerbaijan Republic) on economic issues, has informed that in years to come Azerbaijan will increase its role in ensuring the energy security of regional countries and the European Union. According to him, by 2015, SOCAR plans to bring the country's production of oil up to 60 million tons and production of gas up to 35-40 billion cubic meters. Last year, more than 50 million tons of oil were produced in Azerbaijan, up by six million tons as compared to 2008. In 2009, the production of gas constituted about 24 billion cubic meters, up by 276 million cubic meters in comparison with the similar indicator for the previous year. According to Vice-president, all this creates the conditions for fulfillment of forecasts.

Akim Badalov - Head of the State Agency for Alternative and Renewable Energy Sources, has told about the agency's main objectives, specifically, by 2015, it is planned to bring the volume of electric-power production out of alternative energy sources up to 1,000 megawatt, and, by 2020 - up to 2500 megawatt, that makes about 20-25% of the overall estimated volume of power generation for 2020. The strategic planning for implementation of this program is currently in progress.

Thus, the British business community that participated at this forum was presented with the full and true picture of current situation in the main sectors of Azerbaijan economy and the reforms carried out with the view of strengthening the process of diversification. The success of this forum has become apparent in the great interest of displayed by the representatives of British companies and government bodies, who have actively cooperated with Azerbaijan delegation.