BAKU, Azerbaijan, September 22. We need to develop sectors with export potential to diversify the economy, Deputy Minister of Economy of Azerbaijan Samad Bashirli said at the 1st Azerbaijan International Investment Forum held in Baku today, Trend reports.
He recalled that after Azerbaijan gained independence, the main headaches for its economy were a mixed bag.
"In the first years, we did not have macroeconomic stability. After we achieved stability, our main problem was the oil and gas sector. Our economy was mainly based on this area. Oil and gas still account for a large share of GDP and our exports.
At the same time, non-oil exports have almost doubled in the last six years. Therefore, our main goal is to diversify the economy. We started this process years ago and have achieved certain successes, but this work is still ongoing.
To diversify the economy, we need to develop sectors with export potential. The main role here falls on the manufacturing sector. We have created industrial zones for the industrialization of the non-oil sector. Currently, more than 170 enterprises have been registered, more than $4 billion has been invested, and more than 10,000 jobs have been created.
Attracting foreign investment is also important," he explained.
The official underlined that for this, a favorable investment climate, a stable macroeconomic environment, a competitive tax system, and simplified customs procedures must be ensured.
"This morning we signed a memorandum and a public-private partnership agreement. All of these are aimed at the non-oil sector and foreign direct investment.
Regional connectivity and integration are also important. In this regard, geopolitics, sustainability, and technology issues play a major role. We are a landlocked country, and therefore we are seriously investing in relevant infrastructure projects.
As for the issue of sustainability, first of all, diversification of the economy is important. At the same time, it is necessary to increase the complexity of the economy and produce more complex and competitive products. If non-oil exports previously consisted mainly of agricultural products, now processed agricultural and industrial products have a greater share. Innovation and technology are the basis for building a competitive industry.
Thus, as a landlocked country, we are investing in transport corridors, diversifying our economy, increasing its complexity, and producing more competitive products. All this is possible through the attraction of technology and investments," the deputy minister pointed out.
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