Speech by Ilham Aliyev at the Azerbaijani-Polish Business Forum

- Dear Mr. President,

Dear guests, ladies and gentlemen!

Let me cordially salute you all. It is the day of an official visit of the Polish President to Azerbaijan. I can say that the visit has been very successful and I am sure that the talks held and the suggestions made this morning will determine a long-term development strategy of Azerbaijani-Polish relations.

Our relations have a great history and are diverse. Of course, we have had a broad exchange on economic relations today. I think there are great prospects for cooperation in the economic and business sector. Business circles are first attracted to politically favorable countries. Azerbaijani business people have the same approach, and when political relations are at a high level, business cooperation can certainly be successful too. We are very interested in public bodies and businesses being in regular touch with each other. The key objective of this business forum is to learn each other better, explore and examine each other’s opportunities. Of course, a serious analysis should be conducted, and I am sure that specific business projects will eventually emerge. The implementation of such projects will strengthen our economic relations and benefit our overall initiatives a lot.

We would very much like Polish companies to be represented in Azerbaijan more broadly. There are opportunities to do that. According to my information, there have been presentations of different projects here, economic indicators of Azerbaijan and Poland have been demonstrated. So I think that the existing situation has become clearer for the business people in attendance. Azerbaijan has taken significant steps to improve the business environment. The policy of economic liberalization is conducted, businesses are strengthening in Azerbaijan. Major, small and medium-sized companies are stepping up their activities. The private sector accounts for 80 per cent of Azerbaijan’s GDP. If we consider that there was practically no private sector in Azerbaijan 20 years ago, I think this is a very good indicator. As a result of political and economic reforms, a liberal economy has emerged in Azerbaijan over a short period of time. Market economy principles have become effective. This has enabled us to significantly expand our economic opportunities.

Of course, in the early years of our independence the oil and gas sector was the driving force of our economic development. This is only natural and is still the case nowadays. At the same time, thanks to our energy initiatives we have succeeded in developing the non-oil sector. Today the Azerbaijani economy is diverse. This is exactly why we did not encounter serious difficulties when the oil price sharply plummeted two to three years ago. In fact, even when the oil price dropped four to five times the Azerbaijani economy grew by 8-9 per cent. And that was achieved thanks to the oil sector. This is our policy, and we will try to further develop the non-oil sector in the years ahead. I can say that state programs are playing a crucial role in that. We are now in the process of implementing a second state program since 2004. The interest of foreign investors and their investments in Azerbaijan have also played a major role. Foreign investment was particularly instrumental in our economic development in the mid-1990s.

We are still trying to attract foreign investment. For the volume of direct foreign investment Azerbaijan is traditionally a CIS leader. Over $16 billion was invested in our economy last year alone. Most of the investment was domestic, but foreign investment also holds an important place. Foreign investment in Azerbaijan is securely protected – this, among other factors, is ensured by national legislation. Today there is foreign investment in the non-oil sector. Foreign investment is playing a part in agricultural development, it has a large share in the development of tourism. I can say that the development of tourism in Azerbaijan is a priority issue. A total of six five-star hotels are scheduled for commissioning in Baku alone this year, and this is an indicator in itself.

Of course, we would like to see Polish companies as investors. At the same time, Polish companies can take an active part in infrastructure projects funded by various sources in Azerbaijan, including public funds. I am sure this has been spoken about today.

At the same time, Azerbaijani companies are already accessing foreign markets as well. This is the policy of our state. While paying attention to the development of the private sector, we want private companies to access foreign markets. Azerbaijan’s public companies have also started to invest heavily in foreign markets, and this investment already accounts for billions of dollars.

The revenue from the development of Azerbaijan’s energy resources is distributed fairly and serves the country's economic development. At the same time, the State Oil Fund of Azerbaijan is investing in foreign markets, and I believe that these opportunities should also be considered.

Of course, as presidents, we can only give advice to private companies and, through our own activities, create favorable conditions for mutual business interests to further increase. We are trying to do that. I do hope that this business forum will yield results in the near future and Polish-Azerbaijani economic relations will develop rapidly.

As I have indicated, we in Azerbaijan are attaching great importance to the development of the non-oil sector. Azerbaijan’s agriculture, tourism, information and communication technologies are rapidly developing. The number of Internet users in Azerbaijan has reached 50 per cent. Next year we will put our first telecommunications satellite into the orbit. We have ambitious plans in various other areas.

But at the same time, the energy sector is traditionally very important to us, and cooperation in the oil and gas industry plays a significant role in the development of Polish-Azerbaijani relations. We have held an extensive exchange of views on this today. I am sure that our companies will put forward new initiatives in this area in the near future.

Azerbaijan has major oil and gas fields that serve the people of Azerbaijan. At the same time, these resources and projects in this area are of great significance to regional cooperation. Azerbaijan is a very reliable partner in terms of energy policy. We have a format of cooperation with the European Union in this direction, and in January this year the EU and Azerbaijan signed the Declaration “On the Southern Gas Corridor”. Today, we have confirmed gas reserves of 2.2 trillion cubic meters, which allows Azerbaijan the opportunity to provide itself, neighboring and European countries with natural gas at the required level for at least 100 years to come. Of course, we are trying to deepen our cooperation in this field. There are certain results already, and I am confident that the private sector will also join in this work.

I want to repeat that we are attaching great importance to the development of Polish-Azerbaijani relations, and the private sector is playing a special role in the development of these relations. I want to express my confidence again that this business forum will yield wonderful results in the near future.

Thank you for your attention.