Speech by Ilham Aliyev at the Azerbaijani-Austrian business forum

Dear Mr. President!

Dear guests, ladies and gentlemen!

Let me salute you in Azerbaijan again, Mr. President. Welcome to Azerbaijan!

This is the first visit of the Austrian President to Azerbaijan in the history of Austrian-Azerbaijani relations, and it is of historic nature. I am glad that the visit has been very successful. I am confident that its results will also be very successful.

There is a very close cooperation between us. We seek to deepen our cooperation in all areas. To do this, of course, political ties are very important. I am pleased that there is progress in Austrian-Azerbaijani relations. I can say that these relations are at the highest level now. Political cooperation and our cooperation in international organizations, strong political ties inevitably have a positive impact on all other areas.

Along with all the other issues, we have had a broad exchange on economic cooperation today. I think that the progress and good results achieved in this field inspire us and encourage further cooperation. Austrian companies operate successfully in various spheres in Azerbaijan. Although the turnover between our countries is not very large, the activities of Austrian companies in various spheres in Azerbaijan are a very positive fact. Austrian companies are involved in important infrastructure and construction projects in our country. Their activities are laudable, they work with high quality. All conditions of contracts are honored. Austrian companies support us in the large-scale creative work under way in Azerbaijan.

We have already talked about this today. I would like to indicate that Austrian companies are implementing a number of important projects in our country. In particular, Strabag is building a new five-star hotel in Baku. A new and modern, the most modern airport terminal in the region is being built in Baku by Austrian company Waagner Biro. The construction of the Shahdag ski resort is carried out by Austrian companies Swiss Town Consult / ILF Consulting and Doppelmayr Seilbahnen GmbH. The design of new office buildings has been entrusted to the Austrian company Coop Hemilbau. In addition, the construction of the Carpet Museum in the most beautiful place of Baku, on the boulevard, in the National Park, is also carried out by Austria’s Hoffmann - Janz ZT GmbH, while BHS International is dealing with the technical equipment of the Carpet Museum.

Finally, the restoration of the Maiden Tower, an iconic symbol of Baku, is carried out by the Austrian company Atelier Erich Pummer GmbH. I have already informed you, Mr. President, that the Maiden Tower is a symbol of Baku. There are many historical monuments in Baku and in various parts of our country. But the Maiden Tower is a true symbol of Baku. The Maiden Tower is our heart and soul. And to entrust the restoration of a monument that is so dear to every Azerbaijani to an Austrian company is probably an indicator in itself.

The listed projects are really important for our country, they are also important for the development of Austrian-Azerbaijani economic relations. I do hope that the good experience and understanding gained now will give an impetus to future projects.

There is still a lot to be done in Azerbaijan. We have a specific and a thought-out strategy of economic development and specific programs. All the necessary infrastructure facilities in Azerbaijan are renewed, rebuilt and restored, and these projects cover all areas. So Austrian companies will have new opportunities to work as contractors in Azerbaijan in the future. I want to say again that I have repeatedly asked representatives of our local institutions, and they are very pleased with Austrian companies.

At the same time, I believe that our economic relations should not be limited to projects involving companies. I think there is a good environment for mutual investment now. I can say that we are still in the early stages of our cooperation in this area, we are taking our first steps. Azerbaijani companies are investing heavily abroad – in Europe and elsewhere. Both public and private Azerbaijani companies may be interested in investing in your country, and this business forum may and will present the opportunities of the two countries.

At the same time, Azerbaijan is a very good place for foreign investment. We have a great investment environment. Foreign investment is made in the country, Azerbaijan is ranked first in the CIS for the volume of direct foreign investment. I can say that $100 billion has been invested in our economy over the past 15 years, and most of it has been domestic investment. And a significant portion of these funds is made up of foreign investment.

Foreign investment is safely protected in Azerbaijan. We honor all our contracts and believe that in order to win trust it is necessary to honor the agreements reached. It is certainly important for a comprehensive development of our country to attract foreign investment. But I can say that at the current stage, in contrast to the previous period, most of the investment in Azerbaijan is generated domestically – both from public and private sectors. The investment climate in Azerbaijan is very positive.

In general, our country has completed the transition to a market economy. This year we will celebrate the 20th anniversary of our independence. Twenty years ago, there were no companies operating in the private sector, 100 per cent of our GDP was provided by the public sector.

Currently, 80 per cent of our gross domestic product is generated in the private sector, a large-scale privatization policy has been implemented. Our state also does a lot for private sector development, provides assistance to it. Political support is also at a high level. So the economy of Azerbaijan is regulated by market principles. It is a free economy, an economy open to the world, and I can say that it is already a strong economy.

Over the past seven years our gross domestic product has increased about three times. Industrial production has almost tripled, hundreds of thousands of new jobs have been created and major investment made in infrastructure projects. Last year alone, $16 billion was invested in our economy, allowing us to successfully meet our key goals.

Even the global financial and economic crisis has not had much of an impact on Azerbaijan. In its worst years, two to three years, our economy kept growing. Now we give preference to the non-oil sector of the economy. This is our top priority, and specific measures are taken to reduce the economy's dependence on the energy factor. Austrian companies are working on a par with us to develop Azerbaijan’s non-oil sector, and they can operate in the future too. Specific measures are taken to diversify the economy.

According to my information, this business forum is of great interest. I am very pleased that a lot of business people have come from Austria to participate in this forum. They are working together with their Azerbaijani counterparts. I am told that three documents have been signed at the forum. And this is an excellent indicator. The contacts established, the presentations and proposals made regarding the two economies today will enable us to create even better conditions. In some cases, the turnover is not very high because of a lack of information. Perhaps Austrian companies are not very well familiar with Azerbaijan’s opportunities and Azerbaijani companies with Austria’s. Such forums help bridge this gap.

We have also talked a lot about energy cooperation. Energy policy is very important for Azerbaijan. At this stage our energy policy and strategy are important not only for Azerbaijan but also for the region, for Europe. Azerbaijan has already proved to be a reliable partner in this field. Earlier this year, the European Union and Azerbaijan adopted a Declaration on the Southern Gas Corridor, established a working group, and work has begun. Azerbaijan, a country rich in oil and gas, plays and I am sure will continue to play an increasingly active role in European energy security. Mr. President and I voiced an opinion during our meeting that this cooperation strengthens all the parties and meets the interests of all parties.

We will access new markets regulated by rigorous laws, and European consumers will receive additional energy resources from an alternative source, from a trusted partner. I can say that cooperation between European countries and Azerbaijan in this field has a good history. Azerbaijan has been exporting large volumes of oil to Europe for several years. For some European countries Azerbaijani oil accounts for 20 and even 30-40 per cent. So there is experience, there is cooperation. More than 50 per cent of our exports go to European Union countries. Therefore, we can successfully cooperate in the gas sector within the existing frames. Of course, this subject has also been widely discussed in the exchange of views today.

I want to say again that Austrian-Azerbaijani relations have been developing very rapidly in recent years. These ties cover all areas. This forum may have largely touched upon economic relations. The stronger these relations, the stronger our political ties.

Let me salute you, Mr. President and forum participants, again and wish the forum every success. Thank you.