Speech by Ilham Aliyev at the Azerbaijan-Latvian Business Forum

Dear Mr. President!

Dear ladies and gentlemen!

First of all, I would like to salute all participants of the forum from the bottom of my heart!

I believe that today's event is very significant. Latvian-Azerbaijani business forums have already become a good tradition. Business people of our countries have met on a number of occasions in the past. Evidently, there is so much mutual interest that regular business forums have become a reality.

Indeed, there is a great mutual interest. At the same time, we are not fully satisfied with the present level of economic relations between Azerbaijan and Latvia. We have exchanged views about that with Mr. President today. I believe that there is a much greater potential. The present political relations and the developing cooperation trends between our countries provide excellent conditions for business development as well. We must strive to make our relations multifaceted, to ensure that they encompass all spheres. There are good opportunities in the economic sphere to do even more.

Today, Latvia and Azerbaijan have signed very important documents. I want to emphasize the Joint Declaration. The issues reflected in the declaration outline prospects for our relationship and express our intentions. In general, during my second visit to Latvia, very fruitful talks and a broad exchange of views have been held. I am confident that this visit will give a powerful impetus to the relations between the two countries.

Azerbaijan is a rapidly developing economy. In recent years, our economy has been growing at the highest rate in the world. Over the last seven years, Azerbaijan's gross domestic product has grown almost three times, poverty has reduced 4-5 times, over 900,000 jobs have been created in our country, the economy has received a powerful impetus and Azerbaijan has attracted significant investment. Last year alone, $15.5 billion was invested in Azerbaijan, mostly by domestic sources. Azerbaijani companies and state have invested over $ 9 billion.

There is a very favorable investment environment in our country. Azerbaijan ranks first in the CIS for the volume of direct foreign investment per capita. According to the World Economic Forum, Azerbaijan is also ranked as the most competitive economy in the CIS. In short, we want our economic reforms to serve overall development of the country.

Currently, we are making every effort to diversify our economy, and our efforts are paying off. Energy, the oil and gas industry, is our key economic sector. Although the price of oil in the world fell 4-5 times in 2009, our economy grew by 9.3 per cent. This growth was achieved thanks to the reforms conducted in previous years and the investment in the non-oil sector and infrastructure projects. Last year Azerbaijan registered economic development again – our economy grew by 5 per cent. I am sure that in the coming years these trends will grow further.

I think that meetings in this format have a great deal of sense because we revisit some of the ongoing projects. While reviewing the agenda, I saw that it contains projects being implemented or about to be implemented in Azerbaijan. We are making great efforts to establish new economic sectors in Azerbaijan, paying great attention to areas non-traditional for us. President Zatlers has noted that Latvia has made great progress in the information and communication technologies sector, which is a promising area for our cooperation. Azerbaijan is also taking very important steps in this direction, and is among leading CIS states for the level of development of the ICT sector.

We have already embarked on the development of space industry in Azerbaijan. In two years, we will put Azerbaijan’s first satellite on the orbit. Thus, as a result of these measures it will be possible to create a non-traditional space industry in Azerbaijan.

We are extensively conducting the policy of modernization in Azerbaijan. This policy will allow us to be less dependent on energy resources. Our main goal is to secure a strong, sustainable, long-term economic development, improve the welfare of our people and take all necessary measures to address social issues in Azerbaijan. To do that, the state is investing a lot in various spheres of life in our country. I believe that business people from Latvia can also benefit from these opportunities. We have a very large investment portfolio, and businessmen from Latvia can introduce their expertise to various sectors of construction.

At the same time, Azerbaijan is a country very favorable for investment, and we expect investment from Latvia. I am confident that these investments will be measured by even greater figures. Azerbaijan, for its part, has started investing large amounts in foreign countries. Over the past several years, we have invested several billion dollars in neighboring countries, and this process is ongoing. We are interested in strengthening cooperation with friendly countries on the basis of investment projects.

The energy sector, which is quite traditional for us, is rapidly developing in Azerbaijan. Last year, Azerbaijan produced 51 million tons of oil and 27 billion cubic meters of gas, much of which was exported to world markets. A few days ago, during a visit to Azerbaijan by European Commission President Mr. Barroso, the EU and Azerbaijan signed a very important declaration pertaining to the energy sector. The declaration will have a great impact on the future cooperation between the European Union and Azerbaijan. In general, the relations between the European Union and Azerbaijan are based on very sound footing. This is a relationship built on mutual interests and mutual respect. Of course, Latvia, a friendly country for Azerbaijan, is also making a valuable contribution to the EU-Azerbaijan relations. We have always highlighted the activities of Latvia in this area. There is no doubt that in the coming years the relations between the European Union and Azerbaijan will become even stronger, will cover even more spheres and bring Azerbaijan even closer to Europe. We want this to happen and believe that there are enough issues and factors that could contribute to the interests of both parties. We must simply implement all these plans in a timely and correct manner.

Of course, the financial recession that has affected the world has had an impact on every country, including Azerbaijan. But we have tried to minimize its impact on our people. I can say that the population of Azerbaijan did not experience the bitter consequences of the crisis in 2009 and 2010. The rate of our national currency, the Manat, has remained stable. Last year our foreign exchange reserves further increased. Today, Azerbaijan has foreign exchange reserves of $30 billion. Of course, this is a large amount that helps us feel confident. We no longer need to ask international financial institutions for help in implementing projects in Azerbaijan. Quite soon Azerbaijan will be ready to participate, on a par with international financial organizations, in various programs of assistance to third countries.

Our regions are only beginning to establish contact with each other. The relations between countries of the Caspian and Baltic basins are traditionally at a good level. In the present context, these relations have moved to a new plane, and transportation projects are certainly of great importance for regional cooperation. Among them, I want to emphasize the construction of the Baku-Tbilisi-Kars railway. Azerbaijan is working on this project together with its neighbors. I do hope that in two years, after the railway is commissioned, the new Silk Way linking Europe with Asia will start functioning and, of course, countries of both Europe and Asia will benefit from it. I am proud to say that this project, which remained a topic of discussion for years, has finally been launched thanks to the extensive efforts of Azerbaijan.

I want to reiterate that every economic initiative is highly appreciated in Azerbaijan. We have made different economic and infrastructure initiatives in the region. These initiatives have already been implemented, especially those in the energy and transport sectors.

Going back to Latvian-Azerbaijani relations, I want to note that these relations are very strong. We have a strong political will. Political interests are at a very high level, and business people should certainly take advantage of these excellent opportunities because investments are made in friendly and predictable countries. I believe that our alliance and cooperation will represent wonderful support for business people.

Let me cordially welcome all participants of the business forum again, express my gratitude to our Latvian friends, especially President Zatlers, for the hospitality we have enjoyed. I want to express my confidence that this forum will produce good results in the future. 

Thank you!