Speech by Ilham Aliyev at the Azerbaijani-Hungarian business forum

- Dear Mr. President!

Distinguished guests, ladies and gentlemen!

Mr. President, let me warmly welcome you to Azerbaijan again. Welcome to Azerbaijan!

It is a very significant day in the history of Azerbaijani-Hungarian relations – the first official visit of the President of Hungary is being paid to Azerbaijan. This visit will certainly have a special place in the history of our relations because it is the first official visit.

Three years ago I paid an official visit to Hungary, and the results of that visit were very successful because it opened a new stage in the development of our bilateral ties. I am sure that your visit, Mr. President, will also be very important for the development of our relations.

The meetings, talks and exchanges we had today show again that there is a sincere relationship between us. Our political relations are at a very high level. We have built our relations on friendship and partnership. I am sure that these ties will only grow in the coming years. There are quite a few factors leading to this conclusion. Your official visit, your visit to Azerbaijan with a large delegation – I am aware that you are here with many business people – are a significant event. I have no doubt that your visit will give a powerful impulse to the development of our ties.

Our relations are comprehensive and cover all areas. Our relations are based on historical roots. During the exchange with Mr. President we also paid attention to history. Our friendly relations have a long history. This strong historical basis is important for the development of bilateral ties.

At the same time, we are contributing to the development of relations between the European Union and Azerbaijan. Hungary has always supported Azerbaijan's integration into Euro-Atlantic structures. The recent Eastern Partnership summit is yet another important step in the relations between the European Union and Azerbaijan. It demonstrates again that these relations have a great future.

There are good opportunities for cooperation in various fields. Of course, this forum will focus on cooperation, especially economic. I am very pleased that the economic opportunities of both sides and countries will be demonstrated at this business forum. There is a great need for that.

I am sure that if our economic ties grow, this will certainly have a positive impact on all other areas. Looking at the statistics today, we sometimes regret that economic ties between Hungary and Azerbaijan, our turnover is not at the desired level. There may be different reasons for that. I think that the key reason is that business people don’t know each other well enough. In other words, there is insufficient information about the economic potential of both countries. This lack of information inevitably hampers economic cooperation. So I think the main goal of this business forum should consist in demonstrating the economic opportunities of both countries. And since this forum is held in Azerbaijan, it should, above all, reveal the economic opportunities of Azerbaijan, provide information about infrastructure and industrial projects under way in Azerbaijan, provide detail of the national legislation, tax situation.

Azerbaijan’s economic development has been systematic. Of course, a very important part is played by the private sector. The private sector accounts for over 80 per cent of the GDP. We have practically completed fundamental economic reforms in this area. At the same time, the ambitious infrastructure projects are implemented by the government of course. We have different state programs and specific implementation procedures. For example, there are specific documents and projects on the work to be done in Azerbaijan next year and beyond. I am sure that if Hungarian businessmen see our plans, they can work in Azerbaijan even more effectively.

Over $16 billion was invested in the Azerbaijani economy last year alone. Most of this is domestic, Azerbaijani investment. Besides, the country consistently attracts foreign investment, and I can say that Azerbaijan is among CIS leaders for the amount of direct foreign investment. In general, the Azerbaijani economy has received over $100 billion in investment in the last 15 years, which has also given a powerful impetus to our all-round economic development.

Currently, the priority issue related to our economic policies is economic diversification. Specific measures are taken to reduce our dependence on the energy factor and develop the private sector. Specific programs are also implemented to develop and promote small and medium-sized businesses.

Hungarian companies can participate in various projects in Azerbaijan as investors. Of course, we welcome that and will continue to do so. Joint ventures can be set up here. Companies secured by the Hungarian capital can be set up in Azerbaijan. Considering our successful economic cooperation with neighboring countries, these companies can both provide Azerbaijan’s own growing market and export the products made in Azerbaijan to neighboring countries. So Azerbaijan’s market and the major neighboring markets can create good conditions for the joint ventures that may be created here. As I have mentioned, Hungarian companies could participate in various infrastructure projects ongoing in Azerbaijan, and we would welcome that. I am sure that the information and presentations made here today will be comprehensive enough. This may also help Hungarian companies.

I should note that Azerbaijani companies are also putting forward initiatives on investment abroad. Our companies are already working successfully in different countries. In particular, our companies are investing heavily in Europe, especially in energy, tourism and infrastructure sectors. In general, it is our economic priority at this stage to invest in foreign markets. Of course, all investment projects necessary for our development, all infrastructure projects are also implemented. But we must build our policies in a way that would enable us to access foreign markets with both our products and financial resources. An important role can be played by the partnership between the state and the private sector. Of course, we must consider these possibilities.

I can say that the Azerbaijani economy has generally proved to be sustainable. Even in the worst years of crisis, two to three years ago, our economic growth was measured with large numbers. Over the last seven to eight years our GDP has increased threefold, or 300 per cent. Industrial production has also tripled. More than 900,000 jobs were created. The poverty rate dropped five times and budget expenditure increased 20 times. This year there is further economic growth, and most importantly this growth is mainly manifested in the non-oil sector. Growth in the non-oil economy is at about 9 per cent. In agriculture, there has been a growth of over 7 per cent.

With regard to agriculture, we have had an exchange of views about it today. Hungary has extensive experience in this area, which is of great interest to us. I think that information about agriculture, tourism, information and communications technologies, pharmaceuticals and other fields will be provided today.

At the same time, while describing Azerbaijan’s economic development as a whole, one cannot but mention the energy sector. This area was traditional for us. Azerbaijan is a country where the world's first oil was produced industrially. The world’s first offshore oil was also produced in Azerbaijan. So Azerbaijan is known and famous throughout the world as an old oil country. In World War Two, Azerbaijan contributed 70-80 per cent of the Soviet Union’s fuel. Azerbaijani oil workers have played a crucial role in the victory over fascism. At present, our oil is exported to markets around the world, including Europe. Azerbaijani oil accounts for 25-30 per cent of the energy balance of some European countries. So we are contributing to the energy security of our partners.

At present, Azerbaijan is emerging as a gas country, and our gas potential is quite large. The major gas reserves discovered in Azerbaijan will enable us to provide ourselves and our partners with gas for at least another 100 years. We have a broad transport network. We have seven oil and gas pipelines which deliver our resources to world markets in various ways. The Declaration on the South Gas Corridor signed between the EU and Azerbaijan earlier this year has had a positive impact on the development of relations between Europe and Azerbaijan. I am sure that Azerbaijan will establish effective cooperation with Hungary and other European countries in the gas sphere in the coming years.

Let me salute you again, Mr. President. I also salute the forum participants. I am sure that this forum will have excellent results, which, in turn, will contribute to the development of Azerbaijani-Hungarian relations. Thank you for your attention!