Ilham Aliyev and President of the Republic of Latvia Andris Berzins attended the Azerbaijani-Latvian business forum

The Latvian-Azerbaijani business forum held at the Baku Business Center has been attended by President Ilham Aliyev and President of the Republic of Latvia Andris Berzins.

The participants of the forum warmly welcomed the Presidents of Azerbaijan and Latvia.

Addressing the forum, President of the Republic of Azerbaijan Ilham Aliyev said:

- Dear Mr. President,

Dear ladies and gentlemen,

Distinguished guests!

I would like to welcome you to Azerbaijan once again. Today Mr. President and I had a very good meeting. We discussed many important issues concerning bilateral relations. Of course, one of the most important issues we discussed was the economic agenda. We have made good progress and success. If we look at the percentage growth in the turnover, we can see that there is progress. But if we look at the actual figures, we can’t be content with them.

We have had meetings regarding business in the past too. The economic activity and cooperation between our two countries and companies have been possible mainly due to such meetings. I believe that this forum is quite special. I am informed that important agreements and memorandums have been signed and new areas of cooperation are likely to have been identified.

The Azerbaijani side must have informed the business community of Latvia about the country's ongoing economic development. Nevertheless, I would like to say a few words about what we are proud of and our future plans. We have achieved very rapid economic growth. And this is mainly due to the discovery and development of major oil and gas fields. This has enabled us to accumulate funds and channel them into the areas we want to develop. This mainly includes human resources, education, social programs and infrastructure.

The diversification of the Azerbaijani economy is our objective number one. I believe that we are moving in the right direction because our dependence on the energy sector is reducing year by year. And this is also our primary goal because we intend to build a sustainable economy that does not depend on the oil price.

If you look at the results of the first quarter of 2013, you will see that growth in the non-oil sector accounted for more than 11 per cent. This is the result of reforms and our policy towards economic diversification. When you talk about diversification in Europe, people mainly think about the diversification of energy supply routes. And this is quite understandable. For us, diversity means developing the opportunities in the export of energy and non-energy economy. Therefore, our future plans are associated with the attraction of investment to the areas we consider strategic.

For example, in the mid-1990s we managed to attract investment to the oil and gas sector, because a favorable investment climate had emerged at the time. This essentially contributed to our economic development. At present, we already have our own cooperation mechanisms with foreign companies. The Azerbaijan Investment Company is involved in several strategic projects as a co-investor. We keep on improving our domestic laws on foreign investment and its protection.

I can tell you that in terms of direct foreign investment per capita Azerbaijan has been the leading country in the CIS and Central Europe for many years. Whereas in previous years we mainly talked about oil and gas investment, now we observe investment in other economic spheres. These include services, agriculture and other sectors. All this will create opportunities for a successful development in the coming years. Of course, the energy sector of the economy will continue to be in top position.

This is absolutely clear, because if we take into account the huge reserves of oil and natural gas, the diversified supply routes and energy resources – I mainly mean natural gas now – and our new plans related to the supply of vast resources to European consumers, this will create additional opportunities for energy companies. But our non-oil economy will grow in parallel.

In order to encourage business activity, a State Program is being implemented. Most of the infrastructure projects in Azerbaijani districts have either been completed or are in the final stages. We have adopted two programs on the development of our districts, and both cover a five-year period. The second program is to be completed at the end of this year. In the coming years, we will pay more attention to the development of sectors such as information and communication technologies, services, tourism and industry. The guests must have been informed about our special plans on the establishment of industrial zones. These plans are being implemented. As a result, we will create rules that will provide many benefits in the field of heavy industry and new export opportunities due to preferential tax regulations.

This will enable us to increase our export opportunities and achieve the diversification of exports, because most of our exports are related to energy now. At the same time, we are implementing plans on increasing domestic production.
Thanks to a facility such as the fund to encourage the private sector, farmers, small and medium-sized enterprises are receiving financial assistance.

I think that the overall economic development of Azerbaijan in the coming years will be successful. This is acknowledged by international financial institutions. For example, the World Bank’s Doing Business report says that Azerbaijan has made good progress. The World Economic Forum has put Azerbaijan in 46th place in the world in terms of economic competitiveness. In the years of the financial crisis, the rating agencies Standard & Poor's, Fitch and Moody's upgraded our credit rating. I believe that the future cooperation between our companies in different directions can produce good results. Azerbaijan is currently investing a lot in other countries. We are making investing a lot in Europe, and this process will be continued.

Of course, projects in your country may be very attractive for us. We can identify the areas of interest more accurately. The Latvian companies represented here can participate in various projects we are implementing as contractors. In addition, I think that joint production capacities can be used both in Azerbaijan and Latvia, as we have extensive mutual interests. I am very glad that you, Mr. President, are accompanied by numerous Latvian business people. This is evidence of this interest. We also have a similar interest in your country. There are excellent political relations. We are partners in many areas. As we noted together with Mr. President today, there are no outstanding issues in our relations. Azerbaijan also actively cooperates with the organizations of which Latvia is a member. This also strengthens our bilateral relations. I think that this business forum can produce excellent results. There is a mutual interest and political support, there is an intergovernmental commission. Of course, the activities of our business circles will give very positive results. Thus, we can draw on this in the future and establish a strong economic partnership between our two countries for the benefit of our peoples.

Mr. President and distinguished guests, I would like to welcome you to our country. I wish you a successful visit and all the best. Thank you.

Х Х Х

Addressing the forum, President of the Republic of Latvia Andris Berzins said:

- Dear Mr. President,

Ladies and gentlemen!

Thank you very much, Mr. President. You have practically covered all the topics. I would like to simply highlight a few issues. This is my first visit to your country. I had some information, but the reality has considerably exceeded my expectations. I was very pleased to see the road of independence you have covered in 22 years.

We have visited a number of places here and have seen that we had a lot in common in the past. Our nations had very close relations. At the same time, when it comes to business, we are not in competition with each other. In fact, our business sphere has areas that are completely different from each other. At the same time, the experience we have acquired is also very different. Over the course of 22 years Latvia has gained a lot too. Discussions have been held with the European Union on the application of new rules. But I think that this is also a very positive experience. This is an area where we can get mutual benefit. With regard to business activities, our two countries have achieved certain stability, accumulated the necessary local and international experience.

Latvia is a small country and we must become partners relying on each other. This is a perfect foundation for progress.

Of course, in the coming years we will be focused on the fields of science, education and private enterprise. Education will also be one of our exported products.

We are strong in different industrial sectors. We can succeed by joining our efforts. This is how our future business relations can be expanded. Health care and social services are very large fields. Although these areas are not directly related to business, they are very important for the future of our countries. This morning we had discussions which were held in a very friendly and very open atmosphere. I am absolutely convinced that both sides have agreed to provide the necessary support for our companies in our countries. Such a foundation is necessary for both sides. This, in fact, is the second step of our business community aimed at strengthening the business relations with you over a short period of time.

I am absolutely sure that we will have excellent results in several years – as excellent as the successes of your construction industry. Thank you.

Х Х Х

After the forum, President of Azerbaijan Ilham Aliyev and President of Latvia Andris Berzins went for a walk in the Seaside National Park and enjoyed the panoramic views of the city.

The President of Latvia was provided with detailed information about the landscaping and creative work carried out in the capital of Azerbaijan and the rapid growth of country in recent years.