Turkish Treasury: Diversification of economy attracts Turkish investors in Azerbaijan

Business Materials 20 January 2011 14:36 (UTC +04:00)

Azerbaijan, Baku, Jan. 20 / Trend A. Akhundov /

Turkish entrepreneurs consider Azerbaijan's desire to diversify its economy as the most attractive aspect of activity in Azerbaijan, Samih Guven, the head of the Banking and Foreign Exchange Department in the Undersecretariat of Treasury under the Turkish Prime Minister, told Trend.

"According to a survey conducted by the Turkish Undersecretariat of Treasury among entrepreneurs working abroad, particularly in Azerbaijan, the most attractive aspect of the work in Azerbaijan is the country's striving to diversify its economy," he said.

According to the Ankara Chamber of Commerce, more than 94 percent of Turkish investments to Azerbaijan fall to the energy sector as of 2010.

He said that a certain increase in Turkish investments in the non-oil sector of Azerbaijani economy has been recently observed, but it is insignificant.

"We do not expect great increase in Turkish investments in non-oil sector of Azerbaijan in 2011," he said.

He said that most Turkish investments in Azerbaijan's economy were not made by establishing companies or opening branches. They were made through participation in oil and gas projects; however, the proportion of such investments will gradually decline, he said.

According to the Turkish state oil company TPAO, having a 9-percent equity interest in gas condensate field Shah Deniz, TPAO's total investments in the Azerbaijani economy for the entire period of work in the country exceeded $3.9 billion in 2009.

According to the statistics from the Turkish Treasury as of late September 2010, Turkish investments in Azerbaijan reached $3.825 billion. Roughly $3.573 billion of this amount was invested in the energy sector of Azerbaijan. Roughly $17.588 million was invested in Azerbaijan's banking sector, $15.908 million in trade, $169.062 million - IT and communications, $ 40.181 million - the industrial sector, $4.906 million - construction, $2.066 million - the mining industry, $650.900 - insurance, $1.03 million - other areas.

Turkish investors invested $3.971 million in the Azerbaijani economy for the first nine months of 2010. Three Turkish companies were established. Five companies were established in 2009. Roughly $304.666 million was invested.

Turkish investors have been operating in roughly 3,500 companies in 103 countries, mostly in the energy and banking sectors, and in information technologies, communications, processing industry and trade.