Minister: Azerbaijan developed into transit point for oil and gas

Business Materials 9 May 2012 15:36 (UTC +04:00)

Azerbaijan, Baku, May 9 / Trend, E.Mehdiyev /

Thanks to prudent national policy, Azerbaijan has developed into a transit point for oil and gas, sitting in the middle of international transport corridors such as the Transport Corridor Europe-Caucasus-Asia (TRACECA) and the North-South Corridor, Azerbaijani Economic Development Minister Shahin Mustafayev said in an interview with international The Business Year journal.

"Azerbaijan's GDP per capita is steadily growing, reaching over AZN 5,500 in 2011," Mustafayev said.

He said that Azerbaijan has achieved a high level of stability and sustainable development, establishing a successful socio-economic model.

"The country is also working toward preserving stability in the non-oil sectors and ensuring economic growth in the regions, which offer great potential to various segments of the economy. The regions have also been instrumental in the development of SMEs, infrastructure, poverty reduction, and human capital. It is no coincidence that Azerbaijan remained resilient during the global economic crisis. Azerbaijan's rapid GDP growth between 2004 and 2011 can be attributed to efforts aimed at diversifying the economy," Mustafayev underlined.

He said one of the most important features of the national socio-economic development model is the development of the private sector through the implementation of state programs to encourage entrepreneurship, as well as the creation of an entrepreneurial infrastructure.

"As a result of the dynamic development of the private sector today, more than 80% of GDP production is provided by the private sector. Azerbaijan has achieved an expansion in the volume of its foreign trade, and fostered economic relations worldwide. At present, Azerbaijan is trading with more than 150 countries," Mustafayev said.

During the independence period of Azerbaijan, more than $120 billion in investments have been made in the country's economy, and half of it was FDI.

"We have seen the active participation of foreign investors in different sectors of the economy, especially in the non-oil sectors. Azerbaijan currently offers a very favorable business environment for foreign investors. We are constantly working on improving the legal framework to attract more investment in the future. In addition, we have developed agreements with many countries to promote and protect mutual investments," Mustafayev said.