For four days, Baku remained one of the main platforms for discussing investment, trade, and private sector development. The concluded Private Sector Forum of the Islamic Development Bank Group brought together over 1,400 participants from sixty countries, who discussed attracting capital, expanding trade ties, and finding new growth points for the economies of the organization's member states.
The practical outcome of the forum was the signing of 32 agreements and memorandums worth over $4.7 billion. Participants held more than 250 bilateral meetings, and over 220 young companies and business incubators took part in the startup competition.
However, the significance of the forum extends far beyond the signed documents. Against the backdrop of growing competition for investment and instability in several regions of the world, issues of the investment climate, access to new markets, and the development of transport and logistics capabilities are gaining particular importance.
According to Milli Majlis deputy Vugar Bayramov, the tasks outlined by President Ilham Aliyev during the annual meetings of the Islamic Development Bank Group are of great interest:
"One of the key messages was the head of state's statement about the intention to double the volume of cargo passing through Azerbaijan's territory," the parliamentarian said. "It is important to consider that in recent years, our country has been consistently strengthening its position as a regional transport and logistics hub.
Last year, international freight transport generated about 3.3 billion manats in revenue. If the set goal is achieved, revenues from international transit could approach 7 billion manats per year, which means not only an increase in foreign exchange earnings but also additional support for economic diversification, expansion of the non-oil sector, and growth in state revenues.
At the same time, the head of state's speech contained another important idea: further development requires new reforms, additional investments, and access to new markets. Today, there is very fierce competition among developing countries for capital and investment resources. The winner is the one who can strengthen investor confidence, offer more attractive business conditions, and ensure access to promising markets. Consequently, the fight for investment is becoming one of the key conditions for the region's economic development."
The international situation creates additional opportunities for the republic, and they can be seized by continuing reforms and improving business conditions, economist Eldaniz Amirov believes:
"Today, there are fewer territories in the global economy that investors perceive as completely safe and predictable," he explains. "Against this backdrop, competition among developing countries for capital, technology, and new sales markets is intensifying. This is especially noticeable in Central Asia and the South Caucasus.
Countries that fail to adapt to new conditions in a timely manner risk facing serious problems in the future. At the same time, the current instability in the Middle East is already leading to a partial redistribution of investment flows. For Azerbaijan, this creates additional opportunities to attract capital, including from the Persian Gulf countries.
Recent decisions to support exporters play an important role here.
The issue involves subsidizing logistics costs, as well as a new mechanism for compensating customs clearance costs for exports. Such measures help reduce the cost of domestic products and increase their competitiveness in foreign markets. At the same time, there remain areas requiring further steps. One of them is the liberalization of the visa regime.
International experience shows that visa facilitation directly contributes to the growth of tourist flows and stimulates the development of small businesses, the service sector, transport, and the regional economy. Equally important is the gradual transformation of the economic model itself, which implies strengthening the role of the private sector and reducing excessive state participation in economic activity. So, private business should become the main source of investment, innovation, and long-term economic growth."