New opportunities opening up for Azerbaijani business in Central Asia

Azerbaijani companies can use the Astana International Financial Centre (AIFC) platform to attract investments and structure deals in various economic sectors - from digitalization and finance to the real sector, AIFC Governor Renat Bekturov said in an interview with Report.

Bekturov noted that while over 1,700 companies with Azerbaijani capital already operate in Kazakhstan, only four are registered on the AIFC platform. These companies are involved in information services, transportation, and warehousing.

"The potential for attracting Azerbaijani companies to work through AIFC is enormous. First and foremost, the information and communication technology sector looks promising. Kazakhstan holds leading positions in the region for digitalization, but there is still significant room for development," he said.

He identified trade, logistics, and resource extraction as other promising areas for Azerbaijani companies. Kazakhstan's convenient geographical location and rich resources open up broad opportunities for cooperation.

Bekturov emphasized that both countries have rich resource bases and can expand cooperation in energy, including joint infrastructure projects. He cited Azerbaijan's successful experience in oil transportation through the Baku-Tbilisi-Ceyhan pipeline as an example that could be used for developing similar projects in Kazakhstan.

"In transportation and logistics, Kazakhstan and Azerbaijan play strategic roles in connecting Asia and Europe through the Middle Corridor. The development of railways, ports, and simplification of customs procedures will enhance trade efficiency across Eurasia," he added.

A key project was the creation of Middle Corridor Multimodal Ltd., a joint venture involving national railway companies of Kazakhstan, Azerbaijan, and Georgia. It aims to develop multimodal transportation along the Trans-Caspian International Transport Route (TITR). According to the center's governor, the joint venture was registered with AIFC last year. Another successful example is the SK-AIH Investment Fund Ltd., created by Samruk-Kazyna fund and Azerbaijan Investment Holding. The fund aims to attract investments in both countries' economies, including TITR projects.

During the COP29 climate conference, an agreement was signed to construct a cargo terminal in the Port of Alat. The project will become an important element in TITR development, facilitating increased container transportation along the China-Europe-China route, reducing delivery times and transportation costs.

"This is a clear example of how Kazakhstan and Azerbaijan are already successfully cooperating in practice and investments, and demonstrates the advantages of AIFC as a platform for structuring deals," the governor emphasized.

According to him, AIFC has over 3,400 participants from 80 countries, including the USA, UK, China, Türkiye, Singapore, and others. Over the years, the volume of investments attracted through AIFC has exceeded $13 billion, of which $5.9 billion were portfolio investments through the AIX exchange, and $7.3 billion were direct investments from participating companies.

The full text of the interview with Renat Bekturov is available here.