Economy Minister: We encourage UAE investors to expand their projects in Azerbaijan - INTERVIEW

Last week, a delegation led by the Minister of Economy of the United Arab Emirates (UAE), Abdullah Bin Touq Al Marri, visited Azerbaijan. Within the framework of the visit, the UAE Minister of economy gave an interview to the Report on the current cooperation between Azerbaijan and the UAE and the expansion of these cooperation areas.

We present this interview:

-How do you assess the current state of relations between Azerbaijan and the United Arab Emirates, which are always close to each other?

The UAE and Azerbaijan have enjoyed strong bilateral relations that have supported each other's growth and development objectives in the past. The bilateral relations between the UAE and Azerbaijan are solid and are not limited to common interests, and boast historical and human dimensions. Economic and trade cooperation between the two countries has been highly fruitful and highly positive, built on the strong foundations of shared economic visions and future development strategies adopted by the two countries.

As a result, the total volume of trade exchange between the UAE and Azerbaijan during the first nine months of 2020 amounted to AED 1.2 billion. There are numerous trade and investment opportunities further to enhance the existing partnership between the two sides and elevate it to levels that reflect the actual capabilities of the two friendly countries. Azerbaijan was one of the first supporters of Dubai's candidacy during the election period and the proposal to host Expo 2020.

Today, Azerbaijan has become a preferred destination for Emiratis for travel, tourism, work, and study due to its unique climate, safe environment, high-end hospitality sector, and geographical proximity to the country. Moreover, we are also encouraging Emirati investors and companies to expand their investments and projects in Azerbaijan. Therefore, the bilateral relations between the UAE and Azerbaijan are witnessing rapid progress. We see more opportunities in the next phase to raise the levels of cooperation to cover broader horizons.

- How did the pandemic affect the economic relations between the two countries? What measures can the countries take to cooperate in making progress in this area in the post-pandemic period?

Currently, the value of Emirati investments in Azerbaijan stands at USD 2.2 billion, while Azerbaijani investments in the UAE market are estimated at more than USD 350 million. The volume of trade exchange between the two countries grew by 21.3% in 2019.

According to the indicators of 2019, the UAE accounts for 76% of Azerbaijan's trade exchange with the Gulf region countries. It plays an essential role in the growth of Azerbaijan's tourism sector. According to recent statistics, the number of tourists coming to Azerbaijan from the UAE reached nearly 70,000 in 2019.

As is the case with the rest of the world, the pandemic has affected the development of the UAE-Azerbaijan relations in several areas during 2020, especially in the tourism sector. But we are optimistic that in the post-pandemic period, joint efforts will be taken to further develop relations in relevant areas. It is notable that the existing cooperation and mutual support between the two countries in international organizations, including the United Nations, the Organization of Islamic Cooperation, the Non-Aligned Movement, and others in this framework, contribute to peace, security, and development regional and international levels.

Looking ahead, we also believe that the continuation of initiatives such as the Azerbaijan-Gulf Business Forum, which was held in October 2017 in Baku, is vital to achieving the shared economic and trade goals of Azerbaijan and the UAE, especially in the post-Covid phase.

-Azerbaijan wants to diversify its economy. How can UAE help Azerbaijan in this regard?

Azerbaijan boasts a vibrant economy and is an important regional destination for trade, investment, tourism, and economic cooperation activities for the UAE. Therefore, the next phase will witness an expansion of projects and mutual investments in the markets of the two countries and the exploration of new opportunities through precise and coordinated mechanisms and programs. We attach great importance to encouraging the private sector in both countries to contribute effectively to developing current trade and investment activities by engaging in partnerships and collaborative ventures.

Furthermore, the UAE's experience in strengthening the pillars of the digital economy and integrating 4th Industrial Revolution technologies in the future sectors are areas Azerbaijan can benefit from. Exploring partnerships and joint ventures in these fields can add significant value to the diversification efforts of both countries.

-How do you value our relations in the energy sphere? Does your country want to enhance relations with Azerbaijan in this sphere?

The UAE and Azerbaijan have both been significant producers of oil and active players in the oil and gas sector. Oil and gas still contribute significantly to both countries' GDP; therefore, it has been a constant topic of discussion in the ongoing dialogue between the two countries. For instance, during the 7th UAE- Azerbaijan Joint Economic Committee held in the Azerbaijani capital Baku, the UAE and Azerbaijan agreed on several main axes to strengthen cooperation frameworks in several vital sectors. Apart from traditional energy, these include trade, investment and entrepreneurship, transportation, renewable energy, information and communication technology, innovation, digital transformation, education, tourism, food and water security, environment, agriculture, and water solutions. The UAE looks forward to pursuing joint work in these fields, which will bolster our ties with Azerbaijan in the energy sector and others.

-Can Azerbaijan and the UAE cooperate in the field of alternative and renewable energy?

Steps have already been taken in this direction. Partnership agreements have been forged between UAE's and Azerbaijan's entities in this field, marking the beginning of a new phase in the renewable energy sector of Azerbaijan. The project will design, finance, construct and operate the first solar photovoltaic power plant at the utility level with 200 megawatts in Azerbaijan.