The website of the information-analytical and monitoring portal Haqqin.az published an article under the heading “Why does Azerbaijan invest hundreds of millions in Central Asia?”, a Kun.uz correspondent reports.
“During 2023, the government of Azerbaijan will allocate $125 million from its budget to form the authorized capital of investment funds created jointly with Uzbekistan and Kyrgyzstan. For the first time, Baku is acting as the initiator and main donor of the Investment Fund, creating, in fact, the mechanism of an industrial corporation. It should be recalled that the agreement on the establishment of a joint investment fund between Azerbaijan and Uzbekistan was signed on February 24, 2023. This document stipulates the upper limit of the authorized capital of the fund in the amount of $500 million. The share of Azerbaijan in the joint capital will be 75%, Uzbekistan – 25%. The main task of the fund is to lend to joint projects, including projects in third countries,” the portal informed. The article notes that this is especially important, since a number of projects in the oil and gas industry, car assembly and in the development of transport communications from Uzbekistan to the Caspian Sea will be developed in coordination with other states of Central Asia.
According to the publication, it is believed that the dynamics of Uzbekistan’s investment development in recent years has outstripped those of Kazakhstan, on whose territory investors from leading world powers have been actively present for more than a decade.
Haqqin.az states that Azerbaijan and Uzbekistan have agreed to expand cooperation in the production of vehicles. This year, a memorandum of cooperation was signed between the Azerbaijan Agency for the Development of Economic Zones, the Association of Machinery and Equipment Manufacturers, as well as UzAvtoSanoat JSC to expand the production of cars in Azerbaijan.
“Thus, the mechanism of development investment funds adopted will be aimed at achieving three tasks: - increasing trade with partner countries; - expansion of projects related to international transport corridors (first of all, we are talking about trans-Caspian routes for container transportation and road and rail ferries); - the creation of a joint industrial potential within the framework of the tasks of trans-regional integration,” the portal sums up.
