Azerbaijan Investment Summit eyes perspectives for developing non-oil sector

/By AzerNews/

By Sara Rajabova

Reducing reliance on oil became one of the major goals of countries around the world, especially for those economies which are heavily dependent on oil revenues.

The developments that took place in the world recently, mainly the dramatic fall in global oil prices led countries to devise new ways of developing non-oil sector.

Oil-rich Azerbaijan, which also significantly relied on oil incomes, has recently taken important steps to reduce its country’s dependence on oil and develop its non-oil sector. To this regard, the government has developed new programs to improve the structure of its economy, support for scientific capacity and innovative activities, development of the information and communication technologies and the transition to an information society, as well as formation of the modern education system and etc.

The measures taken by the Azerbaijani government in reducing its reliance on oil, as well as the country’s sustainable growth strategies have been discussed during the Azerbaijan Investment Summit entitled “Non-oil sector - the leading sector of the real economy” in Baku on March 17.

High-level officials, as well as more than 150 international business leaders and investors took part in the event in view of creating a diversified economy, beyond the reliance on oil revenues, for the country.

Ali Abbasov, Azerbaijan’s Communications and High Technologies Minister said the fall in oil prices has caused some panic among investors.

“Currently, many countries are trying to weaken the economy's dependence on oil and gas sector and Azerbaijan is no exception,” Abbasov said.

However, he noted that Azerbaijan has proved that decline in oil prices will have no effect on the implementation of its economic policy.

“In this regard, the sphere of ICT can help reduce the economy's dependence on the oil sector. Azerbaijan is between the developing and developed countries in terms of development of information technologies,” Abbasov said, adding $2 billion invested for five years in the sphere of information technologies.

Abbasov went on to say that the main goal of the ministry is the application of latest technologies in telecommunications networks, as well as the delivery of broadband internet to the whole Azerbaijan.

The ministry aims to provide 85 percent of the country with broadband internet by 2018, full automation of e-services and etc.

Abbasov also noted the importance of the development of the export potential of ICT. In 2012, Azerbaijan exported goods from this area worth $41 million. An increase in exports of such products is needed to be provided, according to the minister.

He further noted that in general, ICT development in the country takes place in three areas: knowledge, development conditions and capital.

Having noted the importance of training of highly specialized staff in this field, he added that several state programs are already being implemented in this direction.

“At the same time, it is important to create a good environment for business. The corresponding work is being carried out for that, industrial parks are being created, etc,” Abbasov said.

He also added that one of the barriers for ICT development in the country is that the Azerbaijani market is very small. From this perspective, he stressed the importance of developing Azerbaijan's export potential, as well as digital trade with neighboring countries.

“We are working on the development of the digital market and in this respect we are open to neighboring countries. This, in turn, is a model of free trade. If we can take effective steps in this direction, it will certainly contribute to the development of both the domestic market and markets of neighboring countries,” Abbasov said.

Regarding the capital, Azerbaijan is working to facilitate companies' access to finances, according to the minister. As an example, he mentioned the State Fund for Development of Information Technologies.

“At present, informatization in Azerbaijan is being rapidly carried out and affects many areas. But the main problem in this regard is to ensure full automation of services of state structures of the country by 2020 and the population’s ability to access them,” he said.

Abbasov also identified the need to develop high-tech industries in Azerbaijan.

The Azerbaijani market is small, which is a deterrent factor for the arrival of foreign companies on the market.

“For the development of market, the government supports local companies, as well as the implementation of regional projects that contribute to the expansion of the domestic market. The presence of IT-service is definitely a very good result, and a lot of projects are being implemented in this direction. The matter rests in establishing regional DATA-centers, backhaul etc.,” the minister said.