Thanks to the visionary policy of the President of the Republic of Azerbaijan, Ilham Aliyev, over the past years, the country has been implementing comprehensive economic reforms in the field of sustainable and competitive economic development, taking comprehensive measures to diversify the economy and increase non-oil exports.
Developing relations between the state and entrepreneurs, improving the business and investment environment, and supporting the non-oil sector are matters of consistent priority. Azerbaijan Investment Company OJSC (AIC), created with the aim of modernizing and increasing the competitiveness of the country's economy through the development of the non-oil sector, attracting local and foreign investments, and the use of modern technologies and knowledge, makes its contribution in these areas.
In 2023, AIC actively supported economic growth, created employment opportunities, and contributed to improving the competitiveness of the non-oil industry, attracting local and foreign investors into various sectors of the country's economy.
The signing ceremony of the Shareholders' Agreement with Hell Energy
On July 10th of the previous year, a landmark Shareholders' Agreement was executed between the well-renowned Hungarian HELL Energy and AIC. This pivotal agreement paved the way for establishing the first facility in the South Caucasus for the production and bottling of aluminum beverage cans, utilizing cutting-edge European technologies. This initiative, based in Azerbaijan, marks a significant milestone in the region's industrial development. Upon operational commencement, the plant, situated in the Azerbaijan Free Economic Zone (AFEZ), is anticipated to generate 280 permanent job opportunities. Presently, the design phase is nearing completion, setting the stage for the imminent initiation of construction activities.
The inauguration of the factory for the production of infusion solutions.
In order to further develop the pharmaceutical sector in our country, reduce import dependence, support local production, and obtain manufactured products on the consumer market on favorable terms, an Investment Agreement was signed in 2022 between AIC and Diamed Development Group LLC for the construction of a production plant dedicated to infusion solutions (liquid medicines). On August 15th , 2023, the plant has been inaugurated by the President of the Republic of Azerbaijan, Ilham Aliyev. Currently, 51 people are provided with permanent jobs at the plant.
Signing ceremony of the agreement with "Gen İlac" company
Foundation-laying ceremony for the pharmaceutical production facility
On July 31st, 2023, a Cooperation Agreement was signed between AIC and the Turkish "Gen İlaç ve Sağlık Ürünleri Sanayi ve Ticaret A.Ş" company for the establishment of another pharmaceutical enterprise in our country. Consequently, on December 7th, 2023, the foundation-laying ceremony for the pharmaceutical production facility of Gen Pharma Caucasus Manufacturing Operations LLC took place at the Pirallahi Industrial Park. It is expected that following the launch of the plants operations, 50 people will be provided with permanent jobs.
In the past year, AIC has played a proactive role in the rehabilitation efforts in regions recently liberated from occupation. Demonstrating leadership and initiative, the company spearheaded two major restoration projects: one in the Agdam region and another encompassing the Kelbajar and Lachin regions. AIC's involvement in these projects underscores its commitment to the reconstruction and revitalization of our country’s liberated territories. In accordance with the "I State Program for the Great Return to the territories of the Azerbaijan Republic liberated from occupation," approved by the Decree of the President of the Republic of dated November 16th, 2022, a Shareholders' Agreement has been executed with StarMining LLC in November 2022. StarMining LLC was selected as the winner of the competition held by AIC to choose potential investors for the Shahbulag quarry project in the Aghdam region. Consequently, Shahbulag Mining LLC was established on January 26th, 2023.
Currently, the quarry is operating in test mode and employs 70 people, it is expected that upon reaching full operation, the project will provide permanent employment for 160 people. The implementation of the project will contribute to the accelerated development of restoration, reconstruction, and construction work in the liberated territories. It will also economically and profitably meet the need for building stone, ensuring the creation of new jobs in the region. The production process has already been launched and appropriate participation in construction and installation work has been ensured in the territories liberated from occupation.
Signing ceremony of the agreement on the restoration and reconstruction of small hydropower plants
On December 27th, 2023, a significant Shareholders' Agreement was signed by AIC, Arges Enerji Team LLC and the Turkish Demirören Yatırım Holding A.Ş. Company. This agreement is integral to the restoration and reconstruction of five (5) small hydroelectric power plants situated along the Hekari and Terter rivers in the Kalbajar and Lachin regions. The partnership aims not only at revitalizing these facilities but also at overseeing their long-term operations, thereby contributing to the sustainable development of energy resources in these areas.This initiative, led by AIC to attract private investment to smaller communities and territories recently freed from occupation, is a crucial step towards further private investment in the restoration of small hydropower plants. The project aims to utilize the hydropower reserves in these areas, aligning perfectly with the goals outlined in the "Action Plan for the Creation of a Green Energy Zone on the Liberated Lands from Occupation of the Republic of Azerbaijan 2022-2026". The successful start of operations at these stations is expected to create at least 60 permanent jobs, which will significantly contribute to the economic revival and sustainability of the region.
Signing ceremony of Accession Agreement with "SOCAR" and "BP" companies.
On September 20th, 2023, to implement the concept of creating a "green energy" zone in the territories liberated from occupation and develop the renewable energy potential of our country, AIC, in collaboration with SOCAR and BP, signed an Accession Agreement. This agreement reflects the intention to enter into a project for the construction of a 240 MW solar power station named "Shafak" (Sunrise) in the Jabrayil region.
Groundbreaking ceremony for malting barley processing project
Furthermore, as a result of negotiations that began last year on the possibility of joint investment in a project for processing malting barley, a key raw material in the beer manufacturing process, this initiative aims to reduce import dependency and provide further support for local production, on August 8th , 2023, the foundation of an enterprise was laid in the Imishli district. This project will be implemented through joint investments from AIC, Azershekar LLC, and Azersun Agricultural Goods LLC.
In continuation of the ongoing cooperation with Azersheker LLC, on August 10th, 2023, AIC signed a Memorandum of Understanding with the company to explore the possibility of creating an enterprise for the deep processing of wheat.
On March 1st, 2023, a Shareholders Agreement was signed between AIC, the Israeli Shaniray Technologies company, and Azerbaijan Poultry Company LLC for the construction of an egg production plant on the territory of the Yevlakh Agropark. The plant is designed with an annual production capacity of 18 million pieces, utilizing the latest technologies and modern processes. Construction of the plant is planned to begin in early 2024. It is expected that after the plant is launched, 33 people will be provided with permanent jobs.
Signing of the MoU with "AzerGold" JSC and "Devngi Innovations LLP" companies
On October 25th, 2023, based on the Azerbaijani-Indian partnership, a signing ceremony was held for a Memorandum of Understanding on mutual cooperation between AIC, AzerGold CJSC, and the indian company Devngi Innovations LLP. The purpose of this partnership is to explore the possibilities of establishing a synthetic (artificial) diamond industry in our country, including the infrastructure for processing natural diamonds and creating and organizing the activities of a joint company. At the end of December of 2023, a positive decision was made on the project, and the final analysis is currently underway.
On November 22nd of the previous year, a Memorandum of Understanding (MoU) was signed between AIC, chinese BYD Company Limited, and Electrify Azerbaijan, a subsidiary of the SARDA Group. This MoU marks a significant collaboration aimed at establishing facilities in Azerbaijan for the assembly of electric buses and the production of various spare parts. This strategic partnership is a step forward in modernizing the transportation infrastructure in Azerbaijan, aligning with global trends towards sustainable and environmentally friendly modes of transport.
In addition to the above, last year, within the framework of cooperation with the venture company OurCrowd, which provides support and mentoring for the development of startups in Azerbaijan, as well as direct access to investments in the field of startups, AIC for the first time invested in Israeli company Largix company. Largix specialize in the production of industrial products from polypropylene and polyethylene using cold 3D printing technology. Additionally, AIC invested in the Israeli company "C2A Security," which specializes in the development of cybersecurity platforms that provide Last year, AIC reviewed and analyzed 109 new investment projects. The supervisory board of the AIC approved 8 projects with a total investment value of 560 million AZN. AIC's participation in these projects is planned for an amount of 42 million AZN. As a result of the implementation of the projects, it is planned to create new production facilities and provide permanent jobs for up to 600 people.
Currently, AIC, together with foreign and local partners, is analyzing 24 projects with a total investment value of approximately 2.7 billion US dollars, covering a variety of sectors.
In the course of the 2023 calendar year, AIC have actively participated in the creation of the Azerbaijan-Uzbekistan Investment Fund between the Government of the Republic of Azerbaijan and the Government of the Republic of Uzbekistan. An agreement between the governments on the creation of the Azerbaijan-Uzbekistan Investment Fund was signed in Tashkent on February 24th, 2023, and it came into force on July 20th, 2023. The agreement on the establishment of the "Azerbaijan-Uzbek Investment Company" was signed on July 18th, 2023, in the city of Shusha and approved by the Decree of the President of the Republic of Azerbaijan dated October 14th, 2023. The "Azerbaijan-Uzbek Investment Company" has already been registered in Uzbekistan, and the total capital of the company stands at 500 million US dollars.
The primary objectives of AIC include executing measures to effectively develop the country's economy, generating added value, facilitating the creation of new employment opportunities, and attracting foreign investors to our nation. Efforts in this direction will persist in the future.
