Tashkent deepens investment cooperation with Baku: results of Ilham Aliyev's visit
On August 23, President of the Republic of Azerbaijan Ilham Aliyev arrived in Tashkent on a state visit. This was his last
Tashkent and Baku deepen investment cooperation: Results of Ilham Aliyev's visit
On August 23, President of the Republic of Azerbaijan Ilham Aliyev arrived in Tashkent on a state visit. This was his seventh visit in the past five years. Along with political agreements, the visit focused on the practical expansion of investment cooperation.
Following the visit, the parties approved a new roadmap for bilateral relations, set a goal of increasing trade turnover to $1 billion by 2030, and launched a number of projects with Azerbaijani capital.
The third meeting of the Supreme Interstate Council of Azerbaijan and Uzbekistan was also held in Tashkent. At the end of the meeting, the parties signed a package of documents and participated in the opening and foundation stone laying ceremonies of new projects in an online format.
**From agreements to projects**
With the participation of Azerbaijani capital, opening ceremonies and groundbreaking ceremonies for about ten facilities were held in Uzbekistan. These include projects in the banking sector, industry, energy, tourism and agro-industry. In particular, the International Bank of Azerbaijan (IBB) purchased 51% of Davr Bank's shares for $100 million.
In addition, the Matanat-A gypsum plant project, the development of a network of SOCAR gas stations, the construction of a residential and resort complex on the coast, an agro-project aimed at building a silver-containing ore enrichment plant and fruit orchards were presented. Thus, the investment agenda of the two countries is gradually moving beyond the scope of individual agreements and acquiring a more comprehensive project focus.
From this point of view, the Azerbaijan-Uzbekistan Investment Company (AUIC), a mechanism established to directly support joint investments, is also of particular importance.
**Investment Cooperation Instrument**
One of the main instruments of bilateral investment remains the Azerbaijan-Uzbekistan Investment Company (AUIC). This is a joint fund with an authorized capital of $500 million. Its mission is to expand direct investment cooperation between the two countries by financing projects in Uzbekistan and Azerbaijan. During the visit, Azerbaijani President Ilham Aliyev called the AUIC "the most effective and result-oriented" fund among similar formats in Azerbaijan's cooperation with other countries.
"Azerbaijan has similar formats of cooperation with different countries. However, I would say that the most effective and result-oriented fund is the Uzbekistan-Azerbaijan Fund," said Ilham Aliyev.
According to the President, out of the $500 million of AUIC capital, about $160 million has already been distributed between projects. Thus, AUIC is not the only source of capital, but one of the tools in the broader investment agenda of the two countries.
**How is the AUIC portfolio being formed?**
According to the company's Deputy General Director Sardor Habibullayev, approved deals have already covered about a third of the fund's capital:
"Approved deals cover about a third of the fund's capital. The bulk of new projects are being formed in areas where the interests of the two economies most clearly intersect - from industrial localization and logistics to digital infrastructure, education and retail."
In the future, the company plans to further increase its investment activity by implementing up to 15 transactions per year in Uzbekistan and Azerbaijan.