Der Leiter der BWA-Kommission für Architektur und Stadtentwicklung, Dipl.-Ing. Claus Treppte, äußert sich zu den Potentialen der Bauwirtschaft in Aserbaidschan für deutsche Unternehmen:

„Aserbaidschan verfügt als Deutschlands größter Handelspartner im Südkaukasus über attraktive Möglichkeiten, nachhaltiges und damit zukunftsweisende Bauprojekte auf den Weg der Umsetzung zu bringen. Die Regierung Aserbaidschans stellt, wie der Botschafter in seinem Gastbeitrag erläutert, umfangreiche Fördermöglichkeiten bereit. Als Bundesfachkommission des BWA stehen wir gerne dazu bereit, die Geschäftsvorhaben deutscher Firmen in und mit Aserbaidschan bestmöglich zu begleiten.‟

Vor dem Hintergrund der Chancen für deutsche und internationale Unternehmen in diesem Sektor veröffentlicht der Bundesverband für Wirtschaftsförderung und Außenwirtschaft im Folgenden einen Gastbeitrag des Botschafters der Republik Aserbaidschan.

Gastbeitrag:

Azerbaijan’s construction-building industry: overview and prospects

S.E. Ramin Hasanov,
Außerordentlicher und Bevollmächtigter Botschafter
der Republik Aserbaidschan in der Bundesrepublik Deutschland

Concise overview of the sector

Azerbaijan is abundant with the raw materials, to be utilized in the construction sector, which ensures the country’s self-sufficiency in numerous building resources and provides tremendous export opportunities. In the context of development of non-oil sector and economic diversification, the country attaches an utmost focus to advancing of construction sector as well. Azerbaijan realizes mega-infrastructure projects in the areas of transportation, ICT, energy, as well as develops public housing, education, social and healthcare facilities. Heydar Aliyev Center, Baku White City, Flame Towers, SOCAR Tower and Baku Crystal Hall are among the masterpieces of impressive world architecture. Azerbaijan’s construction market has enjoyed a sustainable growth over the last years. In 2018, the share of value-added in the field of construction in the country’s GDP equaled to 8%. Further expansion of building materials production is envisaged in near future. Thanks to the state support and stimulus measures, the construction industry has experienced a boom and evolved into a competitive sector in Azerbaijan. During the recent years, local production of building materials has substantially increased, as well as positively affected the product range expansion and export structure improvement.

Industrial and techno-parks (e.g. Sumgayit Technology Park (https://www.stp.az/en), Sumgayit Chemical Industrial Park (http://scip.az/en)), as well as industrial estates (for instance, Masalli, Sabirabad) operating in Azerbaijan also provide a multitude of favorable business opportunities and incentives (exempli gratia, tax and customs) in the construction sphere. The presence of leading construction-building companies in the country demonstrates the international confidence in the long-term growth dynamics of the construction sector. In this context, foreign companies can only win from investing in the construction-building sector of Azerbaijan.

Azerbaijan’s population is steadily growing and currently exceeds 10 million. Therefore, one of the social policy priorities of the country is to ameliorate the housing conditions of its citizens, especially for the low and middle-income category, including young families. In this regard, the State Housing Development Agency of the Republic of Azerbaijan (https://mida.gov.az/en/) has been established with the aim of addressing the housing needs of the population, ensuring the building of eco-friendly and energy-efficient apartment houses of modern architectural style. Furthermore, several “Gobu-Park” residential complexes have been built, in Garadagh district, to satisfy the housing needs of the vulnerable and disadvantaged groups of the population. Realization of social housing and smart-intelligent construction will promote the strengthening of the entrepreneurship in the construction sector, as well as generate new job opportunities.

Azerbaijan Architecture and Construction University (https://www.azmiu.edu.az/) specializes in excelling students in the field civil engineering and architecture to meet the domestic labor market demand, especially in the field of construction-building. Furthermore, since the construction industry has a promising growth potential, several research institutions are functioning, in the country, to advance the development of customized solutions, as well as the process and product optimization and rationalization.

Institutional mechanisms

The Working Group on Construction-Building Materials Production has been established, by the Ministry of Economy of the Republic of Azerbaijan (https://economy.gov.az/en/), in order to analyze the situation and trends in the very industrial branch, strengthen interactive dialogue with the relevant companies, review the factors affecting industrial development and promote inter-company cooperation. As a result of discussions held in the margins of the Working Group, the Association of Building Materials Producers was created to further develop the industry and support production, apply cutting-edge technologies and international standards, as well as ensure security of building materials market, conduct relevant research, enhance the capabilities of the workers.

With the aim of supporting the implementation of projects and ensuring further improvement of the public infrastructure, Public-Private Partnership Center operates under the Small and Medium Business (SMB) Development Agency of the Republic of Azerbaijan (https://smb.gov.az/). SMB Development Foundation has been formed to attract foreign investments, apply modern technologies, develop innovative projects and provide a financial support to the SMB clusters. Tax privileges are envisaged for the SMB cluster companies. SMB Development Centers have been established to support the development of start-ups, innovative entrepreneurship and design business development programs. Moreover, certain tax and customs benefits are provided to the holders of Investment Promotion Document. Furthermore, soft loans are provided via the Entrepreneurship Development Fund (http://edf.gov.az/en), established under the Ministry of Economy of the Republic of Azerbaijan, to fund the investment projects.

Azerbaijan Export and Investment Promotion Foundation (http://www.azpromo.az/), set up by the Ministry of Economy of the Republic of Azerbaijan, is in charge of stimulating non-oil exports and foreign investment inflows. The portfolio of Azerbaijan Investment Company (https://aic.az/en/) includes the construction-building industry as well. In this regard, several benefits of co-investing with Azerbaijan Investment Company exist and projects for potential investment may be submitted for review. The task of Azerbaijan Industrial Corporation (http://ask.gov.az/en) is to increase industrial production potential.

The Standing Commission on Work with Construction and Building Materials Producers, operating under the National Confederation of Entrepreneurs (Employers) Organization of the Republic of Azerbaijan (http://ask.org.az/en/), is a platform to discuss the updates and perspectives in the respective area. www.azexport.az website has been designed to facilitate the sale of goods and services in the domestic and global markets. https://etender.gov.az/ virtual platform has been developed to carry out the procurements and the new tenders are regularly uploaded to that digital system. In order to formulate a new mechanism for the implementation of strategic projects, Azerbaijan Construction Corporation is planned to be established to foster the development of cities and districts.

International exhibitions

26th Azerbaijan International Construction Exhibition (https://bakubuild.az/), the largest specialized platform in the South Caucasus and Caspian region, is envisaged to be held on 21-23 October 2020 in Baku. Moreover, 5th International Real Estate and Investment Exhibition (http://rec-expo.net/) is planned to be organized on 26-28 November 2020 in Baku.