BAKU, Azerbaijan, March 15. Meetings between
the leadership of Azerbaijan and Kazakhstan have consistently been
characterized by a spirit of friendship and mutual respect. This
occasion was no exception.
Once more, the discussions between the leaders of both countries
resulted in significant progress, marked by the signing of nine
important documents. Among these, a strategic partnership agreement
between the Azerbaijani Investment Holding and Kazakhstan’s
‘Samruk-Kazyna’ JSC is particularly noteworthy.
The idea of establishing an investment fund between Azerbaijan
and Kazakhstan was first discussed during the 20th session of the
Joint Intergovernmental Commission on Trade and Economic
Cooperation in Astana on March 5, 2024.
Over the past three decades since the establishment of
diplomatic relations between Baku and Astana, investment
cooperation between the two countries has entered a completely new
phase. From 2005 to 2022, investments from Azerbaijan to Kazakhstan
totaled $306 million, while those from Kazakhstan to Azerbaijan
amounted to $95 million.
Azerbaijan is now in the league of the top 15 significant
investors in the Kazakh economy. In Kazakhstan, over 900 companies
with Azerbaijani capital are registered, primarily involved in
trade, intermediary services, road and infrastructure construction,
processing, and logistics. Conversely, approximately 150 companies
with Kazakh capital operate in Azerbaijan, engaging in sectors such
as industry, agriculture, trade, services, construction, and
transportation.
Both countries have been successful partners within the
framework of the Turkic Investment Fund based in Istanbul, which
fosters economic integration across the wider region. The fund
plays a crucial role in supporting intra-regional trade, aiding
small and medium-sized enterprises, and executing joint projects
with international financial institutions. However, in addition to
this cooperative approach among Turkic states in the investment
sphere, Kazakhstan and Azerbaijan have made the decision and
initiated steps to implement a mutual bilateral initiative for
establishing a commercial investment fund.
An Azerbaijani expert and PhD in Economics, Ilgar Velizade,
noted the newly established investment fund between Azerbaijan and
Kazakhstan has the potential to drive forward a range of
significant bilateral projects.
“Both sides are keen on bringing specific projects to fruition
across various sectors. During his recent visit to Baku, the
President of Kazakhstan highlighted several areas of collaboration,
including energy, transportation, high technology, agro-industry,
tourism, and more. This investment fund will play a pivotal role in
fostering bilateral cooperation in these fields. Additionally,
there are hopes for fostering collaboration between small and
medium-sized enterprises, thus allowing promising projects to
receive funding through this fund,” he remarked.
Velizade underscored the significance of the fund’s outreach
beyond Kazakhstan and Azerbaijan, noting its potential to undertake
projects in third countries. This, he suggests, indicates a broader
scope for cooperation between the two nations in the markets of
third countries.
“All the countries mentioned are Turkic-speaking or Balkan
nations, where Azerbaijani and Kazakh businesses have established a
strong presence over the years, successfully executing various
projects. As a result, Azerbaijani and Kazakh businesses are well
regarded in these regions. The implementation of these pivotal
investment projects in neighboring markets will allow businesses
from both countries to thrive in familiar territories, offering our
partners in these countries a mutually beneficial cooperation
agenda, centered on the interests of both businesses and, of
course, the local populations,” he concluded.
In turn, Kazakh expert and Director of the Institute of Applied
Ethnopolitical Studies, Talgat Kaliev, highlighted that the new
investment fund would primarily finance infrastructure projects,
especially those related to the development of the Trans-Caspian
transport corridor.
“This project holds significance for both nations, as the
improvement of bottleneck areas along the corridor directly impacts
its overall capacity. Hence, the fund will support the
construction, reconstruction, modernization, and expansion of key
transportation routes and ports. Kazakhstan and Azerbaijan have
pledged $300 million towards this fund, and I anticipate that they
will be the primary investors. However, foreign investors may also
join if there’s interest. As for the regional fund, there’s
considerable potential, particularly among Turkic nations. It could
serve as a platform for other countries like Türkiye, Uzbekistan,
and Kyrgyzstan, which share an interest in corridor development and
can influence each other economically, to contribute,” he
explained.
The visit of President of Kazakhstan Kassym-Jomart Tokayev has
already reinforced the importance of bilateral relations both for
Baku and Astana. The strategic partnership agreement between
Azerbaijan and Kazakhstan to establish an investment fund will
undoubtedly inject new momentum into bilateral relations. With such
a fund in place, Azerbaijan can facilitate capital exports and
undertake strategically important projects for the benefit of the
broader region. Given the agreements reached during the visit, it’s
safe to say that the future of Azerbaijani-Kazakh relations looks
promising and holds great potential for both nations.