Turkey looks likely to invest in Azeri construction
Published on 10/02/2015
The Azeri construction industry may be seeing a huge boost in the near future, with investment coming from one of the largest economies in the region: Turkey. The two countries have benefited recently from a steadily improving relationship, the next step of which appears to be increased investment.
Azerbaijan is rapidly becoming a great place to invest in, especially in the build and interiors sector. The nation is growing and its construction needs are rising, both in terms of major projects like the Azerbaijan Tower in Baku, and a general increase in areas like housebuilding, which grew by 12 per cent in 2013.
As such, international companies are starting to take notice and look into moving to the growing nation. Turkey has already made strides towards this. In total, over 2,600 of the country's companies operate in Azerbaijan, leading to over $6.3 billion of Turkey's wealth being invested into the nation. This seems set to grow strongly in the future.
Turkish companies meet with the MCHT
The main indicator of this was a recent meeting held at Azerbaijan's Ministry of Communications and High Technologies (MCHT). This brought together representatives from a number of fields, with the aim of discussing opportunities for further Turkish investment into the Azeri construction industry.
Present were representatives of several major Turkish companies, as well as some from the Turkish Cooperation and Development Agency (TCDA). They discussed a number of things with the MCHT, including investment in industrial construction in Azerbaijan.
This was held up as an important aspect of Azerbaijan's future. The country evidently wants to focus on industrial construction not related to the oil sector, while expanding its competitive industrial production. It hopes to make use of Turkey's technology for this, in order to form an "innovative and knowledge-based economy".
The Technopark project
One of the proposals put forward at this meeting was from the MITEK group of companies based in Turkey. It wants to invest further in the construction of the Khazar University Technopark, a unique business and technology centre in the heart of Azerbaijan.
A similar meeting was held on February 6th, with MITEK representatives coming to Khazar University's Marble Hall to meet with several important Azeri government ministers. It seems this is a project that is moving rapidly ahead thanks to increased Turkish investment.
The Technopark project is exactly the kind of scheme Azerbaijan is looking for: a hi-tech development that will help to grow and modernise the Azeri economy. Its aims include integrating the fields of education, science and business and creating competitive advantages for its participants and partners.
What next?
Further investment into Azerbaijan's construction industry will likely follow a similar path. Companies experienced in the field of industrial construction will be welcome in the nation, as this is an area that is in need of further investment and one the Azeri government is keen to encourage.
Of course, there are plenty of other opportunities as well. Azerbaijan is a growing economy, with a need for residential and commercial construction as well as new hi-tech industries. This makes it an excellent target for overseas investment.