PERSPECTIVE SPORTS CULTURE & TOURISM ICT ENERGY FINANCE CONSTRUCTION GUIDE Contents 4 24 92 HE Ilham Aliyev Sports Energy HE Ilham Aliyev, President Find out how Azerbaijan is The Caspian powerhouse is of Azerbaijan talks about the entering the world of global entering stage two of its oil future for Azerbaijan’s econ- sporting events to improve and gas development plans, omy, its sporting develop- its international image, and with eyes firmly on the ment and cultural tolerance. boost tourism. European market. 8 50 120 Perspective Culture & Finance Tourism What is modern Azerbaijan? Diversifying the sector MICE tourism, economic Discover Azerbaijan’s is key for the country’s diversification, international hospitality, art, music, and development, see how relations and building for tolerance for other cultures PASHA Holdings are at the future. both in the capital Baku the forefront of this move. and beyond. 128 76 Construction ICT Building the monuments Rapid development of the that will come to define sector will see Azerbaijan Azerbaijan’s past, present and future in all its glory. ASSOCIATE PUBLISHERS: become one of the regional Nicole HOWARTH, leaders in this vital area of JOHN Maratheftis the economy. EDITOR: 138 BENJAMIN HEWISON Guide ART DIRECTOR: JESSICA DORIA All you need to know about Baku and beyond in one PROJECT DIRECTOR: PHIL SMITH place. Venture forth and explore the ‘Land of Fire’. PROJECT COORDINATOR: ANNA KOERNER CONTRIBUTING WRITERS: MARK Elliott, CARMEN Valache, NIGAR Orujova COVER IMAGE: © RAMIL ALIYEV / shutterstock.com 2nd floor, Berkeley Square House London W1J 6BD, United Kingdom In partnership with T: +44207 887 6105 E: [email protected] LEADING EDGE AZERBAIJAN 2015 5 Interview between Leading Edge and His Excellency Ilham Aliyev, President of the Republic of Azerbaijan LE: Your Excellency, in October 2013 you received strong reserves that amount to over US $53 billion, which is a very support from the people of Azerbaijan and were re-elect- favourable figure when compared to the rest of the world. ed as President of Azerbaijan. Looking ahead, what are We are also prioritizing the application of high technol- your priorities for the next five years and beyond? ogies and to the creation of a space industry in Azerbai- jan. The application of information and communication There is a long-term development strategy in Azerbaijan. technologies is one of the priority areas for development, Our country has a well thought-out program on the future leading to 2013 being declared “The Year of Information development of the economy – the “Azerbaijan 2020: and Communication Technologies” in our country, and also Outlook for the Future” development concept. The reforms to the first telecommunication satellite of Azerbaijan - “Az- carried out over recent years, coupled with the initiatives erspace-1” - being successfully launched into orbit. This is a put forward by my Government have provided the basis for great achievement for the country. the development of our country. Our economy is growing In the coming years we plan to direct our budget expendi- rapidly. I would particularly like to mention the fact that tures mostly to the projects which will provide for the sus- over the period when the economic and financial crisis has tainable development of Azerbaijan. continued in Europe, every year the economic development of Azerbaijan has been observed, and during the first 10 months of the current year [2014] the GDP growth rate was 2.5%, and growth in the non-oil sector was 6%. Taking Multiculturalism is a into consideration the current global economic situation, big part of the lifestyle of one can say that this is a very positive indicator for Azer- baijan. For the last decade Azerbaijan has been one of the Azerbaijan. It is not accidental most rapidly developing countries in the world in terms of that several initiatives put forward the economy. by Azerbaijan have already been We have had successful development in the oil and gas sector, which is one of the leading spheres of the economy successfully realised, and that these of Azerbaijan. Azerbaijani oil is now transported to differ- initiatives offer new opportunities ent markets through three pipelines – Baku-Tbilisi-Jeyhan, for many nations. Baku-Novorossiysk, and Baku-Supsa. As far as natural gas is concerned, there are four pipelines for its transportation to our markets. The oil and gas pipelines that have been realized through our initiative have opened all the markets LE: As the first CIS state to fully repay all World Bank for us. A historic event for our country happened this year, and IMF funding, and in fact also the first to be a funding which is that the foundation of the “Southern Gas Corri- partner of both organizations, what is the key to your dor” has been laid. I am sure that this corridor will help to success? provide further steady development of our country over the next few decades. I can say that the reforms carried out in Azerbaijan, and The development of the non-oil sector is one of the main our well thought-out economic policy is highly commend- priorities of Azerbaijan. Solid growth has been observed in ed by the most authoritative economic institutions in all spheres, our national budget is growing and this year’s the world. Azerbaijan ranked 38th among the assessed government investment in Azerbaijan is also quite big. 144 countries for the competitiveness performance of its Inflation is still fairly low at only 1.5%, and this shows that economy in the Global Competitiveness Index of the World the macroeconomic situation is stable. We have currency Economic Forum. Once again this shows that the Republic 6 LEADING EDGE AZERBAIJAN 2015 7 of Azerbaijan is among the premier countries for attracting officially prioritized the encouragement of intercultural As you can see, Azerbaijan will host both the European and investments. dialogue and understanding. Would you please kindly Islamic Games in just two years. We have also achieved a high degree of transparency in elaborate on the country’s role in strengthening intercul- Recently a decision of great importance and historical the financial system of the energy sector. The Azerbaijan tural dialogue? significance for Azerbaijan was the choice of Baku as one of State Oil Fund is a fully transparent structure, and its the cities to host the 2020 European Football Champion- activity is audited at international level by respected bodies. The multi-confessional and multinational society that ship. There are several motives behind the decision to hold The United Nations Organization rewarded the Azerbaijan exists today in Azerbaijan has been formed through many these games in Azerbaijan. First of all, the development State Oil Fund with the Transparency Award. centuries, and this positive trend has further strengthened of Azerbaijan, the existence of our sporting and service Large amount of investments are put in our economy, for in the years of independence. All nations live here in a infrastructure, the establishment of a modern transport example, about US $25 billion will be invested this year. friendly atmosphere, like one family of Azerbaijan. There system, and our country’s high economic growth rates were These investments are made in various spheres of the econ- has never been any contradiction or misapprehension on taken into consideration. At the same time, the successful omy: towards the development of industry, agriculture, the religious or national backgrounds in Azerbaijan and this is performance of our sportsmen also played its role here. tourism sector, and of course, to the development of the oil our great national wealth. As mentioned above, Azerbaijan will host the first Eu- and gas industry. Azerbaijan will further develop due to the Multiculturalism is a big part of the lifestyle of Azerbai- ropean Games in 2015. These Games will be held for the improvements in our non-oil sector and this will make our jan. It is not accidental that several initiatives put forward first time in the European history. We feel both honour development sustainable. by Azerbaijan have already been successfully realised, and and great responsibility that Baku was chosen to host these The favourable investment environment existing in our that these initiatives offer new opportunities for many Games. It means as a country we will set the standards for country creates good opportunities for greater cooperation nations. I should mention that for example, we invited the holding all future Games, and our aim is to hold this event with multiple international financial institutions, including Culture Ministers of the Organization for Islamic Coopera- at the level of the Summer Olympic Games. the World Bank, the International Monetary Fund and the tion member countries to a meeting of the Ministers of Cul- It will be great pleasure for us to welcome a number of Asian Development Fund. ture of the Council of Europe held in Baku in 2008, and we sportsmen from around the continent in Baku, which is fast Economic development, the resolution of social issues, held a joint meeting. This was the first time in history such becoming one of the most beautiful cities of the world, and to specific attention to the humanitarian sphere, I can say, a meeting took place, and Azerbaijan took this initiative have them see the hospitality and high spirits of our people, have been the main factors providing the successful devel- because we are member of both the Council of Europe and and see our historic and cultural pearls with their own eyes, opment of Azerbaijan in recent years. the Organization for Islamic Cooperation. and to be able to get more information about Azerbaijan. In 2009, when Baku hosted the meeting of the Ministers LE: What does the third state socio-economic develop- of Culture of the Organization for Islamic Cooperation, we ment plan hold in store for the regions of Azerbaijan, in invited the Ministers of Culture of the Council of Europe.