Dashgin Shikarov, the Azerbaijani ambassador to the UAE announced on October 4 that Azerbaijan and the UAE have reached a preliminary agreement to launch a joint investment fund for the establishment of new enterprises particularly in the agro-industrial space, the food industry, logistics, and transportation sectors.

“The establishment of the fund would contribute to making joint investments in mutually beneficial projects,” Shikarov told Trend. “It is important to invest in such areas that stimulate the growth of mutual investments and increase trade turnover….”

Between January and July of this year, trade turnover between the two countries increased by more than 40 percent, according to Azerbaijan’s economic minister Shahin Mustafayev, reaching a total value of $50.6 million, according to data from the Azerbaijani State Customs Committee.

“The governments of Azerbaijan and the UAE are working to improve these indices,’ said Mustafayev.

Discussions regarding agricultural cooperation between the two countries were carried out during a meeting between Azerbaijan’s Minister of Agriculture, Heydar Asadov, and a delegation from the Dubai-based MBM Group during which UAE investment in Azerbaijan’s agriculture sector was explored, according to Azernews.

“Azerbaijan has 9 out 11 climatic zones,” said Asadov. “There is a favorable investment environment in the country, which also has great export potential.”

However, Fresh Plaza reports that during the discussion, Azerbaijan expressed that it has conditions it would have MBM Group meet in order to export agricultural products to the UAE. “For the export of Azerbaijani agricultural products it is necessary to create special agricultural parks, a logistic base for supplies of fruit & vegetable products, canned fruit and vegetables, for the UAE and third countries, and the organization of modern specialized farms for the production of meat and dairy products,” Asadov said.

In response, Federico Carvellini, Corporate Affairs Director for MBM Group noted that a proposal will be submitted to the Ministry of Agriculture outlining a plan for investing in the restructuring of Azerbaijan’s agricultural infrastructure and the establishment of agricultural parks in the country.

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Lynda Kiernan