Baku:A panel discussion titled 'Intangible Capital as a Driver of Foreign Direct Investment Local Expertise - the New Currency of Emerging Markets' was held as part of the 2nd Azerbaijan International Investment Forum. The event gathered notable figures from various sectors to discuss ways to enhance Azerbaijan's investment landscape.
According to Azerbaijan State News Agency, the panel explored how foreign investment can be transformed into a tool for building local capabilities and creating new export opportunities. Experts emphasized that the focus should not only be on the volume of capital attracted but on its lasting impact, including technology transfer and the development of local supply chains.
Azerbaijan has long been a significant destination for foreign investment, especially in the energy sector. However, outside this industry, the influx of capital has not led to the creation of local expertise on a comparable scale. Panelists agreed on the need for investment projects to initiate new value chains within the domestic economy.
The session highlighted the importance of national companies and the state in fostering an ecosystem conducive to investment. Hikmat Abdullayev of SOCAR stressed that international partnerships should ensure the retention of technologies and expertise within Azerbaijan. He underscored the importance of engaging partners who can contribute to the long-term technological assets of the country.
Albert Traxler from PRNER emphasized the benefits of integrating local businesses into the production chain, which boosts their growth alongside demand. Rustam Ismayilov of tpe noted that true knowledge transfer occurs when a team can independently make informed decisions, extending beyond the project itself.
The panel also discussed the modern approach to assessing foreign direct investment, which includes long-term effects such as technology transfer and the integration of local companies into global value chains. Sevil Yahyayeva from AZPROMO highlighted the importance of attracting foreign companies to see Azerbaijan as a strategic hub for regional operations.
Azerbaijan is reshaping its investment agenda to focus on building a regional development ecosystem. This involves combining capital, technology, and local expertise, with an emphasis on creating skilled personnel and international standards. Vitaly Yakovlev of KPMG emphasized the importance of stable rules and sustained dialogue with regulatory authorities over tax incentives.
Narmin Jafarova of Caspian Business Hub proposed a coordinated approach to reduce transaction costs and bring stakeholders together around complex projects. She highlighted the role of Caspian Business Hub as a coordination center to facilitate cross-border projects.
The discussion concluded that the focus of the modern investment agenda is shifting towards the long-term value created within the country. This involves harnessing local knowledge and technological expertise as critical resources alongside financial capital.