Nazim Hajiyev: Uzbek companies showing interest in entering Azerbaijani market - INTERVIEW

Azerbaijani-Uzbek Investment Company - a joint investment structure registered in Uzbekistan that specializes in implementing projects in various sectors of the economy of Uzbekistan and Azerbaijan. The company supports initiatives in industry, digitalization, education, and retail business, and also actively collaborates with local and foreign partners. The company's director, Nazim Hajiyev, said in an interview with Report about current projects and plans for the next year.

- As we know, your company's headquarters is located in Uzbekistan. Please tell us more about the activities of the branch in Baku.

- Yes, that's correct. We are registered as an Uzbek company, and our headquarters are located in Uzbekistan. Almost two months ago, we opened a branch in Baku. Its main purpose is to implement investment projects in Azerbaijan, including those with the participation of Uzbek companies.

- In Uzbekistan, 15 projects are under expert review, and six initiatives have already been approved for a total of about $80 million. Could you specify what projects these are and when they are planned to be implemented?

- Among the projects approved by our Supervisory Board, I would highlight the largest one - the construction of a private international school in Tashkent. According to our estimates, this will be the largest school in the country. The project is being implemented jointly with two other financial institutions, our co-investors, and the school will be managed by a foreign company. Education will be conducted in English according to an international program. The other five approved projects are mainly manufacturing ventures in various sectors of the Uzbek economy. Regarding the 15 projects under expert review, they include initiatives in retail trade (in particular, a supermarket chain), as well as projects for manufacturing equipment for renewable energy. In fact, there are more than 15 of them, but only those that successfully pass the expert review are submitted to the Supervisory Board. By the end of the year, we plan to submit several more projects for its approval in addition to those already approved.

– The company is also considering investments in digitalization. Could you tell us more about this direction?

- Yes, one such project has already been approved by the Supervisory Board and is currently in the implementation stage. We expect it to be completed in October this year. It involves establishing production of mini-data centers in Uzbekistan jointly with a foreign company. We see a high demand for such products, and part of the produced centers is planned to be exported beyond the region, including to Arab countries.

– The company is looking for partners in Germany, Italy, Japan, and Middle Eastern countries. With which potential partners do you already have agreements?

- We have a number of agreements with foreign companies outside the region. In particular, German partners are potentially interested in implementing a project with us in Uzbekistan. Last week, we also held negotiations with potential Italian partners. Both of these projects are planned to be first implemented in Uzbekistan, and then, after successful implementation, we will consider executing them in Azerbaijan as well.

– What projects are being implemented or planned in Azerbaijan?

- In Azerbaijan, there are already several projects that are being implemented or will be implemented jointly with Uzbek companies. Uzbek businesses show great interest in entering the Azerbaijani market, and we try to support these initiatives as much as possible. These are mainly manufacturing companies, especially in the textile industry, including cotton products. At the same time, we are negotiating with Azerbaijani private companies that, conversely, are planning to enter the Uzbek market. Their interests are more diverse: both the manufacturing sector and the entertainment industry. So far, these initiatives are at an early stage and have not yet undergone investment expertise.

– Is there a plan to increase the company's capital?

- The company's capital is increased by shareholders as needed. As is known, the declared capital amount is $500 million. Within this amount, we receive capital investments from Uzbek and Azerbaijani shareholders as new projects are approved by the Supervisory Board.

– What goals does the company set for itself for the next year?

- Next year, we plan to implement already approved projects, as well as expand the portfolio of new initiatives. I think there will be significantly more than this year. This will be facilitated by the opening of the Baku office, active work with our potential partners in Europe, and increased company recognition thanks to marketing and PR activities. More and more entrepreneurs in Uzbekistan and Azerbaijan are approaching us with cooperation proposals.