Proper regulation of natural monopolies key to robust economy – minister

Effective and transparent regulation of natural monopolies is crucial for preserving a competitive environment and ensuring robust economic development in Azerbaijan, Economy Minister Mikayil Jabbarov said at the 2nd National Competition Forum in Baku, Report informs.

He emphasized the importance of natural monopolies and their regulation in balancing daily life with economic activity.

"In some cases, the concept of a natural monopoly is misunderstood in public discussions and expert analyses," Jabbarov noted. "Natural monopoly is not inherently negative. What matters is its proper regulation."

The minister explained that many strategically important sectors in Azerbaijan are dominated by natural monopolies, often in the form of state-owned enterprises.

He added that managing the natural monopoly status of state enterprises remains a priority to maintain fair competition.

"Gradually opening these sectors to private players and introducing new market participants is being done in a balanced manner," he said. "This process is supported by existing legislation and institutional reforms. Strengthening corporate governance within state enterprises and the establishment of state holdings also serve this purpose."