Infrastructure Projects in Azerbaijan Present Opportunities for Croatian Companies

More than a hundred Azerbaijani companies met with around sixty Croatian entrepreneurs from 35 companies at the Azerbaijan-Croatia Economic Forum today, October 25, in Baku, as part of the official visit of the President of the Republic of Croatia, Kolinda Grabar-Kitarović, to Azerbaijan. The Croatian President opened the meeting with the President of the Republic of Azerbaijan, Ilham Aliyev, who emphasized that this business forum will certainly open doors for future cooperation.

The President of the Croatian Chamber of Economy, Luka Burilović, stated that although some of our companies have already established successful cooperation with their Azerbaijani partners, particularly in the military industry and ICT sector, shipbuilding also has great potential. “The Azerbaijani Caspian State Shipping Company will be renewing the existing fleet and building a new one, which is certainly a good opportunity for our shipbuilders,” Burilović points out, adding that he sees opportunities for other export companies due to increased public investments.

For example, the Azerbaijan Railways (which has 200 electric locomotives, of which 80 need to be overhauled) are reconstructing the entire railway system, tracks, electric locomotives, and wagons, as well as telecommunications and signaling. “Croatian companies, especially TŽV Gredelj and Altpro, will certainly compete for some of the infrastructure projects, and they have already started discussions about the possibilities of cooperation and working on the reconstruction of the railway system,” emphasizes Burilović.

He invited Azerbaijani entrepreneurs to cooperate with Croatia, which, as an EU member, offers them access to a market of 500 million inhabitants, as well as numerous opportunities for joint projects and guarantees stability and security in business.

In fact, the most significant business cooperation in the Azerbaijani market in recent years has been achieved by IT companies. Zagreb-based Span has been present in this market for several years and today officially opens its representative office. “Azerbaijan has gone through a difficult period. The drop in oil prices has significantly slowed down all economic processes. I believe that despite the recession, we can succeed in this market,” stated Nikola Dujmović, President of the IT Association of the Croatian Chamber of Economy and CEO of Span, adding that investment in knowledge and IT systems is a key prerequisite for this industry, and in the greatest crises, countries should not skimp on development.

Dujmović also reflected on the efforts of the Croatian Chamber of Economy in connecting domestic entrepreneurs with foreign markets. “The Chamber has done a good job with this delegation, fulfilling its fundamental function. It gathered us, connected us with potential partners, and brought us into contact with policymakers. In short, it opened doors for us, and it is up to us to capitalize on that,” emphasizes Dujmović.

The Vice President of the Croatian Chamber of Economy, Želimir Kramarić, presented the business climate and investment opportunities in Croatia, while the Azerbaijani opportunities were presented by the President of AZPROMO, Rufat Mammadov. “Our government is improving the business climate by reducing the necessary permits for doing business and providing tax and other incentives. We are also attracting investments; through incentive measures for specific areas of investment, reducing tax rates, or exempting certain products from customs duties,” emphasized Mammadov.

As part of the three-day visit, the Croatian Chamber of Economy organized meetings for representatives of Croatian companies with interested Azerbaijani companies, with the aim of potentially concluding new deals, as well as meetings in Azerbaijani ministries. Our companies also met with representatives of local ministries – tourism, agriculture, defense, and transport.

The economic forum was organized by the Azerbaijani National Agency for Investment and Export (AZPROMO) and the Croatian Chamber of Economy.