The memorandum of understanding signed in Baku by the Azerbaijani government and Maltese Prime Minister Joseph Muscat was not detailed but merely reflected the vision for future collaboration, Azeri Ambassador Vaqif Sadiqov said.
“There are no figures in the MOU. The only figure is the date on which it was signed,” he said.
The MOU has inexplicably not been published by the Maltese government but Mr Sadiqov said that it would be presented to the Azerbaijan Parliament for ratification, making it a public document in due course.
Mr Sadiqov was speaking to a packed audience at the Malta Chamber of Commerce, Enterprise and Industry during a presentation last week, which outlined the various opportunities available for investment.
“The MOU dealt with energy but there are many other areas which could be of mutual interest. Malta has strong experience in areas which Azerbaijan wants to develop, such as transport, healthcare, education and social services, as well as general infrastructure,” he said. There are also numerous large-scale projects on the cards, including the 222-hectare White City, which will host 50,000 people.
“The government does not want oil and gas to dominate the country’s economy and the revenue generated by this sector – which accounts for just over half of our GDP – is being used to boost others which were underfunded in the past.”
He stressed that Azerbaijan, which lies at the southeastern corner of Europe, was a gateway to neighbouring markets to the east, making it of particular interest to Maltese providers of products and services.
“It is a very business-friendly environment with legislation that is very familiar to you, no protection of local businesses, and little bureaucracy. It takes just 72 hours to set up a business,” he said.
Corporate tax is just 20 per cent and a double taxation agreement is awaiting signature. Many of the major projects offer a seven-year tax holiday.
Although the country has no customs union with the EU, the ambassador said that he thought this might be possible in the future.
“We have attracted some €13 billion of FDI, so clearly the absence of a customs union is not a hindrance,” he said.
On EU membership, he was adamant that Azerbaijan would not “beg” for accession and did not want to be a “burden” on member states but preferred to focus on its own development and consider membership only when it was able to “bring something to the table”.
Malta and Azerbaijan recently celebrated 20 years of diplomatic relations. The country recently ranked 39th in the Competitiveness Index. The chamber is currently gauging interest in a trade mission to Baku.