Baku, Azerbaijan (8 December 2016) - “Baku International Sea Trade Port” CJSC (Port of Baku) signed a Memorandum of Understanding (MoU) with the Islamic Corporation for the Development of the Private Sector (ICD).
The MoU was signed by the Director-General of the Port of Baku, Dr. Taleh Ziyadov and CEO & General Manager of ICD, Mr. Khaled Mohammed Al-Aboodi.
The MoU aims mainly to study the potential opportunities in the Port of Baku and Alat Free Trade Zone (FTZ) and examine the possibility of involving private sector players in their realization.
“The Port of Baku and the FTZ that is being created around it will serve as a logistics hub for global private companies that seek to establish regional headquarters in Eurasia. A favorable business environment and the proximity of Azerbaijan to rich and populous neighboring markets of Russia, Iran, Turkey and Central Asian countries make the Port of Baku an ideal choice for potential foreign investors,” noted Ziyadov.
The CEO of ICD, Khaled Mohammed Al Aboodi stated that, “in cooperation with the Port of Baku we will strengthen mutual efforts to attract potential investors and consider the possibility of involving global private sector players from the ICD member countries in the Port of Baku and FTZ in Alat.”
On March 17, 2016, President Ilham Aliyev signed a Decree on the measures to establish an FTZ in and around the new port in the Alat township of Baku, 70 km south of the downtown. On September 7, the Azerbaijani Government and the Port of Baku signed an advisory agreement with “DP World” of the United Arab Emirates on providing consulting services for the establishment of a free trade zone in Alat. The FTZ is expected to start its operations in 2017.
About Port of Baku: The Port of Baku is the oldest and largest port on the Caspian Sea. For centuries, Port of Baku served as a link between East and West, alongside the ancient Silk Road, as well as North-South transport corridor that connects North Europe and Russia with Middle East and South Asia. The Port of Baku grand hub vision includes an integrated development model that links the port, Free Trade Zone, petrochemical industry, the Alat township and other strategic transport and non‐transport projects under the umbrella of a Special Legal Regime. The new Port of Baku at Alat is to become the largest Free Trade Zone in the Caspian region, fed by growing regional petrochemical feedstock and offering comprehensive logistics and value‐added services to Zone residents and international clients, and serving as major regional intermodal distribution hub.
About ICD: ICD is a multilateral organization and a member of the Islamic Development Bank (IDB) Group. The mandate of ICD is to support economic development and promote the development of the private sector in its member countries through providing financing facilities and/or investments, which are in accordance with the principles of Shari’a. ICD also provides advice to governments and private organizations to encourage the establishment, expansion and modernization of private enterprises. ICD is rated AA/F1+ by Fitch and Aa3/P1 by Moody’s. For more information, visit www.icd-ps.org