Azerbaijan has a very stable regulatory environment. The government also maintains a very strong fiscal balance, Real Hajiyev, Associate Director and Senior Banker at the European Bank for Reconstruction and Development (EBRD), said during a panel discussion held as part of the “German-Azerbaijani Strategic Partnership and Connectivity Conference 2026,” APA-Economics reports.
According to him, what is lacking is the institutional framework needed to attract and encourage private investment into projects, as well as the resources and fundamental components required to prepare projects that meet the demands of international investors:
“For example, when it comes to the institutional framework, certain types of engineering, procurement and construction contracts are usually preferred in Azerbaijan. Particularly for large projects, there is mainly reliance on a single model for contracting and project delivery. However, there are also alternative approaches such as Public-Private Partnerships. Within the Public-Private Partnership framework, there are different options, as well as various models for attracting investors."
“The key point is that the projects themselves are fundamentally strong from a technical perspective, but the risks must also be appropriately allocated between the parties. At the institutional level, we are trying to help governments close these gaps, provide the necessary expertise, and develop these alternative approaches for identifying, developing and delivering projects.
At a more practical level, through technical assistance funds and our internal resources, we help prepare these investment projects so that, once they are ready, private investors, lenders and equity investors are also prepared to invest in them,” he said.
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