Deputy minister: Azerbaijan aims to become regional digital hub

The form of competition in the global economy is changing, Deputy Minister of Digital Development and Transport of Azerbaijan Rashad Hasanov said.

Report informs that he made the remarks at today's meeting of the Milli Majlis Committee on Economic Policy, Industry and Entrepreneurship during discussions on the draft law "On Crowdfunding" and amendments to a number of laws.

"Previously countries mainly competed over natural resources and industrial production, but today technology, innovation and human capital are at the center of competition. Artificial intelligence, data centers, digital platforms and high technologies are no longer just one sector of the economy. They have become one of the main drivers of economic growth," he said.

Hasanov noted that, in this context, one of Azerbaijan's strategic goals is to become one of the region's leading digital hubs.

"Important results have been achieved in this direction in recent years. Digital infrastructure has been expanded, internet accessibility has increased, serious steps have been taken toward the digitalization of public services, and the creation of new data centers has begun," he said.

At the same time, the deputy minister said that although strong digital infrastructure is important, it is not sufficient on its own.

"If we truly want to become a regional digital hub, we must also constantly improve the institutional environment in order to attract technology companies, investors and highly qualified specialists to Azerbaijan. Today, there are not enough legal and economic mechanisms in Azerbaijan that create a special advantage in terms of establishing a technology company, investing or hiring highly qualified specialists," he said.

According to Hasanov, the legislative package presented today is therefore not merely a technical modernization measure for digital transformation, but a systemic reform aimed at forming the legal, economic and institutional foundations for the transition to an innovation-based economy.

"The main purpose of the draft laws submitted for discussion is to form the legal, economic and institutional foundations for the transition to an innovation-based economy. Azerbaijan deserves and is capable of achieving much more in the field of innovation," he said.

He noted that, under current legislation, the main financing tools for startups are grants and bank loans, but neither is considered a stable and sustainable source of financing for startups.

"We believe that one of our main functions is to create an environment in the country in which investors and highly qualified personnel choose Azerbaijan as a target country for themselves. In the global market, countries are now competing not only to protect their own resources, but also for capital and talent," Hasanov said.

He added that, under Azerbaijan's current tax, migration and public procurement rules, it is not attractive for technology companies to establish operations, invest or hire specialists in the country.

"In other words, under today's conditions, there are no attractive factors in answering the question: 'Why should I choose Azerbaijan?' compared with another foreign country. At a time when we are competing globally for talent and capital, the proposed legislative package serves to strengthen Azerbaijan's position. In this direction, long-term tax and customs incentives are envisaged for persons engaged in the development of digital technologies, artificial intelligence and cybersecurity products," he said.