Faster, less expensive trade routes will also give Azerbaijan access to technologies and expertise necessary for the country’s economic diversification away from hydrocarbons, said the report of the international credit ratings agency Fitch Solutions, APA-Economics reports.
FS analysts noted that the non-hydrocarbon sector is growing at a much faster rate than the oil sector as oil production continues its structural decline: " The decline of the economy’s major industry will necessitate the growth of alternative industries and energy sources which, in turn, will require significant capital investment."
Fitch Solutions added that so far, investment in clean energy has been led by international investors such as Saudi Arabia’s ACWA and the UAE’s Masdar. These companies are developing Azerbaijan’s wind and solar energy industries respectively, although these sectors contribute just 1.3% to the country’s power generation mix at present.
