Azerbaijan-Uzbekistan Investment Pipeline Outgrows $500 Million Fund

Azerbaijan and Uzbekistan are preparing to expand their bilateral investment mechanism as the scale of projects under development increasingly exceeds the capacity of their existing $500 million fund.

Azerbaijan and Uzbekistan are looking to increase the financial capacity supporting their investment partnership as a growing pipeline of projects extends across tourism, industry, energy, mining, agriculture, finance and construction.

The issue emerged during the third meeting of the Supreme Interstate Council in Tashkent on August 23, where Azerbaijani President Ilham Aliyev and Uzbek President Shavkat Mirziyoyev reviewed the countries’ expanding economic cooperation.

The Azerbaijan-Uzbekistan Investment Company (AUIC) was established in 2023 with initial committed capital of $500 million, according to the investment company’s own information. The vehicle was created to make direct investments in businesses and projects in Azerbaijan and Uzbekistan.

President Aliyev said approximately $160 million of the fund’s capital has already been allocated and indicated that the remaining resources would be deployed as additional investment opportunities are identified. He also described the bilateral fund as particularly effective among Azerbaijan’s investment cooperation mechanisms with other countries.

The bigger issue, however, is the size of the pipeline now emerging between the two economies.

Aliyev said the value of projects already planned or contracted is significantly greater than the fund’s original capitalisation. He cited around $5 billion in planned investment in Uzbekistan’s tourism sector alone, while hotel and residential developments in Tashkent are being implemented outside the AUIC framework.

That suggests the next stage of bilateral investment cooperation could involve a larger capital base as well as financing arrangements beyond the existing fund.

Investment pipeline broadens

The latest projects demonstrate how the relationship is expanding beyond conventional trade.

According to Azerbaijan’s presidential administration, projects inaugurated or launched during the August 23 visit included Davr Bank, following its acquisition by the International Bank of Azerbaijan; a gypsum plant operated by Matanat-A; and two STEAM schools established by Landau Education Group.

The new investment programme also includes five SOCAR filling stations, the Sea Breeze Uzbekistan residential and recreational complex being developed by Agalarov Development, and the Baku City residential project by TuranAZ.

Mining and agriculture are also represented, with the countries launching a silver ore processing and concentration project under the Sur Gold and Silver Project, as well as plans for new fruit orchards by Gold Fresh Fruits, according to the Azerbaijani presidency.

The breadth of these projects reflects a progressively more diversified investment relationship, covering financial services, education, real estate, energy infrastructure, mineral processing and agriculture.

Industrial cooperation takes centre stage

For Uzbekistan, industrial development is expected to remain a major area of cooperation.

President Mirziyoyev said businesses from the two countries are already working on projects involving geology, energy, chemicals, finance, construction and agriculture. He called for the faster deployment of the joint investment company’s existing capital and said the fund should subsequently be expanded.

The two countries are also setting a higher target for bilateral commerce. Mirziyoyev said trade between Azerbaijan and Uzbekistan has tripled over the past five years, while the overall portfolio of joint projects has exceeded $5 billion. The two governments have set $1 billion in bilateral trade as their next target.

The AUIC has already been building a diversified portfolio. Its published investment strategy identifies areas including financial services, transport, energy, healthcare, logistics, manufacturing, pharmaceuticals, fintech, information technology and education.

The company has also reported investments in Uzbekistan’s higher-education, technology and retail sectors during 2026, including $2 million in the American University of Technology in Tashkent, $1.7 million in a data-centre equipment venture with Engineering+, and $15 million in a local retail chain.

A larger financing role

The emerging picture is therefore broader than an expansion of a single investment fund. Azerbaijan and Uzbekistan are building a wider economic partnership in which government-backed capital can sit alongside corporate investment and potentially attract additional financing.

Transport is another component of the relationship, with the two sides discussing cooperation around the Middle Corridor and plans for a joint Caspian Sea fleet, according to Mirziyoyev’s remarks at the council meeting.

The two countries are also pursuing cooperation in geological exploration. The Azerbaijani authorities have previously announced plans involving AzerGold, Uzbekgeologorazvedka and the AUIC, adding natural-resource development to the investment agenda.

For investors, the significance of the latest developments lies in the growing gap between the size of the original $500 million investment vehicle and the much larger portfolio of projects now being discussed or implemented.

If the fund is expanded as proposed, the move would give Azerbaijan and Uzbekistan a larger institutional platform for directing capital into cross-border projects while potentially creating more opportunities for private and international investors to participate in the next phase of the partnership.

France, Saudi Arabia Expand Economic Ties as Investment Grows

French foreign direct investment stock in Saudi Arabia reached €16.3 billion in 2024, as France and the Kingdom use the latest high-level visit to broaden economic cooperation and encourage greater two-way investment.

France and Saudi Arabia are expanding their economic partnership, with French foreign direct investment stock in the Kingdom reaching €16.3 billion ($19 billion) in 2024, more than doubling over five years and making France the fourth-largest source of foreign direct investment in Saudi Arabia.

The figure was presented by Saudi Investment Minister Fahad bin Abduljalil Al-Saif at the French-Saudi Investment Roundtable in Paris on August 24, held during the official visit of Saudi Crown Prince and Prime Minister Mohammed bin Salman. French investors currently hold 651 investment licences across 18 sectors in the Kingdom.

The investment figures highlight the scale of an economic relationship that the two governments are seeking to broaden. While French investment remains strongly linked to established industries, opportunities are expanding into energy, financial services, digital infrastructure, advanced manufacturing, transport and logistics, gaming and tourism, according to the Saudi Investment Ministry briefing presented at the roundtable.

The Paris meeting brought together government officials, business leaders and chief executives from both countries. The Saudi Press Agency said discussions covered energy, industry, financial services, transport and logistics, healthcare, culture, tourism and artificial intelligence, with the two sides examining joint projects and further private-sector cooperation.

Investment becomes more reciprocal

The relationship is also developing beyond French capital entering Saudi Arabia. France and Saudi Arabia have agreed to strengthen economic ties and cross-investments, while increasing cooperation between financial institutions and insurance and financing organisations, according to the joint statement issued after the leaders’ meeting.

A major example is the planned development by Qiddiya Investment Company of a mixed-use, multi-park destination at Cergy-Pontoise in France’s Île-de-France region. The project is expected to combine entertainment, leisure, hospitality, culture and sport, with investment of around €6 billion over its development lifecycle, according to the French-Saudi joint statement.

The two governments are also establishing a financing framework to support projects delivered by French companies in Saudi Arabia. Separately, Saudi Arabia’s Ministry of Finance and Bpifrance Assurance Export signed a statement establishing a credit line of up to $5 billion to finance or refinance contracts involving French companies in the Kingdom.

The financing mechanism could provide additional support for French companies seeking to participate in Saudi projects as the Kingdom continues to attract international expertise and capital under its economic diversification programme.

Technology and industry broaden the relationship

The latest talks indicate that the bilateral economic relationship is becoming broader in sectoral terms. France and Saudi Arabia agreed to deepen cooperation in artificial intelligence, quantum computing, emerging technologies and capacity building, according to the joint statement.

For French companies, Saudi Arabia is already an important market across a range of industries. France’s Ministry for Europe and Foreign Affairs identifies urban and high-speed rail, tourism, agriculture, healthcare, renewable energy, civil nuclear energy and defence among the principal areas of opportunity, while also highlighting prospects for smaller French companies in consumer goods, agrifood and telecommunications equipment.

The industrial component remains significant. Around 60% of French investment stock in Saudi Arabia is concentrated in manufacturing, according to the investment briefing, although French companies are increasingly pursuing opportunities in emerging sectors linked to Vision 2030.

Trade provides another link

Investment is developing alongside a substantial trade relationship. The French-Saudi joint statement said bilateral trade reached approximately $11.8 billion in 2025. France Diplomatie’s latest published economic data, which is based on an earlier reporting period, records €10.7 billion in bilateral goods trade, with French exports reaching €4 billion.

Saudi Arabia is also continuing to attract foreign capital more broadly. Al-Saif said foreign direct investment inflows reached approximately €6.1 billion in the first quarter of 2026, up 2.4% year on year, according to figures presented at the Paris roundtable.

The wider economic relationship is being supported by a more formal strategic framework. During the latest visit, Macron and Mohammed bin Salman chaired the first meeting of the French-Saudi Strategic Partnership Council, which launched new initiatives aimed at strengthening cooperation between the two countries.

The two sides also agreed to extend their cooperation on AlUla through 2035, continuing collaboration in archaeology, heritage and culture, while further agreements and memoranda covered areas including defence, healthcare, artificial intelligence, emerging technologies and entertainment. The Élysée said more than 22 agreements and memoranda of understanding were announced in connection with the visit.

For France, the €16.3 billion stock of investment already established in Saudi Arabia provides an existing platform for companies to pursue new opportunities in the Kingdom. For Saudi Arabia, greater investment in France offers another channel for deploying capital and building commercial links in Europe.

The latest visit therefore adds new investment projects, financing mechanisms and areas of cooperation to an economic relationship that is already substantial. With both governments seeking greater cross-investment and broader private-sector participation, the next stage will depend on how effectively the agreements announced in Paris translate into projects and long-term commercial activity.

Jordan Extends Industrial Incentives as Ma’an Package Targets Manufacturing Costs

Jordan is extending incentives for industrial estates in Madaba, Salt and Tafileh for another three years and has approved a broader package for the Al Rawdah Industrial City in Ma’an, as the government seeks to attract manufacturing investment outside the capital and tie public support more closely to production, employment and local value creation.

The measures come as Jordan continues to adjust its investment framework under the Economic Modernisation Vision, with the government seeking to improve the operating environment for investors while directing more economic activity towards the governorates.

Jordan’s Minister of Investment, Dr. Tareq Abu Ghazaleh, said in a Jordan TV interview that the three-year extension is intended to give viable projects that have been delayed by market conditions, regional crises and other challenges more time to complete construction and enter production. Eligibility remains linked to actual project implementation, the employment of Jordanian workers and the creation of industrial value added, according to Petra.

The three industrial estates had attracted 105 companies and more than JD162 million in investment by the end of June, Abu Ghazaleh said, with the minister putting employment generated at more than 3,400 jobs.

A separate statement from the Jordan Industrial Estates Company, however, reported more than 1,640 jobs across the three estates. The differing figures should be read with care, as the two government sources do not explain whether they are using different employment definitions or reporting bases. JIEC said the estates had occupancy rates of 40%, up from 27.5%, while investments were distributed across Madaba, Salt and Tafileh.

Ma’an package focuses on operating costs

The more extensive package is aimed at Al Rawdah Industrial City in Ma’an, where the government is offering incentives covering some of the principal costs facing manufacturers during the early years of operation.

According to the Ministry of Investment, the package provides electricity-cost support for five years. The government will cover 75% of electricity costs during the first two years, 50% during the next two years and 25% in the fifth year.

Companies will also be eligible for support for employing workers from the local area for up to three years, including contributions towards wages, social security payments and transportation costs. For export-oriented manufacturers, the government will subsidise 50% of container-handling costs at Aqaba Port for three years.

Land is another component of the package. Industrial plots covering more than 20 dunums will be priced at JD7.5 per square metre, compared with JD15 previously, subject to a maximum total area of 120 dunums, according to the Ministry of Investment.

For investors, the combination is notable because it addresses several upfront and operating costs at the same time. Energy prices, land expenditure, labour costs and export logistics can have a material effect on the economics of a manufacturing project, particularly during the ramp-up period.

Incentives linked to investment performance

The support is not unconditional. Projects seeking the Al Rawdah incentives must begin operations within the required timeframe, achieve at least 30% local value added and meet minimum employment requirements for residents of the governorate, according to the Ministry of Investment.

The Cabinet has also limited access to the wider industrial-estate incentive programme in Madaba, Tafileh and Salt to up to 15 companies per estate, according to the Jordan Times’ report on the Cabinet decision. The newspaper also reported that the programme will continue to be financed through an existing government grant rather than creating an additional burden on the Treasury.

That performance-based approach is important from an investment-policy perspective. Rather than treating incentives simply as a reduction in project costs, Jordan is linking access to measurable outcomes such as operational start-up, employment and domestic value creation.

Part of wider investment reforms

The industrial measures form part of a broader effort to update Jordan’s investment framework. The Ministry of Investment said the amended Investment Environment Regulation for 2026 was published in the Official Gazette on June 4, with the changes aimed at improving the investment environment, streamlining procedures and supporting investment attraction and job creation.

The government has also been using incentives to encourage investment in governorates rather than concentrating activity in Amman. The Ministry said the Al Rawdah package followed Prime Minister Jaafar Hassan’s visit to Ma’an and subsequent directives concerning the needs of investors and local communities.

For international manufacturers, the policy shift presents an opportunity but also leaves practical questions for due diligence. The value of the incentives will ultimately depend on infrastructure availability, energy reliability, workforce availability, logistics costs and the speed with which projects can move from approvals and construction into commercial production.

Jordan’s government is effectively testing whether targeted incentives can convert industrial land and development zones into productive manufacturing capacity. The performance of the projects receiving support — measured in factories entering production, capital deployed, jobs created and local value generated — will determine whether the strategy succeeds in attracting longer-term industrial investment to the country’s governorates.

Estonia Cuts Investment Grant Threshold as It Targets More Industrial Projects

Estonia is expanding access to its largest investment support programme by lowering the minimum qualifying investment from €100 million to €70 million, a move aimed at attracting a wider range of industrial, technology and strategic manufacturing projects.

The revised criteria were introduced through the updated large-scale investment grant guidelines published by Enterprise Estonia (EIS), the government agency responsible for supporting business development and investment activity. The changes are designed to make the scheme accessible to more companies while continuing to prioritise investments that strengthen exports, productivity and economic value creation.

Under the amended framework, companies no longer need to commit to projects exceeding €100 million to qualify. The lower threshold allows more medium-to-large industrial investments to enter the programme, particularly in sectors identified as strategically important for Estonia’s economy.

The revised rules also introduce different entry points depending on the type of investment. According to EIS, priority development projects can qualify with eligible costs from €35 million, while defence-related industrial projects can enter the scheme from €20 million.

Food manufacturing has also been added to the programme’s priority sectors, expanding the scope beyond technology-focused industries. Other eligible areas include net-zero technologies, the decarbonisation of energy-intensive industries, critical raw materials processing, strategic digital technologies, deep technology and biotechnology.

Lower Employment Requirement Broadens Access

Alongside the reduced investment threshold, Estonia has lowered the minimum job creation requirement for supported projects.

Companies applying under the scheme must now create at least 20 new positions, compared with the previous requirement of 30 jobs. The adjustment is intended to reflect the changing nature of modern industrial investments, where projects in areas such as automation, advanced manufacturing and technology development may require significant capital investment but fewer employees than traditional factories.

The Estonian government has linked the programme to its broader objective of attracting investments that generate long-term economic benefits, including higher-value employment, increased exports and stronger industrial capacity.

Grants Cover Up to 15% of Eligible Investment

The investment support available through the programme remains capped at €20 million per project.

According to the EIS guidance, companies investing in Harju County can receive support of up to 10% of the investment value, while projects located elsewhere in Estonia may qualify for grants of up to 15%.

Applicants must finance at least 85% of the investment themselves, ensuring that public funding supports projects with significant private-sector commitment.

The structure of the scheme is aimed at supporting major investments without replacing private capital, with grants focused on projects expected to deliver measurable economic impact.

Focus on Industrial Capacity and Strategic Sectors

The changes come as European economies compete to attract investment into sectors linked to energy transition, digitalisation and supply-chain resilience.

For Estonia, the updated programme provides a targeted incentive mechanism for companies considering new production facilities, technology centres or industrial expansion. Rather than offering broad-based incentives, the scheme links public support to specific investment outcomes, including export growth, innovation and employment creation.

The inclusion of food manufacturing alongside advanced technology sectors also reflects an effort to strengthen domestic production capacity and reduce vulnerabilities in key supply chains.

Companies Must Pass Investment Assessment Process

Businesses seeking support must meet eligibility requirements established by EIS, including registration in the Estonian Commercial Register and compliance with ownership, investment and employment conditions.

Before submitting an application, companies are required to complete a preliminary consultation and assessment process. Applications are then submitted through Estonia’s electronic funding platform, E-toetus.

EIS evaluates projects based on several factors, including economic impact, implementation capacity, project readiness, the quality of employment created and the location of the investment.

For companies evaluating expansion opportunities in Europe, the revised grant programme lowers the initial investment barrier while maintaining a focus on projects that contribute to Estonia’s industrial development, export capacity and technological competitiveness.

A Stronger Private Sector Voice in Zambia: How the PPDF Is Changing Policy Engagement

World Business Journal talks to Jacqueline Saidi Chishimba, Deputy Director General of the Public-Private Dialogue Forum (PPDF), about how structured public-private dialogue is giving businesses a direct voice in Zambia’s economic reform agenda, turning private sector concerns into policy discussions and helping shape a more predictable environment for investment and growth.

The PPDF was established to ensure the private sector has a direct voice in shaping economic policy. Looking back over the past four years, can you point to one policy that would not have changed without the Forum’s intervention?

One example is our role in advancing reforms in mining and energy, two sectors where private sector participation has been critical.

In mining, we raised concerns that Zambian-owned firms were largely shut out of the mining value chain, with only 2.5% of mining inputs being sourced from Zambian companies. This engagement contributed to the adoption of the Geological and Minerals Development (Local Content) (Preference for Goods and Services in the Mining Sector) Regulations under Statutory Instrument No. 68 of 2025 in October 2025. The regulations introduced a progressive reservation scheme for mining procurement, beginning with a 20 percent allocation for local companies in 2026 and rising to not less than 40 percent within five years, with a 15 percent price preference for local firms in bid evaluation.

In energy, we engaged on reforms to address a sector dominated by ZESCO as a vertically integrated state utility, purchasing as much as 80% of the electricity consumed under power purchase agreements. Through the Open Access Regulations, anchored in the Electricity Act of 2019, Independent Power Producers can now generate and sell electricity directly to eligible consumers, moving away from the single off-taker model.

We have remained engaged throughout implementation, including the December 2023 roundtable with the Ministry of Energy and the Energy Regulation Board, and the March 2026 discussions with the Ministry of Energy, ERB, the Office for Promoting Private Power Investment, and ZESCO to validate the Market Process Maps for the Open Access market. These examples show how structured dialogue has allowed private sector concerns to be identified, addressed and converted into policy reforms.

The private sector is often described as the engine of economic growth, yet many SMEs still struggle with access to finance, regulation and market access. How is the PPDF ensuring that its agenda reflects the needs of smaller businesses and not only large corporate players?

Our agenda is driven by sector priorities rather than the size of the business. Through the Technical Working Group structure, SME-dominated sectors such as tourism, agriculture and ICT have dedicated platforms for engagement, alongside larger sectors like mining. This is reflected in our reform agenda, which includes 30 reforms in agriculture, 19 in tourism and 16 in ICT, demonstrating that the concerns of smaller businesses are equally represented in our policy dialogue.

How does the Forum work with international partners such as the IFC?

Our partnership with the IFC is built on a formal foundation. The PPDF concept began with an IFC-supported project in 2021, which later informed our district-level rollout. This was formalised through a Memorandum of Understanding signed with the IFC on 18 July 2022 to strengthen structured public-private dialogue. The IFC committed US$500,000 over eighteen months to support the Forum, while Government provided the secretariat offices and operational tools, and has since assumed full responsibility for funding operations.

If there’s one misconception about Zambia’s business environment that you would like the private sector, both locally and internationally, to stop believing, what would it be?

What’s the biggest lesson the PPDF has learnt from bringing Government and business to the same table that policymakers didn’t fully appreciate before?

The biggest lesson is that the private sector was never short of ideas or solutions. As the President noted, the challenge was not a lack of input, but creating a mechanism for Government to effectively take that input on board and act on it. The trust built through the PPDF has changed that dynamic, allowing Government and business to sit around the same table, shape policy and develop reforms through structured dialogue.

Looking back at the journey of the PPDF, what is the biggest change you have seen in the way Government and the private sector engage, and how will that new relationship shape Zambia’s economic future?

The biggest change has been a shift in mindset. At the launch of the PPDF in 2022, the President emphasised that development could not be left to Government alone, and that principle is now reflected in how Government and the private sector engage.

The impact of this partnership is reflected in the numbers, with 168 reforms implemented and our Private Sector Day attracting over 1,500 delegates from Government, the private sector, cooperating partners and civil society. Looking ahead to our 2027–2032 outlook, the 2026 theme, Driving Jobs and Shared Prosperity, captures the direction of this partnership: building a private sector-led approach to economic growth.