The European Bank for Reconstruction and Development is lending $7 million to Saloğlu, Azerbaijan’s leading furniture maker, to help the company buy new equipment and upgrade its retail stores, according to EBRD. The local currency loan will help Saloğlu purchase new production equipment for its facility in Agstafa and refurbish its network of retail outlets across the country. The deal shows EBRD’s continued support for Azerbaijan’s private sector development and economic diversification efforts.
Saloğlu has been operating since 2000, making soft furniture sets for living rooms and bedrooms including mattresses and chairs. The company also distributes Turkish, Italian, and US furniture brands throughout Azerbaijan. The furniture market in Azerbaijan has grown as the country works to diversify its oil-dependent economy and develop manufacturing sectors.
This marks the second major loan between EBRD and Saloğlu after a successful partnership that began with EU-funded advisory services for small businesses. The company first worked with EBRD’s small business program to boost competitiveness, then received a previous loan worth €4 million that helped build an energy-efficient production facility in Agstafa and a warehouse in Baku. That investment helped the company achieve steady growth and expand operations.
The new funding will help Saloğlu modernize its production capabilities and improve its retail presence as Azerbaijan’s furniture market continues developing. The company serves both domestic demand and works to compete with international brands in the local market.
EBRD has invested €3.65 billion in Azerbaijan across nearly 200 projects, making it one of the country’s leading institutional investors focused on private sector growth and economic diversification beyond oil and gas revenues.
