DISCOVER YOUR PATH TO AZERBAIJAN
Mr. Anar Huseynov
DirectorDepartment of Economic Cooperation and Development
mail: anar_huseynov@mfa.gov.az
Tel: +99412 596 92 10
Ministry of Foreign Affairs, Republic of Azerbaijan

Azerbaijan(within last 15 years)

GDP – Increased more than 3.3 times(world record in global scale) Foreign debt is only 22.8% of GDP $ 250 billion investment made to the country(half of them are FDI’s)
 Currency Reserves – 24 times increase(sums up to $ 45 billion today) Industrial production has increased 2.6 times
 Export – increased 4.7 times (Agriculturalproducts - increased 6 times) Wages – increased 7 times
 Pensions – increased 9 times
Economic data 2018
4780 USDGDP PER CAPITA

GDP

46.9

40.1

9 974578
POPULATIONBLN USD
16.4

1.6

TELECOM

OTHER

2.3

TOURISM

5.6

AGRICULTURE

6.8

TRANSPORT

7.3

TAXES

TRADE

INDUSTRY

10 BLN USD
External Public
Debt

CONSTRUCTION

10.4 9.5

Source: State Statistical Committee of Azerbaijan

Trading partners
US$ 19.46
BLN2018

TOTAL VALUE
OF EXPORTS

US$ 11.46
BLN
TOTAL VALUEOF IMPORTS
TOP 5 IMPORT (%)

TOP 5 EXPORT MARKETS (%)

ITALY
TURKEYISRAELRUSSIACZECHFRUITS &VEGETABLESALUMINIUM
PLASTICPRODUCTSMETAL PRODUCTS

31.9
9.89
4.63
4.25
4.03

RUSSIA
TURKEYCHINAUSAUKRAINETOP 5 NON-OIL EXPORT PRODUCTS (%)

19.03
13.66
7.65
6.57
5.39

17.7
14.5
9.73
8.21
5.24
TOP 5 IMPORT PRODUCTS (%)

EQUIPMENTFOODSTUFFSTRANSPORTMEANS
METALS
PLASTICS

21.26
15.99
12.28
10.09
3.62
Source: State Customs Committee of Azerbaijan

Investment
Opportunities in
Azerbaijan
Why to Invest ?

Why to invest?
 Economic stability
 Skilled labour force
 Geographical location
 Favourable business environment
 Well developed infrastructure Export promotion incentives

Political andEconomicStability-

One of the highest credit ratingin the region ; (Standard &Poor – BB+, Moody’s – Ba2,Fitch – BB+)-Country is ranked 25th in theWorld Bank Doing Business
Guide (2019)-

Public safety, good
governance and reformist
business mindset

WB DOING BUSINESS 2019
Overallranking

25/190

Payingtaxes

28/ 190

Starting abusiness

9/ 190Protectinginvestors

2/ 190Registering
property

17/ 190

Enforcing
contracts

40/ 190

SKILLED LABORFORCE

Extremely high literacy rate of 99.8%
Total labor force of 5 mln. People
Approximately 40% of the population is under
the age of 30
Around 30,000 students graduate fromuniversities and other higher education
institutions annually
Large number of Azerbaijani students studyingin the best universities worldwide in theframework of the State Programme on
Education of Azerbaijani Youth Abroad in 20072015

Geographical location

AT THE CROSSROADS OF ASIA AND EUROPE
EASY ACCESS TO REGIONAL AND WORLD MARKETSFREE TRADETO CIS + GEORGIA MARKETS WITH 270 MIL CONSUMERS AND OVER 1.6
TRILLION US$ GDP
TRANSIT HUB
AT EAST-WEST, NORTH-SOUTH AND SOUTH-WEST TRANSIT ROUTESFAVOURABLE BUSINESSENVIRONMENT
Equal rights and opportunities for all investors Strong investor protection policies and legislation;
guaranteed against adverse changes in the legislation,nationalization, requisition
 Over 450 e-services for business (e-registration,e-taxation, e-licensing, e-trade, e-intelectuall property,e-payment) Repatriation of profits ensured
 No state inspection of businesses (excluding taxes,
human health and state security matters)
 No discrimination between foreign and domesticinvestorsReformist Business Environment
NEW REFORM PACKAGESTRATEGIC ROAD MAP

 Governance, judicial system

 Elaborated and implemented by Human capital & labour market

Centre for Analysis of Economic

 Infrastructure & utilities

Reforms and Communication

 Investor protection &corporations

 11 economic sectors

 Foreign trade facilitation
 Technology & innovations
 Healthcare 12 documents (e.g. agriculture,tourism, industry etc.)
 Covering short, medium andlong-term goals: Strategic outlookby 2020; Long-term outlook up toby 2025; and target outlook for theperiod after 2025

SUCCESS STORIES

Well developed infrastructure 15 000 KM OF ROADS AND
HIGHWAYS CONSTRUCTED AND
RESTORED 6 INTERNATIONAL AIRPORTS
 BAKU-TBILISI-KARS RAILROAD (“THEIRON SILKWAY”)
 NEW BAKU INTERNATIONAL SEA
TRADE PORT WITH CAPACITY OF 1011.5 MLN TONS OF CARGO AND 50 000
TEU (TO BE INCREASED UP TO 21-25
MLN TONS OF CARGO AND 1 MLN TEU)
 EXPORT PIPLINES:• Baku–Novorossiysk• Baku–Tbilisi–Supsa• Baku–Tbilisi–Ceyhan• Baku–Tbilisi–Erzurum Gas pipeline• Trans-Anatolian Gas Pipeline (TANAP)• Trans-Adriatic Gas Pipeline (TAP)The shortest route amidst others

Export promotion incentives
No export duties
Export grant scheme
Removing trade barriers

TRADE
HOUSESTRADE
REPRESENTATIVESBELARUS

CHINA

CHINA

UNITED ARAB EMIRATESUKRAINE

EASTERN EUROPE

LATVIARUSSIA

UNITED ARAB
EMIRATESInvestment
opportunities
by sector
AGRICULTURE
FOOD INDUSTRYTOURISMICTCHEMICALSMACHINERYCONSTRUCTION

High Technology andIndustrial Parks of Azerbaijan
 Park of High Technologies(will be operational by theend of 2019) Sumgayit ChemistryIndustrial Park Balakhany Industrial Park Garadagh Industrial Park Mingachevir Industrial Park Pirallahi Industrial Park

Sumgait ChemicalIndustrial Park

Discounts for first 7 years:
 0% Corporate Tax
 0% Land and Property Tax
 0% VAT on hardware,technological equipment andstructures imported byresidents
 0% Customs Duty on hardware,technological equipment andstructures imported byresidents


CHEMICAL
INDUSTRY Fresh fruits andAGRICULTURE

vegetables(pomegranates,tomatoes) Tea growing Saffron production Poultry farms
 Meat farms
 Dairy farms
 Aquaculture Seed Production
 Wine production

Share in GDP: 9.2%
 Volume of work increased
since 2005: 4.8 times
 Share of private companies:
76.1%
 Volume of investments
increased since 2001: 24times
 Significant industrial,agricultural and transport
projects (being transport
corridor in between east-west
and north-south) Major demands to hotels as aresult of increase in tourist
inflowsCONSTRUCTION

Wind energy: averageannual speed 5.8-8.0
m/sec which is above
the starting speed of 3m/sec
 Number of windy days ina year: 245-280 days
 Solar energy: number ofsunny days in a year:>250 days


ALTERNATIVE
ENERGY Petroleum Industry

MACHINERY
INDUSTRY

Equipment
 Agricultural
Equipment Construction
Machinery Power and Energy
Equipment Car Oil and Air Filters

TOURISM
MOST IMPROVED COUNTRY IN THE TRAVEL & TOURISM COMPETITIVENESS INDEX
2017
World Economic Forum, The Travel & Tourism Competitiveness Report 201717TH IN THE WORLD FOR THE TRAVEL & TOURISM LONG-TERM GROWTHFORECAST 2017-2027
World Travel & Tourism Council, Travel & Tourism Economic Impact 2017: Azerbaijan
BAKU AMONG TOP 10 WORLD DESTINATIONS ON THE RISE 2016
34.2

LEISURE, RECREATION34

BUSINESS
27.5

VISIT TO RELATIVES/FRIENDSHEALTH TREATMENTRELIGIOUS
OTHER TOURISM

TOURISTS ARRIVINGTOAZERBAIJAN BYPURPOSE (%), 2017

2.00.6

2 mil. 850 ths. tourists
visited Azerbaijan in 2018

1.7

Source: State Statistical Committee of Azerbaijan

ICTWORLD ECONOMIC FORUM
GLOBAL INFORMATION TECHNOLOGY REPORT 2016
(out of 139 countries)
MOBILE NETWORKCOVERAGEGOVERNMENT SUCCESS IN ICTPROMOTIONICT USE AND GOVERNMENTEFFICIENCYLAWS RELATINGTO ICT
ICT USE FOR B2B
TRANSACTIONSIMPACT OF ICT ON ACCESS TO BASICSERVICESFIXED BROADBAND INTERNET
SUBSCRIPTIONSCAPACITY FORINNOVATION

1/139
8/139
12/13924/13938/13942/13945/13953/139Assets open for privatization
INDUSTRY142

HEALTHCARE

14AGRICULTURE

58

TOURISM

32SERVICES

65

EDUCATION

13WWW.PRIVATIZATION.AZ

Azerbaijan-Japan relations

$7 billion Japanese investments to Azerbaijan (since the country’sindependence)
Signature of “Agreement on mutual protection of investments”(under consideration)
Japan-Azerbaijan Economic committee (last met in 2017)
Favorable environment for Japanese investments in variousspheres
Baku-Komatasu direct cargo flight by Silkway WestJapan was one of the first countries to support Azerbaijan’s
forward-looking oil strategy
ITOCHU (4.3%) and INPEX (11%) companies have a share in theAzeri-Chirag-Guneshli oilfield and Baku-Tbilisi-Jeyhan oil pipeline(ITOCHU 3.4% and IPEX 2.5% accordingly) projectsJapan International Cooperation Agency (JICA) has financed four
loan projects that amounts nearly $1 billion in the following
sectors: Energy; Water Supply and Sewerage; Agriculture; Health
Educational grants to Azerbaijani students
Other Japanese companies such as Mitsubishi, Mitsui, Marubeni
and Sojitsu are involved in energy and infrastructure projects inthe country.

THANK YOU FOR YOURATTENTION!!!