Azerbaijan Export and Azerbaijan Country Presentation Investment Promotion Foundation
Basic information Azerbaijan Export and Investment Promotion Foundation I UN Security Council non-permanent member for 2012-2013 I Establishment: 28 May 1918 I Independence: 18 October 1991 I Official Language: Azerbaijanian I Political system: Presidential Republic I Area: 86.6 ths. sq. km. I Population: 9.2 million I Capital: Baku I Autonomy: Nakhchivan Republic I Significant highlights: I First democratic republic in the Islamic world I 1st Opera in the Islamic world I Women voting right in 1918 ; Italy -1946; Switzerland - 1971; France - 1944 I Currency: Manat: 1 AZN = 1.27 USD
Interesting facts Azerbaijan Export and Investment Promotion Foundation I 50% of world oil production in XIX century I 80% of total Soviet oil production during World War II I Nobel‟s first Kerosene I 1846 – first hand-dug oil I First Baku „oil boom‟ factory wells I First Baku-Batumi Pipeline I Nobel‟s distribution system I First rail tank cars
Macroeconomic figures Azerbaijan Export and Investment Promotion Foundation 2011 2011 Non-oil GDP growth GDP, bln USD 63.4 9.4 % GDP per capita ($) 7,003 Income growth rate of population Investments ($) 21.6 bln 19.6% FDI ($) 4.4 bln Inflation 7.9% Total investments Unemployment rate 5.4% 21.6 bln $ Poverty level 7.6% Non-oil investments Average monthly salary ($) 460 15.6 bln $ Strategic currency reserves 40 bln $
GDP share in the region Azerbaijan Export and Investment Promotion Foundation I GDP share in the South Caucasus (%) productivity
Macroeconomic figures Azerbaijan Export and Investment Promotion Foundation I Average GDP growth in 2006 - 2011 - 14.1% 2 nd fastest growing economy among 179 countries for GDP per capita growth in 2001-2010
Macroeconomic figures Azerbaijan Export and Investment Promotion Foundation Nominal GDP, bln USD
Macroeconomic figures Azerbaijan Export and Investment Promotion Foundation Share in Economy 17.5% 82.5% Private sector Public sector
State Budget Azerbaijan Export and Investment Promotion Foundation State Budget revenues, bln USD
Strategic currency reserves Azerbaijan Export and Investment Promotion Foundation 40 External debt in 2011 – 4.6 bln USD 29.1 20.3 18.5 7.4 4.4 2.4 2.04 1.62 2003 2004 2005 2006 2007 2008 2009 2010 2011 bln, USD
State Programs Azerbaijan Export and Investment Promotion Foundation I State Program on socio-economic development of regions of the Republic of Azerbaijan in 2009-2013 I State Program on Food Security in 2008-2015 I State Program on the development of tourism in the Republic of Azerbaijan in the years of 2010-2014 I State Program on use of alternative and renewable energy sources in the Republic of Azerbaijan
Poverty reduction Azerbaijan Export and Investment Promotion Foundation I State Program on Poverty Reduction and Sustainable Development of the Republic of Azerbaijan in 2008-2015 49% 48% 45% 40% 29% 21% 16% 13% 11% 9% 7.6% 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Poverty reduction dynamics
Azerbaijan Export and Country Ratings Investment Promotion Foundation I UNDP Human Development Report – 67 I WEF Global Competitiveness Report 2011-2012 – 55 th among world and 1 st among CIS countries I World Economic Forum Report 2010-2011 1 st among CIS countries for ICT -
Economic reforms Azerbaijan Export and Investment Promotion Foundation Methodology 2012 rankings Registering Property 9 Starting a business 18 Protecting investors 24 Enforcing contracts 25 The Doing Business project provides objective measures of business regulations and their enforcement across 183 economies and selected cities at the subnational and regional level. report available at www.doingbusiness.org
One-stop-shop Azerbaijan Export and Investment Promotion Foundation Type of legal entity: Duty: I Banks, stock exchanges, insurance companies, branches of foreign legal entities 220 AZN Statistical Committee I Agricultural business 3 AZN I Other legal entities 11 AZN E-registration is now available Effective 01.01.2008
Taxation Azerbaijan Export and Investment Promotion Foundation I Corporate Tax I Agriculture Tax 20% I Value Added Tax I No limits on the Repatriation of profits 18% I Simplified Tax I Inheritance and Gift Tax 4% and 2% I No customs duties on non-oil production imports (specified agricultural products)* I No VAT on non-oil production imports (specified agricultural products)* *Effective 01.03.2011
Foreign Trade (import) Azerbaijan Export and Investment Promotion Foundation I Trade turnover 2011 36.3 bln US dollars I Import 9.7 bln US dollars Other 40% Ukraine ■ Machinery, equipment 5% ■ Vehicles and spare parts Germany ■ Foodstuffs France 8% ■ Non-ferrous metals and products 6% ■ Pharmaceuticals China ■ Wood and products 6% USA ■ Other 6% Turkey Russia 13% 16% I More than 10 Free Trade Agreements I 149 trade partners I GSP, GSP + (Generalized system of preferences) I WTO negotiations process
Foreign Trade (export) Azerbaijan Export and Investment Promotion Foundation I Trade turnover 36.3 bln US dollars I Export 26.6 bln US dollars 2011 France 15% ■ Raw oil and petrochemicals Other ■ Fruit and vegetables 33% Russia ■ Plant and animal oil 4% ■ Ferrous metals and products Israel ■ Chemical industry products 3% ■ Cotton USA ■ Aluminum and products Ukraine 7% ■ Alcoholic and non-alcoholic beverages 3% ■ Tobacco and products ■ Other Italy 35%
Investments Azerbaijan Export and Investment Promotion Foundation FDI 41.4 bln USD Foreign Domestic 63.1bln USD 55.5 bln USD Non-oil sector Oil sector Total 70.1 bln USD 48.5 bln USD Investments 118.6 bln USD *1995-2011
Investments Azerbaijan Export and Investment Promotion Foundation FDI 4.4 bln USD Foreign Domestic 8.6 bln USD 13 bln USD Non-oil sector Oil sector Total 15.6 bln USD 6 bln USD Investments 21.6 bln USD *2011
Why invest in Azerbaijan? Azerbaijan Export and Investment Promotion Foundation POLITICAL & FINANCIAL STABILITY Good climate and welcoming culture Well-developed infrastructure Abundant resources
Favorable location Azerbaijan Export and Investment Promotion Foundation Azerbaijan is the country on the crossroads of Eurasia
Abundant resources Azerbaijan Export and Investment Promotion Foundation I 9 out of 11 climatic zones I Mild winters and hot summers I Rich mineral and climatic resources I Ferrous and non-ferrous metals I Raw construction materials
Well-developed infrastructure Azerbaijan Export and Investment Promotion Foundation I Logistical hub for Asia – Europe, Middle East – CIS I Largest port in the Caspian Sea is being constructed I Developed rail infrastructure I Easy access to the Black Sea region I Baku – Tbilisi – Kars railroad (The Iron Silkway)
Europe – Caucasus – Asia Azerbaijan Export and Investment Promotion Transport Corridor Foundation I Baku – Tbilisi – Kars railroad (The Iron Silkway) AHALKALAKI ALYAT SEA PORT ISTANBUL KARS
Well-developed infrastructure Azerbaijan Export and Investment Promotion Foundation I “HAPPINESS IS MULTIPLE PIPELINES”
Well-developed infrastructure Azerbaijan Export and Investment Promotion Foundation I Best passenger and freight airport in the Caucasus and Caspian region I Destination to major cities: Zagatala Tbilisi – 1 hour Moscow – 2.5 hours Gabala Dubai – 2.5 hours Ganja Istanbul – 2.5 hours Baku Riga – 3 hours Vienna – 4 hours Frankfurt – 5 hours Nakhchivan Paris – 5 hours London – 6 hours Lankaran
Competitive and skilled labor Azerbaijan Export and force Investment Promotion Foundation I Entrepreneurial culture I High literacy level (99.6%) I Excellent IT and foreign languages skills I Human resources development strategy/ State Program on education abroad (2007-2015) - Converting black gold into human gold - funded by the Government of Azerbaijan - 5000 students studied by completion - Sectors: economics & management, ICT, engineering- industry, construction, services, agriculture, medicine, law, education, science * Source: The State Statistical Committee
Where to invest in Azerbaijan? Azerbaijan Export and Investment Promotion Foundation Agriculture/ Alternative energy food industry Tourism Construction
Where to invest in Azerbaijan? Azerbaijan Export and Investment Promotion Foundation Chemical industry ICT Transportation and Light industry logistics
Agri-food industry Azerbaijan Export and Investment Promotion Foundation I Climatic zones/types – 9 out of 11 and fertile land I 47% of population reside in rural areas I Largest employer with up to 40% of the total workforce I Tax breaks and subsidies I Traditional CIS markets of around 300 million population I Strong comparative advantage in exporting fresh fruits and vegetables I Easy access to the regional markets – hub to supply I GSP, GSP+, FTA with the CIS countries
Recommend
More recommend
