2. Azerbaijan Export and
Investment Promotion Basic information
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 thsd sq. km.
I Population: 9 million
I Capital: Baku
I Autonomy: Nakhchivan Republic
I Significant highlights:
I 1st democratic republic in the Islamic world
I 1st Opera in the Islamic
I Women world voting right in 1918 Italy -
1946; Switzerland - 1971; France - 1944
I Currency: Manat: 1 AZN = 1.27 USD
3. Azerbaijan Export and
Investment Promotion Macroeconomic figures
Foundation
2011 2011
GDP, bln USD 63.4 Non-oil GDP growth
9.4 %
GDP per capita ($) 7,003
Income growth rate of population
Investments ($) 20 bln
19.6%
FDI ($) 4.4 bln
Total investments
Inflation 7.9 %
21.6 bln $
Unemployment rate 5.4% Non-oil investments
15.6 bln $
Poverty level 7.6%
Strategic currency reserves
Average monthly salary ($) 460 40 bln $
6. Country Ratings
Azerbaijan Export and
Investment Promotion
Foundation
IUNDP Human Development Report – 67
IWEF Global Competitiveness Report
2012-2013
I World Economic Forum Reportamong world and 1 st among CIS
– 46 th 2011-2012
- 61 st in the world countries
for ICT
7. Azerbaijan Export and
Investment Promotion Investments
Foundation
FDI
FDI
41.4 bln
41.4 bln
USD
USD
*1995-2011
8. Azerbaijan Export and
Investment Promotion Investments
Foundation
FDI
FDI
4.4 bln
4.4 bln
USD
USD
*2011
9. Azerbaijan Export and
Investment Promotion Why invest in Azerbaijan?
Foundation
POLITICAL & FINANCIAL STABILITY
Good climate
and welcoming
culture
Well-developed
infrastructure
Abundant
10. Azerbaijan Export and
Investment Promotion Why invest in Azerbaijan?
Foundation
Favorable location Well-developed infrastructure
IAzerbaijan is the country on the I Logistical hub for Asia – Europe, Middle East –
crossroads of Eurasia CIS
I Developed rail infrastructure (Baku – Tbilisi –
Abundant resources & Kars railroad - The Iron Silkway)
Good climate I Best passenger and freight airport in the
Caucasus and Caspian region
I 9 out of 11 climatic zones I Baku International Sea Trade Port (in Alat)
Competitive and skilled labor
I Mild winters and hot summers
force
I Rich mineral and climatic
resources IEntrepreneurial culture
I Ferrous and non-ferrous metals IHigh literacy level (99.6%)
I Raw construction materials IExcellent IT and foreign languages skills
IHuman resources development strategy
11. Azerbaijan Export and
Investment Promotion Priority sectors for investment
Foundation
I Agriculture and food industry
I Alternative and Renewable Energy
I Tourism
I Information & Communication
Technologies
12. Azerbaijan Export and
Investment Promotion About AZPROMO
Foundation
I Established by the Ministry of Economic Development in 2003, public-
private partnership modality
I Vision: Balanced growth of economy
I Mission: To sustain economic growth by maximizing the flow of non-oil
extraction FDI and development of export oriented sectors
I Main activities :
I Country promotion and image building
I Investment promotion
I Export Promotion
13. Azerbaijan Export and
Investment Promotion
Investment Promotion
Foundation
I Image building
marketing campaigns (perception=reality),
communication strategy
I Investment generation
Identification of potential investors, marketing
campaigns, presentations, road shows
I Investment facilitation
Investment information, site visits,
organisation and providing information
I Investor servicing + aftercare
Helping investors get established and be
operational, expansion and re-invest
I Advocacy+strategy formulation
Advocating for investment friendly business
climate, inputs to national FDI policy
14. Azerbaijan Export and
Investment Promotion Export Promotion
Foundation
I New exporters
Consultancy, assessment of export
capabilities, training and guidance
I Entering a new market
Market information, legal analysis, price
research, trade shows/fairs research
I Looking for new customers
Search for new contacts, matchmaking and
sector/product events, trade missions
I Image building
Trade shows/fairs, PR activities abroad
I Policy advocacy
Advice in foreign trade policies and input on
export regulations
15. Azerbaijan Export and
Investment Promotion
Foundation
Foreign Network
I AZPROMO Georgia /AZPROMO Austria
as well as representatives in Germany, USA, UK, Switzerland, Turkey,
Romania, Ukraine and Kazakhstan.
Mission: Support in development of economic and business relations between Azerbaijan
and Georgia as well as European countries through Austrian office
I Main activities
Market researches and analyses
I Legal framework
I Business consultancy
I Public relations, country promotion
I Partners and proxies
Membership in the World Association of Investment Promotion Agencies (WAIPA) Steering
Committee and Regional office for Central Asia and South Caucasus Diplomatic/Trade
missions and Chambers of Commerce
16. Azerbaijan Export and Cooperation in investment
Investment Promotion
Foundation promotion
I What is WAIPA?
I The World Association of Investment Promotion Agencies (WAIPA) was created in 1995.
WAIPA is de facto international organization, established as a non-profit, under Swiss law. It
has its head offices in Geneva, Switzerland.
I From its very inception, in 1995, WAIPA has represented an ever growing number of
Member agencies. WAIPA Members include approximately 180 national and sub-national
agencies from over 160 different countries.
I WAIPA is seeking to enlarge the membership for the region under AZPROMO’s
responsibility. While Eastern Europe has a very large representation, there are currently 6
national IPAs and 4 sub-national IPAs from the South Caucasus and Central Asia as part of
WAIPA.
17. Azerbaijan Export and Cooperation in investment
Investment Promotion
Foundation promotion
IStill WAIPA is the organization,
worldwide with most
LEGITIMACY
&
Representativeness
in what relates to long-term, productive
investments worldwide
18. Azerbaijan Export and Cooperation in investment
Investment Promotion
Foundation promotion
I Its non-governmental status allows WAIPA the flexibility to interface
between IPAs and their Governments and between those two and the
Private Sector.
I For other international organizations – involved in FDI (Foreign Direct
Investment) – investment is only part of their mandate, foreign trade is
always their predominant focus. WAIPA is dedicated exclusively to
helping IPAs and their governments enhance their FDI levels,
through…
19. Azerbaijan Export and Cooperation in investment
Investment Promotion
Foundation promotion
I Trainings
I information gathering and dissemination (e.g. an Investment Sentiment
survey conducted in September 2011, and a survey on marketing efforts
of IPAs / and their governments that is being conducted now)
I advocacy for the IPAs before their government and coordination with
other instances of world decision-making (e.g. G-20 Meetings which the
WAIPA Presidency of Apex-Brasil and the WAIPA Permanent Secretariat
often participate. In Mexico City, on November 5-6, there will be a
meeting scheduled for head of G-20 IPAs and TPOs)
20. Azerbaijan Export and
Investment Promotion Thank you for the attention!
Foundation
Azerbaijan Export and Investment Promotion Foundation
(AZPROMO)
Baku, Azerbaijan
www.azpromo.az
Tel.: (+99412) 598 01 47/48;
Fax: (+99412) 598 01 52
office@azpromo.az
The World Association of Investment Promotion Agencies (WAIPA)
www.waipa.org
info@waipa.org
Editor's Notes
A glimpse into the sectors with wide investment opportunities. Since Azerbaijan is rich of natural resources, in particular with favourable environmental conditions, fertile lands and climatic diversity, agriculture has always been a strong point for the country. We produce a huge variety of agricultural products and are one of the major exporters of agriproducts to CIS market. Agriculture accounts for 5.4% of GDP but employs almost 40% of labour force. Agricultural lands make over 50% of total territory of Azerbaijan. Food processing is closely linked to agriculture and makes up to 34% of manufacturing industry. Governmental subsidies provided for foreign investors as well, tax exemption, customs privileges for imported agri-food production related commodities and many other advantages create great opportunities for starting business in agriculture. Alternative and renewable energy is new for us, but has huge potential. We have 3200 sunny hours a year, 250 windy days with average wind speed of 8 m/s, where one needs some 3 m/s to start producing electricity. At present, pilot projects on production of solar and wind energy are being implemented successfully. Moreover, last year, Azerbaijan constructed a hybrid power plant on the use of alternative energy sources and solar panel plant was put into operation recently. It means that development of the sector is highly important for Azerbaijani government. Hydropower generation is already traditional for us with still huge opportunities for small and medium size hydropower plants. Tourism is another important and very promising part of economy. Last year was declared a year of tourism in Azerbaijan. It means new projects, reforms and opportunities. Just as an example, new 5 star brand hotels were opened last year in the capital city of Baku and this positive trend will continue this year as well. At the same time we implement big projects in other regions of Azerbaijan. For instance, there is a huge winter resort complex being built in the north part of Azerbaijan. Many other projects in almost all types and forms of tourism industry are under implementation. Telecommunications is one the main economic areas. It is the fastest growing non-oil sector in terms of increasing revenues. Azerbaijan is the number one among CIS countries and ranks 61 st place in the world for ICT according to the World Economic Forum. The number of consumers is growing rapidly with expansion of services to all the parts of the country. Azerbaijan is in the process of establishing its space industry and will launch its first satellite this year. Azerbaijan has begun creating Regional Innovation Zone, where regime of privileges for entrepreneurship will be applied. It will encourage investments and lead to a significant increase in IT production. Moreover, Trans-Eurasian Information Super Highway Project is being negotiated at present between major telecommunications companies of Azerbaijan, Kazakhstan, China, Turkey and Russia. This Super Highway is expected to provide 20 countries of the region with high speed internet, telecommunication systems, e-information resources and e-economies. Industry is the largest sector of our economy. It accounts for up to 53% of GDP and this sector is the major recipient of foreign investments. The most important industrial sectors being in the process of development are chemical industry, machinery, light industry and waste management. As Azerbaijan has rich oil resources, there are great opportunities for establishing high technology based chemical industry. Of course, chemical industry is not new for us, but the current situation requires different approach to the matter in terms of privileges provided for entrepreneurs and attracting modern equipments. Exactly for this purpose, significant decision on establishing new chemical industrial park was recently made by the government. In order to support and promote recycling business which will cause first of all reduction of environmental impact of industrial waste, works on establishing eco-industrial park have been already started. Considering reusable and cheap raw material market in our country, this business has promising perspectives in terms of attracting foreign investments as well. All these facts show that Azerbaijani government strongly supports improvement of business environment in non-oil sectors of economy.