Azerbaijan Export and Investment Promotion Azerbaijan Country Presentation Foundation · 2017. 8....

Azerbaijan Country PresentationAzerbaijan Export and

Investment Promotion

Foundation

Basic informationAzerbaijan Export and


Foundation

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

I UN Security Council non-permanent member for 2012-2013

Interesting factsAzerbaijan Export and


Foundation

I First Baku „oil boom‟I Nobel‟s first Kerosene

factoryI 1846–first hand-dug oil

wells

I First Baku-Batumi Pipeline I Nobel‟s distribution system I First rail tank cars

I 50% of world oil production in XIX century

I 80% of total Soviet oil production during World War II

GDP, bln USD 63.4

GDP per capita ($) 7,003

Investments ($) 21.6 bln

FDI ($) 4.4 bln

Inflation 7.9%

Unemployment rate 5.4%

Poverty level 7.6%

Average monthly salary ($) 460

2011

9.4 %

Non-oil GDP growth

19.6%

21.6 bln $

15.6 bln $

2011

Strategic currency reserves

40 bln $

Non-oil investments

Total investments

Income growth rate of population

Macroeconomic figuresAzerbaijan Export and


Foundation

pro

du

ctivity

GDP share in the region

I GDP share in the South Caucasus (%)

Azerbaijan Export and


Foundation



Foundation

I Average GDP growth in 2006 - 2011 - 14.1%

2nd fastest growing economy among 179 countries for GDP per capita growth in 2001-2010



Foundation

Nominal GDP, bln USD



Foundation

82.5%

17.5%

Share in Economy

Private sector Public sector

State BudgetAzerbaijan Export and


Foundation

State Budget revenues, bln USD

1.62 2.04 2.44.4

7.4

18.520.3

29.1

40

2003 2004 2005 2006 2007 2008 2009 2010 2011

Strategic currency reservesAzerbaijan Export and


Foundation

External debt in 2011 – 4.6 bln USD

bln, USD

State Programs

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



Foundation

Poverty reductionAzerbaijan Export and


Foundation

I State Program on Poverty Reduction and SustainableDevelopment of the Republic of Azerbaijan in 2008-2015

Poverty reduction dynamics

49%48%

45%

40%

29%

21%16%

13%

11%9% 7.6%

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

I UNDP Human Development Report – 67

I WEF Global Competitiveness Report 2011-2012

– 55th among world and 1st among CIS countries

I World Economic Forum Report 2010-2011

- 1st among CIS countries for ICT

Country RatingsAzerbaijan Export and


Foundation

Registering Property 9

Protecting investors 24

Enforcing contracts 25

Methodology

The Doing Business projectprovides objective measures of business regulations and their enforcement across 183 economies and selected cities at the subnational and regional level.

Starting a business 18

Economic reformsAzerbaijan Export and


Foundation

2012rankings

report available at www.doingbusiness.org

One-stop-shopAzerbaijan Export and


Foundation

Type of legal entity: Duty:

I Banks, stock exchanges, insurance

companies, branches of foreign

legal entities 220 AZN

I Agricultural business 3 AZN

I Other legal entities 11 AZN

StatisticalCommittee

Effective 01.01.2008E-registration is now available

I Corporate Tax 20%

I Value Added Tax 18%

I Simplified Tax 4% and 2%

I Agriculture Tax

I No limits on the Repatriation of profits

I Inheritance and Gift Tax

I No customs duties on non-oil production imports (specified agricultural products)*

I No VAT on non-oil production imports (specified agricultural products)*

TaxationAzerbaijan Export and


Foundation

*Effective 01.03.2011

Russia16%

Turkey13%

China6%

Germany8%

Ukraine5%

Other 40%

France6%

USA6%

Foreign Trade (import)Azerbaijan Export and


Foundation

I More than 10 Free Trade Agreements

I 149 trade partners

I GSP, GSP + (Generalized system of preferences)

I WTO negotiations process

I Trade turnover 36.3 bln US dollars

I Import 9.7 bln US dollars

■ Machinery, equipment

■ Vehicles and spare parts

■ Foodstuffs

■ Non-ferrous metals and products

■ Pharmaceuticals

■ Wood and products

■ Other

2011

Italy35%

USA7%

Israel3%

Russia4%

France15% Other

33%

Ukraine3%

Foreign Trade (export)Azerbaijan Export and


Foundation

I Trade turnover 36.3 bln US dollars

I Export 26.6 bln US dollars

■ Raw oil and petrochemicals

■ Fruit and vegetables

■ Plant and animal oil

■ Ferrous metals and products

■ Chemical industry products

■ Cotton

■ Aluminum and products

■ Alcoholic and non-alcoholic beverages

■ Tobacco and products

■ Other

2011

Total Investments

118.6 blnUSD

Oil sector

48.5 bln USD

Foreign

63.1bln USD

Domestic

55.5 bln USD

Non-oil sector

70.1 bln USD

FDI41.4 bln

USD

*1995-2011

Investments Azerbaijan Export and


Foundation

Total Investments

21.6 blnUSD

Oil sector

6 bln USD

Foreign

8.6 bln USD

Domestic

13 bln USD

Non-oil sector

15.6 bln USD

FDI4.4 bln

USD

*2011

Investments Azerbaijan Export and


Foundation

Why invest in Azerbaijan?Azerbaijan Export and


Foundation

Abundant resources

Well-developed infrastructure

Good climate and welcoming culture

POLITICAL & FINANCIAL STABILITY

Favorable locationAzerbaijan Export and


Foundation

Azerbaijan is the country on the crossroads of Eurasia

Abundant resourcesAzerbaijan Export and


Foundation

I Rich mineral and climatic resources

I Ferrous and non-ferrous metals

I Raw construction materials

I 9 out of 11 climatic zones

I Mild winters and hot summers

Well-developed infrastructureAzerbaijan Export and


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)

ALYATSEA PORT

KARS

AHALKALAKI

ISTANBUL

Europe – Caucasus – Asia Transport Corridor



Foundation

I Baku – Tbilisi – Kars railroad (The Iron Silkway)



Foundation

I “HAPPINESS IS MULTIPLE PIPELINES”



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I Destination to major cities:

Tbilisi – 1 hour

Moscow – 2.5 hours

Dubai – 2.5 hours

Istanbul – 2.5 hours

Riga – 3 hours

Vienna – 4 hours

Frankfurt – 5 hours

Paris – 5 hours

London – 6 hours

I Best passenger and freight airport in the Caucasus and Caspian region

Baku

Lankaran

Nakhchivan

Ganja

Zagatala

Gabala

* Source: The State Statistical Committee

Competitive and skilled labor force



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

Where to invest in Azerbaijan?Azerbaijan Export and


Foundation

Agriculture/ food industry Alternative energy

TourismConstruction

Where to invest in Azerbaijan?Azerbaijan Export and


Foundation

Chemical industry

ICT

Transportation and logistics

Light industry

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

I The power sector has a leading role in the economy of Azerbaijan

I Increased demand for electricity by 4.7% each year until 2015

I Renewable Energy Sources - solar, wind, water, sea-energy, waste, bio-energy

I Number of windy days in a year - 245-280

I Average annual wind speed: 5.8 – 8.0 m/sec

I Average number of sunny days in a year – 250

I First in the world 5 MW hybrid (solar, biogas, wind, thermal) Experimental

Polygon in Gobustan

Alternative and Renewable Energy



Foundation

I Fastest -growing non-oil sector increasing revenues

I First satellite to be launched in late 2012

I 65 out of 100 persons are Internet users

I New Regional Innovation Zone – production of IT equipment and software,

establishment of regional Data Centre

I Trans-Eurasian Information Super Highway - to bridge the digital divide in

Eurasia through constructing a regional internet backbone

ICTAzerbaijan Export and


Foundation

I Unique geografic and climatic conditions

I Tourism is on the high agenda of the Government, 2011 - a year of tourism

I Number of visitors increased by 14.1% in comparison with 2010 and reached 2.2

mln in 2011

I Well-known international hotels: Hilton, Four Seasons, JW Marriot, Jumeirah,

Fairmont and Kempinski

I Winter-summer tourism complex in Shahdag – to be completed in 2016 and able

to welcome 10 000 tourists

I Construction of tourism complexes and infrastructure

Tourism Azerbaijan Export and


Foundation

I 65 km south from Baku, with 400-hectare area to be built in three stages (by Holland’s Royal Haskoning)

I The multimodal port complex will be completed in 3 years and host a free economic zone and a logistic hub

I Will become a transportation hub and tremendously increase transportation from China to Central Asia and Europe

I In 2015 the port will be able to serve up to 20 million tons of cargo and 1 mln. containers a year

Baku International Sea Trade Port (in Alat)



Foundation

I Total area: 168 ha

I Administration: “Sumgait Chemical Industrial Park” LLC established within theMinistry of Economic Development

I Infrastructure: Offices, training centers, laboratory, etc. withelectricity, heating, water supply and other communications will be established

I Key benefits: A number of tax and customs incentives as well as concessionalloans are considered to be granted in the Park

I Production: Petro-chemical derivatives and other priority industrial productswill dominate overall production

Sumgait Chemical Industrial ParkAzerbaijan Export and


Foundation

I Goal: To support and promote recycling businesses, attract foreign investments

I Area size: 7 ha

I Key benefits

I Provide an integrated infrastructure in one location

I Reusable and cheap raw material market

I Reduction of the environmental impact of the industrial

uses by establishing of recycling/reuse and production facilities

I Market access for the sale of the obtained raw material or produced goods

Balakhani Eco-Industrial ParkAzerbaijan Export and


Foundation

Living and visiting AzerbaijanAzerbaijan Export and


Foundation

Enjoy local hospitality in 508 hotels over Azerbaijan

Living and visiting AzerbaijanAzerbaijan Export and


Foundation

Find out more about history and

culture in:

I 233 Museums

I 29 Theatres

Taste traditional food in:

I Variety of local restaurants

Must-see:UNESCO Heritage

Maiden Tower – 7-6 cent. BC Qobustan rock carvings

International events in Azerbaijan



Foundation

Take part in the international cultural

and sporting events in 2012:

Eurovision Song Contest Baku

FIFA Women's U17 World Championship

Baku International Jazz Festival

Nagorno-Karabakh conflict

I In 1989 – 1993 20% of territories of the Republic of Azerbaijan were occupied by Armenia

I The cease-fire has been in force since 1994

I Total refugees and IDPs –1,010,000

I Economic losses of more than 60 bln US dollars



Foundation

Investment Project Azerbaijan Export and


Foundation



Foundation

www.bakuwhitecity.com



Foundation

I Azerbaijan Export and Investment Promotion Foundation (AZPROMO) wasestablished by the Ministry of Economic Development in 2003

I AZPROMO Vision: Balanced growth of economy

I AZPROMO Mission: To sustain economic growth by maximizing the flow ofnon-oil extraction FDI and development of export oriented sectors

I Main directions of activities: Investment and Export Promotion

About AZPROMOAzerbaijan Export and


Foundation

Image building

Investment generation

Investment facilitation

Investor servicing + aftercare

Policy advocacy + strategy direction

Investment Promotion Azerbaijan Export and


Foundation

I Image building

marketing campaigns (perception=reality),

communication strategy

I Investment generation Identification of potential investors, marketing campaigns, presentations, seminars, road shows

I Investment facilitation Investment information, site visits, organisation and providing information

I Investor servicing + aftercareHelping investors get established and be operational, expansion and re-invest

I Advocacy+strategy formulationAdvocating for investment friendly business climate, inputs to national FDI policy

New exporters

Entering a new market

Looking for new

customersPolicy

advocacy

Image building / Individual assistance

Export Promotion Azerbaijan Export and


Foundation

I New exportersConsultancy, assessment of export capabilities, training and guidance

I Entering a new marketMarket information, legal analysis, price research, trade shows/fairs research

I Looking for new customersSearch for new business contacts, matchmaking and sector/product events, trade missions

I Image building Trade shows/fairs, PR activities abroad, outward foreign investment, international relations

I Policy advocacyAdvice in foreign trade policies and input on export regulations

Foreign Network Azerbaijan Export and


Foundation

I AZPROMO Georgia /AZPROMO Austria

Mission: Support in development of economic and business relationsbetween Azerbaijan and Georgia as well as European countries throughAustrian office

I Main activities

Market researches and analyses

Legal framework

Business consultancy

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 andSouth Caucasus

Diplomatic/Trade missions and Chambers of Commerce

Thank you for the attention!

Azerbaijan Export and Investment Promotion Foundation (AZPROMO)

11, H. Abdullayev str., Baku, Azerbaijan

www.azpromo.az

Tel.: (+99412) 598 01 47/48; Fax: (+99412) 598 01 52

[email protected]



Foundation

http://www.azpromo.az/

Azerbaijan Export and Investment Promotion Azerbaijan Country Presentation Foundation · 2017. 8....

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Transcript of Azerbaijan Export and Investment Promotion Azerbaijan Country Presentation Foundation · 2017. 8....