Foreign investment goes considerably high in Azerbaijan

Source: AzerNews

Foreign investment worth 1.533 billion manat was made in Azerbaijan's economy in January-May 2013.

The volume of foreign investments made in the country increased by 45.6 percent compared to the same period of last year, the State Statistics Committee said.

The volume of foreign investments in the country increased by 37.8 percent in May 2013 compared to April and by 57.9 percent - to May 2012.

About 87.3 percent or 1.337 billion manats of the investments made by foreign countries and international organizations accounted for investors from the UK, USA, Norway, Turkey and the Czech Republic.

The UK continues to maintain a leading position among foreign investors in Azerbaijan. Its share in the total foreign investment was 42 percent, with investments totaling 643.4 million manats.

According to the statistics committee, the U.S. investments totaled 194.6 million manat (with a weight of 12.7 percent), Norway - 161 million manat (10.5 percent), Japan - 149 million (9.7 percent), the Czech Republic - 99.8 million (6.5 percent), Turkey - 90.1 million manat (5.9 percent), France - 45.3 million (three percent), Russia and Iran - 33.3 million (2.2 percent) each.

The World Bank was the top investor among international financial institutions by investing 51 million manats. The Asian Development Bank (ADB) in January-May transferred 22.3 million (1.4 percent) to projects in Azerbaijan and the Islamic Development Bank (IDB) - 1.09 million manat.

Meanwhile, a total of around 5.762 billion manats was invested in the development of the economic and social sectors of Azerbaijan in January-May 2013.

The figure is more by 27.4 percent compared to the same period of 2012.

According to the Statistics Committee, the volume of investment in construction work increased by 42.5 percent, amounting to 3.716 billion (64.5 per cent of the total volume). At least 3.112 billion manat was invested in the construction of production facilities and 2.650 billion manat in the construction of objects of non-production orientation.

Of the total investment, 73.4 percent accounted for domestic investment which in the course of the year rose by 22.3 per cent. The bulk of domestic investments, 77.7 per cent, fell to government enterprises and organisations and 22.3 per cent to private enterprise.

The volume of investment in fixed assets hit 2.566 billion manat.

Of the investments made in equity funds, 68 per cent (3917.1 million manat) focused on the development of the non-oil sector and 1.845 billion (32 per cent) was invested in the oil sector.

The capital investments in the non-oil sector grew by 26.1 percent, whilst in the oil sector by 30.3 per cent.

According to the report, 47.8 per cent of investments fell to industrial areas, 16.9 percent transport and storage, four per cent agriculture, eight per cent real estate transactions of which 7.9 per cent was housing, 7.9 per cent - state management, 3.1 per cent health care, 3.4 per cent sports, entertainment and arts, 2.3 per cent construction, one per cent communications and information, 3.4 per cent education, 0.6 per cent for the provision of administrative and support services, 0.8 per cent trade, 0.4 per cent tourist accommodation and catering and 0.1 per cent financial and insurance, professional, technical and scientific activities.

Earlier, the Central Bank of Azerbaijan reported that the total amount of foreign capital in Azerbaijan in direct investments hit $1.4 billion in January-March 2013. The share of the oil and gas sector stood at 83.2 percent.

According to the CBA estimates, the volume of direct investments attracted to the non-oil sector totaled $238.1 million, accounting for 16.8 percent of the total amount.