Investments in Azerbaijani economy exceed $233B

By Azernews

By Sara Israfilbayova

The two-day conference on the theme the “International Investment Policies: The Way Forward” conference was held in Baku on October 24 co-organized by Economy Ministry and the UN Trade and Development Conference (UNCTAD) discussed the cooperation opportunities between the two structures.

Representatives of about 40 local government agencies, private companies and institutions, international organizations and state structures from 11 countries participated in the conference, which considered the issues of the policy of foreign investments, the resolution of disputes and the study of the experience of the most successful investment projects.

Deputy Economy Minister of Azerbaijan Sahil Babayev, addressing the event said that investments in the Azerbaijani economy have exceeded $233 billion since 1995, $111 billion of which are foreign investments.

The deputy minister spoke about reforms carried out in Azerbaijan in recent years in order to improve the business environment and investment policy, including the creation of industrial parks, as well as the introduction of various customs and tax incentives, and the creation of the ASAN Service and others.

Foreign direct investment in Azerbaijan's economy in 2016 amounted to $7.3 billion, while in 2015 this figure was $7.5 billion. Thus, in 2016, the volume of foreign direct investment in the national economy decreased by 2.7 percent.

About 76.7 percent of foreign direct investment for the reporting period was in the oil and gas sector, and 23.3 percent in the non-oil sector.

He went on to say that today, more than 8,000 foreign companies operate in Azerbaijan, adding that signing of 48 agreements on foreign investment in the country and encouraging investment gives the right to foreign investment.

So far, the country has not encountered large contentious issues on contracts and has not paid large fines. This is an indicator that Azerbaijan is a reliable partner and that the investment climate in the country meets the requirements of the time, according to the deputy minister.

Further, Babayev underlined the importance of relations between Azerbaijan and UNCTAD, as well as prospects for further cooperation.

Head of the Department of Investment Policy of UNCTAD George Weber, in turn, reported on the activities of the organization and its activities.