Azerbaijan Export and Investment Promotion Azerbaijan Country Presentation Foundation · 2017. 8....
Transcript of Azerbaijan Export and Investment Promotion Azerbaijan Country Presentation Foundation · 2017. 8....
Azerbaijan Country PresentationAzerbaijan Export and
Investment Promotion
Foundation
Basic informationAzerbaijan Export and
Investment Promotion
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
Investment Promotion
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
Investment Promotion
Foundation
pro
du
ctivity
GDP share in the region
I GDP share in the South Caucasus (%)
Azerbaijan Export and
Investment Promotion
Foundation
Macroeconomic figuresAzerbaijan Export and
Investment Promotion
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
Macroeconomic figuresAzerbaijan Export and
Investment Promotion
Foundation
Nominal GDP, bln USD
Macroeconomic figuresAzerbaijan Export and
Investment Promotion
Foundation
82.5%
17.5%
Share in Economy
Private sector Public sector
State BudgetAzerbaijan Export and
Investment Promotion
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
Investment Promotion
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
Azerbaijan Export and
Investment Promotion
Foundation
Poverty reductionAzerbaijan Export and
Investment Promotion
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
Investment Promotion
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
Investment Promotion
Foundation
2012rankings
report available at www.doingbusiness.org
One-stop-shopAzerbaijan Export and
Investment Promotion
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
Investment Promotion
Foundation
*Effective 01.03.2011
Russia16%
Turkey13%
China6%
Germany8%
Ukraine5%
Other 40%
France6%
USA6%
Foreign Trade (import)Azerbaijan Export and
Investment Promotion
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
Investment Promotion
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
Investment Promotion
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
Investment Promotion
Foundation
Why invest in Azerbaijan?Azerbaijan Export and
Investment Promotion
Foundation
Abundant resources
Well-developed infrastructure
Good climate and welcoming culture
POLITICAL & FINANCIAL STABILITY
Favorable locationAzerbaijan Export and
Investment Promotion
Foundation
Azerbaijan is the country on the crossroads of Eurasia
Abundant resourcesAzerbaijan Export and
Investment Promotion
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
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)
ALYATSEA PORT
KARS
AHALKALAKI
ISTANBUL
Europe – Caucasus – Asia Transport Corridor
Azerbaijan Export and
Investment Promotion
Foundation
I Baku – Tbilisi – Kars railroad (The Iron Silkway)
Well-developed infrastructureAzerbaijan Export and
Investment Promotion
Foundation
I “HAPPINESS IS MULTIPLE PIPELINES”
Well-developed infrastructureAzerbaijan Export and
Investment Promotion
Foundation
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
Azerbaijan Export and
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
Where to invest in Azerbaijan?Azerbaijan Export and
Investment Promotion
Foundation
Agriculture/ food industry Alternative energy
TourismConstruction
Where to invest in Azerbaijan?Azerbaijan Export and
Investment Promotion
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
Azerbaijan Export and
Investment Promotion
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
Investment Promotion
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
Investment Promotion
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)
Azerbaijan Export and
Investment Promotion
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
Investment Promotion
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
Investment Promotion
Foundation
Living and visiting AzerbaijanAzerbaijan Export and
Investment Promotion
Foundation
Enjoy local hospitality in 508 hotels over Azerbaijan
Living and visiting AzerbaijanAzerbaijan Export and
Investment Promotion
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
Azerbaijan Export and
Investment Promotion
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
Azerbaijan Export and
Investment Promotion
Foundation
Investment Project Azerbaijan Export and
Investment Promotion
Foundation
Investment Project Azerbaijan Export and
Investment Promotion
Foundation
www.bakuwhitecity.com
Investment Project Azerbaijan Export and
Investment Promotion
Foundation
Investment Project Azerbaijan Export and
Investment Promotion
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
Investment Promotion
Foundation
Image building
Investment generation
Investment facilitation
Investor servicing + aftercare
Policy advocacy + strategy direction
Investment Promotion Azerbaijan Export and
Investment Promotion
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
Investment Promotion
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
Investment Promotion
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
Azerbaijan Export and
Investment Promotion
Foundation