Conditions created in Azerbaijan for the attraction of foreign investors (ANALYTICS)
Azerbaijan has been actively seeking foreign investment to support its economic development and diversification. The country has implemented various reforms to create a more business-friendly environment and attract foreign investors. Some key sectors that have attracted foreign investment in Azerbaijan include oil and gas, construction, agriculture, tourism, and technology.
Azerbaijan's energy sector, particularly oil and gas, historically has been a significant draw for foreign investors. The country is home to major oil and gas reserves, and foreign companies have played a crucial role in the development of these resources.
On October 26, President of Azerbaijan Ilham Aliyev at the official inauguration of the Garadagh Solar Power Plant, said that Azerbaijan is a very friendly country for foreign investments: “We enjoyed a multibillion investment portfolio during last three decades. Total investments in Azerbaijan were more than 300 billion US dollars and almost 200 billion US dollars investments in the non-oil sector”
Azerbaijan has introduced legal reforms to facilitate foreign investment. The country's Investment Promotion and Protection Agreements (IPPAs) provide legal guarantees for foreign investors. Additionally, it has created the Azerbaijan Investment Company (AIC), which helps foreign investors navigate the local business environment.
The AIC facilitated partnerships and collaborations between local and foreign investors, helping to create synergies that could benefit the Azerbaijani economy.
Azerbaijan offers various tax incentives and exemptions to attract foreign investors and promote economic development in the country. These incentives can include reduced corporate tax rates, tax holidays, and exemptions from customs duties.
By the decree of President Ilham Aliyev dated December 10, 2022 "On some measures to accelerate economic development in the territories freed from occupation", in order to effectively use the rich resource and infrastructure potential of the Karabakh region, revive economic activity through public-private partnership and create a favorable business environment, additional incentives are provided for entrepreneurs involved in the formation of processing industry in the region and in the creation of a favorable business environment.
Azerbaijan has taken steps to improve its business environment and reduce bureaucracy to make it easier for foreign investors to start and operate businesses in the country.
Several bilateral investment treaties were signed with various countries to protect the interests of foreign investors and provide mechanisms for dispute resolution.
Analytic group of News.az
The article focuses on the theme of Development of free entrepreneurship and liberal economy in Azerbaijan
The article was published with the support of the Media Development Agency of the Republic of Azerbaijan (MEDIA)