Azerbaijan: business outreach

1
Azerbaijan business outreach

• Greece, Athens
• 02-03 April, 2009

2
Azerbaijan in figures - 2008

• Total population 8,8 million
• urban - 51,7, rural 48,3
• GDP 34,3 billion euros
• Growth rate - 10,8
• Inflation rate 15,4
• Unemployment - 44,500 (1,03 of work force)
• Investments 8,4 billion euros
• FDI 2,9 billion euros
• HDI 0,758 (ranked 97 out of 179)

3
Current economic reforms

• Doing business 2009 by the World Bank Azerbaijan
  is No1 Reformer
• Azerbaijan is ranked 33 out of 181 economies
• Reformed areas start-up, employing workers,
  registering property getting credit, paying
  taxes, protecting investors

• One stop shop principle for the business
  registration
• Further reforms one stop shop principle for
  the customs,
• construction licensing
• Full report at http//www.doingbusiness.org/Docu
  ments/
• CountryProfiles/AZE.pdf

4
Micro-finance sector in Azerbaijan

• No specific law regulating micro-finance sector
• Banks, non-banking credit organizations credit
  unions operate in the sector
• 80 of microfinance services are provided in
  rural Azerbaijan
• Women participation in microfinance services
  28-30
• Some of non bank credit organizations in
  Azerbaijan also provide micro-leasing
  (www.kredaqro.com) and mortgage services
  (www.tbckredit.com).
• Total portfolio exceeding 376 mln. euros
  (December 2008)
• More than 300,000 active clients (December 2008)
• Azerbaijan Micro-finance Association
  www.amfa.az

5
Tourism in Azerbaijan

• 9 climatic zones
• Good opportunities for eco- and rural tourism
• More than 1,5 mln foreign tourists in 2008
• Rapid growth of internal tourism
• High prices on tourism services
• Low competition
• Key players Improtex Group, ATA Holding, Gilan
  Holding,
• Tourist informational centers in Baku and 8
  regions
• Ongoing projects ski resort in the North,
  several seaside resorts close to Baku, rural
  resorts in several regions, construction of some
  high class hotels in Baku, Wine route

6
Agriculture in Azerbaijan

• Climatic opportunities to produce
• wide range of products
• No taxes for agribusiness
• (except for the land tax)
• Canned products, fresh fruits and
• vegetables, hazelnut, tobacco, cotton
• Big export market - Russia, other
• CIS countries, Europe
• Key players Azersun Holding (foodstuff
  production), MKT (cotton), MilkPro (milk
  products), PalSud (milk products), Gilan Holding
  (canned products, juices), Bakfem (hazelnut
  processor)

7
Construction in Azerbaijan

• Baku - Georgian border road modernization (Silk
  Way project, total length 405 km)
• North-South road (Russian border Baku - Iranian
  border) road modernization (total length about
  500 km)
• Construction of Olympic sports complexes in the
  regions
• Governments interested in an investor to build a
  new cement producing plant
• Key players Caspian Construction, Gilan Holding,
  Pasha Holding, Akkord Group,

8
Azerbaijan Export and Investment Foundation
(AZPROMO)

• AZPROMO established in 2003 as a public-private
  initiative
• Objective - to contribute to achieving balanced
  development of the economy and to implement
  measures necessary for the attraction and
  promotion of inflow of investments for creation
  of new jobs, particularly in the rural regions

9
AZPROMOs services (part I)

• Analysis of the investment climate
• Cooperation with various stakeholders to promote
  investments
• Investor facilitation, aftercare and development
  of existing foreign businesses
• Prepare consolidated country reports for the
  investors
• Conferences, business meetings and forums for
  investors

10
AZPROMOs services (part II)

• Studies of regional trade (export) opportunities
• Assess legal regime for export
• Consultancy services to the businesses willing to
  export
• Support to exporters in identifying potential
  buyers
• Trade fairs aimed at promotion of Made in
• Azerbaijan trade brand internationally.

11
Contacts

• Global Compact Project
• Hasan Huseynov, Project manager
• (994 12) 437 11 42
• hhuseynov_at_globalcompact.az
• www.unglobalcompact.org
• AZPROMO
• Najaf Guliyev, Business development manager
• (994 12) 598 01 47
• nguliyev_at_azpromo.org
• www.azpromo.org