Azerbaijan, Baku, Jan. 24 / Trend /
Ellada Khankishiyeva, Trend Analytical Centre Head
Foreign investors show great interest in Azerbaijani economy. The data of the State Statistics Committee testify to this. According to it, the total amount of foreign investment in Azerbaijani economy in 2011 amounted to 2.515.96 billion manat, or 3.2 percent more than in 2010. The major share of foreign investment was directed into the oil sector a few years ago. But at present, Azerbaijani non-oil sector is also a very attractive sector for foreign investors, for example the construction of three five-star brand hotel in Azerbaijan last year.
According to the official statistics, the investments in Azerbaijani oil sector hit 23.2 percent of all capital investments in the country's economy in 2011 compared to 30.3 percent in 2010, 27 percent - in 2009 and 30.9 percent - in 2008. In 2011, about 9.8115 billion manat (76.8 percent) was invested in the Azerbaijani non-oil sector in 2011, or 39.4 percent more than a year earlier. About 2.964.9 billion manat was invested in the oil sector or 1.1 percent less than in 2010.
It should be stressed that at present, about 70 percent of foreign investments invested in Azerbaijan are direct. These are new technologies, additional capital, the increase in production volume, manufactured goods, the purchase of new technologies or improvement of management and new jobs for Azerbaijan. These are the expansion of production and sales markets by getting additional revenue for foreign investors.
The main motivation of foreign direct investments is foreign investors' desire to place capital in the country where it brings maximum profit. Therefore, Azerbaijan meets this task. It meets all the conditions on which the country is considered to be attractive in terms of investments: a dynamic economy, one of the largest consumer markets, rich natural resources, unique geographic location, an attractive tax system, the policy of broad state support and a stable socio-political system. It is known that many foreign companies that invested money in Azerbaijan repaid it a hundredfold.
According to the Azerbaijani State Statistics Committee, about 84.2 percent (2.117.5 billion manat) of foreign investments in Azerbaijan's economy fell to the investors from Great Britain, US, Japan, France, Norway, the Czech Republic, Turkey and Korea in 2011. For many years, Great Britain continues maintaining its leading position. Its share in total foreign investments last year was 44.6 percent, while their own investments - 1.122.8 billion manat. Investments, in particular, are made in oil and gas sector. Great Britain intends to invest in Azerbaijani financial sector, the sector of the construction industry, etc.
The investment projects in agriculture, processing industry in agriculture, tourism, the construction sector, communications, transport and logistics are attractive for foreign investors in Azerbaijani non-oil sector.
According to the concept of the country's socio-economic development for 2012 and the next three years, significant jump is expected to be in the inflow of foreign investments in Azerbaijan's economy this year with an average annual growth rate of 41.5 percent. So, in 2012, the foreign investments to the amount of 4.013.4 billion manat are expected to be made in the country in 2012, about 5.303.7 billion manat in 2013, about 6.089.4 billion manat in 2014 and 6.606.9 billion manat in 2015.
The official exchange rate is 0.7862 AZN/USD on Jan. 24.
Do you have any feedback? Contact our journalist at firstname.lastname@example.org
Follow us on Twitter @TRENDNewsAgency