...

Investments in Azerbaijan's economy (January-August 2014)

Analysis Materials 14 October 2014 16:30 (UTC +04:00)

According to the Azerbaijani State Statistics Committee, around 10.445 billion manat was invested from all financial sources in the development of the economic and social areas of Azerbaijan in January-August 2014, which is by 0.5 percent more than in the same period of last year. It indicates sustainable investment activity in the country.

In particular, around 1.370 billion manat were invested in the Azerbaijani economy in August 2014, which is by 14.4 percent less than investments in fixed assets in August 2013. Until 2015, we will observe a steady increase in investment in capital construction because of the growth of building, rehabilitation and reconstruction work in preparation for the first European Olympic Games-2015 in Azerbaijan.

The main sources of investments in January-August 2014 are as follows:

  • funds of enterprises and organizations - 5.827 billion manat (an increase of 35 percent compared to January-August 2013;
  • budgetary funds - 3.663 billion manat (a decrease of 24.8 percent);
  • off-budgetary funds - 225.3 million manat (a decrease of 39.3 percent);
  • bank loans - 376.8 million manat (a decrease of 31.9 percent);
  • funds of population - 63.8 million manat (an increase of 2.4 times)

Apparently, the investments made in the country's economy in January-August 2014 increased due to an increase in investment activity of enterprises, organizations and the population.

According to the committee, investments in construction work increased by 11.1 percent. Investments worth 7.045 billion manat were made in construction of production facilities and 3.400 billion manat - in non-production facilities.

Private enterprises and organizations invested 51.5 percent of all investments in fixed capital, and the state enterprises - 48.5 percent.

About 62.2 percent of funds invested in capital stock, or 6.499 billion manat, were directed at the development of the non-oil sector. Investments in the oil sector comprised 3.946 billion manat (37.8 percent). Investments in non-oil sector decreased by 11.5 percent, while they increased by 29.5 percent in the oil sector.

The total investments in the industry totaled 4.785 billion manat with an increase of 6.1 percent. About 274.8 million manat were invested in the processing industry (a decrease of 53.9 percent). During the reporting period, the investments in the extractive sector hit 3.928 billion manat, which is 28.7 percent more than investments in January-August 2013. Totally, 45.8 percent of investments fell to the industrial sector.

Around 70.4 percent of the total capital investments accounted for domestic investments. This is a positive index, primarily, because it shows the growing financial potential of the country.

Most of domestic investments (65.4 percent) fell to the state-owned enterprises and organizations, and only 34.6 percent - private enterprises.

Investment indices in January-August 2014:

(Source: State Statistics Committee and calculations by Trend")

Amount in bln manat

Specific weight in percent

Investments in total

10445,3

100,0

Foreign investments

3091,9

29,6

Domestic investments

7353,4

70,4

The total amount of foreign investments in Azerbaijan's economy amounted to 3.092 billion manat in January-August 2014.

The growth of foreign investments in the country shows that Azerbaijan is a very reliable partner and a very attractive country for foreign investors. The economic reforms, economic liberalization, increasing the credit rating of Azerbaijan by the world leading rating agencies, the policy of integration into the world economy contribute to the growth of foreign investments.

Around 79.9 percent (2.470 billion manat) of investments in Azerbaijan's economy made by foreign countries and international organisations fell to investors from the UK, U.S, Japan, Norway, Turkey and the Czech Republic in January- August 2014.

As previously, the UK continues to maintain a leading position in the list of foreign investors in Azerbaijan. Its share in the total foreign investment was 32.1 percent, while investments totalled 991.35 million manat.

Countries

Jan.-Aug. 2014, thousand manat

Specific weight, %

Total international investments

3091934,7

100,0

Including:

Great Britain

991350,7

32,1

Norway

563252,3

18,2

Turkey

276559,3

8,9

U.S

264048,8

8,6

France

195515,1

6,3

Japan

179087,9

5,8

Iran

183648,5

5,9

Russia

183648,5

5,9

Czech Republic

105808,4

3,5

India

27210,1

0,9

Italy

91,1

0,0

Singapore

563,1

0,0

Netherlands

51,5

0,0

The biggest amount of investments among the international financial institutions was allocated by WB to the amount of 83.2 million manat with a special weight of 2.7 percent. WB projects cover different spheres of the country's economic life.

International financial organizations

Jan.-Aug. 2014, thousand manat

Specific weight, %

World Bank

83254,0

2,7

Asian Development Bank

34610,3

1,1

EBRD

3235,1

0,1

Latest

Latest