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

According to the Azerbaijani State Statistics Committee, around 13.219 billion AZN was invested from all financial sources in the development of the economic and social areas of Azerbaijan in January-October 2014, which is by 0.6 percent more than in the same period of last year. It indicates sustainable investment activity in the country.

In particular, around 1.351 billion AZN were invested in the Azerbaijani economy in October 2014, which is by 12.6 percent more than investments in fixed assets in October 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-October 2014 are as follows:

• funds of enterprises and organizations - 7.015 billion AZN (an increase of 32.4 percent compared to January-October 2013;
• budgetary funds - 4.962 billion AZN (a decrease of 20.6 percent);
• off-budgetary funds - 289.4 million AZN (a decrease of 33.4 percent);
• bank loans - 449.3 million AZN (a decrease of 31.4 percent);
• funds of population - 437.2 million AZN (an increase of 17.1 percent)

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

The investments in construction work increased by 10.8 percent. Investments worth 8.857 billion AZN were made in construction of production facilities and 4.361 billion AZN - in non-production facilities.

During the reporting period, the state-owned enterprises and organizations, as well as private companies made equal shares of investments in fixed capital.

About 62.8 percent of funds invested in fixed capital or 8.304 billion AZN, were directed at the development of the non-oil sector. Investments in the oil sector comprised 4.914 billion AZN (37.2 percent). Investments in non-oil sector decreased by 9.6 percent, while they increased by 24.4 percent in the oil sector.

The total investments in Azerbaijan's industry totaled 5.932 billion AZN with an increase of 1.4 percent. About 293.3 million AZN were invested in the processing industry (a decrease of 66.2 percent). During the reporting period, the investments in the extractive sector hit 4.894 billion AZN, which is 28.2 percent more than investments in January-October 2013. Totally, 44.9 percent of investments fell to the industrial sector.

Around 70 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 (68.5 percent) fell to the state-owned enterprises and organizations.

Investment indices in January-October 2014:

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

The total amount of foreign investments in Azerbaijan's economy amounted to 3.972 billion AZN in January-October 2014 or by 17.6 percent more compared to the same period of 2013.

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 79.6 percent (3.163 billion AZN) 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- October 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 32.3 percent, while investments totalled 1.284 billion AZN.

The biggest amount of investments among the international financial institutions was allocated by WB to the amount of 111.5 million AZN with a special weight of 2.8 percent. WB projects cover different spheres of the country's economic life.