Baku, Azerbaijan, June 6
By Anvar Mammadov - Trend:
The number of EU companies that are ready to reinvest in Azerbaijan is growing, reads the EU Business Climate Report on Azerbaijan.
A survey conducted among European companies showed that 66 percent of respondents are ready to reinvest in Azerbaijan and only 10 percent said they were going to reconsider their investments.
A more detailed analysis of the respondents’ answers shows that favorable business climate has a major impact on revision of the investment decisions, according to the report.
The greater the confidence in business indicators, the less is the desire to revise investment decisions, the report says.
The sectoral analysis showed greater confidence of companies operating in the oil sector in their investment decisions, unlike the companies operating in the non-oil sector, according to the report.
In fact, this reflects the presence of more favorable investment conditions and significant tax preferences for those working in the oil sector in Azerbaijan, reads the report.
It is no coincidence that the dynamics of development of European companies in Azerbaijan, that are taking part in the survey, depends on the overall positive prospects.
Thus, 53 percent of respondents plan to expand their activity in the next 2-3 years, reads the report. This is significantly higher than the figure reflected in the last year’s report (33 percent). In addition, 63 percent of those who are ready to reinvest in Azerbaijan plan to expand their businesses, according to the report.
Another 36 percent of respondents plan to keep their activities at the current level. This is while 4 percent of respondents intend to reduce their activity in Azerbaijan, and another 4 percent plan to suspend their activity in Azerbaijan.
The report was prepared by the German-Azerbaijani Chamber of Commerce with the support of the EU representation in Azerbaijan on the basis of a survey conducted February 9-March 16, 2018 among almost 400 companies from 27 EU member states.
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