Investments

Investments in Azerbaijani economy shrank in January 2009.

Nearly 277.4 million manat was invested in the economy of Azerbaijan in January, a decrease of 24.6 percent from the figures of the previous year. The State Statistics Committee attributed the drop to the reduced investments by AIOC, BP, Ministry of Culture and Tourism, Baku Metro and Azerigaz Joint Stock Company. The forecast of investments for 2000 totals 8368,9 million manat with a decrease of 0.7 percent. Real investments surpassed forecast 3.3 percent during the year.

Negative processes on the world markets caused by the global financial crisis led to the drop in investments in January 2009.

Major sources of investing were funds of enterprises and organizations (182 million manat with drop of 41.8 percent compared to Jan. 2008), budget funds (13.2 million manat, with a drop of 54.2 percent) non-budgetary funds (61.1 million manat with a rise of 20.7 percent), bank credits (8 million manat with a drop of 39.6 percent) and community funds (12.6 million, with a rise of 45.3 percent).

Private investments prevailed over public investments. In March for the first time since 1994 the Public investments exceeded the amount of private investments in the economy, and the in December this tendency strengthened.

According to the State Statistics Committee, a total of 153.2 million manats (55.2 percent of all investments) has been invested by the private enterprises and 124.2 million manat (44.8 percent) by public enterprises.   

In January 2009, the investments in the oil sector made up 51.5 percent of capital investments to country's economy. The investments in the oil sector composed AZN 142.8  million manat, in non-oil sector - 134.6 million manat, (48.5 percent). Investments to the non-oil sector increased 14.7 percent compared to January 2008.    

The gross investments in the industry totaled 194.8 million with a drop of 25.1 percent. About 2.4 million was invested in the processing industry (-30,9 percent). 

During the reported period, the gross investments in the extractive sector composed 141.6 million manat, which is 42.8 percent less than investments during the same period of 2008. Industry accounts for 70.2 percent of investments.

Investments in the electricity, gas and water sectors composed 50.8 million manat (+5,6 times), transport, store and communications - 25.8 million manat (-13.9 percent), including 23.4 million manat (-40,9 percent) in communications. Investments in the operation with real estate composed 24.9 million manat (+40.9 percent), including in the housing construction - 24.7 million manat (+32.2 percent). Investments in the agriculture totaled 11.4 million manat, an increase of three times. 

The investments for repair and construction works totaled 147.4 million manat. About 241.9 million was allocated for the construction of production facilities and 35.5 for the non-production facilities. Some 4.9 million manat was invested in the construction of the facilities being financed by 2008 public budget. 

Foreign investments with a percentage of 39 percent amounted to 108.1 billion manat which meets 103.6 percent of the 1883.1 million forecast for a year. Internal investments increased by 40.4 percent, while foreign investments reduced by 45.8 percent. Great part (68.9 percent) of internal investments was directed to state bodies and organizations. Only 31.1 percent were directed to private companies.

Investment indices 2008

(Source: State Statistics Committee and calculation by Trend

Great Britain continues to maintain leading position for the amount of the investments in Azerbaijan with percentage in the foreign investments at 64.3 percent (69.5 million).

As indicated in the table, the largest investors reduced their investments in Azerbaijan due to negative impact of world economic crisis on financial markets.

In January 93.1 percent (100.6 billion manat) of the investments by the foreign countries and international organizations in the economy of Azerbaijan accounted for investors from the United Kingdom, the U.S., Japan, Norway andTurkey.

Of the international financial institutions, the highest amount of the investments accounted for the World Bank at 5.5 million manat, with a decrease of 23.2 percent (with percentage of 1.5 percent). However, as compared to Jan. 2008, the Islamic Development Bank increased lending 9.7 times.