Investments

Nearly 3.374.9mln manat was invested in the economy of Azerbaijan in January to June 2009, an increase of 7.1% from the figures of the previous year. Especially, in June 676.3mln manat was invested in Azerbaijan's economy, a decrease of 24.4%.

The forecast of investments for 2009 totals 8368.9mln manat with a decrease of 0.7%, and the factual investments in January to June made up 40.3%.

Major sources of investing in January to June 2009 were funds of enterprises and organizations (1.532.3mln manat with drop of 12.9% compared to 2008), budget funds (1.368.9mln manat, with a drop of 5.5%), non-budgetary funds (224.1mln manat with a rise of 2.1%), bank credits (137.3mln manat with a rise of 36.4%) and community funds (112.1mln, with a rise of 10.1 percent), other income (0.2 million manat with a drop of 87.2 percent).

Cut in investments in the first half year of 2009 compared to same period of last year in linked with cut in investments by enterprises and budget financing of investment projects, which holds 45.4 percent and 40.6 percent respectively in the total capital investments.

According to the data provided by the State Statistics Committee, private enterprises and organizations invested 1.202.8 million manat (35.6 percent of total investments) in Azerbaijan's economy and public enterprises and organizations - 2.172.1 million manat (64.4 percent).

Major share of governmental investments are directed at implementing transport and infrastructure projects. Despite lingering crisis, work over the ongoing projects will continue.

Investments in the oil sector made up 28.4 percent of capital investments to country's economy (959.7 million manat), non-oil sector - 71.6 percent (2415.2 million manat), which is 8.2 percent more than the 2008 figure.

The gross investments in the industry totaled 1.375.5mln manat with a drop of 19.5%. About 90.7mln manat was invested in the processing industry (+12.4 percent).

During the reported period, the gross investments in the extractive sector composed 1.000.4mln manat, which is 27.5% less than investments during the same period of 2008. Generally, 40.8 percent of investments fell on the industrial sector.

Investments in the electricity, gas and water sectors composed 284.4mln manat (+14.6%), transport, store and communications - 1.044.1mln manat (+3 percent), including 1.001.8mln manat (+6.2 percent) in the transport and 42.3mln manat (-40.4 percent) in the communications. Investments in the operation with real estate comprised 322.3mln manat (+21.9 percent), including in the housing construction - 245.3mln manat (-4.4 percent). Investments in the agriculture totaled 122.3mln manat, increasing by 16.3%.

Investments for repair and construction works increased 5.3 percent to 2.345.2 million manat. Investment for the construction of production facilities totaled 2.674.2 million manat, while non-production facilities totaled 700.7 million manat.

Roughly 1.276.8 million manat or 27.1 percent of funds allocated in state budget for capital investments in the amount of 4.718 million manat were invested for construction of objects. These objects were financed owing to budget funds.

Foreign investments with special weight of 17.6 percent amounted to 594.2 million manat. Internal investments with special weight 82.4 percent totaled 2234.7 million manat. Internal investments increased by 11.6 percent compared to the first six months of 2008. Majority of internal investments (74.8 percent) fell to state enterprises and organizations and only 25.2 percent - to private enterprises.

Investment indices in January to June 2009

(Source: State Statistics Committee and calculation by Trend)

Great Britain continues to keep leading positions on volume of investments to Azerbaijan. Weight of the country in volume of foreign investments hit 45.8 percent in the first six months, state statistical committee said on July 15. British investments hit 271.98 million manat.  

Roughly 88.8 percent (527.5 million manat) of investments of foreign countries and the international organizations to the Azerbaijani economy fall on share of investors from great Britain, the USA, Japan, Norway, France and Turkey.  

The biggest volume of investments was allocated by WB to the amount of 31.6 million manat given weight of 5.3 percent. WB projects cover different spheres of the country's economic life.