Who invests more in Azerbaijan's economy?
Azerbaijan, Baku, Sept. 11 / Trend /
Trend Agency analytic center head Ellada Khankishiyeva
The investments made in Azerbaijan's economy from domestic sources exceed the volumes of foreign investments four years running. According to the State Statistics Committee, about 5.5 billion manat ($ 7 billion) were invested in the Azerbaijani economy in January-July 2011. About 74.4 percent fell to domestic investments. It is connected with an increase in the country's opportunities.
Azerbaijan is a country favorable for investments. One of the simulative factors in the tax legislation of the country is the lack of distinction in the taxation of local and foreign businessmen. They have the same rights.
According to the local legislation, foreign investors can participate in the local market by establishing joint ventures and local companies, subsidiaries of companies owned by foreign investors, representative offices and branches of foreign legal entities. Another important factor is to repatriate income, earned in the country, to abroad without any problems. The tax legislation does not put any restrictions.
The volume of foreign investments in Azerbaijan declined in connection with the completion of the intensive development stage of hydrocarbon projects. The total volume of foreign investments in Azerbaijan's economy in January-July 2011 hit 1.4 billion manat ($ 1.8 billion) or 42.9 percent more compared to the same period of last year. However, the amount of foreign investment in the country increased by more than 40 percent per year. It reflects foreign investors' great interest in Azerbaijan's non-oil sector.
The investment projects in non-oil sector, agriculture, processing industry, tourism, the construction sector are the most attractive ones. Foreign investors are also interested in the fields of communication and logistics.