Significant jump expected in foreign investment in Azerbaijan
Azerbaijan, Baku, Oct. 28 / Trend /
Expert at Trend's analytical center Leyla Abdullayeva
A significant jump is expected in the inflow of foreign investments into Azerbaijan in 2012, the draft concept of socio-economic development in 2012 and the next three years reads. The document was submitted to the Azerbaijani Parliament for consideration.
Based on the document, the average annual growth of foreign investments will hit 41.5 percent in 2012, 30.4 percent in 2013, 15.4 percent in 2014 and 8.4 percent in 2015.
Azerbaijan continues to attract significant funds in various spheres of the economy. Funding for projects will increase in 2012 due to foreign credits.
The priority areas are concentrated in the oil sector. There were signed credit agreements on funding for the transport sector improvement, major construction projects and project on development of high technology, innovative types of production.
Azerbaijan is expected to receive foreign investments in the amount of 2.809.9 billion manat in 2011, 4.013.4 billion manat in 2012, 5.303.7 billion manat in 2013, 6.089.4 billion manat in 2014 and 6.606.9 billion manat in 2015 .
The volume of domestic investments directed to the different sectors of the economy in 2011-2015 will also grow, but the growth will be significantly lower compared to the growth of the foreign investment inflow.
As a result, the average annual growth of domestic investments is expected to decrease from 22 percent to 0.3 percent in 2012.
However, despite the decline in growth rates in nominal terms, the domestic investment exceeds the volume of foreign investment. In 2012, domestic investment would amount to 9.479.2 billion manat, in 2013 - 9.902.2 billion manat, in 2014 - 10.586.7 billion manat and in 2015 - 10.8722 billion manat.
Today, the state investments exceed private investment in the structure of domestic investment.
The dominance of investments in the non-oil sector will continue in 2012 and the next three years.
Moreover, investments in 2015 will grow at the same time in both sectors. Thus the oil sector is expected to receive investment of $ 3.1886 billion manat in 2011 and non-oil sector - 9.048 billion manat. In 2014, the oil sector is projected to receive 5.574.7-billion manat investment and non-oil - 11.101.4 billion manat. The investments in oil sector in 2015 is expected to decline by 9.3 percent to 5.0532 billion manat compared to 2014, while investment in non-oil sector will grow by 11.9 percent to 12.425.9 billion manat.
Over 20 years of independence, Azerbaijan has created a favorable investment and business climate, resulting in $100-billion investment in the economy. Azerbaijan will also retain the investment attractiveness in the future and 17.5 billion manat will be invested in the development of economic and social spheres of the republic from all financial sources in 2015.
The official exchange rate is 0.7869 manat to $ 1 on Oct. 27.