Investments in Azerbaijan's economy (jan.-sept. 2012)

Some 9.850.6 billion manat was invested in the economy of Azerbaijan in January-September 2012, an increase of 27.4 percent compared to the figures of the same period of the last year. Especially, in September 2012, 1.466.7 billion manat was invested in Azerbaijan's economy, which is 24.5 percent more than investments in September 2011.

The main sources of investments in January-September 2012 are as follows: funds of enterprises and organizations - 4.209.6 billion manat (an increase of 12.6 percent compared with January-September 2011); budgetary funds - 4.476.5 billion manat (an increase of 56.8 percent), off-budgetary funds - 400.1 million manat (with an increase of 56.6 percent), bank loans - 436.1 million manat (a decrease of 27.8 percent), funds of population - 281.8 million manat (increasing by 1.7 percent)

Apparently, increased investments in January-September 2012 are due to increased investment activity of all funding sources, except bank loans, share of which in total investments made up 4.4 percent.

The increase in the investments is mainly connected with an increase in the amount of state investments allocated from the state budget to the economy. Public investments are spent within the Azerbaijani state investment program. At present, large infrastructure projects funded by the state are being implemented in all regions of the country. These projects include laying of trunk roads, water and sewer projects, gasification, construction of transmission lines, rural roads. Some 4.293.1 billion manat of 5.933.9 billion manat envisaged for this year was invested in the construction of facilities financed by the budgetary funds.

Investments in construction and assembly work increased by 27.3 percent, amounting to 5.941.8 billion manat, or 60.3 percent of the total amount of investments. The investments worth 4.348.6 billion manat were used for the construction of production facilities, while 5.502.0 billion manat - non-production facilities.

According to the State Statistics Committee, private enterprises and organizations invested 3.856.4 billion manat (39.1 percent of total investments) in Azerbaijan's economy and public enterprises and organizations - 5.994.2 billion manat (60.9 percent).

Some 26 percent of investments in fixed capital (2.558.9 billion manat) was directed at the development of the country's oil sector, 74 percent (7.291.7 billion manat) - non-oil sector, including 10.7 percent (1.051 million manat) - non-oil industrial sector. Investments in oil sector increased by 17.8 percent, non-oil - by 31.2 percent.

The total investments in the industry totaled 3.610.0 billion manat with an increase of 9.4 percent. Some 385.4 million manat was invested in the processing industry (decreased by 40.1 percent). During the reported period, the investments in the extractive sector hit 2.562.6 billion manat, which is 19.7 percent more than investments in January-September 2011. Totally, 36.6 percent of investments fell to the industrial sector.

Of the total capital investments, 79.4 percent accounted for domestic investment. Most (73.1 percent) of domestic investments was made in the state-owned enterprises and entities, and only 26.9 percent - private enterprises.

Investment indices in January-September 2012:

(Source: State Statistics Committee and calculations by Trend

The total volume of foreign investments in Azerbaijan's economy in January-September 2012 amounted to 2.028.1 billion manat, which is 11.9 per cent more than the same period of 2011. The increased amount of foreign investments in the country once again proves the fact that foreign investors are interested in Azerbaijan's economy and their investments are protected at the proper level.

In January-September, 91.6 percent (1.858.0 billion manat) of investments in Azerbaijan's economy made by foreign countries and international organizations accounted for investors from the UK, U.S., Japan, Norway, Turkey, Czech Republic and France.

As before, the UK continues to maintain its leading position. Its share in the total foreign investments was 47.2 per cent, while investments - 836.5 million manat.

Of the international financial institutions, the biggest amount of investments was allocated by WB in amount of 90.0 million manat with weight of 4.4 percent. WB projects cover different spheres of the country's economic life.

During the first three quarters the largest amount of foreign investments in the country's economy was invested in April (258.9 million manat) and August (257.9 million manat).