Investments in Azerbaijan's economy (January-November 2014)

According to the Azerbaijani State Statistics Committee, around 14.693 billion AZN was invested from all financial sources in the development of the economic and social areas of Azerbaijan in January-November 2014, which is by 0.3 percent more than in the same period of 2013. It indicates sustainable investment activity in the country.

In particular, around 1.473 billion AZN were invested in the Azerbaijani economy in November 2014, which is by 2 percent less than investments in fixed assets in November 2013. Until 2015, we will observe a steady increase in investment in capital construction because of the growth of building, rehabilitation and reconstruction work in preparation for the first European Olympic Games-2015 in Azerbaijan.

The main sources of investments in January-November 2014 are as follows:

• funds of enterprises and organizations - 7.628 billion AZN (an increase of 28.4 percent compared to January-November 2013;
• budgetary funds - 5.717 billion AZN (a decrease of 17.4 percent);
• off-budgetary funds - 304.4 million AZN (a decrease of 38.3 percent);
• bank loans - 494.9 million AZN (a decrease of 34.3 percent);
• funds of population - 482.2 million AZN (an increase of 17.6 percent)

Apparently, the investments made in the country's economy in January-November 2014 increased due to an increase in investment activity of enterprises, organizations and the population.

According to the State Statistics Committee's report, investment in the construction and installation work for the period amounted to 73.8 percent of a total investment volume. The index increased by 11.4 percent per annum.

Investments worth 9.871 billion AZN were made in construction of production facilities and 4.822 billion AZN - in non-production facilities.

Private enterprises and organizations invested 48.3 percent of total investments in fixed assets, but state enterprises and organizations - 51.7 percent.

About 63.1 percent of funds invested in fixed capital or 9.269 billion AZN, were directed at the development of the non-oil sector. Investments in the oil sector comprised 5.424 billion AZN (36.9 percent). Investments in non-oil sector decreased by 9.9 percent, while they increased by 24.4 percent in the oil sector.

The total investments in Azerbaijan's industry totaled 6.646 billion AZN with an increase of 3.6 percent. About 363.3 million AZN were invested in the processing industry (a decrease of 59.9 percent). During the reporting period, the investments in the extractive sector hit 5.403 billion AZN, which is 27.9 percent more than investments in January-November 2013. Totally, 45.2 percent of investments fell to the industrial sector.

Investments in production, distribution and supply of electricity, gas and heat amounted to 307.5 million AZN in January-November 2014, which is 4.9 percent less than in the same period of 2013.

Around 70 percent of the total capital investments accounted for domestic investments. This is a positive index, primarily, because it shows the growing financial potential of the country.

Most of domestic investments (70.2 percent) fell to the state-owned enterprises and organizations.

Investment indices in January-November 2014:

(Source: State Statistics Committee and calculations by Trend")

The total amount of foreign investments in Azerbaijan's economy amounted to 4.401 billion AZN in January-November 2014 or by 16.5 percent more compared to the same period of 2013.

The growth of foreign investments in the country shows that Azerbaijan is a very reliable partner and a very attractive country for foreign investors. The economic reforms, economic liberalization, increasing the credit rating of Azerbaijan by the world leading rating agencies, the policy of integration into the world economy contribute to the growth of foreign investments.

Around 92 percent (4.047 billion AZN) of investments in Azerbaijan's economy made by foreign countries and international organisations fell to investors from the UK, U.S, Japan, Norway, Turkey and the Czech Republic in January- November 2014.

As previously, the UK continues to maintain a leading position in the list of foreign investors in Azerbaijan. Its share in the total foreign investment was 32.4 percent, while investments totalled 1.424 billion AZN.

The biggest amount of investments among the international financial institutions was allocated by WB to the amount of 114.7 million AZN with a special weight of 2.6 percent. WB projects cover different spheres of the country's economic life.