Investments in Azerbaijan's economy (2015)

Analysis Materials 11 February 2016 10:27 (UTC +04:00)

According to the Azerbaijani State Statistics Committee, around 15.957 billion manat was invested from all financial sources in the development of the economic and social areas of Azerbaijan in 2015 or by 9.42 percent less than in 2014.

Around 1.518 billion manat was invested in Azerbaijani economy in December 2015 or by 48.06 percent less than investments in fixed capital in December 2014.

The main sources of investments in 2015 are as follows:

  • funds of enterprises and organizations - 10.615 billion manat (a 14.1 percent increase compared to 2014;
  • budgetary funds - 3.005 billion manat (a 56.1 percent decrease);
  • off-budgetary funds - 272.3 million manat (a 31.5 percent decrease);
  • bank loans - 1.299 billion manat (twofold increase);
  • funds of population - 573 million manat (a 0.2 percent increase)

Apparently, the investments made in the country's economy in 2015 decreased due to the country's poor investment activity. The country decreased the budgetary funds in the main construction by 56.1 percent.

The share of the budgetary funds in investing the economy is 18.8 percent. It ranks second after the funds of enterprises and organizations.

According to the State Statistics Committee's report, the private businesses and organizations invested 65.3 percent of total investments in the fixed capital, but the state businesses and organizations - 34.7 percent.

The investments in construction and installation work for the period amounted to 73.5 percent of the total investments.

The investments worth 9.88 billion manat were made in the construction of production facilities, while 5.04 billion manat in the non-production facilities, 1.02 billion manat in the housing construction.

Some 8.79 billion manat (55.1 percent) of the funds invested in the fixed capital were directed in the development of the non-oil sector. Some 7.16 billion manat (44.9 percent) were invested in the country's oil sector. This is by 19 percent more than in 2014.

The total investments in the Azerbaijani industrial sector amounted to 8.39 billion manat in 2015 or by 7.8 percent more compared to 2014.

The investments in extractive industry totaled 7.20 billion manat in 2015 or by 18.8 percent more than in 2014.

Some 52.6 percent of investments accounted for the industrial sector, 13.4 percent - construction, 13.7 percent - transport and warehousing, 2.7 percent - sports, entertainment and the arts.

The investments in production, distribution and supply of electricity, gas and heat amounted to 193.2 million manat in 2015, which is 5.3 percent less than in 2014.

The hospitality and catering (tourism) has become the most attractive investment sector of the economy of Azerbaijan. According to the Azerbaijani State Statistics Committee, the investments in this sector increased by 3.8 times in 2015 from year to year, by showing the best dynamics among the sectors.

Some 462.5 million manat was nominally invested in the sector or 2.9 percent of all investments in Azerbaijan during the period.

Some 56 percent of the total investments accounted for the domestic investments.

Investment indices in 2015:

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

Amount in mln manat

Specific weight in percent

Investments in total



Foreign investments



Domestic investments



The total amount of foreign investments in Azerbaijan's economy amounted to 7.020 billion manat in 2015 or by 43.8 percent more compared to 2014.

An increase in foreign investments is a positive factor and points to the fact that as an attractive country, Azerbaijan has potential for foreign investors.

Around 88.1 percent (6.18 billion manat) of investments in Azerbaijan's economy made by foreign countries and international organisations fell to investors from the UK, U.S, Japan, Norway, Russia, Malaysia, Turkey and Iran in 2015.

Most of foreign investments in fixed assets were made in July - 656.7 million manat, while small foreign investments - in February (387.7 million manat).

The largest share of foreign investments in general capital investments in fixed assets was recorded in January - 62 percent during twelve months of 2015 and the smallest index was recorded in April - 35.6 percent.