Azernews.Az

By Aynur Jafarova

One of the main priorities of Azerbaijan's government has been promoting its non-oil sector.

Attracting investments, advanced technologies and management experience from abroad is one of the main directions of the country's economic policy, said Azerbaijan's Economy and Industry Minister Shahin Mustafayev in his article published on the official press on July 16.

He noted Azerbaijan has achieved most of its goals in this field, and added the country successfully attracted $83.8 billion worth foreign investment from 1995 to 2013, some $35 billion out of which accounted for non-oil sector.

Political and macroeconomic stability, secure protection of investors' rights, favorable geographical location, rich natural resources and highly skilled workforce have turned Azerbaijan into one of the most attractive countries for foreign investments.

"$10.5 billion foreign investment was invested in Azerbaijan's economy last year and it is important to direct over half of this amount to non-oil sector," he added.

"Over a quarter (26 percent) of the foreign direct investment was made by Turkey. Azerbaijan's second and third largest direct investors are Great Britain (16 percent) and the U.S. (12 percent). As for investment in fixed capital, the Great Britain invested $18 billion in Azerbaijan, the U.S., $7 billion, and Japan, $4 billion," the minister said.

Azerbaijan's State Statistics Committee said the total volume of foreign investment made in Azerbaijan's fixed capital in the first half of 2014 amounted to 2.2 billion manats. This figure is 15.8 percent more compared to a same period last year.

Some 80.3 percent (1.794 billion manats) of investment was made by foreign countries and international organizations in January-June 2014. Investors from the UK, Norway, U.S., Turkey, Japan and France invested in Azerbaijan during the mentioned period.

Some 134 countries were Azerbaijan's foreign trade partners in the period. The total trade turnover of the country in the first half of year amounted to $15.37 billion.

In January-June, Azerbaijan conducted export transactions ​​amounting to 11.25 billion, and import volume of the country stood at $4.12 billion.

Mustafayev went on to add that today some 6,857 enterprises with foreign investments are operating in Azerbaijan.

"Over one third of them, in particular 2,464 companies were established with the investment from Turkey, 570 enterprises with the investment from Russia, and 541 enterprises with the investment from Great Britain," he said. "Foreign companies are actively involved as contractors and sub-contractors in infrastructure and other projects implemented with public investment."

Also, the dynamic development, growth of financial opportunities and development of the private sector have made Azerbaijan an exporter of investment: the country has invested heavily in projects in Turkey, Georgia, Montenegro, Serbia, Switzerland and other countries.

"Another indication of Azerbaijan's positive image, formed in the international arena, is invitation of Azerbaijani business to participate in privatization and investment projects abroad," he added.

Azerbaijan has made a leap in the economic development in a short period and will continue this trend.

"The dependence of the national economy on the oil factor will be minimized, and the country's GDP will be doubled thanks to the development of non-oil sector by 2020," Mustafayev noted.