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More projects awarded investment incentives document

31 August 2016 15:40 (UTC+04:00)
More projects awarded investment incentives document

By Nigar Abbasova

The government of Azerbaijan sees new investment incentives scheme as one of effective tools to stipulate business doing in the country and give a push for the development of small and medium entrepreneurship.

Some 19 entrepreneurs in Azerbaijan got a document of investment incentives for implementation of projects worth over 186 million manats ($ 114.2 million). Creation of about 1,000 new work places is envisaged within the framework of these projects.

The documents were presented to entrepreneurs during an event organized by the Economy Ministry of the country.

Azerbaijan's Deputy Economy Minister Niyazi Safarov, addressing the event, said that the ministry has so far presented documents of investment incentives to some 32 entrepreneurs, while the volume of investments on the projects is expected to be more than 300 million manats ($ 184 million).

Investment projects cover seven economic regions of the country, including Absheron, Guba-Khachmaz, Mountain Shirvan, Sheki-Zagatala, Ganja-Gazakh, Aran and Lankatan. Under the document, half of the revenue of an individual entrepreneur, profits of legal entity are exempted from income tax for seven years.

Safarov underlined the importance of investment attraction to priority areas for the provision of sustainable economic development, mentioning that different support mechanisms are currently used in Azerbaijan in this regards.

Preferential regime has already been introduced in Sumgait Chemical Industrial Park, Balakhani Eco-Industrial Park and Garadagh Industrial Park to ensure effective operation of entrepreneurs. Organizational work is currently underway in Masalli industrial district and Mingachevir industrial park.

Moreover, the process of equipment layout is currently underway in Neftchala industrial park, which is expected to create more than 500 new work places. Some eight projects worth over 40 million manats ($ 24.5 million) will be realized in the park.

The country is also engaged in works on the creation of Azerbaijan’s first-ever free trade zone in Alat, which will also include the territory of the new Baku International Sea Trade Port. Registration of residents in FTZ is expected to begin in January 2017. Main objective of FTZ is to provide sustainable development of national economy, raise its competitiveness, strengthen the position of the country as a logistics and transport centre as well as create diversified transport infrastructure.

The country has recently taken serious decisions towards improving the business environment, increasing its export potential, attracting foreign investments to the country, and increasing local production.

Priority areas for the country, which possesses a wide range of investment opportunities, are agriculture, heavy and light industry, alternative energy, tourism, information technologies and construction.

The volume of foreign investments made in the fixed capital of Azerbaijan in January-July 2016 stood at 4.92 billion manats ($ 3.03 billion) recording an increase by 27.1 percent as compared to the same index of 2015

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Nigar Abbasova is AzerNews’ staff journalist, follow her on Twitter: @nigyar_abbasova

Follow us on Twitter @AzerNewsAz

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