Azerbaijan is one of the most active investors among CIS countries and Georgia as well, Eurasian Development Bank (EDB) said in a report entitled ‘Monitoring of Mutual Investments in CIS Countries 2017’.
According to the report, Azerbaijan is particularly interested in transportation projects, including the Baku-Tbilisi-Kars railway and projects designed to further expand trade and power infrastructure.
“By the end of 2016, Azerbaijani direct investment stock in CIS countries and Georgia approached $2.4 billion,” the report said. “The steady nature of Azerbaijani regional investment growth should also be noted, with FDI (foreign direct investment) stock increase indicators in any given year expressed by two-digit figures (10.2 percent in 2013, 15.3 percent in 2014, 12.6 percent in 2015, and 19.4 percent in 2016).”
“The 2016 year-end sectoral allocation of Azerbaijani direct investment stock in CIS countries and Georgia is quite diversified,” the report said. “Azerbaijani capital is traditionally attracted to transportation (47.4 percent), wholesale and retail trade (19 percent), infrastructure networks (11.7 percent), and construction (11.6 percent).”
“It is necessary to note the reduction of the share of investments made by state-owned companies from 97.4 percent in 2010 to 80 percent in 2016,” the report said. “This demonstrates the increased willingness and ability of private Azerbaijani companies to invest in CIS countries and Georgia—over the course of six years, private Azerbaijani FDI in the post-Soviet area has exceeded $450 million.”
According to the report, there is a noticeable expansion of the territorial structure of Azerbaijani investment stock in the region.
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