Government to increase financing of non-oil products' exports
By Rasana Gasimova
The Azerbaijani government plans to allocate 20 million manats ($11.8 million) to promote the country's non-oil exports in 2020.
In 2020, some 20 million manats will be allocated from the state budget to finance measures to promote and stimulate non-oil exports. This amount is 4.2 percent higher than that allocated in 2019, local media reported.
Azerbaijan strengthens the position of non-oil sector in the total exports of the country in a bid to diversify its economy. Agriculture, tourism, information and communication technologies, and processing industries, are considered basic priority areas in the development of the non-oil sector.
Earlier, it was noted that Azerbaijan’s non-oil industry will demonstrate an 8.8 percent growth in 2020.
In October 2016, the Cabinet of Ministers approved a decree on export incentives for people engaged in the export of non-oil products. According to a government decree, the basic amount of export promotion is from 3 to 6 percent of the customs value indicated in the declaration of the exported goods.
In January-November 2019, Azerbaijan exported non-oil products worth $1,781 million, which indicates a 16.3 percent rise in comparison with the same period in 2018.
The five major countries that imported of Azerbaijani non-oil products include Russia, Turkey, Switzerland, Georgia and Italy. A major part of the non-oil products export accounts for Russia.
The steps made for diversification of the economy and the state program “Socio-economic development of regions of Azerbaijan in 2014-2018” made huge contribution to the non-oil sector, because main potential for production of non-oil products is concentrated in the regions of Azerbaijan.
Opening of Azerbaijani trade houses abroad and organizing export missions to foreign countries to promote the Made in Azerbaijan brand in foreign markets have further developed the share of non-oil products in the structure of country’s exports.
In addition, the increasing number of plants operating in the non-oil sector promises very good prospects for Azerbaijan to diversify its economy, reduce oil and gas dependency and increase the inflow of foreign currency into the country.
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