Azernews.Az

By Seymur Aliyev

Foreign direct investment (FDI) in the non-oil sector of Azerbaijan's economy will reach $1 billion by the end of 2012, the central bank chief said on Wednesday.

Elman Rustamov, chairman of the Central Bank of Azerbaijan, was addressing a cabinet meeting presided by President Ilham Aliyev, which aimed to sum up progress in the country's social and economic development over the first nine months of 2012.

"Azerbaijan recorded high investment activity," Rustamov said. "Investments rose by 27 percent in the country in the first nine months of 2012. The growth rate in the non-oil sector was 31 percent."

According to Rustamov, 284 enterprises have been opened in the Azerbaijani regions this year, while 444 more are being established.

Rustamov said Azerbaijan has a stable and dynamic budget system. "In the reporting period, expenses of the budget increased 27 percent, with investment expenses rising 20 percent. Non-oil tax revenues grew 14 percent. The budget forecast was completely fulfilled, with a surplus reported."

According to Rustamov, dynamic development of the non-oil sector has allowed Azerbaijan to solve the unemployment problem.

"The employment rate is 95 percent in the country. About 430,000 jobs have opened since the beginning of 2008. For instance, 94,000 jobs were created in the first nine months of this year alone, while real cash income of the population increased by 12 percent."

A total of $16 billion was invested in the country's economy over the three quarters of 2012, including 70 percent from domestic sources. A staggering 71.4 percent of the investments were made in the domestic non-oil sector.

In the first half of 2012, 38.6 percent of the total investments in the non-oil sector accounted for industries, while 17.1 per cent -- for transportation and warehousing, 5 percent for agriculture, and 2.2 percent for trade. 10.4 percent of the amount was made up by real estate transactions, 3 percent by communication and information technologies, 1.7 percent by healthcare, 2.9 percent by education, 5.3 percent by leisure, entertainment and culture, 6.7 percent by public administration, one percent by finance and insurance, 2.6 percent construction, 1.8 percent administrative services and assistance, and 1.6 percent catering and tourism.