#1azpromo Export and Investment Promotion Agency of the Republic of Azerbaijan EXPORT AND INVESTMENT PROMOTION AGENCY OF THE REPUBLIC OF AZERBAIJAN – AZPROMO - INVESTMENT OPPORTUNITIES IN AZERBAIJAN MAY 2023#2STATE OF ECONOMY - 2022 ☑ 42.5% 7 819 USD GDP PER CAPITA 10.1 MILLION POPULATION NON OIL GDP IN 2022: (52%) GDP structure (%) 48 88 53 57 40 52 47 43 23 61 69 66 99 63 80 39 39 31 34 33 37 58 62 42 38 2011 2012 2013 2014 2015 2016 2017 2018 Oil 11 70 70 62 32 GDP 78.7 BLN USD 10.1% 5.9% 8.4% 6.9% 5.9% 1.8% 1.3% azpromo Export and Investment Promotion Agency of the Republic of Azerbaijan 17.2% Industry Construction Trade Taxes Agriculture Transport Tourism Telecom Other Non-oil 52 52 48 38 30 30 38 During 1995 - 2022: 65.6 bln USD - the volume of total FDI 17.4 bln USD - the volume of FDI in the non-oil sector 2019 2020 2021 2022 Source: State Statistical Committee of Azerbaijan#3PROVEN TRADING PARTNER – 2022 - US$ 38.1 BLN TOTAL VALUE OF EXPORTS TOP 5 EXPORT MARKETS (%) ITALY TÜRKIYE 9,29 ISRAEL 4,41 INDIA 4,36 GREECE 3,65 FRUITS & VEGETABLES PLASTICS CHEMICAL PRODUCTS ALUMINIUM COTTON FIBER TOP 5 NON-OIL EXPORT PRODUCTS (%) 12,67 12,7 7,14 5,76 Source: State Customs Committee of Azerbaijan US$ 14.5 BLN TOTAL VALUE OF IMPORTS TOP 5 IMPORT MARKETS (%) azpromo Export and Investment Promotion Agency of the Republic of Azerbaijan 46,62 RUSSIA 18,81 TÜRKIYE 15,8 CHINA 14,35 GERMANY 4,56 TURKMENISTAN 3,51 21,9 TOP 5 IMPORT PRODUCTS (%) EQUIPMENT 19,89 TRANSPORT 12,18 CHEMICAL PRODUCTS 10,84 MINERAL RESOURCES 9,16 FERROUS and OTHER METALS 7,15 2#4EFFECTIVE TIME SAVING ROUTES azpromo Export and Investment Promotion Agency of the Republic of Azerbaijan 60% TIME SAVING FOR NORTH-SOUTH ROUTE (INDIA - EUROPE) 70% TIME SAVING (CHINA - EUROPE MARITIME ROUTE) NORWAY Late Kosovskaya SWEDEN Kotka Helsink Oslo Muuga Stockholm St. Petersburg ESTONIA Gothenburg Ventspils Pechory EAST WEST ROUTE Transport Corridors Passing Azerbaijan NORWAY SWEDEN UNITED INGDOM London Le Havre Amsterdam BELGIUM Paris FRANCE Rar DENMARK See Copenhagen NETHER LANDS Restock Hamburg Berlin Klaipeda ige LATVIA Pasin Moscow RUSSIA LITHUANIA GERMANY Gdansk POLAND Warsaw Gudogay Minsk Kravice (3) Olya BELARUS Berezhest Slavechno Kiev Saratov Astana CZECH REPUBLIC SLOVNA UKRAINE Vienna MOLDOV HUNGARY ChernomorsOdessa SWITZERLAND ROMANIA CROATIA Aktobe Thank Volgograd Dini Nurprise Shalkar Makat KAZAKHSTAN Aksarayska pasharja Astrakhan Saksausky Bryney Kara arylanda SERBIA Andur HARING BULGARIA ANDA aelona Vatican City ITALY H VATICAN Rome Than MACEDOA Consta Vama Burgis Kap Istanb Beck Sea Machkala Bakal ALBAMA Ankara AZERBA UZBEKISTAN TURKMENISTAN Bukhara Tara Playmak T KYRGYZSTAN AIN - GREECE TURKEY C Sev "Athens Merga MALTA CYPRUS China-Kazakhstan-Caspian Sea-Azerbaijan-Georgia-Black Sea - Poland 6500km; 14 days; 41005 SYRIA AQ Isfahan Tehvan Gaman Tokmenabate Ashgabat Mary Kabul Dushanbe TAJIKISTAN IRAN AFGHANISTAN Islamabad China-Kazakhstan-Caspian Sea-Azerbaijan-Georgia-Turkey (Istanbul/Mersin) 6410/5671 km 11/9 days: 3500/3200 S India-Iran-Astara-Azerbaijan Russia-Finland 7800 km; 22 days; 21705 India-Persian Gulf-Iran-Azerbaijan-Georgia - Black Sea-Ukraine-Poland 6900 km; 20 days: 6000S Bakhash Sayak Agay Dasty Autaw Shaniou Altynko Khongas Un Amity UNITED KINGDON RELAND NORTH ATLANTIC OCEAN FRANCE FINLAND GERMANY POLAND aus ITALY PORTUGAL SPAIN TUMESSA ROMANIA KRANE GREECE TURKEY RUSSIA KAZAKHSTAN A STREOSTAN KYRGYZSTAN TURKMENISTAN OPS SYRA IRAQ IRAN AFGHANISTAN EGYPT Conditions of carriage of 40-foot containers from China to Europe SAUDI ARABIA OMAN ERITREA YEMEN New Delhi NEPAL China-Kazakhstan-Caspian Sea Azerbaijan-Georgia-Black Ses-Ukraine-Poland 6500 km: 14 days: 4100 S Kathmandu China-Kazakhstan-Caspian Sea-Azerbaijan-Georgia-Turkey (etanbul/Meran) 6410/5871 km 11/8 days: 3500/3200 PIA SOMALIA Zahedan KUWAIT PAKISTAN Bandar-e Abbas BAHRAIN Riyadh Chobahar QATAR Canadi SAUDI ARABIA UNITED ARAD DHRATES Mundra Muscat INDIA FRITREA VEMEN OMAN China Russia Belarus Poland 7700 km: 15 days: 4000 $ China-Suez Canal-Poland 20000 km; 60 days: 2500 S PAKISTAN SAMLA INDIA SR LANKA CHINA MONGOLIA MYANMAR LADS THAILAND BOOK VIETNAM MALAYA TAWAN KOREA PHILIPPINES INDONESIA JAPAN PAPUA NEW GUINEA 3#5L WELL DEVELOPED INFRASTRUCTURE Almost 20 thousand km of roads and highways constructed and rehabilitated 8 new international airports, including in the liberated areas of Azerbaijan ■ Baku-Tbilisi-Kars railroad ("The Iron Silkway") New Baku International Sea Trade Port ■ AFEZ is a multi-modal site in a prime strategic location offering a wide range of incentives and benefits azpromo Export and Investment Promotion Agency of the Republic of Azerbaijan 4#6STATE OIL FUND AND SOVEREIGN RATINGS azpromo Export and Investment Promotion Agency of the Republic of Azerbaijan 49.0 BLN.USD AS OF JANUARY 1, 2023 - SOFAZ'S PORTFOLIO BREAKDOWN BY ASSET CLASS SOVEREIGN RATINGS BY MAJOR RATING AGENCIES Fixed income and money market instruments Equities Real estate ■ Gold 6,4% 12,0% 18,7% 62,9% Standard & Poor's BB+, Outlook Stable Moody's Ba1, Outlook Stable Fitch • BB+, Outlook Positive 5#7■ BUSINESS ORIENTED ONGOING REFORM AREAS STARTING A BUSINESS GETTING CREDIT DEALING WITH CONSTRUCTION PERMITS REGISTERING PROPERTY PROTECTING MINORITY INVESTORS ■ PAYING TAXES TRADING ACROSS BORDERS ENFORCING CONTRACTS RESOLVING INSOLVENCY E ☐ ☐ REDUCED RED TAPE azpromo Export and Investment Promotion Agency of the Republic of Azerbaijan NO STATE INSPECTIONS OF BUSINESSES STREAMLINED LICENSING SYSTEM E-GOV SERVICES FOR BUSINESS STREAMLINED PUBLIC SERVICES ONE-STOP-SHOP SYSTEMS LOW TAX BURDEN 6#8EXPORT PROMOTION NO EXPORT DUTIES REMOVING TRADE BARRIERS TRADE HOUSES CHINA POLAND UAE KAZAKHSTAN BELARUS UKRAINE LATVIA QATAR TRADE REPRESENTATIVES CHINA UNITED ARAB EMIRATES POLAND ☐ RUSSIA ISRAEL ■ TÜRKİYE azpromo Export and Investment Promotion Agency of the Republic of Azerbaijan#9INVESTMENT CLIMATE TEMPORARY RESIDENCE ALLOWED UPON INVESTMENTS NO LOCAL COUNTERPART REQUIREMENT NO FOREIGN EXCHANGE RESTRICTIONS NO DISCRIMINATION BETWEEN FOREIGN AND DOMESTIC INVESTOR LIMITED PRICE CONTROL NO TECHNOLOGY TRANSFER RESTRICTIONS azpromo Export and Investment Promotion Agency of the Republic of Azerbaijan NO LIMITS ON THE AMOUNT OF FOREIGN CAPITAL IN COMPANIES NO RESTRICTIONS ON REPATRIATION OF PROFITS NO PRIOR AUTHORIZATION OF FOREIGN INVESTMENT REQUIRED 8#10BILATERAL INVESTMENT TREATIES azpromo Export and Investment Promotion Agency of the Republic of Azerbaijan ALBANIA CROATIA LATVIA AUSTRIA CZECH REP BELARUS ESTONIA BELGIUM BULGARIA FINLAND FRANCE GEORGIA GERMANY GREECE HUNGARY LITHUANIA LUXEMBOURG MACEDONIA FYR MOLDOVA NORWAY POLAND ROMANIA RUSSIA MONTENEGRO SAN MARINO SERBIA SWITZERLAND TÜRKIYE UK UKRAINE USA AFGHANISTAN CHINA SAUDI ARABIA LEBANON SYRIA TAJIKISTAN EGYPT IRAN ISRAEL JORDAN PAKISTAN QATAR TURKMENISTAN UAE UZBEKISTAN KAZAKHSTAN KUWAIT KYRGYZSTAN KOREA REP. 9#11DOUBLE TAXATION TREATIES CROATIA AUSTRIA ESTONIA FRANCE GEORGIA LATVIA BELARUS CANADA GERMANY LITHUANIA LUXEMBOURG BELGIUM CZECH REP. B&H DENMARK BULGARIA FINLAND GREECE HUNGARY ITALY MACEDONIA FYR MALTA MOLDOVA azpromo Export and Investment Promotion Agency of the Republic of Azerbaijan MONTENEGRO NETHERLANDS NORWAY POLAND ROMANIA RUSSIA SAN MARINO SERBIA SLOVENIA SPAIN SWEDEN SWITZERLAND TÜRKIYE UK UKRAINE CHINA IRAN ISRAEL MOROCCO SAUDI ARABIA KAZAKHSTAN JAPAN JORDAN QATAR TAJIKISTAN UAE KUWAIT PAKISTAN TURKMENISTAN UZBEKISTAN VIETNAM KOREA REP. 10#12INDUSTRIAL PARKS, DISTRICTS AND AGROPARKS (INDUSTRIAL ZONES) azpromo Export and Investment Promotion Agency of the Republic of Azerbaijan STATISTICS OF INDUSTRIAL ZONES FOR 2022 116 business entities were granted residency status 65 residents are already operating PRODUCTION AND EXPORT IN INDUSTRIAL ZONES made 6.47 bln ሐ investment TOTAL PRODUCTION EXPORT 2,4 bln ሐ 2021 10,325 new jobs 2,9 bln ሐ planned 2022 959.3 mln ሐ 2021 1083.7 [mln ሐ ml ሐ 458 min investment 4,567 new jobs MINGACHEVIR SUMGAIT PIRALLAHI BALAKHANI GARADAG AGDAM SABIRABAD HAJIGABUL SHARUR JABBAIL NEFTCHALA • • Sumgait Chemical Industrial Park - 2011 Balakhani Industrial Park 2011 . • • Mingachevir Industrial Park - 2015 Garadagh Industrial Park - 2015 . Pirallahi Industrial Park - 2016 . Agdam Industrial Park - 2021 2022 • Araz Valley Economic Zone - 2021 INDUSTRIAL PARKS MASALLI INDUSTRIAL DISTRICTS Masalli Industrial District Neftchala Industrial District Hajigabul Industrial District Sabirabad Industrial District 51 Agroparks • Sharur Industrial District 11#13INVESTMENT INCENTIVES HOLDERS OF INVESTMENT PROMOTION DOCUMENT 50% reduced corporate 7 tax Y EARS azpromo Export and Investment Promotion Agency of the Republic of Azerbaijan RESIDENTS OF INDUSTRIAL AND TECHNOLOGY PARKS 0% land and property tax 0% vat on hardware, technological equipment and structures imported by IPD holders 0% customs duty on hardware, technological equipment and structures imported by IPD holders 10 QYEARS ■ ☐ ☐ 0% corporate tax 0% land and property tax 0% vat on hardware, technological equipment and structures imported by residents 0% customs duty on hardware, technological equipment and structures imported by residents 12#14SECTOR OPPORTUNITIES AGRICULTURE FOOD PROCESSING CHEMICAL INDUSTRY RENEWABLES TRANSPORT AND LOGISTICS INFORMATION AND COMMUNICATION TECHNOLOGIES LIGHT INDUSTRY TOURISM azpromo Export and Investment Promotion Agency of the Republic of Azerbaijan 13#15MAJOR ACTIVITIES OF AZPROMO IN FIELD OF EXPORT • NON-OIL EXPORT PROMOTION ⚫ PROMOTION OF "MADE IN • AZERBAIJAN" BRAND . SUPPORT TO EXPORTERS • BUILDING AND PROMOTING EXPORT CULTURE • POLICY ADVOCACY azpromo Export and Investment Promotion Agency of the Republic of Azerbaijan IN FIELD OF INVESTMENT • ATTRACTION • RETENTION and EXPANSION • AFTERCARE • POLICY ADVOCACY • COUNTRY'S IMAGE BUILDING 14#16AZ1000, Azerbaijan, Baku, 44 Neftchilar avenue, (Baku Business Center) Tel.: (+994 12) 598 01 47/48 Fax.: (+994 12) 598 01 52 E-mail: [email protected] www.azpromo.gov.az fo O THANK YOU!