#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 2022#2STATE OF ECONOMY - 2021 42.5% 5,452.53 USD GDP PER CAPITA 10.1 MİLLİON POPULATION NON OIL GDP IN 2021: (62%) GDP structure (%) GDP 54 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 oil 42 36 31 34 51 53 37 42 39 38 32 28 58 49 47 52 99 64 69 66 63 58 61 58 662 62 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 During 1995 - 2021: 57.1 bln usd - the volume of investment in the non-oil sector. 14.8 bln usd - the volume of FDI in the non-oil sector. Source: State Statistical Committee of Azerbaijan#3PROVEN TRADING PARTNER - 2021 ITALY US$ 22 BLN TOTAL VALUE OF EXPORTS ■TOP 5 EXPORT MARKETS (%) TURKEY 12.69 RUSSIA 4.15 ISRAEL 4,04 CROATIA 3,38 RUSSIA 41.62 TURKEY CHINA GERMANY UKRAINE TOP 5 NON-OIL EXPORT PRODUCTS (%) EQUIPMENT FRUITS & VEGETABLES 23,23 FOODSTUFF PLASTICS CHEMICAL PRODUCTS COTTON FIBER ALUMİNİUM 16,3 9,05 TRANSPORT 7,77 FERROUS METAL PHARMACEUTICAL 6,95 PRODUCTS Source: State Customs Committee of Azerbaijan US$ 11.7 BLN TOTAL VALUE OF IMPORTS ■TOP 5 IMPORT MARKETS (%) 5.42 4.02 ■TOP 5 IMPORT PRODUCTS (%) 11,47 7,41 4,52 azpromo Export and Investment Promotion Agency of the Republic of Azerbaijan 17.72 15.75 14.01 23,49 16,49 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#5WELL DEVELOPED INFRASTRUCTURE ■ 15 thsd km of roads and highways constructed and rehabilitated ■ 7 new international airports, including in the liberated areas of Azerbaijan ■ Baku-Tbilisi-Kars railroad ("The Iron Silkway") ☐ New Baku International Sea Trade Port with capacity of 10-11.5 mln tons of cargo 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#6STATE OIL FUND AND SOVEREIGN RATINGS azpromo Export and Investment Promotion Agency of the Republic of Azerbaijan 45 BLN.USD - AS OF JANUARY 1, 2022 SOFAZ'S PORTFOLIO BREAKDOWN BY ASSET CLASS SOVEREIGN RATINGS BY MAJOR RATING AGENCIES Fixed income and money market instruments ■ Equities Real estate Gold 13,1% 6% 19,0% 61,8% Standard & Poor's BB+, Outlook Stable Moody's • Ba2, Outlook Positive Fitch BB+, Outlook Stable 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 ☐ ☐ 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 H 6#8EXPORT PROMOTION NO EXPORT DUTIES REMOVING TRADE BARRIERS TRADE HOUSES: CHINA UKRAINE POLAND UAE KAZAKHISTAN BELARUS TRADE REPRESENTATIVES ☐ CHINA ☐ UNITED ARAB EMIRATES ☐ POLAND RUSSIA ☐ ISRAEL TURKEY 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 ALBANIA CROATIA GEORGIA LATVIA AUSTRIA CZECH REP GERMANY LITHUANIA BELARUS ESTONIA BELGIUM BULGARIA FINLAND FRANCE GREECE HUNGARY ITALY LUXEMBOURG MACEDONIA FYR MOLDOVA MONTENEGRO NORWAY POLAND ROMANIA RUSSIA SERBIA SWITZERLAND TURKEY UK UKRAINE II. CHINA SAUDI ARABIA IRAN ISRAEL JORDAN LEBANON PAKISTAN QATAR SYRIA TAJIKISTAN UAE UZBEKISTAN KAZAKHSTAN KUWAIT KYRGYZSTAN KOREA REP. 9 azpromo Export and Investment Promotion Agency of the Republic of Azerbaijan#11DOUBLE TAXATION TREATIES AUSTRIA BELARUS CROATIA ESTONIA BELGIUM CZECH REP. B&H BULGARIAC FINLAND FRANCE GEORGIA GERMANY GREECE HUNGARY ITALY LATVIA LITHUANIA LUXEMBOURG MACEDONIA FYR MOLDOVA II CHINA IRAN JAPAN JORDAN azpromo Export and Investment Promotion Agency of the Republic of Azerbaijan MONTENEGRO NETHERLANDS NORWAY POLAND ROMANIA RUSSIA SAN MARINO SERBIA SLOVENIA SPAIN SWEDEN SWITZERLAND TURKEY UK UKRAINE SAUDI ARABIA QATAR TAJIKISTAN UAE KAZAKHSTAN KUWAIT PAKISTAN UZBEKISTAN VIETNAM KOREA REP. 10#12BUSINESS RELATIONS WITH REPUBLIC OF AUSTRIA azpromo Export and Investment Promotion Agency of the Republic of Azerbaijan $ AS OF 01.01.2022 • 59 companies from Austria were registered in Azerbaijan Austrian companies covered key sectors including agriculture, industry, trade, construction, telecommunication 165.6 MLN. $ Investment of Austria in Azerbaijan during 1995-2021. 11#13ECONOMIC ZONES DEVELOPMENT AGENCY azpromo Azerbaijan Export & Investment Promotion Foundation under the Ministry of Economy of the Republic of Azerbaijan INDUSTRIAL PARKS: . 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 • Araz Valley Economic Zone - 2021 Industrial Districts: . Masalli Industrial District • Neftchala Industrial District • Hajigabul Industrial District. Sabirabad Industrial District • Sharur Industrial District MINGACHEVIR SUMGAIT PIRALLAHI BALAKHANI GARADAG AGDAM SABIRABAD HAJIGABUL SHARUR JABRAIL NEFTCHALA INDUSTRIAL PARKS MASALLI INDUSTRIAL DISTRICTS 12#14INVESTMENT INCENTIVES HOLDERS OF INVESTMENT PROMOTION DOCUMENT 50% reduced corporate 7 tax Y EARS 0% land and property tax 0% vat on hardware, technological equipment and structures imported by IPD holders 0% customs duty on azpromo Export and Investment Promotion Agency of the Republic of Azerbaijan RESIDENTS OF INDUSTRIAL AND TECHNOLOGY PARKS 10 DYEARS ■ 0% corporate tax ☐ 0% land and property tax 0% vat on hardware, technological equipment and structures imported by residents hardware, technological equipment and structures imported by IPD holders 7 TYEARS 0% customs duty on hardware, technological equipment and Α structures imported by R residents 13#15SECTOR OPPORTUNITIES AGRICULTURE AND PROCESSING CONSTRUCTION PETROCHEMICALS RENEWABLES TRANSPORT, TRADE AND LOGISTICS MINING DIGITAL ECONOMY TOURISM LIGHT INDUSTRY azpromo Export and Investment Promotion Agency of the Republic of Azerbaijan 14#16MAJOR ACTIVITIES OF AZPROMO IN FIELD OF EXPORT • NON-OIL EXPORT PROMOTION • PROMOTION OF "MADE IN AZERBAIJAN" BRAND azpromo Export and Investment Promotion Agency of the Republic of Azerbaijan IN FIELD OF INVESTMENT • ATTRACTION • RETENTION and EXPANSION • AFTERCARE . SUPPORT TO EXPORTERS • POLICY ADVOCACY • BUILDING AND PROMOTING EXPORT CULTURE • COUNTRY'S IMAGE BUILDING • POLICY ADVOCACY 15#17AZ1000, Azerbaijan, Baku, 32 Neftchilar avenue, (Baku Business Center) Tel.: (+994 12) 598 01 47/48 Fax.: (+994 12) 598 01 52 E-mail: [email protected] www.azpromo.az fo THANK YOU!