#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 November 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 54.6 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 oil non-oil 63.4 68.7 73.6 75.2 53.0 37.6 40.7 46.9 48.0 42.6 54.6 ထု 48 53 57 61 69 66 62 52 47 43 39 31 2011 99 58 63 58 63 124 34 37 42 == 62 62 70 10 62 62 38 38 30 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 During 1995 – 2021: - 59.3 bln usd - the volume of investment in the non-oil sector. 15.6 bln usd - the volume of FDI in the non-oil sector. Source: State Statistical Committee of Azerbaijan#3PROVEN TRADING PARTNER - 2021 ITALY US$ 22.2 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 16.3 9.05 TRANSPORT CHEMICAL PRODUCTS COTTON FIBER ALUMİNİUM 7.77 6.95 Source: State Customs Committee of Azerbaijan FERROUS METAL PHARMACEUTICAL PRODUCTS US$ 11.7 BLN TOTAL VALUE OF IMPORTS ■TOP 5 IMPORT MARKETS (%) 5.42 4.02 ■TOP 5 IMPORT PRODUCTS (%) 4.52 7.41 11.47 16.49 azpromo Export and Investment Promotion Agency of the Republic of Azerbaijan 17.72 15.75 14.01 23.49 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 Muiga Stockholm St. Petersburg ESTONIA Gothenburg Ventspils Pechory EAST WEST ROUTE Transport Corridors Passing Azerbaijan NORWAY SWEDEN FINLAND RUSSIA 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) Oty UNITED KINGDON RELAND GERMANY POLAND aus BELARUS KRANE Berezhest Slavechno Kiev Saratov Astana Aktobe CZECH REPUBLIC SLONGA UKRAINE Vienna MOLDOV HUNGARY ChernomorsOdessa SWITZERLAND ROMANIA CROATIA Thank Volgograd Shalkar Dini Nurpeisevi Makat KAZAKHSTAN Aksarayska Kipasharja Astrakhan Saksautsky Bryney Kara stylanda NORTH ATLANTIC OCEAN FRANCE KAZAKHSTAN ROMANIA My SERBIA Andur HARING BULGARIA ANDA aelona Vatican City ITALY H VATICAN Rome Consta Vama Burgis Kapke Istanb Elek Sed Machkala UZBEKISTAN Than MACEDOA Bakal Taraz Playmak T KYRGYZSTAN Baktush Sayak Agay Dasty ataw Shaviou Altynko khongas Almaty Un ITALY PORTUGAL SPAIN TRISTAN KYRGYZSTAN TURKMENISTAN GREECE TURKEY TUMESSA OPS STREA IRAQ IRAN AFGHANISTAN ALBAMA Ankara AZERBA TURKMENISTAN Buhar AIN - GREECE TURKEY Tekmenabate Duthanbe PAKISTAN "Athens Tatvia Sex Ashgabat Rag Dervi TAJIKISTAN EGYPT Mary Telvan MALTA CYPRUS SYRIA China-Kazakhstan-Caspian Sea-Azerbaijan-Georgia-Black Sea - Poland 6500km; 14 days; 41005 AQ Baghdad Gaman IRAN Kabul Conditions of carriage of 40-foot containers from China to Europe SAUDI ARABIA OMAN Islamabad AFGHANISTAN Isfahan Bandar Khoein ERITREA YEMEN 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 Zahedan KUWAIT PAKISTAN New Delhi NEPAL China-Kazakhstan-Caspian Sea Azerbaijan-Georgia-Black Ses-Ukraine-Poland 6500 km: 14 days: 4100 S Bandar-e Abbas BAHRAIN Kathmandu Riyadh Dug hobahar China-Kazakhstan-Caspian Sea-Azerbaijan-Georgia-Turkey (etanbul/Mers) 8410/5871 km 11/8 days: 3500/3200 OPIA QATAR O 6572 if of Dean SOMALIA SAUDI ARABIA ARAD DHRATES UNITED Muscat Mundra China Russia Belarus Poland INDIA India-Persian Gulf-Iran-Azerbaijan-Georgia - Black Sea-Ukraine-Poland 6900 km; 20 days: 6000S FRITREA VEMEN OMAN Nhava She 7700 km: 15 days: 4000 $ China-Suez Canal-Poland 20000 km; 60 days: 2500 S MONGOLIA SOUTH JAPAN CHINA INDIA MYANMAR LADS SR LANKA THAILAND TAWAN VIETNAM BODIA PHILIPPINES MALAYSIA INDONESIA PAPUA NEW GUINEA 3#5■ 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 45.3 BLN.USD - AS OF JULY 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 6.5% 13.1% Standard & Poor's BB+, Outlook Stable Moody's Ba1, Outlook Stable 17.9% 62.5% 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 UKRAINE POLAND UAE KAZAKHISTAN BELARUS 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 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 - CHINA IRAN SAUDI ARABIA LEBANON ISRAEL JORDAN PAKISTAN QATAR SYRIA TAJIKISTAN UAE UZBEKISTAN KAZAKHSTAN KUWAIT KYRGYZSTAN KOREA REP. 9#11DOUBLE TAXATION TREATIES AUSTRIA BELARUS CROATIA ESTONIA GEORGIA LATVIA GERMANY BELGIUM CZECH REP. B&H BULGARIAC FINLAND FRANCE GREECE HUNGARY ITALY LITHUANIA LUXEMBOURG MACEDONIA FYR MOLDOVA CHINA IRAN JAPAN JORDAN SAUDI ARABIA QATAR TAJIKISTAN UAE 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 KAZAKHSTAN KUWAIT PAKISTAN UZBEKISTAN VIETNAM KOREA REP. 10#12INDUSTRIAL PARKS, DISTRICTS AND AGROPARKS STATISTICS OF INDUSTRIAL PARKS (Jan-Jun 2022) 108 business entities were granted residency status 58 residents are already operating PRODUCTION AND EXPORT IN INDUSTRIAL PARKS made TOTAL PRODUCTION EXPORT 854.3 min ሐ 2021 269.8 mln ሐ 2021 6.4 bln ሐ investment 10,100 new jobs 1,3 planned bln ሐ 450 investment min 2022 543.9 • min ሐ 4,500 new jobs azpromo Export and Investment Promotion Agency of the Republic of Azerbaijan 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 Sharur Industrial District 51 Agroparks 11#13INVESTMENT 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 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 azpromo Export and Investment Promotion Agency of the Republic of Azerbaijan IN FIELD OF INVESTMENT • ATTRACTION • RETENTION and EXPANSION • AFTERCARE • POLICY ADVOCACY . SUPPORT TO EXPORTERS • BUILDING AND PROMOTING EXPORT CULTURE • • POLICY ADVOCACY COUNTRY'S IMAGE BUILDING 14#16AZ1000, 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!