Top reasons to invest in Azerbaijan

FDI in Azerbaijan

Large hydrocarbon reserves of Azerbaijan have always been attractive for foreign investment. This can be observed from the participation of oil-gas sector in total FDI inflows (71%). One of the top priorities of the Azerbaijani Government is to diversify the country’s economy and attract FDI in non-hydrocarbon sectors, such as Agriculture, Logistics, Information/communication technology and Tourism.
Robust Economy

The current outlook for the Republic of Azerbaijan’s economy can be described as one of "cautious optimism". After being severely affected by both the COVID-19 containment measures and the decline in global oil prices, economy of Azerbiajan demonstrated a fast recovery.
Large domestic and regional markets

The volume of Azerbaijan's foreign trade turnover amounted to $52.6 billion in 2022, marking a 55% increase from 2021. Export amount in 2022 was almost 2.6 times higher than imports, reaching the highest amount since 2008. Non-hydrocarbon exports rose by 12% with respect to 2021. 
Strategic Location

Geographically, Azerbaijan is located in the South Caucasus region of Eurasia, connecting Western Asia and Eastern Europe. Trans-Caspian East-West Trade and Transit Corridor is a key route connecting two major global economies, China and Europe (on average 5,400 km length, 15 days transit period). Substantial investments in north–south (from the Russian border to the Iranian border) and east–west (from the Absheron Peninsula to Georgia and then Türkiye) road and rail connectivity have been made, and most projects are either completed or are well on track.
Favorable Demographics

The population of Azerbaijan is more than 10.1 million. The population is evenly split between men and women, with both genders comprising 50% of the total. Population of Azerbaijan are mostly concentrated in the cities (Urban population: 52.9%), especially in the capital city, according to the official sources population of Baku is more than 2.3 million.
Skilled and cost competitive labor force

As of 2022, 5.2 million people or 51% of the total population of Azerbaijan is economically active. Unemployment rate in the country is quite low and equals only to 5.6%. Major part of population is hired by private sector, however participation of public sector is also quite high - 20.7%. Literacy rate in the country is very high - 99.8%.
Continuous reform process

Independent Azerbaijan is experiencing a historic turning point in its economic, social, political, and cultural development. Purposeful socio-economic reforms implemented in the country during this transitional period have ensured a strengthening and modernization of the national economy.
Liberal investment climate

Bilateral investment treaties and other treaties on foreign investment provide additional guarantees to foreign investors and are aimed at establishing a more favorable investment climate.