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. Public investments into infrastructure have positively affected the investment inflows in the country over the years, as well as the measures taken by the Government of Azerbaijan to improve investment environment in the country, such as:
- Simplifying the process of license and permits obtainment;
- Extending the moratorium on inspections of business activities until 2023;
- Application of the document “investment promotion document” and tax exemption for individuals who get this certificate valid for seven years;
- Creating of industrial parks with full exemption from customs duties and VAT upon import of technological equipment by resident legal entities and individuals of industrial and technological parks for construction and research & development purposes for seven years;
- Support and protection of domestic production and internal market, stimulating non-oil exports (application of export promotion, organization of missions to foreign countries and opening of trade houses abroad);
- Applying progressive mechanisms for import and export operations (green corridor, electronic declaration, etc.);
- Providing subsidies to some agricultural products.