Azerbaijan is a post-soviet country that regained independence in 1991. Since 1994, the country’s vast oil reserves have been attracting foreign investment to the economy, which consequentially made the oil and gas sector the main target of foreign investments. The modern-day Azerbaijan has managed to up-build relatively sophisticated communication and transportation infrastructure, as well as industrial, agricultural, educational, housing and healthcare sectors, although the oil and gas industry still accounts for the bulk of its exports.
Azerbaijan continues to develop its market infrastructure, including legal, tax and banking frameworks and links to the international business community. It presents a unique challenge to businesses entering Azerbaijan that wish to assess the real business risks and make realitybased decisions rather than relying on perceptions.
Given the region’s significant potential, many around the world seem to be focusing more closely on the Caspian region as a whole. Despite the after-effects of the global financial crisis, there now appears to be a resurgence of interest in Azerbaijan among foreign investors.
The fluctuating commodity prices may have a negative impact on the emerging economy that is heavily dependent on hydrocarbon resources. Most of investors in the Azerbaijani economy should be aware of that and acknowledge the risks associated with investments in the country.
The Doing Business and Investing Guide outlines the key factors that foreign companies should consider when looking at possible investments in Azerbaijan.
Rather than providing detailed coverage of any topic, the details of which are constantly in flux, the Guide strives to cover a spectrum of key issues that Investors would include in their “mission checklist” when going to Azerbaijan.