Azerbaijan - leader in ratio of exported mutual investments to GDP Report by Eurasian Development Bank

The Eurasian Development Bank (EDB) has published a report on monitoring mutual foreign direct investments (FDI) in the countries of the Eurasian region. 

Azerbaijan is the leader in the ratio of exported mutual investments to GDP, Caliber.Az informs, citing the report.

This indicator amounted to 6.6 per cent of GDP at the end of the first six months of 2024 and increased significantly compared to 2022 (4 per cent of GDP). Azerbaijan outpaces Russia with 4.15 per cent of GDP. The three main recipients of investment in the Eurasian region are Kazakhstan, Uzbekistan, and Azerbaijan, at $10.4 billion (22.6 per cent), $10.2 billion (22.1 per cent), and $5.8 billion (12.6 per cent), respectively.

Together, these three countries accounted for almost 60 per cent of the total mutual FDI stock at the end of the first six months of 2024. Azerbaijan has demonstrated the highest growth rates in the region since 2016, increasing mutual FDI by 2.5 times—from $2.3 billion in 2016 to $5.8 billion by 2024.   There are 20 investment projects currently in progress, with the average project value being one of the highest in the region—$264 million.  

The growth of mutual foreign direct investments in Azerbaijan was driven by significant investments in the Shah Deniz project, which received approximately $25 billion in funding between 2012 and 2023. Thus, Azerbaijan is the biggest investor in Eurasia after Russia.

The EDB plays the unique role of a regional development partner in the countries where it operates, with a focus on projects that have a significant integration effect and contribute to the Sustainable Development Goals of its member economies. The key sources of funding for the EDB’s lending and investment activities are long-term borrowings in capital markets and its own resources.

By Naila Huseynova