US State Dept.: Overall investment climate in Azerbaijan continues to improve

The overall investment climate in Azerbaijan continues to improve, the report of the US State Department notes.

According to Trend, the latest report released by the State Department notes that the Azerbaijani government is seeking to attract foreign investment, stimulate growth led by the private sector, and is implementing reforms to diversify the economy.

"Azerbaijan's economy grew by 5.6 per cent year-on-year in 2021. Both the oil and gas and non-oil sectors of the economy expanded as the economy continued to recover from the pandemic. While the oil and gas sector has historically attracted the largest share of foreign investment, the Azerbaijani government has chosen four non-oil sectors to diversify the economy: agriculture, tourism, information, and communication technologies (ICT), and transport/logistics. In recent years, measures have been taken to improve the business climate and reform the economy as a whole, simplify customs procedures, suspend some business inspections and reform the tax regime," the report says.

The State Department notes that the Azerbaijani government is actively attracting foreign direct investment.

"The flow of foreign direct investment to Azerbaijan, primarily in the energy sector, has been steadily growing in recent years. Full and unconditional legal protection of foreign investments is provided in accordance with the Law on the Protection of Foreign Investments, the Law on Investment Activities, and guarantees contained in international agreements and treaties. In accordance with these laws, the attitude towards foreign investors, including foreign partners in joint ventures, is no less favorable than towards national investors," the report says.