Transcript 10 reasons to invest in Azerbaijan 3. Favourable tax regime

INVESTMENT OPPORTUNITIES IN
AZERBAIJAN
Brno
September 30, 2014
Azerbaijan
Macroeconomic Indicators
2013
GDP – 73 bln.
GDP Growth – 5.8% (2013), 10 % average in 2003-2013
Non-oil Growth – 10 %
GDP per capita – 7,495 USD
Inflation – 2.4 %
Investment – 28 bln., FDI – 10 bln.
Foreign currency reserves – $50 bln.
Unemployment – 5.2 %
Poverty – 5.3 %
GDP
Diversification
• 51 % of non-oil GDP
• ITC (2nd recipient of FDI, University, First
Sattelite)
• Transportation (TRACECA, TASIM, BakuTbilisi-Kars railroad, North-South)
• Agriculture
• Tourism
Economic Achievements
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2006 - UNCTAD quoted Azerbaijan as NO 1 globally as per the FDI
Inflow Performance Index
2007 – UN Public Service Award
2008 – World Bank Ranked Azerbaijan Top Reformer in Doing
Business
2010 – World Economic Forum ranked Azerbaijan as Leading ICT use
and Network Readiness Index among Eurasian countries
2011 – World Bank commended Azerbaijan’s poverty reduction
strategy (for 10 years from 49 % to 12% (national estimation – 7%))
2013 - Global Competitiveness Report ranked Azerbaijan 39th in the
world
Existing Pipelines
1998 - 2022 ACG Gross Production
Russia
Novorossiysk
1400
mbd
NREP
Pipeline
Black Sea
1200
1000
800
DWG
600
400
200
0
1998
Chirag
Georgia
Tbilisi
WREP
Pipeline
2002
Azeri
2006
2010
2014
2018
2022
Caspian Sea
Supsa
Sangachal
Terminal
South Caucasus
Pipeline Gas
BTC Pipeline Oil
Baku
ACG Oil Production
& Development
Azerbaijan
Shah Deniz Gas
Development
Turkey
Erzurum
Inam
Exploration
mboed
1998 - 2022 Shah Deniz Gross Production
Ceyhan
0
100
200
300 km
Syria
400
350
300
250
200
150
100
50
0
1998
Stage 2
Iran
Stage 1
2002
2006
Iraq
2010
2014
2018
2022
Alov Exploration
Three pipeline projects:
South Caucasus Pipeline (SCPX) – Azerbaijan, Georgia
Trans Anatolian Pipeline (TANAP) – Turkey
Trans Adriatic Pipeline (TAP) – Greece, Albania, Italy
10 reasons to invest in Azerbaijan
1. Political and economic stability
- Foreign debt is only 7.5% of the GDP
- 39th Most competitive economy
- 8th Most stable macroeconomy
2. FDI friendly laws
- Strong investor protection policy and legislation.
- Guarantees for foreign investors against adverse
changes in the legislation, nationalization, requisition,
discrimination policy.
- Compensation of damages and repatriation of profits
ensured legislatively
10 reasons to invest in Azerbaijan
3. Favourable tax regime
- Azerbaijan has third easiest taxpaying procedures
among CIS countries
- Tax holidays (except land tax) in agriculture
- Tax incentives in industrial and hi-tech parks
4. Skilled labour force
- Around 30 thousand students graduate annually
- State Programme on Education of Azerbaijani Youth
Abroad in 2007-2015. The number of graduates will
reach 5000 by 2015 (200 annually in Canada)
- A large R&D center, 28 research institutes, 52
universities and 108 colleges
10 reasons to invest in Azerbaijan
5. Abundant resources
- Besides oil and gas, Ferrous and nonferrous, rare and
fine metals, construction materials
- 9 climate zones
6. Favourable location
- Logistic hub and easy access to market in CIS, Central
Asia and Middle East
7. Developing infrastructure
- 5 international airports, largest port on Caspian Sea,
international transportation routes
10 reasons to invest in Azerbaijan
8. State support
- NO restrictions to foreign investments
9. Reformist environment
- Top reformer among post-Soviet countries
10. Liberal trade regime
- Trade relations with over 155 countries
- NO EXPORT DUTIES and restrictions except for some
strategic commodities
Azerbaijan-Czech
• $1.6 billion trade turnover
• Major exports: crude oil and oil products.
• Major imports: ferrous metal made rails,
electrical appliances; home equipments.
Potential fields for cooperation
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Heavy industry, chemical industry,
Tourism, eco-tourism,
Construction,
Agrarian industry.
Booming Economy
New Opportunities
Q/A
• Contact
Embassy of Azerbaijan
Na Zátorce 783/17
Praha 6, 160 00
Tel: (+420) 246-032-422
Fax: (+420) 246-032-423
E-Mail: [email protected]
http://www.azembassy.cz