Business and Investment opportunities in Azerbaijan.

Byline: Hasnat Ahmad

Since the oil boom in Azerbaijan in 2005, business opportunities in Azerbaijan have increased. With the exponential growth in Baku's economy, with investment in public infrastructure and major construction projects. In addition, the newly expanded agricultural and tourism industry has attracted several related businesses, resulting in various small business opportunities in Azerbaijan.

Overview of Azerbaijan's Economy

The entrepreneurs who look for investment or business opportunities and want to start a business, also want a low-risk investment. In this regard, investment or business opportunities in Azerbaijan (particularly small business opportunities in Azerbaijan) are one of the best options because of its economic potential and economic stability. Azerbaijan's economy grew by 2.2% in 2019, which was its best performance since 2014. On the supply side, the hydrocarbon sector has stagnated; as natural gas emissions (rising by 27% annually) have reduced the 3.3% decline in oil production. At the same time, the country's non-energy Gross Domestic Product (GDP) grew at a solid 3.5%, while agriculture and services continued to grow. On the demand side, investments remained cash-strapped while rising real incomes, as a result of higher government spending, subsidized spending.

Azerbaijan's official poverty rate is low

Moreover, Azerbaijan's official poverty rate is low, standing at 5% in 2018. Given the recent increase in private consumption, the poverty rate is projected to drop dramatically by 2019. Cash accumulation in Azerbaijan's foreign accounts decreased by 2019, whereas the surpluses on Azerbaijan's external accounts narrowed in 2019. Flat exports and an acceleration in imports of Azerbaijan, reduced the trade surplus to 12% of GDP by 2019 (from 17% in 2018). Similarly, net accumulated revenue decreased to 12% of GDP in the first 3 quarters of 2019. In 2017, Azerbaijan's GDP was $ 41.37 billion, it increased by $ 5.57 billion in 2018 and reached $ 46.94 billion. In the first quarter of 2019, the GDP of Baku was 26.16 billion and GDP per capita was 2646 USD. Therefore, Azerbaijan is ranked 73rd in the world in terms of GDP. In 2018, the share of small and medium-sized enterprises (SMEs) in GDP was 4%. The State aims to increase the share of small and medium-sized enterprises in GDP to 60-70% by 2025. In order to encourage small business opportunities in Azerbaijan, the government creates tax rights and ways to...