Since Azerbaijan’s oil boom in 2005, the Azerbaijani economy has grown tremendously. The country has experienced huge construction projects and a number of infrastructure developments. Furthermore, the opportunity for businesses to expand through related industries, namely the agriculture sector and tourism, has attracted a diverse range of investors.
Given this, you may be considering investing in Azerbaijan. This isn’t something that you want to rush into. To help you better assess this, we thought it would be useful to have a short discussion on this subject. IF this is something you want to learn more about, read on for more information on the business opportunities in Azerbaijan.
Main Exports
While oil-gas products are the country’s most valuable export, it’s not the only products that are spruced from Azerbaijan. Currently, foreign countries are ordering the following goods from Azerbaijan:
- Cotton Fibre
- Onion
- Tobacco
- Wine
- Pomegranate Juice
- Tea Leaves
- Confectionary Products
- Canned Vegetables
- Cosmetics
- Flowers
- Construction Material
- Chickens
The list above shows the main goods that are exported from Azerbaijan. Now, there are other goods that are exported that we didn’t include but this list should be enough to give you a general idea of the types of goods the country exports.
Main Imports
Because Azerbaijan has a relatively underdeveloped domestic manufacturing sector, and its economy is mostly based on oil-gas products, the country heavily relies on imports from other countries. Virtually, Azerbaijan imports everything from around the world. Here are Azerbaijan’s most imported products:
- Machinery
- Electrical Goods
- Vehicles
- Garments
- Meat Products
- Dairy Products
- Pharmaceutical Products
- Tea Leaves
- Rice
- Wheat
It’s important to note that Azerbaijan has enacted policies that promote businesses that are part of these under-developed industries. In fact, they’ve given businesses in these industries an Investment Promotion Certificate This certificate gives opportunities to both companies and individual entrepreneurs to get exemptions for seven years from several types of taxes.
Business Opportunities
Now that you have a good understanding of the imports and export, it’s time to discuss the main business opportunities in the country. When we provide ideas about Azerbaijani business opportunities and investment opportunities, we mainly imply. involvement in the day to day business operations in Azerbaijan. It must be noted that small and medium businesses in Azerbaijan are incentivized by the government, enjoying various tax exemptions, tax rates as low as 2%.
If you’re looking for business opportunities, manufacturing goods that are mostly imported is a good place to start. While you can also focus on export-oriented production, you’d be limited to products under the chemical and agriculture industry.
Passive investment in Azerbaijan is a different topic altogether as they only require buying shares and receiving interest every year. It must be clear that passive investment requires a financial analysis based on the company’s net profit every year, as well as its return on investment over the shares.
Conclusion
As you can see, Azerbaijan has a lot of potential and should be on your radar if you’re looking to invest. With that being said, it’s crucial that you take the time to plan and prepare before making any major decision. Be sure to keep all of this information in mind when deciding how to approach investing in Azerbaijan so you can make the most informed decision possible.
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