Foreign investments enjoy favorable climate in Azerbaijan

Plentiful opportunities, especially in the area of oil and gas, tourism, and agriculture, as well as policies developed to stimulate foreign investment and enhance the investment environment, are provided to investors by Azerbaijan, situated at the crossroads of Europe and Asia. Also, investments have been made by Azerbaijan in order to gain access to additional markets and strengthen its presence in the international economy, and capital has been committed by the country to sectors such as energy, real estate, infrastructure, and tourism.
An impressive rate of growth has been seen by Azerbaijan’s economy over the past decade. The World Bank announces a 1.4% increase of the country’s Gross Domestic Product (GDP) in 2020, despite the global pandemic. The fortitude of Azerbaijan’s economy, which has endured multiple economic disturbances in the past, has been demonstrated by this. Azerbaijan’s Gross Domestic Product is estimated to reach approximately $54 billion, with an average annual increase of 1.9% over the past four years. A steady low rate of unemployment has been experienced by Azerbaijan over the past decade (5% on the average). This indicates the strength of the labor market and a prosperity of business environment.
Wise investments in fields that demonstrate promising growth and profitability have been cultivated by Azerbaijan. Due to successful efforts of the nation to broaden its economic base, its reliance on petroleum has been decreased. Notable success has been achieved by Azerbaijan in diversifying its economic base and diminishing its dependence on oil exports. A continuous rise of the non-oil exports of Azerbaijan has been noticed in the recent years; the Azerbaijan Export and Investment Promotion Agency (AZPROMO) reports a 47.2% ($2713.40 million) and 12.3% ($3047.67 million) increase in 2021 and 2022 respectively. An increase of 36.6% in non-oil export earnings (approximately $651.42 million) compared to the same period the year before was recorded between January and February of 2023.
Azerbaijan’s natural resources, mainly its oil and gas reserves, attract multinational corporations from around the world. According to the State Oil Company of the Republic of Azerbaijan (SOCAR), the volume of 33.5 million tons was reached by Azerbaijan’s oil production in 2020. In 2021 it was 29.5 million tons and 32.8 million tons in 2022. Due to this, the nation can be placed among the major oil-producing countries in the region. 35 million barrels are projected to be reached by oil production in 2023. The Oil and Gas Journal announces that Azerbaijan has more than 2 trillion cubic meters of natural gas reserves, which gives a significant opportunity for energy companies worldwide.
A total of $4.5 billion in foreign direct investment (FDI) was attracted by Azerbaijan in 2020: a 5.9% increase in Foreign Direct Investment (FDI) compared to the past year was seen by Azerbaijan, which made it one of the most prominent FDI recipients within the Commonwealth of Independent States (CIS) area. The top three countries by FDI in Azerbaijan in 2020 were the United Kingdom, Turkey and the United States. As the Central Bank of Azerbaijan reports, $1.7 billion were contributed by the United Kingdom, $577 million were invested by Turkey and $475 million by the United States.
According to the Sustainable Development Goals (SDG) Index, Azerbaijan has made substantial strides in reaching the objectives that were put in place by the United Nations across multiple domains. The SDG Index shows a decrease of the rate of global poverty from 49.6% in 2010 to 5.9% by 2022. A positive trend has also been demonstrated by Azerbaijan’s Global Hunger Index (GHI), decreasing from 14.5 in 2010 to 9.7 in 2019 and further to 7.5 in 2022. The benefits of its efforts to bolster health and well-being have been received by the citizens of the country, which was made evident by the increase in life expectancy from 68.6 years in 2010 to 73.3 years in 2022. Azerbaijan’s commitment to improving the standard of living for its people and promoting economic growth in a sustainable manner and its commitment to the achievement of the Sustainable Development Goals are interconnected.
A ranking of 25th place in the World Bank’s Ease of Doing Business report was achieved by Azerbaijan in 2019. A notable enhancement of 32 places from the previous year is demonstrated by this fact and a favorable business climate for foreign investors is highlighted. Azerbaijan was ranked 34th among 190 countries by the World Bank’s Ease of Doing Business Report in 2020, with a score of 76.7 for the ease of setting up a business.
All factors taken into consideration show that Azerbaijan is a highly attractive investment opportunity for a variety of industries, including energy, tourism, agriculture, and technology. A variety of incentives to simplify the foreign investment process has been put in place by the government in order to stimulate foreign investment. Attractive business environment, strategic location, and robust economic growth make Azerbaijan an attractive option for investors to expand their investment portfolios and explore new markets. Azerbaijan’s foreign investments influenced the nation’s economic growth significantly. Leveraged investments can be used by the country to expand its portfolio and reduce its reliance on oil and gas industries, as well as to access novel markets.


Prospects for transport cooperation are discussed by Azerbaijan and Latvia

A meeting between Azerbaijan’s Deputy Minister of Digital Development and Transport Rahman Hummatov and Director General at the Investment and Development Agency of Latvia Kaspars Rozkalns has been held.
Prospects for cooperation in the field of transport were discussed by the sides during the meeting. Cargo transportation between the Baltic and Caspian Seas was the main topic of the discussions. The issues of finding suitable routes and transporting goods over these routes were highlighted the meeting.
Views on establishment of cooperation in the field of digitalization of transport, as well as ICT, cyber security, “smart cities” were also exchanged by the pair.

Source Link

Levies on import of Serbian milk and dairy products are requested to be withdrawn by European Commission

According to a letter sent to the prime minister of Serbia, Ana Brnabic, Serbia is requested by the European Commission to withdraw the implemented levies on the import of milk and dairy products.
Concern over the various trade restrictions implemented by Serbia in the past months, including the recently implemented levies, importing fees on milk and dairy products, is expressed in a letter sent by the EC to Brnabic.
The levies were not discussed with the EU before implementation, so the EC is calling Serbia to withdraw these restrictive measures.
As the EC confirmed, the obligations from the Stabilization and Association Agreement with the EU were not met by Serbia, because it didn’t consult the EU before implementing those measures and because a satisfactory justification for their implementation wasn’t provided.
Serbia is invited by the letter to withdraw the implemented measures, and unjustified new trade restrictions violating the conditions from the Regulation 1215/2009 and the amended Regulation 2020/2172 are pointed out.
The decision pertaining to the implementation of levies (import fees) of RSD 15 per liter of milk and RSD 30 per kilogram of seven types of cheese – Emmental, Cheddar, Edam, Tilsit, Kashkaval, Maasdam and Gouda was adopted by the Government of Serbia on February 17. The decision was made public by the Ministry of Agriculture of Serbia on February 20.
A positive reaction of agriculturists followed to the implementation of the import fees when it comes to milk, but the implementation of considerably higher levies on Kashkaval and hard cheeses (ten times as high as the current ones) is still being called for by them.
Milk producers’ protests continue. The Sabac Bridge was blocked for two hours on Friday, March 10. The protestors demanded the rise of the milk premiums to RSD 20, the increase of subsidies to RSD 40,000 per head of livestock, the implementation of levies on the import of prepared dairy products and the determination of guaranteed purchase price of milk.

Source Link

UzQazTrade company was set up by Kazakhstan and Uzbekistan

According to the Kazakh Trade Ministry, The UzQazTrade foreign trade company was founded by QazTrade trade policy development centre and UzTrade JSC to boost mutual trade turnover between the countries. QazTrade director general Nuraly Bukeikhanov said that Kazakhstani companies will increase the amount of goods delivered to both markets due to the development of a joint company. Generation of proposals on lifting restrictions and barriers in mutual trade will be also contributed to. Purchase of fruit and vegetable products from Uzbekistan to meet the domestic need is the first thing planned. The selling of Kazakhstani flour goods in the territory of Uzbekistan with an opportunity for further exports to Afghanistan is expected to get the company’s help. Granting preferences on supply chain costs are agreed on by Kazakhstan and Uzbekistan. Also, the efficiency of state measures to reduce Kazakhstan’s dependence on imports from the third countries will be contributed to by the project. A 29.8% growth was reached by the sales between the two nations in 2022 ($5 billion dollars). In 2021 this amount equaled to $3.8 billion dollars. The rise of ore, wheat, sunflower oil and meat exports made Kazakhstan’s total exports grow up by 33% ($3.7 billion dollars). A 21.4% increase was shown by Kazakhstan’s import in 2022 ($1.3 billion dollars). Spark-ignited engines, grapes and bricks are the main items imported by Kazakhstan.

Source Link

Trans-Caspian International Transport Route development is discussed by Government

According to Kazinform, a meeting of the Government has been held by Prime Minister Alikhan Smailov to discuss the measures of development of the Trans-Caspian International Transport Route (TITR). A twofold reduction of the terms of transit cargo transportation via the territory of Kazakhstan (from 12 to 6 days) was emphasized by the participants of the meeting. They expect this indicator to reach 5 days in 2023. They have already reduced the terms of cargo transportation from China to the Black Sea ports via the Trans-Caspian International Transport Route from 38-53 to 19-23 days, and it will reach 14-18 days at the end of 2023. The joint work of the member-countries on the elimination of ‘sticking points’ on the route, the introduction of through rates and the implementation of other measures made this progress possible. The measures of further modernization of Kazakhstan’s railroad infrastructure, renewing rolling stock, and expanding the merchant marine and capacities of the Aktau and Kuryk seaports were also discussed at the meeting. The plans of creating a container hub in Aktau, renewing the transshipping vehicles fleet, renovating oil-loading terminals, as well as building a new mooring and multi-functional and grain terminals in the Kuryk Port were announced by the participants. 10 petro-barges, eight ferries, six tankers and container ships are expected to operate on the Caspian Sea until 2030. The preparation of an agreement between Kazakhstan and China on the TITR development aimed at simplification of customs procedures and approval of guaranteed volumes of transportations via the route was another topic raised at the meeting. The task given by the Prime Minister was to accelerate the procedure of harmonization of the document by the relevant governmental authorities of Kazakhstan for its further discussion at the inter-state level.

Source Link

Logistic ties between Kazakhstan and China are expanded.

According to the press service of KTZ, a meeting between a delegation of Kazakhstan Temir Zholy (Kazakhstan Railways) and the representatives of the administration of Xian led by Mayor Li Minyuan was held as part of an official visit to China on March 1.
The development of transport routes and infrastructure was discussed by the sides.
The city of Xian was noted by the parties as the largest transport and logistics hub in China. This is the location of Xian International Trade and Logistics Park dry port. This dry port receives 40 percent of the cargo from Kazakhstan, and they form 30 percent of containers of the total volume of container trains shipped from China to EU here.
At the end of the meeting they signed an Agreement, according to which 8 hectares of land plot will be provided by the Chinese side for the construction of a terminal in the territory of the Xian Dry Port. Readiness of the administration of Xian to support Kazakhstan Temir Zholy in the implementation of a new logistics project was confirmed.
Xian is the capital of Shaanxi Province and the largest city in Northwest China with the population of over 12 million people.

Source Link

A 7fold increase was shown and the amount of 28.6 million US dollars was reached by foreign trade turnover between Aktobe region and Azerbaijan in 2022.

According to Kazinform correspondent, the region’s governor Yeraly Tugzhanov and Elchin Mammadov, acting head of the Consulate General of Azerbaijan in Aktau, announced it at a meeting.
Yeraly Tugzhanov said that there are close relations between Aktobe region and many foreign countries today. He noted that it was especially important for Kazakhstan to strengthen the ties with Azerbaijan. The presidents of the two countries Ilham Aliyev and Kassym-Jomart Tokayev discussed the issues of transport and logistics infrastructure development and huge prospects in investments sector at the meeting.
Development of various ties including business was the goal of the discussion. Elchin Mammadov in his turn expressed the hope that the meeting will contribute to the strengthening of the bilateral relations.
A presentation of the region’s economic potential, highlighting that Aktobe region had been the country’s large transport and logistics hub, was made by Yeraly Tugzhanov.
According to him, more than 6 billion US dollars has been attracted by the region in the past 5 years. Foreign direct investments account for 25 percent of this sum. The region, notable for its location and a great number of mineral reserves, is the place where 1,100 foreign companies including transnational corporations are operating. Tugzhanov added that they have created favorable conditions for the implementation of projects in agriculture, machine-building, construction industry and tourism.
Aktobe region is the home for approximately 1,300 Azerbaijanis today.

Source Link

Georgia’s largest export partners are Russia, China and Turkey

The amount of USD 459.0 million (38.5 percent up) was attained by the exports of Georgia (excluding non-declared exports) in January 2023. The domestic exports got the share of 56.4 percent (USD 258.8 million) in the total export (11.8 percent increase compared to the same period of 2022.
The top ten trading partners of Georgia by domestic exports got the share of 86.2 percent in the total domestic exports in January 2023. Russia (USD 76.7 million), China (USD 28.5 million) and Turkey (USD 27.5 million) were the top partners.
The first place in the list of top export items (USD 68.1 million, 26.3 percent of total exports) was reclaimed by copper ores and concentrates in January 2023. The share of the exports of ferroalloys in the total exports amounted to USD 50.8 million (19.6 percent). The third place was occupied by the exports of the nitrogenous fertilizers (USD 20.8 million, 8.0 percent of the total exports).

Source Link

The volume of $ 1 461.8 mln was attained by Georgia’s external merchandise trade in January 2023

The amount of USD 1 461.8 million (29.1 percent up compared to the same period of 2022) was achieved by the external merchandise trade (excluding non-declared trade) of Georgia in January 2023. The volume of the exports attained USD 459.0 million (38.5 percent increase), the amount of the imports equaled to USD 1 002.8 million (25.2 percent growth). The share of the negative trade balance in external trade turnover reached 37.2 percent (USD 543.9 million) in January 2023.
The top ten trading partners of Georgia by exports got the share amounted to 83.6 percent in the total exports in January2023. Russia (USD 87.8 million), Armenia (USD 69.8 million) and Azerbaijan (USD 51.9 million) were the top partners.
The top ten trading partners of Georgia by imports got the share amounted to 68.8 percent in the total imports in January 2023. Russia (USD 175.8 million), Turkey (USD 164.7 million) and Azerbaijan (USD 68.5 million) were the top partners.
The top ten trading partners of Georgia got the share amounted to 68.4 percent in the total external trade turnover in January 2023. Russia (USD 263.6 million), Turkey (USD 196.1 million) and Azerbaijan (USD 120.4 million) were the top trading partners.
The first place in the list of top export items (USD 104.3 million, 22.7 percent of total exports) was reclaimed by motor cars in January 2023. The share of the exports of copper ores and concentrates equaled to USD 68.1 million (14.8 percent of the total exports). The third place was occupied by the exports of ferro-alloys (USD 50.8 million, 11.1 percent of the total exports).
Petroleum gases and other gaseous hydrocarbons (USD 92.1 million (9.2 percent of the total imports) were the top import commodities in January 2023. The list was followed by the motor cars (USD 86.4 million (8.6 percent of imports). The third place in the top import commodity list was taken by the petroleum and petroleum oils (USD 82.3 million (8.2 percent of imports).

Source Link

The website of the Development Agency of Serbia has published guides for export of fruit and vegetables to the Markets of USA, Middle East and Nordic Region

According to the Food and Agriculture Organization of the United Nations (FAO), the website of the Development Agency of Serbia has published three detailed electronic guides for the export of fruit and vegetables to the markets of the USA, the Middle East and the Nordic Region.
The publications are aimed at boosting the competitiveness of the agricultural and food sector of Serbia. To achieve this aim, it is planned to inform additionally and educate local producers and exporters about the possibilities and an efficient placement of local products on important and growing foreign markets.
Guides specifically deal with the export of fresh, frozen and processed fruit and vegetables to the markets of the USA, the Middle East (United Arab Emirates and Saudi Arabia) and the Nordic Region (Sweden, Norway, Finland and Denmark).
Great potential of the chosen markets for the import of fruit and vegetables, connected with an extreme demand which makes it necessary for the companies to be well prepared and ready to deliver products of high quality, to fulfill the necessary standards for the placement of products in retail chains, specific to each country, was pointed out.
Moreover, in order to follow the market trends and to export the products successfully, companies need to meet the main requirements, such as the existence of functional, modern and attractive products packaging, familiarity with the procedures for entering distribution channels and the manner of negotiating.
A detailed analysis of the observed market, with specific trends regarding the demand for fruit and vegetables and a description of the expectations and behaviors of the consumers in that market, significant to the adequate packaging design, the creation of marketing campaign and the placement of the offer can be found in each guide.
The regulations and procedures for the import of fruit and vegetables to each market, along with the specification of the available distribution channels (importers/distributors, retail, HoReCa, online sales) and important fairs, conferences and publications are shown by the guides.
They have organized a series of free webinars for producers and exporters of fresh, frozen and processed fruit and vegetables from Serbia and the region within the project “Support to the Diversification of the Exports of the Agricultural and Food Sector of the Western Balkans and Eastern Europe” implemented by the FAO and the European Bank for Reconstruction and Development (EBRD).

Source Link