Our Terms & Conditions | Our Privacy Policy
Azerbaijan has been intensively implementing large-scale reforms
aimed at transforming its economic prospects. The country is
actively reducing its dependency on the oil sector and focusing on
fostering a more “green” and diversified economy, a shift that has
gained even more prominence as Azerbaijan prepares to host COP29.
To achieve these objectives, Azerbaijan has made significant
strides in various sectors of the economy. Notably, administrative
processes in the customs sphere have been digitalized, investment
promotion certificates have been introduced, and a mechanism for
subsidizing non-oil exporters has been established.
One key aspect of Azerbaijan’s reforms is prioritizing
incentives for non-oil exporters to boost trade activity. The
results are already visible: Azerbaijan’s non-oil and gas sector
has achieved impressive growth, with a 7% increase recorded in the
first eight months of 2024, as announced by Economy Minister
Mikayil Jabbarov during Baku Climate Action Week. From 2011 to
2023, the average annual growth rate for the country’s non-oil and
gas sector reached 4.4%, surpassing the overall economic growth
rate of 1.5% during the same period.
Azerbaijan’s growing economic resilience
A growth rate of 4.4 percent indicates effective management of
resources and diversification efforts, even when external
conditions may be challenging. If this growth is happening
alongside efforts to diversify the economy beyond oil and gas, it
suggests that Azerbaijan is making strides in building a more
resilient economy that can weather external shocks. A growth rate
of 4.4 percent is particularly impressive when considering the
geopolitical challenges Azerbaijan faces, indicating both economic
resilience and potential for future stability and development. It
should be noted that although the country primarily engages in
traditional energy trade, economic diversification is being
successfully implemented thanks to large-scale projects undertaken
in recent years.
Notably, these issues were discussed at the Azerbaijan
Trade Forum “Opportunities, Current Situation and Challenges for
SMEs” held in Baku the previous day.
At the Azerbaijan Trade Forum, it was decided to
reintroduce export subsidies for non-oil sector businesses and
provide subsidies for logistics. AZPROMO is actively developing a
mechanism to offer logistics subsidies to non-oil product
exporters, covering approximately 50–60% of the logistics costs for
a period of five years. In the Karabakh region, these subsidies
could cover up to 100% of business expenses, with the duration for
disbursing funds extended to 10 years. Furthermore, an essential
initiative to support local producers, exporters, and entrepreneurs
involved in international trade is the enhancement of
digitalization in transit and logistics procedures. This determined
effort aims to solidify Azerbaijan’s position as a key trade and
transport hub in the region.
In line with these reform efforts, Azerbaijan’s non-oil exports
have seen significant growth. According to the Export and
Investment Promotion Agency (AZPROMO), the country’s top five
non-oil export markets for the January-August 2024 period were
Russia, Türkiye, Georgia, the USA, and Switzerland.
During this period, Azerbaijan’s non-oil exports amounted to
$1.514 billion, with notable increases in several key product
categories:
- Tomatoes: $139.5 million (+12.3%)
- Cotton fiber: $138.5 million (+66.1%)
- Gold: $96.1 million (+26.3%)
- Nitrogen fertilizer: $78.7 million (+88%)
- Aluminum alloy batteries: $72.4 million
(+2.6x)
Russia and Türkiye remain Azerbaijan’s leading non-oil export
markets, with exports to Russia totaling $752 million and Türkiye
receiving $395 million worth of goods. Georgia, the USA, and
Switzerland also played important roles in absorbing Azerbaijan’s
growing non-oil exports. This diversification is driven by
strategic government initiatives and the country’s natural resource
wealth, positioning Azerbaijan as a regional leader in non-oil
exports and sustainable energy development.
Overall, Azerbaijan’s pivot towards a more diversified and green
economy unequivocally demonstrates its long-term vision. As the
country continues to diminish its dependency on oil, it is poised
to achieve economic sustainability through the expansion of the
non-oil sector and the promotion of renewable energy. As COP29
approaches, Azerbaijan’s leading role in setting the global climate
agenda and its relentless efforts to diversify its economy will be
vigilantly observed by both domestic and international
stakeholders.
—
Akbar Novruz is AzerNews’ staff journalist, follow him on
Twitter: @ykwiua
Follow us on Twitter @AzerNewsAz
Images are for reference only.Images and contents gathered automatic from google or 3rd party sources.All rights on the images and contents are with their legal original owners.
Aggregated From –
Comments are closed.