BAKU, Azerbaijan, November 5. Investment in fixed capital in Azerbaijan is projected to reach 25.38 billion manat ($14.93 billion) in 2027 and 28.4 billion manat ($16.7 billion) in 2030.
This is stated in the draft state budget for 2027.
According to the document, real growth in investment in fixed capital is expected to stand at 2.4% in 2027. This figure is projected to reach 4.2% in 2028, 1.9% in 2029, and 0.2% in 2030. Thus, the average annual real growth rate of investment in fixed capital is expected to amount to 2.1% from 2028 through 2030.
According to forecasts, domestic investment will account for the bulk of total investment. In particular, domestic investment is projected to amount to 19.47 billion manat ($11.45 billion) in 2027, while foreign investment is expected to reach 5.91 billion manat ($3.48 billion).
Domestic investment is projected to rise in subsequent years, while foreign investment is expected to decline. In 2028, domestic investment is expected to reach 21.4 billion manat ($12.6 billion), while foreign investment is projected at about 5.49 billion manat ($3.23 billion). In 2029, these figures are forecast to stand at 22.94 billion manat ($13.49 billion) and 4.96 billion manat ($2.92 billion), respectively, while in 2030, they are projected to reach 23.99 billion manat ($14.11 billion) and 4.41 billion manat ($2.6 billion), respectively.
Thus, domestic investment is expected to increase by 4.52 billion manat ($2.66 billion) from 2027 through 2030, while foreign investment is projected to decline by 1.5 billion manat ($882.5 million).
In terms of sectoral distribution, 7.93 billion manat ($4.67 billion) is expected to be allocated to the oil and gas sector in 2027, while investment in other sectors is projected at 17.45 billion manat ($10.27 billion).
In 2028, investment in the oil and gas sector is expected to rise to 8.33 billion manat ($4.9 billion), while investment in other sectors is projected to amount to 18.57 billion manat ($10.92 billion). In 2029, these figures are forecast to stand at 8.21 billion manat ($4.83 billion) and 19.69 billion manat ($11.58 billion), respectively. In 2030, they are projected to reach 7.5 billion manat ($4.41 billion) and 20.9 billion manat ($12.29 billion), respectively.
Thus, investment in the oil and gas sector is expected to decrease by 429.8 million manat ($252.8 million) from 2027 through 2030, while investment in other sectors is projected to increase by nearly 3.45 billion manat ($2.03 billion). This indicates that the share of non-oil and gas sectors in total investments is set to expand during the forecast period.
The document noted that investments in fixed capital will be supported by several factors: the attraction of investments to the liberated territories within the framework of the Great Return, the acceleration of restoration and reconstruction efforts, the promotion of foreign direct investment in the non-oil and gas sector, and the expansion of public-private partnerships in infrastructure projects.
Furthermore, enhancing the economic efficiency of investments by state-owned enterprises, promoting private investment, strengthening the intermediation function of the banking and financial sector, and expanding state support for entrepreneurship have also been identified as key factors for boosting investment activity.
