Investments in Azerbaijan's economy (January-June 2013)

According to the Azerbaijani State Statistics Committee, around 7.361.8 billion manat was invested from all financial sources in the development of the economic and social areas of Azerbaijan in January-June 2013, which is by 22.9 percent more than during the corresponding period of last year. It indicates sustainable investment activity in the country.

In particular, around 1.599.2 billion manat were invested in the Azerbaijani economy in June 2013, which is by 10.2 percent more than investments in fixed assets in June 2012. Until 2015, we will observe a steady increase in investment in capital construction because of the growth of building, rehabilitation and reconstruction work in preparation for the first European Olympic Games-2015 in Azerbaijan.

The main sources of investments in January-June 2013 are as follows:

• funds of enterprises and organizations - 3.242 billion manat (an increase of 16.7 percent compared to January-June 2012;
• budgetary funds - 3.321.4 billion manat (an increase of 31 percent);
• off-budgetary funds - 256.3 million manat (an increase of 10.4 percent);
• bank loans - 346.4 million manat (an increase of 25.2 percent);
• funds of population - 177.2 million manat (an increase of 17.1 percent)

Apparently, increased investments in January-June 2013 are related to the increased investment activity of all financial sources. In general, an increase in investment was related to the investment activity at the expense of the budget funds, most of which are directed at infrastructure construction.

According to the State Statistics Committee, private enterprises and organizations invested 2.879.2 billion manat (39.1 percent of total investments) in Azerbaijan's economy, and public enterprises and organizations - 4.482.6 billion manat (60.9 percent).

According to the committee, investments in construction work grew by 39.6 percent. Investments worth 3.849.5 billion manat were made in construction of production facilities and 3.512.3 billion manat - in non-production facilities.

About 69.4 percent of funds invested in capital stock, or 5.111.2 billion manat, were directed at the development of the non-oil sector. Investments in the oil sector comprised 2.250.6 billion manat (30.6 percent). Investments in non-oil sector increased by 19.5 percent, while 31.3 percent in the oil sector.

The total investments in the industry totaled 3.345.5 billion manat with an increase of 44.6 percent. About 488.2 million manat were invested in the processing industry (an increase of 2.1 times). During the reporting period, the investments in the extractive sector hit 2.260.7 billion manat, which is 31.6 percent more than investments in January-June 2012. Totally, 45.4 percent of investments fell to the industrial sector.

Around 74.9 percent of the total capital investments accounted for domestic investments. This is a positive index, primarily, because it shows the growing financial potential of the country.

Most (76.7 percent) of domestic investments was made in the state-owned enterprises and entities, and only 23.3 percent in private enterprises.

Investment indices in January-June 2013:

(Source: State Statistics Committee and calculations by Trend")

The total amount of foreign investments in Azerbaijan's economy amounted to 1.850.1 billion manat in January-June 2013 or by 41.4 percent more compared to January-June 2012.

The growth of foreign investments in the country shows that Azerbaijan is a very reliable partner and a very attractive country for foreign investors. The economic reforms, economic liberalization, increasing the credit rating of Azerbaijan by the world leading rating agencies, the policy of integration into the world economy contribute to the growth of foreign investments.

Around 86.4 percent (1.598.3 billion manat) of investments in Azerbaijan's economy made by foreign countries and international organisations fell to investors from the UK, USA, Japan, Norway, Turkey and the Czech Republic in January-June.

As previously, the UK continues to maintain a leading position in the list of foreign investors in Azerbaijan. Its share in the total foreign investment was 40.3 percent, while investments totalled 746.5 million manat.

The biggest amount of investments of the international financial institutions was allocated by WB to the amount of 66 million manat in a special weight of 3.6 percent. WB projects cover different spheres of the country's economic life.