AZERBAIJANAZERBAIJAN

The Republic of AzerbaijanThe Republic of Azerbaijan• Capital: BakuCapital: Baku

• Territory: 86 600 km²Territory: 86 600 km²

• Population: 8 436 000Population: 8 436 000

• Official language: AzerbaijaniOfficial language: Azerbaijani

• State structure: Presidential republic State structure: Presidential republic

• Currency: Azerbaijani manat (AZN)Currency: Azerbaijani manat (AZN)1 AZN = 0.84 US dollars1 AZN = 0.84 US dollars

Major economic indicators Major economic indicators in 2007in 2007

• GDP - 29.3 billion US dollars. GDP - 29.3 billion US dollars. • GDP growth - 25%. In 2006 - 35%GDP growth - 25%. In 2006 - 35%• GDP per capita - 3473.9 US dollarsGDP per capita - 3473.9 US dollars• GDP structure: production (including GDP structure: production (including

construction) – 72.5%, services – 20.2% and construction) – 72.5%, services – 20.2% and taxes - 7.3%taxes - 7.3%

• Share of non-state sector in GDP – 84%Share of non-state sector in GDP – 84%• State budget: income – 6626 million US State budget: income – 6626 million US

dollars, spending – 5764 million US dollarsdollars, spending – 5764 million US dollars• Raise in monetary income of population - Raise in monetary income of population -

40.3%40.3%• Monetary reserves – 7 billion US dollarsMonetary reserves – 7 billion US dollars

InvestmentsInvestments

• Total – 7877.7 million US dollarsTotal – 7877.7 million US dollarsa)a)domestic investments - 59.6% domestic investments - 59.6% b)b)foreign investments – 40.4%foreign investments – 40.4%• Investments into oil sector - 51%Investments into oil sector - 51%• Investments into non-oil sector - 49%Investments into non-oil sector - 49%• In comparison with 2006:In comparison with 2006: a)a) Raise in domestic investments - Raise in domestic investments -

50.7% 50.7% b)b) Growth in investments into non-oil Growth in investments into non-oil

sector - 28.8% sector - 28.8%

Foreign tradeForeign trade

• Trade balance - 11 766.5 million US Trade balance - 11 766.5 million US dollars. dollars.

- Import – 5 708.6 million US dollars - Import – 5 708.6 million US dollars

- Export – 6 058.3 million US dollars- Export – 6 058.3 million US dollars

- Saldo – (+) 349.7 million US dollars - Saldo – (+) 349.7 million US dollars

Structure of importStructure of import

• Machinery, electric Machinery, electric devices (30.2%)devices (30.2%)

• vehicles, airships, floating vehicles, airships, floating transportation means transportation means (15.5%)(15.5%)

• ferrous metals and ferrous metals and resulting products resulting products (12.4%)(12.4%)

• food products, alcohol food products, alcohol and non-alcohol drinks, and non-alcohol drinks, vinegar, tobacco (7.7%) vinegar, tobacco (7.7%)

• phytogenous products phytogenous products (6.6%)(6.6%)

• products of chemical products of chemical industry (5.9%) industry (5.9%)

• minerals (5.3%), minerals (5.3%), • optical instrument, optical instrument,

medical equipment, medical equipment, clocks, musical clocks, musical instruments (3.1%)instruments (3.1%)

• stone, gyps, cement, stone, gyps, cement, mica, ceramics and glass mica, ceramics and glass (2.3%)(2.3%)

• paper and paper-board aper and paper-board made of wood, and made of wood, and resulting products (1.7%)resulting products (1.7%)

• wood, cork, and resulting wood, cork, and resulting products (1.3%)products (1.3%)

• textile (1%) textile (1%)

Structure of exportStructure of export

• Minerals (81.5%), Minerals (81.5%), • food products, alcohol food products, alcohol

and non-alcohol drinks, and non-alcohol drinks, vinegar, tobacco (3.8%)vinegar, tobacco (3.8%)

• phytogenous products phytogenous products (3.2%), (3.2%),

• ferrous metal and ferrous metal and resulting products (3.0%)resulting products (3.0%)

• stone, gyps, cement, stone, gyps, cement, mica, ceramics and glass mica, ceramics and glass (2.3%)(2.3%)

• vehicles, airships, vehicles, airships, floating transportation floating transportation means (1.7%) means (1.7%)

• paper and paper-board paper and paper-board made of wood, and made of wood, and resulting products resulting products (1.7%)(1.7%)

• products of chemical products of chemical industry (1.5%) industry (1.5%)

• Animal or phytogenous Animal or phytogenous fat and oils (1.4%), fat and oils (1.4%),

• wood, cork, and wood, cork, and resulting products resulting products (1.3%)(1.3%)

• Plastic, rubber, and Plastic, rubber, and resulting products (1.2)resulting products (1.2)

• textile (1%)textile (1%)

Main trade partnersMain trade partners

1.1. Italy (2 970 008) Italy (2 970 008) 2.2. Russia (1 525 799)Russia (1 525 799)3.3. Israel (946 008) Israel (946 008) 4.4. Turkey (773 185) Turkey (773 185) 5.5. Great Britain (459 295)Great Britain (459 295)6.6. Germany (412 704) Germany (412 704) 7.7. France (403 340) France (403 340) 8.8. Iran (381 814) Iran (381 814) 9.9. Turkmenistan (378 532)Turkmenistan (378 532)10.10.Ukraine (355 834) Ukraine (355 834) 11.11.Georgia (334 436)Georgia (334 436)

12.12.USA (289 842) USA (289 842) 13.13.Kazakhstan (232 908)Kazakhstan (232 908)14.14.China (228 871) China (228 871) 15.15.Greece (187 351) Greece (187 351) 16.16.Japan (185 570) Japan (185 570) 17.17.Finland (167 732) Finland (167 732) 18.18.Tajikistan (131 186)Tajikistan (131 186)19.19.Romania (119 380) Romania (119 380) 20.20.South Korea (115 286) South Korea (115 286) 21.21.Netherlands (105 579)Netherlands (105 579)22.22.Spain (69 019) Spain (69 019)

In thousand US dollarsIn thousand US dollars

Forecast for 2008Forecast for 2008

• GDP growth – 16.1%GDP growth – 16.1%

• GDP amount 26.2 billion US dollarsGDP amount 26.2 billion US dollars

• Growth in oil sector – 26%, in non-oil sector – Growth in oil sector – 26%, in non-oil sector – 8.1%8.1%

• Investments - 6.2 billion US dollars, including Investments - 6.2 billion US dollars, including 4.4 billion US dollars of domestic investments4.4 billion US dollars of domestic investments

• Share of non-state sector in GDP - 89% Share of non-state sector in GDP - 89%

• Foreign trade balance - 24.1 billion US dollarsForeign trade balance - 24.1 billion US dollars• State budget – 12 billion US dollarsState budget – 12 billion US dollars

Trade between the Republic of Trade between the Republic of Azerbaijan and the Czech RepublicAzerbaijan and the Czech Republic

• Import – 19 503.6 (in thousand US dollars)Import – 19 503.6 (in thousand US dollars)• Export - 373.3 Export - 373.3 • Saldo - (-) 19 130.3Saldo - (-) 19 130.3

• Imported goods: Sparkling water, medicines, glues, Imported goods: Sparkling water, medicines, glues, rubber tire, hygienic towels, rolls, jewels, vessels, rubber tire, hygienic towels, rolls, jewels, vessels, metal structures, steam turbines, heating devices, metal structures, steam turbines, heating devices, lifting cranes, batteries, load carriers, apparatus, lifting cranes, batteries, load carriers, apparatus, contact lenses contact lenses

• Exported goods: Propane, handbags, cotton fiber, Exported goods: Propane, handbags, cotton fiber, shoe materials, periodicals, carpets, used clothesshoe materials, periodicals, carpets, used clothes

Investment opportunities Investment opportunities for Czech businessmenfor Czech businessmen

• Why Azerbaijan? Why Azerbaijan?

a)a)Fastest growing economyFastest growing economy

b)b)Abundant resourcesAbundant resources

c)c) Favorable locationFavorable location

d)d)Competitive cost of productionCompetitive cost of production

e)e) Investor friendlyInvestor friendly

Investment opportunities - Investment opportunities - sectorssectors

• EnergyEnergy

• AgricultureAgriculture

• Food and BeveragesFood and Beverages

• ConstructionConstruction

• TelecomTelecom

• TourismTourism

• Financial sectorFinancial sector

Possible trade topics between the Possible trade topics between the Republic of Azerbaijan and the Republic of Azerbaijan and the

Czech RepublicCzech Republic

• Possible export opportunitiesPossible export opportunities

a) Beverages, especially beera) Beverages, especially beer

b) Machinery, electric devicesb) Machinery, electric devices

c) Vehiclesc) Vehicles

d) Products of chemical industryd) Products of chemical industry

e) Glass and crystal productse) Glass and crystal products

Possible import Possible import opportunitiesopportunities• MineralsMinerals• Food products, alcohol and non-alcohol Food products, alcohol and non-alcohol

drinks, vinegardrinks, vinegar• Preserved food, including canned fruitPreserved food, including canned fruit• Phytogenous productsPhytogenous products• Animal or phytogenous fat and oilsAnimal or phytogenous fat and oils• Stone, gyps, cement, mica, ceramics and Stone, gyps, cement, mica, ceramics and

glassglass• Ferrous metal and resulting productsFerrous metal and resulting products• Cotton Cotton

Participation in government Participation in government tenderstenders

• Any firm wishing to take part in Any firm wishing to take part in public tenders could get all relevant public tenders could get all relevant information from the web-site of the information from the web-site of the State Agency on Procurement of the State Agency on Procurement of the Republic of Azerbaijan:Republic of Azerbaijan:

http://www.tender.gov.azhttp://www.tender.gov.az

Welcome to AzerbaijanWelcome to Azerbaijan