Minister talks on investments for regions’ development
Azerbaijani entrepreneurs obtained 230 investment promotion documents in the amount of more than $2 billion in 2017.
The country’s Economy Minister Shahin Mustafayev made the remarks at a conference dedicated to the fourth year of implementation of the state program on socio-economic development of the regions of Azerbaijan in 2014-2018, held at the Heydar Aliyev Center.
“More than 87 percent of these investments were put in regions of Azerbaijan,” said the minister.
The investment promotion documents are issued for seven years and they free entrepreneurs from taxes on land and property, and also allow to pay during this period only half of the income and revenue taxes.
Further, the minister mentioned that last year, 4.5 billion manats ($2.65 billion) were invested as part of the “State Program of Socio-Economic Development of Azerbaijan’s Districts for 2014-2018.”
The minister noted that in 2017, efforts continued for the development of Azerbaijan’s non-oil sector, increase of the non-oil exports volume, and, in general, for the development of the country’s regions.
Speaking about the measures taken to support entrepreneurship, the minister reminded that as part of the mechanism to promote exports, entrepreneurs received subsidies worth almost 3 million manats ($1.76 million).
The number of business inspections was also reduced – 83 inspections were carried out last year, and 153 inspections were carried out since their suspension started, he said.
A total of 125,000 inspections were carried out for the previous three years, he stressed, adding that 177,000 new work places were created and 1,646 business licenses were issued last year.
Touching upon Azerbaijan’s trade centers, the minister pointed out that the country plans to open a trade center in the special economic zone in Shanghai, China, this year.
Mustafayev reminded that Azerbaijan already has a trade representative in China. The number of Azerbaijan’s trade representatives in different countries has reached four, he said, adding that this year, activity of trade representatives will be intensified.
In addition, it is planned to send an export delegation to China in February this year, the minister noted.
Expansion of glassware production and support for production of alternative energy
Addressing the event the minister mentioned that AzerGlass, Azerbaijan’s state plant for glassware production, will expand its capacities this year.
He went on to say that the plant passed under the jurisdiction of the Azerbaijan Industrial Corporation, which studied the plant’s activity and identified its problems, adding that the corporation will launch production of various types of bottles at the plant.
Moreover, Mustafayev emphasized that the Ministry may consider the possibility of rendering state support for the production of solar batteries.
During the conference, the entrepreneurs stressed that presently, it is ineffective to use solar batteries and other sources of alternative energy in Azerbaijan because of the lack of domestic production of appropriate equipment.
Mustafayev added that if there is a demand for such products, the ministry is ready to render state support.
The minister stressed that the production of solar batteries could be established in one of the industrial parks in Azerbaijan.
The Minister noted that the country is developing new law on public procurement, further saying that the development of the new law will enter the last stage this year.
The latest significant amendments to the law on public procurement in Azerbaijan were adopted in 2016. In accordance with the amendments, when evaluating and comparing local and foreign tender proposals, a procurement organization gives preference to domestic products during public procurement even if the tender bid cost exceeds the price offered within the tender by 20 percent.
The law on public procurement in force in Azerbaijan was adopted on December 27, 2001.
The head of state also made a closing speech at the conference.