Azerbaijan Economics and Business

Azerbaijan is a small country located in the South Caucasus region of Eurasia. It is bordered by the Caspian Sea to the east, Russia to the north, Georgia to the northwest, Armenia to the west, and Iran to the south. The country has a population of roughly 10 million people, and its capital and largest city is Baku. Azerbaijan has a rich history as an ancient trading hub on the Silk Road, and it has experienced rapid economic growth in recent years due to its booming oil and gas industry.

According to cheeroutdoor, the economy of Azerbaijan is largely based on hydrocarbons such as natural gas and oil. In fact, these resources account for around 85% of exports from Azerbaijan. Oil production began in earnest during Soviet times when Azerbaijan was part of the USSR, but since gaining its independence in 1991, production has increased significantly due to increased investment from foreign companies such as BP and Chevron. The country also has significant reserves of natural gas which are being developed with assistance from international companies including Total and SOCAR (the State Oil Company of Azerbaijan).

In addition to energy resources, agriculture is an important sector in Azerbaijan’s economy. Cotton is one of the country’s major crops; however other crops like wheat also contribute significantly towards agricultural production. Livestock farming is also quite important with sheep accounting for most livestock rearing activities throughout much of rural Azerbaijan.

The services sector makes up a large portion of GDP with tourism contributing significantly towards overall economic growth in recent years due to its stunning landscapes and vibrant cities like Baku which attracts visitors from all over the world each year. Other services include banking & finance (especially since Azerbaijan joined World Trade Organization), telecommunications & IT services (with mobile phone usage being particularly high) as well as transportation & logistics (with many cargo ships passing through ports located along the Caspian Sea).

Overall, Azerbaijan’s economy continues to grow at a rapid pace thanks largely due to its booming hydrocarbon industry; however other sectors such as agriculture & services are also making significant contributions towards overall economic development within the country which is helping create jobs for local citizens while at same time increasing living standards throughout much of rural areas throughout many parts of this former Soviet Republic state.

In May 1992, the Azarbadjansovet controlled by a majority of ex-Communists returned the presidential post to the deposed Mutalíbov. He canceled the elections scheduled for implementation in June and issued curfews. In response, the leaders of the People’s Front, with the support of the militia, occupied the Soviet headquarters in Bakú, declaring the appointment illegal. After violent clashes in the capital, the opposition reinstated Mamédov. The Popular Front occupied a number of key posts in the new government, such as the leadership of the security agencies and the public mass media.

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Azerbaijan GDP (Nominal, $USD) 2003-2017

President Mutalibov was forced to retire in December 1992 following the defeat of the Azerbaijan forces and the siege of Parliament by the People’s Front. In the following weeks, the Armenian offensive expanded and in May 1993, the attack against Stepanakert, the administrative center of Nagornij Karabakh, began.

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Parliament reinstated Mutalibov as president in mid-May, but the People’s Front put him off again during an armed uprising. The fighting spread across Nagorni Karabakh’s territory and after taking Stepanakert, the Armenian forces spread to several Azerbaijan regions.

The leader of the People’s Front, Albufaz Elchibei, won the presidential election in June, allowing the former leader of the Soviet Union Communist Party, Heydar Aliev’s return. However, a renewed Armenian offensive was followed by a coup. Under the leadership of Colonel Guseinov, the coup makers quickly occupied 5 provinces in the country. When the offensive against Bakú began, Elchibei fled, leaving Aliev the presidential post.

In September 1993 Parliament approved the accession of Azerbaijan to the Federation of Independent States. A month later, Aliev won the presidential election and launched a successful offensive in Nagorny Karabakh. Following pressure from Russia, a ceasefire took effect in May 1994 and negotiations between the warring parties began. Contacts continued in 1995 and in the first months of 1996, but no progress was made towards a final agreement.

Supporters of Prime Minister Surat Husseynov occupied several cities in October 1994, but they were quickly displaced by Aliev loyal forces. In Bakú, larger demonstrations were held in favor of Aliev, who replaced Husseynov. The president decreed two months of state of emergency and several MPs were arrested on charges of participating in the coup d’état.

In November 1995, parliamentary elections were held, without the participation of either Musavat’s influential party or communists or Muslims, whose existence had been banned by the government. Aliev’s party, the new Azerbadjan, became the winner of the election. The fall in gross domestic product in 1995 was on the order of 20% compared to the previous year, while inflation fell from 880% to 790% in the same period.

Note: the capital city of Azerbaijan is Baku with a population of 2,100,000 (2012). Other major cities include Ganja with a population of 313,000, Sumqayit with a population of 310,000 (2009 census).

In November 1996, Artur Rasizade replaced Prime Minister Fuad Guliyev, who had resigned for “health reasons”. economic issues such as privatizations were removed from their records due to incompetence – according to official explanations. For the second year in a row, Russia’s borders were closed. Mutual relations had cooled drastically following the Russian invasion of Chechnya in December 1994. In April, diplomatic relations with Iran deteriorated, following the arrest of members of the pro-Iranian Azerbaijan Islamic Party. In June, abbreviated as AZE by, Azerbaijan and Turkey signed a bilateral military cooperation agreement.

Amnesty International tried to pressure the authorities to convert the death penalty into a prison sentence and take the necessary measures to completely abolish it. In late 1997, Azerbaijan celebrated the opening of the Caspian Sea oil fields. The initiative was the result of a contract between the Azerbaijan Government and a consortium of 12 companies, where the North American representation was 40%. It is estimated that Azerbaijan, Kazakhstan and Turkmenistan together hold the world’s third largest oil reserves. In December 1999, a Japanese company decided to invest $ 2.3 billion in oil exploration.

Azerbaijan Economics and Business

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