Areas of Focus
BUSINESS & ECONOMY
Since the collapse of the Soviet Union, Azerbaijan’s economy has undergone a rapid process of modernization. As a result, Azerbaijan is now the primary economy in the South Caucasus region. Boosted initially by the success of its energy sector, the government has since undertaken several stages of land privatization which have made the economy more market-oriented. Azerbaijan is currently ranked 54th out of 183 countries in the World Bank’s Ease of Doing Business Index.
More recently, Azerbaijan’s economy has shown robust growth through the global economic crisis, enabling the Azerbaijani government to reinvest significant sums into the development of a broad range of domestic industries. Consequently, Azerbaijan’s economy has continued to grow and diversify, prompting Moody’s, Fitch and Standard & Poor’s to upgrade Azerbaijani bonds to “investment grade” – citing their growing confidence in the government’s fiscal management.
Nevertheless, whilst the energy sector is now accompanied by the growing telecoms and auto industries in terms of regional dominance, there is much work to be done if Azerbaijani companies are to compete on an international basis.
Role of the Alliance
In the coming months and years, the Alliance will be working to strengthen Azeri-American business ties through the development of formal relationships between businesses in each country, as well as working with existing multinationals to expand their footprint in Azerbaijan.
We have also begun to engage with institutional investors and executives who are less familiar with Azerbaijan in order to highlight available opportunities in the thriving Azerbaijani economy. In doing so, we hope to both expand and diversify Azerbaijan’s share of foreign direct investment which comes from the United States.